Institute of Advertising Practitioners in Ireland
Industry Census 2013 in association with Amรกrach Research
Contents
Page
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
1
Forecasts for 2013
25
Factors of Influence
29
IAPI Industry Census 2013
Introduction to IAPI Census 2013 The 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 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 Language McCann Dublin MEC Global Mediacom Mediavest Mediaworks Mindshare Ogilvy Dublin OMD Ireland Owens DDB Parker PHD Pierce Media Publicis Dublin Radical Rothco
Rubicon Shanley Media Southern Advertising Starcom Target McConnells The Media Bureau Vizeum Y&R Zenith
IAPI conducted a more limited industry census in 2007. 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 Ireland 3 Since the research concluded, five new agencies joined IAPI. 1 2
2
IAPI Industry Census 2013
Key Findings The census paints a picture of an industry in transition and under financial pressure, yet optimistic about the future.
Numbers employed 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.
Growth 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.
Age breakdown 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 5
3
There are less IAPI member agencies: 48 in 2007 compared to 43 in 2013. Marketing Institute of Ireland, Salary and Market Trend Report 2012-13.
IAPI Industry Census 2013
Women in the industry – breakdown by gender •
omen make up 51% the workforce, men 49%. The reverse is the case for UK agencies: W 51% men and 49% women.6
•
omen make up 13% of the total at Chairperson/CEO/Managing Partner level. It was W only 9% in 2007. Irish advertising agencies lag behind our UK counterpart where women represent 22% at this level.
•
here’s a slight disparity between media and creative agencies. Creative agencies have T 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.
Confidence in the sector for the year ahead • • •
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
4
IPA Industry Census 2012.
IAPI Industry Census 2013
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. September 2013
Tania Banotti CEO
Institute of Advertising Practitioners in Ireland
5
IAPI Industry Census 2013
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 Language McCann Dublin MEC Global Mediacom
6
Mediavest Mediaworks Mindshare Ogilvy Dublin OMD Ireland Owens DDB Parker PHD Pierce Media Publicis Dublin Radical Rothco Rubicon Shanley Media Southern Advertising Starcom Target McConnells The Media Bureau Vizeum Y&R Zenith
IAPI Industry Census 2013
Profile of Sample Agency Type
Creative and Media 3%
Media including Digital 43%
Creative including Digital 54%
Q. What type of advertising agency do you represent?
Average Number of Staff employed in each Agency Total
Min.
Max.
2
137
3
96
2
137
1
0
6
1
0
4
1
0
6
0
25
0
25
0
3
Full time
31
Creative
34
Media
27
Part time
Freelance
3 4 1
(Base: All IAPI member companies - 37) Q. What is the total number of staff employed in your agency? Due to rounding some totals may not add up to 100% in this document.
7
IAPI Industry Census 2013
Average Agency Income/Billings
Mean â‚Ź
Median* â‚Ź
Creative/Digital Agency
4,633,778
4,873,154
Media/Digital Agency
43,579,714
70,208,000
* 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
Creative Agencies Turnover Scatter Graph Illustration of Advertising Industry by Gross Income/Billings 10 9 Creative Agencies Turnover 8 10
Creative Agency Gross Income
79 68
Millions € Millions
Millions
57 46 35 24 13 02 1 0
0
5
10
15
20
0
5
10
15
20
Number of Agencies
Media Agencies Turnover
Media Agency Billings
160 140
Media Agencies Turnover
Millions Millions
€ Millions
160 120 140 100 120 80
100 60
80 40 60 20 40 0
20 0 0
5
10
15
Number of Agencies
0 5 10 *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.
9
15
IAPI Industry Census 2013
Section 1
Industry Census: Staff Turnover, Education & Demographics
12
IAPI Industry Census 2013
Breakdown of Staff by Department
5%
Chair/CEO/MD/Managing Partner
10%
15%
24% 1%
Account/Strategic Planning
5% 1%
Media Planning and Buying
12%
Search/SEO Media Research Other Media
4% 1% 2%
Creative - Copywriters/Art Directors
11%
Creative - Digital
3%
Creative - Design
3% 4%
Other Creative/Studio Creative Services incl. Art & Print Buying
1%
Project Management
1%
Digital Programmers/Web Designers
2%
Digital Production
2%
Digital Project Management
1%
Digital UX/Information Architecture
1%
Other Digital TV/Cinema/Radio Production Production Administration
30%
7%
Account Management
Research/Information
25%
5%
Other Executive Management
New Business/Marketing/PR
20%
4% 2% 1%
Finance/Payroll/Cashiers
8%
Human Resources/Training*
1%
IT
1%
PA/Secretaries
3%
All other staff
3%
Q. Please provide your breakdown of staff by each of the following departments. 13
IAPI Industry Census 2013
Breakdown of Department by Position and Gender IAPI Census
IPA Census**
Total %
Male %
Female %
Total %
Male %
Female %
Chair/CEO/MD/Managing Partner
5
87
13
3
78
22
Other Executive Management
6
69
31
3
72
28
Account Management
23
30
70
19
38
62
New Business/Marketing/PR
1
42
58
2
28
72
Account/Strategic Planning
4
43
57
5
56
44
Research/Information
1
50
50
1
51
49
Media Planning and Buying
12
50
50
13
46
54
Search/SEO
3
50
50
4
60
40
Media Research
1
-
100
1
40
60
Other Media
2
55
45
2
45
55
Creative - Copywriters/Art Directors
11
67
33
9
76
24
Creative - Digital
2
70
30
1
82
18
Creative - Design
2
71
29
3
75
25
Other Creative/Studio
4
64
36
4
80
20
Creative Services incl. Art & Print Buying
*
67
33
1
46
54
Project Management
*
20
80
2
43
57
Digital Programmers/Web Designers
2
90
10
2
85
15
Digital Production
1
89
11
1
70
30
Digital Project Management
1
50
50
1
39
61
Digital UX/Information Architecture
*
60
40
*
77
23
Other Digital
3
50
50
3
56
44
TV/Cinema/Radio Production
1
47
53
3
38
62
Production Administration
1
29
71
1
34
66
Finance/Payroll/Cashiers
7
33
67
6
36
64
Human Resources/Training*
*
15
85
1
10
90
IT
1
86
14
1
87
13
PA/Secretaries
2
-
100
3
4
96
All other staff
2
33
67
6
45
55
100 (1,281)
49 (629)
51 (652)
100 (20,491)
51 (10,449)
49 (10,042)
Total (%) Total (Number)
*Less than 1% – No response **Source – Institute of Practitioners in Advertising (IPA) Agency Census 2012 www.ipa.co.uk Q. Please provide your breakdown of staff by each of the following departments.
14
IAPI Industry Census 2013
Breakdown of Department By Position and Gender
Male
Female
Chair/CEO/MD/Managing Partner
87%
13%
Other Executive Management
69%
Account Management
30%
New Business/Marketing/PR
42%
Account/Strategic Planning
43%
Research/Information
50%
50%
Media Planning and Buying
50%
50%
Search/SEO
50%
50%
Media Research
100%
Other Media
55%
Creative - Copywriters/Art Directors
67%
Creative - Digital
70%
Creative - Design
71%
Other Creative/Studio
64%
Creative Services incl. Art & Print Buying
67%
Project Management
20%
Digital Programmers/Web Designers
90%
10%
Digital Production
89%
11%
Digital Project Management
50%
Digital UX/Information Architecture
60%
Other Digital
50%
TV/Cinema/Radio Production
47%
Production Administration
29%
Finance/Payroll/Cashiers
33%
Human Resources/Training*
15%
IT
86%
PA/Secretaries
100%
All other staff
33%
31% 70% 58% 57%
45% 33% 30% 29% 36% 33% 80%
50% 40% 50% 53% 71% 67% 85% 14% 67%
Q. Please provide a breakdown of your staff by each of the following departments. 15
IAPI Industry Census 2013
Breakdown of Staff by Discipline (Creative/Digital Agencies) 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
17
Other Executive Management
40
5
30
75
10
25
Account Management
190
24
54
28
136
72
New Business/Marketing/PR
7
1
2
29
5
71
Account/Strategic Planning
31
4
14
45
17
55
Research/Information
1
*
1
100
0
-
Media Planning and Buying
23
3
21
91
2
9
Search/SEO
10
1
6
60
4
40
Media Research
5
1
-
-
5
100
Other Media
14
2
8
57
6
43
Creative - Copywriters/Art Directors
134
17
90
67
44
33
Creative - Digital
29
4
20
69
9
31
Creative - Design
23
3
15
65
8
35
Other Creative/Studio
49
6
32
65
17
35
Creative Services incl. Art & Print Buying
5
1
3
60
2
40
Project Management
5
1
1
20
4
80
Digital Programmers/Web Designers
17
2
15
88
2
12
Digital Production
18
2
16
88
2
12
Digital Project Management
7
1
3
43
4
57
Digital UX/Information Architecture
5
1
3
60
2
40
Other Digital
24
3
15
63
9
37
TV/Cinema/Radio Production
15
2
7
47
8
53
Production Administration
7
1
2
29
5
71
Finance/Payroll/Cashiers
52
7
17
33
35
67
Human Resources/Training*
3
*
1
33
2
67
IT
6
1
6
100
0
-
PA/Secretaries
12
2
0
-
12
100
All other staff
26
3
9
35
17
65
*Less than 1% – No response Q. Please provide your breakdown of staff by each of the following departments.
16
IAPI Industry Census 2013
Breakdown of Staff by Discipline (Media/Digital Agencies) IAPI Total (Base: 494)
IAPI Male (Base: 214)
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
-
-
-
-
-
-
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
100
All other staff
2
*
-
-
2
100
Other Digital
IAPI Female (Base: 280)
*Less than 1% – No response Q. Please provide your breakdown of staff by each of the following departments.
17
IAPI Industry Census 2013
Average Age of Staff Working in IAPI Member Agencies Total
Male
Female
Number
%
Number
%
Number
%
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%
Under 21
Average IAPI Agency Age: 35
What proportion of your staff fit into the following age categories?
Profile of IAPI Staff by Age and Type of Agency Total
Creative
Media
Number
%
Number
%
Number
%
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%
Under 21
Average Creative Agency Age: 37
Average Media Agency Age: 34
What proportion of your staff fit into the following age categories?
18
IAPI Industry Census 2013
Average Level of Education achieved by those working in IAPI Member Agencies Ph. D. 0.2% Postgraduate 9.6% Masters 8.5% Degree 47.7% Diploma 16.7% Leaving Cert. 11.3% Don’t Know 5% Other 1%
Degree
Q. Please state the percentage breakdown of the highest level of education achieved by your staff.
19
IAPI Industry Census 2013
Level of Staff Turnover in IAPI Agencies at Year Ended 2012
Hired
230
Left to move within the industry
Left the industry
Let go/contract terminated
Left to emigrate
85 41
35
29
152
Creative Media
78 47
38 24
17
30 5
17
12
Q. In the year ending December 2012, how many staff were‌ 20
IAPI Industry Census 2013
21
IAPI Industry Census 2013
176
C
Section 2
Industry Census: Forecasts for 2013
e We feel positive about the futur • 60% of agencies forecast growth in their agency in 2013. . • 33% expect staff levels to increase me. • Most posts in our industry are full-ti
Forecast 2013
24
IAPI Industry Census 2013
Estimated Changes in Turnover for the Whole Industry in 2013 IAPI Census EACA* Data
60%
50%
47%
40% 34%
33% 29%
30%
29%
20%
20%
10%
8% -%
-%
-%
Strongly Increase
Increase
Remain the Same
Decrease
Strongly Decrease
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?
25
IAPI Industry Census 2013
Future Forecasts for My Agency in 2013
60% 33% 7% Growth
Remain the Same
Recession/Decline
EACA* Forecast for Industry in 2013
43%
35%
22%
Growth
Remain the Same
Recession/Decline
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 26
IAPI Industry Census 2013
Expected Levels of Growth/Decline for Agencies in 2013
Growth Expected
16%
Decline Expected
3.5%
Q. What percentage growth do you expect for your agency in 2013? Q. What percentage decline do you expect for your agency in 2013?
Expected Staff Levels for 2013
Increase 33%
Remain Constant 60%
Decrease 7% Q. By the end of 2013 do you expect staff levels to increase, decrease, remain the same when compared to current levels?
27
IAPI Industry Census 2013
11 59
IN
Factors of Influence on Agencies in 2013 IAPI Strong/very strong 4/5
EACA* Strong/very strong 4/5
Time pressure
80%
Cost pressure
83%
76% 67%
Pressure on smaller agencies Procurement in the agency selection process
64%
Clients thinking and acting short-term
63%
Globalisation
60%
Shift of decision making to abroad
60%
Rising importance of e-business
25% 46% 71% 42% 30%
53%
Clients’ personnel turnover (marketing & CEO’s)
42% 34%
47%
Expenditure on new business
30%
43%
Data based marketing communications
42%
37%
Prohibition/restriction on advertising
33%
Business/management consultants
26%
Lack of qualified staff
23% 9%
24%
Mergers/co-operation among clients Competition from lower cost economies/BRIC countries
34%
46% 21%
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?
29
IAPI Industry Census 2013
IN
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