U.S. agency revenue rose 4.4% to $48.3 billion in 2016, according to Ad Age Datacenter's bottoms-up analysis of more than 700 agencies, networks and companies for Agency Report 2017. Revenue broke a record, but growth was the slowest since 2013.
Digital reeled in 46.6% of U.S. agency revenue. But growth is moderating there, too. Agencies' digital revenue increased 8.0% in 2016, down from 13.5% in 2015. Digital media employment in 2016 rose 8.9%, the lowest growth since 2009.
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Adland's Big 5 made 121 mostly small deals in 2016. WPP (56) took control of its Australian/New Zealand affiliate; Dentsu (45) bought a majority stake in marketing agency Merkle. IPG did 10 deals, Omnicom five, Publicis five.
Four consultancies rank among the world's biggest agency companies: Accenture Interactive (No. 6), PwC Digital Services (7), IBM iX (8) and Deloitte Digital (9). Combined revenue: $13.2 billion. IBM was first of the four to make the list, in 2008—and the first to crack the top 10, in 2014.
Of the world's five largest digital agency networks, only one is owned by an old-guard company: No. 4 Publicis.Sapient (including SapientRazorfish and DigitasLBi). Accenture, IBM and Deloitte top the list. PwC is No. 5.
GroupM and Dentsu top Ad Age's first ranking of the world's five biggest media agency groups, followed by Omnicom Media Group, Publicis Media and IPG Mediabrands. Top five 2016 revenue: $16.7 billion, up 8.6%.

U.S. ad agency employment in December reached its highest level (202,700) since the dot-com bubble in 2001. Ad agency staffing last year grew 2.7%, tracking with ad agency revenue growth of 2.8%.
Employees | |
---|---|
February 2017 | 201,100 |
Now vs. year ago | + 1,200 |
Now vs. downturn nadir (2010) | + 40,500 |
Now vs. start of recession (December 2007) | + 13,300 |
All major agency disciplines grew last year, led by healthcare, up 7.6%. Promotion gained 5.4%, boosted by experiential marketing. The data-centric field of CRM/direct marketing rose 4.5%. PR increased 3.2%.
Discipline | % change, 2016 vs. 2015 | Revenue |
---|---|---|
Agencies from all disciplines 1 |
+ 4.4%
|
$48.3 billion |
Digital (including media agencies) 2,3 |
+ 8.0%
|
$22.5 billion |
Healthcare 3 |
+ 7.6%
|
$5.4 billion |
Promotion 3,4 |
+ 5.4%
|
$4.6 billion |
CRM/direct marketing 3 |
+ 4.5%
|
$8.8 billion |
Public relations 3 |
+ 3.2%
|
$4.5 billion |
Ad agencies 3 |
+ 2.8%
|
$11.9 billion |
Media agencies (excluding digital work) 3,5 |
- 0.4%
|
$3.1 billion |
Agency firms are streamlining and pruning. Publicis merged some brands as part of its sweeping reorganization into four hubs; Omnicom sold Novus Media, a local-media agency; and IPG sold Los Angeles agency Dailey.
Agency stocks have fared well. IPG in April hit its highest price since 2002; WPP in March scored a new high; and Omnicom in December reached its highest-ever adjusted close.