Marketing Consulting Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 44,000 marketing consulting services in the US provide advice and assistance on marketing related issues. Services include marketing strategy and market development consulting and implementation; sales management and development consulting and implementation; and strategic management consulting and implementation. Most marketing consulting firms are small, independent operators.
Variable Demand
Demand for marketing consulting services can vary depending on client needs.
Increasingly Complex Environment
Shifting demographics and the advent of digital technology have fundamentally changed the discipline of marketing and created a more complex and fragmented environment for clients and consultants.
Industry size & Structure
The average marketing consulting firm operates out of a single location, employs fewer than 5 workers, and generates about $1 million annually.
- The marketing consulting services industry consists of about 44,000 firms that employ 310,400 workers and generate about $43 billion annually.
- The industry is fragmented; the top 50 companies account for about 24% of industry revenue.
- Large management consulting firms that provide marketing consulting services include Bain, Boston Consulting Group, and McKinsey. ZS Associates is a management consulting firm that specializes in sales and marketing. Most marketing consulting firms are small, independent operators.
Industry Forecast
Marketing Consulting Services Industry Growth
Recent Developments
Apr 16, 2024 - Weaker but Steady Industry Growth
- The marketing consulting services industry is expected to experience softer but steady sales growth in the coming years. The industry’s year-over-year sales increased by 15% 2022 before dropping to 8% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to moderate further to 3.1% in 2024, then rise 5.1% in 2025. The industry will then see flat but steady average annual growth of about 5.5% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- US net media owner advertising revenues rose in the fourth quarter of 2023, marking the most robust quarterly growth in nearly two years, according to a March forecast by advertising firm MAGNA. Non-cyclical ad sales rose by 9.1% in Q4 compared to the same period in 2022. MAGNA updated its 2024 ad spending outlook to 9.2% growth from an earlier forecast of 8.4%. Pure play digital will continue to drive industry growth, as non-cyclical ad sales will rise 12% in 2024 and account for 72% of the advertising market. Traditional media spending (TV, audio, publishing, OOH, and cinema) will see 2024 ad sales growth of 3.5%. Cyclical events – including the Olympics and the 2024 election season – will add two percentage points of growth to 2024 overall non-cyclical ad sales growth.
- Some consulting firms are struggling to keep all their partners and junior staffers busy after a pullback in demand, according to The Wall Street Journal. The consulting business boomed during the pandemic as clients sought help with evolving remote work needs and supply chain disruptions. More recently, corporations have increased their focus on containing costs and are pulling back on consulting spending amid growing global economic uncertainty. According to Source Global Research, US consulting market growth is projected to slow to about 6% this year after posting double-digit growth during the pandemic. Source Global Research says more than 85% of US clients plan to reduce their consulting spending in 2024. However, some consulting firms believe the downturn is temporary and the market is beginning to improve.
- In mid-March, the US House of Representatives passed a bill with significant bipartisan support that would force TikTok’s Chinese owner ByteDance to either divest the social media application or face a US ban, according to The New York Times. However, the bill faces a more challenging path through the Senate, and even if it were to pass, it would likely face legal challenges. TikTok has come under fire amid concerns that its Chinese ownership threatens US national security, including potential interference in US elections. Also citing national security concerns, former President Trump tried to ban TikTok or force a sale in 2020, but the effort was blocked in federal court. In the event of a TikTok ban, EMARKETER estimates Meta’s Facebook would likely benefit the most, capturing between $1.9 billion and $2.4 billion of TikTok’s reallocated advertising revenue. Alphabet’s Google and YouTube would stand to gain between $1.7 billion to $1.9 billion.
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