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Data Analysis

Advertising Agency Revenues Up at Annual Rate of 7% Since Start of Economic Recovery

By Dr. Joe Webb
Published: September 25, 2014

 

 

The latest data from the Commerce Department's Quarterly Service Survey shows that advertising agency revenues have climbed at the rate of 7% per year since the recovery began after June 2009. The rate of growth exceeds real GDP growth which has been +2.2% on an annual basis since that time. How did they do it? A strong emphasis on digital media strategy and production that's replaced their loss of commissions and fees for broadcast and print advertising. Publishers revenues have not come close to even that lackluster GDP rate. The steep decline for magazines and books is over, for now: they are not growing and the decline in revenues is mild. Newspapers, however, are still in long term decline. Newspaper revenues are about half of what the were in 2004.

 

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