Advertising & PR Agencies NAICS 541810, 541820

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Industry Summary
The 21,839 advertising and PR agencies in the US develop and place ads for companies and organizations and develop programs to promote the interests of or create an image for their clients. Some full-service agencies provide both advertising and PR services.
Advertising Overload Spurs Backlash
Advertising and publicity space has become increasingly cluttered, with marketers struggling to get their voices heard.
Increasingly Complex Media Environment
The media environment is constantly evolving as a result of new technology; in the last decade, the environment has changed dramatically.
Recent Developments
Aug 19, 2025 - Advertising Agencies Rush to Catch up With AI
- Few industries are being as completely transformed by technology as advertising, and AI adoption by agencies and clients alike is driving that transformation. So far big ad agencies have struggled to adapt to AI doing more and more of the creative heavy lifting. Technology has already taken over the distribution side of the business, with half of all US ad spend last year going to Google and Meta, and now AI could be coming for the rest. Tech companies including Snapchat, Pinterest, and Google have created AI tools for creating and editing advertising campaigns, increasingly pushing out agencies as companies cut ad spend and bring those duties in-house. Now agencies are pushing ahead to catch up - WPP is spending $400 million to develop AI tools to sell to customers, and rival Publicis is also investing in AI tech.
- Non-management jobs at US advertising agencies have declined 10% since the beginning of 2022, according to Live Data Technology, as the industry grapples with significant change brought on by AI adoption. Entry-level jobs are the hardest hit, as most of those creative tasks have largely been taken over by AI in what is an industry-wide shift to technology. Executive and director-level roles, however, have remained stable. Mentions of AI in global job listings for advertising and marketing companies increased 67% year over year, according to Autodesk. The trend has opened the door for independent ad shops and those backed by private equity to boost hiring to compensate and compete. Overall advertising industry employment is stuck in pre-pandemic levels at about 220,000 jobs - agencies are down 4% year over year in employment, well below its high of 280,000 roles in 2023.
- Advertisers trying to find ways around consumers paying streamers to skip commercials have settled on boosting product placement within Hollywood productions themselves, often coming on board before a film or television production has even started filming. Streamers making expensive movies like “F1: The Movie” from Apple and “Happy Gilmore 2” on Netflix have begun to offset hundreds of millions in production costs with marketing deals that can be both lucrative and controversial. The marketer risks a movie bombing at the box office or being ignored on streaming, while content companies risk being accused of making big-budget commercials rather than a production that can stand on its own, as well as adding another layer of executives with possible creative control. Netflix even has its own integrated marketing team to draw advertisers into their productions, while marketing startups have entered the picture to help brands navigate entertainment product placement.
- Total US spending on advertising is expected to grow 4.5% in 2025, according to an S&P Global forecast, as consumers continue to spend despite growing fears about the state of the economy. The industry is expected to continue its shift towards digital advertising and away from legacy media (TV, radio, print). S&P expects digital advertising will expand by 9.1% this year, a slowdown from the 13.8% expansion in 2024 as the relatively new market normalizes. Digital ad growth is the fastest growing advertising segment as consumers shift away from traditional TV in favor of streaming and the technology offers detailed demographic user info to better target potential customers. National television advertising is expected to drop 8.9% in 2025 without the benefit of political ads or the Olympics as in 2024.
Industry Revenue
Advertising & PR Agencies

Industry Structure
Industry size & Structure
A typical ad agency operates out of a single location, employs less than 5 workers, and generates about $4.67 million in annual revenue. A typical public relations agency also operates out of a single location and employs less than 5 workers, but generates $2.4 million in annual revenue.
- The advertising agency industry includes 13,682 companies that employ 219,600 workers and generates $64 billion in annual revenue. The public relations agency industry includes 8,157 companies that employ about 68,500 workers and generates $20 billion in annual revenue.
- Agencies may compete with specialized agencies, such as media buying agencies or direct mail specialists. In some cases, agencies contract out specialized services.
- Large companies include Interpublic Group, Omnicom Group, and WPP. Large companies may act as holding companies for many smaller agencies.
Industry Forecast
Industry Forecast
Advertising & PR Agencies Industry Growth

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