Industry Census 2013 Institute of Advertising Practitioners in Ireland in association with Amárach Research
Jan 15, 2015
I N
Industry Census 2013
Institute of Advertising Practitioners in Ireland
in association with Amárach Research
Summary of Key Findings 3
Market Environment 7
Section 1 - Staff Turnover, Education & Demographics
Staff Breakdown by Role and Gender 13
Age Profile and Level of Education 18
Section 2 - Forecasts for 2013
Forecasts for 2013 25
Factors of Influence 29
ContentsPage
IAPI Industry Census 20131
1 IAPI conducted a more limited industry census in 2007. 2 Some agencies responded as a group • Core Media completed on behalf of Clear Blue Water, Mediavest, Radical, Starcom and Mediaworks • Ogilvy completed on behalf of Ogilvy and Y&R • Aegis completed on behalf of Brindley, Vizeum and Carat Ireland3 Since the research concluded, five new agencies joined IAPI.
Bluecube Brando Brindley Campaign Carat Ireland Cawley Nea\TBWA Chemistry Clear Blue Water DDFH&B Eighty:Twenty Firstcom Gaffney McHugh GT Media Havas Dublin In the company of Huskies Initiative Irish International
Javelin LanguageMcCann Dublin MEC Global Mediacom Mediavest Mediaworks Mindshare Ogilvy Dublin OMD Ireland Owens DDB Parker PHDPierce Media Publicis Dublin Radical Rothco
Rubicon Shanley Media Southern Advertising Starcom Target McConnells The Media Bureau Vizeum Y&R Zenith
Introduction to IAPI Census 2013The Institute of Advertising Practitioners in Ireland (IAPI) is the trade body representing advertising agencies across the spectrum: creative, media, digital, and full service.
Introduction Amárach Research, in partnership with IAPI, hosted a survey for all member companies of IAPI, to establish useful industry information and to aid management in each member company. This is the first time the industry has ever produced such a detailed census and yielded a wealth of data for us to learn from.1
An overall response rate of 88% was achieved for the survey. From a total number of 43 member agencies in IAPI, there were 30 completed surveys received, representing a total of 37 agencies.2
Each survey was conducted using an online methodology and the fieldwork was carried out between May and June of 2013. It was completed by either the Managing Director or the Financial Director of each agency.
IAPI members (as of May 2013)3
IAPI Industry Census 20132
The census paints a picture of an industry in transition and under financial pressure, yet optimistic about the future.
1,281 people were directly employed by IAPI member agencies in 2012. Amazingly this is exactly the same number of people employed in IAPI member agencies in 2007. This indicates more stability than we expected. While some mergers and closures have taken place since the downturn,4 it demonstrates that staff reduction hasn’t been quite as bad as we feared.
There is a visible difference between the numbers of people employed in creative agencies: 787 people in total, compared to 494 people in media agencies. When compared to 2007, we found a decrease in creative agency staff numbers by 20% and a growth in media agencies by 69%. This would support the impression of significant growth on the media agency side.
The number of full time jobs in the industry is high compared to part time/freelance positions. Two hundred and thirty people were hired in 2012. A third of all agencies expect staff levels to increase in 2013 indicating a confidence that the industry is expanding.
The industry attracts those with high levels of education; 66% had a degree or higher; 18.3% had a postgrad qualification.
The average age for employees in the industry is 35. The average age in the 2007 IAPI industry census was 34. This is in line with the client side where 42% of clients are aged 30 – 39 years old.5
4 There are less IAPI member agencies: 48 in 2007 compared to 43 in 2013.5 Marketing Institute of Ireland, Salary and Market Trend Report 2012-13.
Key Findings
Numbers employed
Growth
Age breakdown
IAPI Industry Census 20133
Women in the industry – breakdown by gender
Confidence in the sector for the year ahead
• Women make up 51% the workforce, men 49%. The reverse is the case for UK agencies: 51% men and 49% women.6
• Women make up 13% of the total at Chairperson/CEO/Managing Partner level. It was only 9% in 2007. Irish advertising agencies lag behind our UK counterpart where women represent 22% at this level.
• There’s a slight disparity between media and creative agencies. Creative agencies have 17% women at Chairperson/CEO/Managing Partner level, compared to 10% in media agencies.
Some parts of the industry are dominated by women• Project management: 80% women, 20% men.• Account management: 70% women, 30% men.
Others are dominated by men• Creative areas (copywriters, arts directors, digital and design) 67% are men, 33% women.• It’s even more pronounced in digital with some areas up to 90% male.
• 20% of those surveyed estimated turnover for the industry as a whole will increase.• 33% of those surveyed estimated turnover for the industry as a whole will remain the same.• 47% of those surveyed estimated turnover for the industry as a whole would decrease.
By contrast agencies were more bullish about their own agency’s prospects• 60% of those surveyed forecast growth for their agency in 2013.• 33% of those surveyed predicted it would remain the same.
The apparent ‘disconnect’ between confidence in the industry vs. confidence in individual agency prospects is quite common. Historical data from different business sectors suggests that business owners and managers are likely to be more optimistic about their own business, whilst being less positive about the outlook for the industry as whole.
6 IPA Industry Census 2012.
IAPI Industry Census 20134
The Market Environment
Agencies are really feeling the pressure on cost and time.
41% of clients use procurement departments to agree fees. Therefore it’s not surprising that the role of procurement in agency selection ranks third in terms of factors that pre-occupy agencies in 2013. Only time pressure and cost pressure supersede it.
Amárach completed a short statistical analysis of the findings from sentiment questions in order to explore the drivers of agency growth – and barriers – identified in the research. Using correlation analysis it identified the following key (statistically significant) relationships between performance, perceptions and expectations.
• There is a strong, positive correlation between the agency growth outlook and hiring plans, one of the strongest in the data in fact.
• Globalisation is strongly correlated with time pressures, and with the shift of decision making abroad.
• The role of procurement in agency selection is negatively correlated with industry growth outlook and agency growth outlook, but positively correlated with the influence of management consultants.
Our survey and analysis point to a time of dynamic change in the world of marketing and communication agencies. The balance of opportunities and threats broadly favours a positive outlook at the individual agency level, if not at the aggregate industry level.
Tania BanottiCEO
Institute of Advertising Practitioners in Ireland
September 2013
IAPI Industry Census 20135
IAPI Members (as of May 2013)Bluecube Brando Brindley Campaign Carat Ireland Cawley Nea\TBWA Chemistry Clear Blue Water DDFH&B Eighty:Twenty Firstcom Gaffney McHugh GT Media Havas Dublin In the Company of Huskies Initiative Irish International Javelin LanguageMcCann Dublin MEC Global Mediacom
Mediavest Mediaworks Mindshare Ogilvy Dublin OMD Ireland Owens DDB Parker PHDPierce Media Publicis Dublin Radical Rothco Rubicon Shanley Media Southern Advertising Starcom Target McConnells The Media Bureau Vizeum Y&R Zenith
IAPI Industry Census 20136
Profile of Sample
Min. Max.
2 137
3 96
2 137
0 6
0 4
0 6
0 25
0 25
0 3
Full timeTotal
Creative
Media
Part time
Freelance
(Base: All IAPI member companies - 37)Q. What is the total number of staff employed in your agency?
Q. What type of advertising agency do you represent?
Agency Type
Average Number of Staff employed in each Agency
31
34
27
3
4
1
1
1
1
Creative and Media 3%
Creative including Digital 54%
Media including Digital 43%
Due to rounding some totals may not add up to 100% in this document.
IAPI Industry Census 20137
Mean €
Median*€
Creative/Digital Agency 4,633,778 4,873,154
Media/Digital Agency 43,579,714 70,208,000
Average Agency Income/Billings
* Median is the middle point between highest and lowest volume turnover Q. In order for us to determine what we as an industry contribute to the economy, please can you supply the following income details?
8
Scatter Graph Illustration of Advertising Industry by Gross Income/Billings
Creative Agency Gross Income
Media Agency Billings
00
1
2
3
4
5
6
7
8
9
10
Millions
5 10 15 20
Creative Agencies Turnover
00
20
40
60
80
100
120
140
160
Millions
5 10 15
Media Agencies Turnover
00
1
2
3
4
5
6
7
8
9
10
Millions
5 10 15 20
Creative Agencies Turnover
00
20
40
60
80
100
120
140
160
Millions
5 10 15
Media Agencies Turnover
€ M
illio
ns€
Mill
ions
*Gross income is defined as the total fees, commission, mark-up’s etc. earned during the year.* Billings is defined as the total amount of client investment put through your agency for the purchase of media/media activities in the given 12 months.
Number of Agencies
Number of Agencies
IAPI Industry Census 20139
Industry Census:Staff Turnover, Education & Demographics
Section 1
IAPI Industry Census 201312
Chair/CEO/MD/Managing Partner
Other Executive Management
Account Management
New Business/Marketing/PR
Account/Strategic Planning
Research/Information
Media Planning and Buying
Search/SEO
Media Research
Other Media
Creative - Copywriters/Art Directors
Creative - Digital
Creative - Design
Other Creative/Studio
Creative Services incl. Art & Print Buying
Project Management
Digital Programmers/Web Designers
Digital Production
Digital Project Management
Digital UX/Information Architecture
Other Digital
TV/Cinema/Radio Production
Production Administration
Finance/Payroll/Cashiers
Human Resources/Training*
IT
PA/Secretaries
All other staff
Q. Please provide your breakdown of staff by each of the following departments.
Breakdown of Staff by Department
7%
1%
5%
1%
12%
4%
1%
2%
11%
3%
3%
1%
1%
2%
4%
2%
1%
1%
4%
2%
1%
8%
1%
1%
3%
3%
24%
30%5% 10% 15% 20% 25%
5%
7%
2%
2%
1%
1%
4%
2%
1%
8%
1%
1%
3%
3%
IAPI Industry Census 201313
IAPI Census IPA Census**
Total % Male % Female % Total % Male % Female %Chair/CEO/MD/Managing Partner 5 87 13 3 78 22Other Executive Management 6 69 31 3 72 28Account Management 23 30 70 19 38 62New Business/Marketing/PR 1 42 58 2 28 72Account/Strategic Planning 4 43 57 5 56 44Research/Information 1 50 50 1 51 49Media Planning and Buying 12 50 50 13 46 54Search/SEO 3 50 50 4 60 40Media Research 1 - 100 1 40 60Other Media 2 55 45 2 45 55Creative - Copywriters/Art Directors 11 67 33 9 76 24Creative - Digital 2 70 30 1 82 18Creative - Design 2 71 29 3 75 25Other Creative/Studio 4 64 36 4 80 20Creative Services incl. Art & Print Buying * 67 33 1 46 54Project Management * 20 80 2 43 57Digital Programmers/Web Designers 2 90 10 2 85 15Digital Production 1 89 11 1 70 30Digital Project Management 1 50 50 1 39 61Digital UX/Information Architecture * 60 40 * 77 23Other Digital 3 50 50 3 56 44TV/Cinema/Radio Production 1 47 53 3 38 62Production Administration 1 29 71 1 34 66Finance/Payroll/Cashiers 7 33 67 6 36 64Human Resources/Training* * 15 85 1 10 90IT 1 86 14 1 87 13PA/Secretaries 2 - 100 3 4 96
All other staff 2 33 67 6 45 55
Total (%) Total (Number)
100 (1,281)
49 (629)
51 (652)
100 (20,491)
51 (10,449)
49 (10,042)
Breakdown of Department by Position and Gender
*Less than 1% – No response**Source – Institute of Practitioners in Advertising (IPA) Agency Census 2012 www.ipa.co.ukQ. Please provide your breakdown of staff by each of the following departments.
IAPI Industry Census 201314
Chair/CEO/MD/Managing Partner
Other Executive Management
Account Management
New Business/Marketing/PR
Account/Strategic Planning
Research/Information
Media Planning and Buying
Search/SEO
Media Research
Other Media
Creative - Copywriters/Art Directors
Creative - Digital
Creative - Design
Other Creative/Studio
Creative Services incl. Art & Print Buying
Project Management
Digital Programmers/Web Designers
Digital Production
Digital Project Management
Digital UX/Information Architecture
Other Digital
TV/Cinema/Radio Production
Production Administration
Finance/Payroll/Cashiers
Human Resources/Training*
IT
PA/Secretaries
All other staff
Breakdown of Department By Position and Gender
30%
50%
100%
70%
67%
89%
50%
33%
100%
33%
69%
43%
50%
67%
64%
90%
60%
29%
86%
87% 13%
31%
70%
58%
57%
50%
50%
50%
45%
33%
30%
29%
36%
33%
80%
10%
50%
11%
40%
50%
53%
71%
67%
14%
85%
67%
42%
50%
55%
71%
20%
50%
47%
15%
Q. Please provide a breakdown of your staff by each of the following departments.
Male Female
IAPI Industry Census 201315
Breakdown of Staff by Discipline (Creative/Digital Agencies)
*Less than 1% – No responseQ. Please provide your breakdown of staff by each of the following departments.
IAPI Total (Base: 787) IAPI Male (Base: 415) IAPI Female (Base: 372)
Number % Number % Number %
Chair/CEO/MD/Managing Partner 29 4 24 83 5 17Other Executive Management 40 5 30 75 10 25Account Management 190 24 54 28 136 72New Business/Marketing/PR 7 1 2 29 5 71Account/Strategic Planning 31 4 14 45 17 55Research/Information 1 * 1 100 0 -Media Planning and Buying 23 3 21 91 2 9Search/SEO 10 1 6 60 4 40Media Research 5 1 - - 5 100Other Media 14 2 8 57 6 43Creative - Copywriters/Art Directors 134 17 90 67 44 33Creative - Digital 29 4 20 69 9 31Creative - Design 23 3 15 65 8 35Other Creative/Studio 49 6 32 65 17 35Creative Services incl. Art & Print Buying 5 1 3 60 2 40Project Management 5 1 1 20 4 80Digital Programmers/Web Designers 17 2 15 88 2 12Digital Production 18 2 16 88 2 12Digital Project Management 7 1 3 43 4 57Digital UX/Information Architecture 5 1 3 60 2 40Other Digital 24 3 15 63 9 37TV/Cinema/Radio Production 15 2 7 47 8 53Production Administration 7 1 2 29 5 71Finance/Payroll/Cashiers 52 7 17 33 35 67Human Resources/Training* 3 * 1 33 2 67IT 6 1 6 100 0 -PA/Secretaries 12 2 0 - 12 100All other staff 26 3 9 35 17 65
IAPI Industry Census 201316
Breakdown of Staff by Discipline (Media/Digital Agencies)
IAPI Total (Base: 494) IAPI Male (Base: 214) IAPI Female (Base: 280)
Number % Number % Number %
Chair/CEO/MD/Managing Partner 29 6 26 90 3 10
Other Executive Management 39 8 24 62 15 38
Account Management 106 21 35 33 71 67
New Business/Marketing/PR 5 1 3 60 2 40
Account/Strategic Planning 23 5 9 39 14 61
Research/Information 13 3 6 46 7 54
Media Planning and Buying 129 26 55 43 74 57
Search/SEO 30 6 14 47 16 53
Media Research 2 * - - 2 100
Other Media 8 2 4 50 4 50
Creative - Copywriters/Art Directors 8 2 5 63 3 37
Creative - Digital 1 * 1 100 - -
Creative - Design 4 1 4 100 - -
Other Creative/Studio 3 1 1 33 2 67
Creative Services incl. Art & Print Buying 1 * 1 100 - -
Project Management - - - - - -
Digital Programmers/Web Designers 3 1 3 100 - -
Digital Production - - - - - -
Digital Project Management 3 1 2 67 1 33
Digital UX/Information Architecture - - - - - -
Other Digital 16 3 5 31 11 69
TV/Cinema/Radio Production - - - - - -
Production Administration - - - - - -
Finance/Payroll/Cashiers 40 8 10 25 30 75
Human Resources/Training* 4 1 - - 4 100
IT 8 2 6 75 2 25
PA/Secretaries 17 3 - - 17 100All other staff 2 * - - 2 100
*Less than 1% – No responseQ. Please provide your breakdown of staff by each of the following departments.
IAPI Industry Census 201317
Average IAPI Agency Age: 35
What proportion of your staff fit into the following age categories?
Average Age of Staff Working in IAPI Member Agencies
Profile of IAPI Staff by Age and Type of Agency
Average Creative Agency Age: 37
What proportion of your staff fit into the following age categories?
Average Media Agency Age: 34
Total Male Female
Number % Number % Number %
Under 21 4 1% - - 4 100%
21-25 144 11% 60 42% 84 58%
26-30 364 28% 152 42% 212 58%
31-40 494 39% 244 50% 250 50%
41-50 198 15% 116 59% 82 41%
51-60 66 5% 50 76% 16 24%
61+ 11 1% 7 64% 4 36%
Total 1281 100% 629 100% 652 100%
Total Creative Media
Number % Number % Number %
Under 21 4 1% 4 1% - -
21-25 144 11% 75 10% 69 14%
26-30 364 28% 202 26% 162 33%
31-40 494 39% 318 40% 176 36%
41-50 198 15% 142 18% 56 11%
51-60 66 5% 39 5% 27 5%
61+ 11 1% 7 1% 4 1%
Total 1281 100% 787 100% 494 100%
IAPI Industry Census 201318
Degree
Q. Please state the percentage breakdown of the highest level of education achieved by your staff.
Average Level of Education achieved by those working in IAPI Member Agencies
Don’t Know 5%
Other 1%
Diploma 16.7%
Leaving Cert. 11.3%
Degree 47.7%
Masters 8.5%
Postgraduate 9.6%
Ph. D. 0.2%
IAPI Industry Census 201319
Hired Left to move within the industry
Left the industry
Let go/contract terminated
Left to emigrate
152
78
4738
17 1224
175
30
85
41 35 29
230
Level of Staff Turnover in IAPI Agencies at Year Ended 2012
CreativeMedia
Q. In the year ending December 2012, how many staff were…
IAPI Industry Census 201320
IAPI Industry Census 201321
176 C
176 C
Industry Census:Forecasts for 2013
Section 2
Forecast 2013
We feel positive about the future
• 60% of agencies forecast growth
in their agency in 2013. • 33% expect staff levels to increase.
• Most posts in our industry are full-time.
IAPI Industry Census 201324
Estimated Changes in Turnover for the Whole Industry in 2013
Historical data suggests that business owners, managers and stakeholders are likely to be optimistic about their own business whilst being less than positive about the outlook of their industry.
*‘European Association of Communications Agencies (EACA) Euro Barometer 2013 survey on current trends in agencies across Europe. www.eaca.be’ Q.How do you estimate the turnover for the whole industry will change for the year 2013?
IAPI CensusEACA* Data
47%
29%
-%
8%
33%
29%
34%
20%
-%-%
Strongly Increase
Increase Remainthe Same
Strongly Decrease
Decrease
60%
50%
40%
30%
20%
10%
IAPI Industry Census 201325
Future Forecasts for My Agency in 2013
Growth
60%
33%
7%
Remain the Same Recession/Decline
EACA* Forecast for Industry in 2013
Growth
43%35%
22%
Remain the Same Recession/DeclineHistorical data suggests that business owners, managers and stakeholders are likely to be optimistic about their own business whilst being less than positive about the outlook of their industry.
* European Association of Communications Agencies (EACA) Euro Barometer 2013 survey on current trends in agencies across Europe. www.eaca.be
IAPI Industry Census 201326
Expected Levels of Growth/Decline for Agencies in 2013
Q. What percentage decline do you expect for your agency in 2013?Q. What percentage growth do you expect for your agency in 2013?
Expected Staff Levels for 2013
Q. By the end of 2013 do you expect staff levels to increase, decrease, remain the same when compared to current levels?
Increase 33%
Remain Constant 60%
Decrease 7%
Decline Expected
Growth Expected
16% 3.5%
IAPI Industry Census 201327
I N
11 59
Time pressure
Cost pressure
Pressure on smaller agencies
Procurement in the agency selection process
Clients thinking and acting short-term
Globalisation
Shift of decision making to abroad
Rising importance of e-business
Clients’ personnel turnover (marketing & CEO’s)
Expenditure on new business
Data based marketing communications
Prohibition/restriction on advertising
Business/management consultants
Lack of qualified staff
Mergers/co-operation among clients
Competition from lower cost economies/BRIC countries
Factors of Influence on Agencies in 2013IAPI Strong/very strong 4/5
EACA*Strong/very strong 4/5
80% 34%
83%
25%
46%
71%
42%
30%
42%
34%
42%
23%
9%
46%
21%
30%
76%
67%
64%
63%
60%
60%
53%
47%
43%
37%
33%
26%
24%
20%
3%
European Association of Communications Agencies (EACA) Euro Barometer 2013 survey on current trends in agencies across Europe. www.eaca.be Q. How strongly will the following factors influence and/or preoccupy agencies in 2013?
*
IAPI Industry Census 201329
I N
Created and Designed by