Revenues rose for agencies in 2012: Report

Recently released numbers from Statistics Canada suggest continued revenue and salary growth for marcom agencies.
Copied from Media in Canada - money1

Statistics Canada wrung in 2014 by releasing 2012 data for marcom agency growth.  The government agency breaks the industry into different categories, including: advertising agencies, direct mail advertising and material distribution services, display advertising, all other services related to advertising, specialty advertising distributors, public relations and finally media buying agencies and media representatives.

According to the report, operating revenues for advertising and related services (PR, media, etc.)  rose 2.9% between 2011 and 2012, to $7.1 billion. For advertising agencies, this translates to $2.8 billion, from $2.7 billion in 2011.

Ontario takes the lion’s share with $1.7 billion in revenue, followed by Quebec agencies, which brought in almost $700 million in 2012. Manitoba agencies saw the biggest revenue increase between 2011 and 2012, with a 33% growth. New Brunswick, Nova Scotia, Alberta and Saskatchewan all saw revenue decline during that period.

Profit margins remained stable at 10.2%, with Saskatchewan earning the highest profit margin at 19.4%.

Salaries, wages and benefits continue to make up the bulk of operating expenses across Canada, taking up 41% of all expenses (up from 40.7% in 2011), or $2.5 billion. At advertising agencies, salaries, wages and benefits made up $1.3 billion in 2012, up from $1.2 billion in 2011.

Among the different marcom categories, all other services related to advertising (such as sign painting and window dressing) saw the biggest revenue increase with 7.5%, followed by media buyers at 6.5% increase.

Advertising agencies held the largest portion of the marcom industry’s revenue at 39.7%, followed by direct mail and advertising material distribution services at 12.7% and display advertising at 12.1%. All other services related to advertising took up 10.8% of the revenue, followed by specialty advertising distributors at 10.3%, public relations at 7.9% and finally media buying agencies and media representatives at 6.4%.