BReports
ARNES
U.S. Advertising Agencies
Industry (NAICS 54181)
n Market Reports
n Industry Trends
n Demographic Data
2012 Capital & Expenses Series
C. Barnes & Co.
Advertising Agencies Industry
(NAICS 54181)
TABLE OF CONTENTS
Users' Guide
Industry Definition and Related Industries
Industry Establishments, Sales & Employment Trends
Industry Ratios
2011 Establishments, Firms & Payroll
2011 Industry Cost of Materials
2011 Industry Rentals
2011 Industry Capital Expenditures
2011 Industry Other Expenses
2012 U.S. States - Estimated Cost of Materials
2012 U.S. States - Estimated Capital Expenditures
2012 U.S. States - Estimated Other Expenses
2013 U.S. States - Estimated Cost of Materials
2013 U.S. States - Estimated Capital Expenditures
2013 U.S. States - Estimated Other Expenses
2012 U.S. Metropolitan Areas - Estimated Cost of Materials
2012 U.S. Metropolitan Areas - Estimated Capital Expenditures
2012 U.S. Metropolitan Areas - Estimated Other Expenses
2013 U.S. Metropolitan Areas - Estimated Cost of Materials
2013 U.S. Metropolitan Areas - Estimated Capital Expenditures
2013 U.S. Metropolitan Areas - Estimated Other Expenses
Definitions and Terms
2012 Barnes Reports: U.S. Advertising Agencies Industry-Capital and Expenses 1
Advertising Agencies Industry
(NAICS 54181)
USERS' GUIDE
The Barnes Reports are the leading publications on U.S. industries and estimates and forecasts
on sales and employment demographics. As a way of making the most of this information, we have
included a few suggestions and tips to aid you in processing and using this information.
Managers, planners, and market researchers use this information for a variety of activities:
Sizing markets and segments – You can estimate the size of the regional markets you sell in
and your company’s market penetration into that market. You can do the same with the market
segments in which you participate.
Sales territory potential – You can estimate your market penetration and also the market potential
in any regional area or market segment.
Sales forecasting – With the estimates on the size of the industry, market researchers supporting
a sales force can then estimate and forecast the future size of the industry.
Advertising strategies – You can use this information for forecasting and estimating sales potential
and target advertising campaigns.
Competitive analysis – You will use the information to locate your possible competitors (if it is
not already known), to estimate their size, growth and strengths and weaknesses and to see what
market segments in which they participate.
We recognize that many managers today are asked to provide detailed analysis of their markets,
sales territories, distribution channels, and product placements. We have organized these reports in a
logical format making your market analysis and research tasks easy to accomplish.
Copyright © 2012 By C. Barnes & Co.
Printed in USA
All rights reserved. This publication may not be reproduced, stored in any information or retrieval system
or transmitted in whole or in part, in any form or by any means - electronic, mechanical, photocopying,
recording or otherwise - without the express written permission of C. Barnes & Co.
Note: Every effort has been made to verify and ensure the accuracy of the information within this
publication. However, if any errors exist in this publication C. Barnes & Co. disclaims any liability for
any loss or damage to any party as a result of the information or errors in this publication.
2012 Barnes Reports: U.S. Advertising Agencies Industry-Capital and Expenses 2
Advertising Agencies Industry
(NAICS 54181)
Industry Definition and Related Industries
NAICS 54181: Advertising Agencies . This industry comprises
establishments primarily engaged in designing and implementing public
relations campaigns. These campaigns are designed to promote the
interests and image of their clients. Establishments providing lobbying,
political consulting, or public relations consulting are included in this industry.
Related Industries
Direct Mail Printing
Commercial Printing
Public Relations Agencies
Mailing Houses
U.S. Census Categories
NAICS 54182 – Advertising Agencies is 100% comparable to
SIC 7311 – Advertising Agencies
Sub-Industries
Advertising agencies
Advertising consultant
2012 Barnes Reports: U.S. Advertising Agencies Industry-Capital and Expenses 3
Advertising Agencies Industry
(NAICS 54181)
Industry Establishments, Sales & Employment Trends
Year Percent Chg. Year-to-Year
2009 2010 2011 2012 2013 09-10 10-11 11-12 12-13
Establishments 13,926 14,045 13,565 13,712 14,045 0.9% -3.4% 1.1% 2.4%
Sales ($Millions) 81,448 85,515 84,809 88,898 94,103 5.0% -0.8% 4.8% 5.9%
Employment 176,362 177,944 171,831 173,746 177,942 0.9% -3.4% 1.1% 2.4%
Industry Ratios
Year Percent Chg. Year-to-Year
(Industry Averages) 2009 2010 2011 2012 2013 09-10 10-11 11-12 12-13
Sales ($M)/Estab. 5.85 6.09 6.25 6.48 6.70 4.1% 2.7% 3.7% 3.3%
Sales ($)/Emp. 461,824 480,573 493,561 511,653 528,842 4.1% 2.7% 3.7% 3.4%
Emps. per Estab. 12.7 12.7 12.7 12.7 12.7 0.0% 0.0% 0.0% 0.0%
2011 Establishments, Firms & Payroll
Employee Size of Firm or Establishment
2011 1-4 5-9 10-19 20-99 100-499 500+ Total
Emps. Emps. Emps. Emps. Emps. Emps.
Firms 8,103 2,025 1,235 978 148 81 12,569
Establishments 8,561 2,100 1,303 1,136 221 29 13,565
Payroll ($Millions) 810 796 1,126 2,987 1,891 5,896 13,506
HR Benefits ($M) 150.4 147.9 209.1 554.9 351.2 1,095.2 2,508.6
Health Insurance ($M) 66.4 65.2 92.2 244.8 154.9 483.2 1,106.7
Pension Plans ($M) 21.3 21.0 29.6 78.6 49.8 155.2 355.4
Contribution Plans ($M) 11.0 10.8 15.2 40.4 25.6 79.8 182.7
Other HR Benefits ($M) 92.9 91.4 129.2 342.8 217.0 676.6 1,549.8
* Firms (total company) are represented by employee size of firm.
Establishments (individual locations) are represented by employee size of establishments.
"Total establishments" do not include "unknown employees" so will not match "total establishments" in other parts of the report.
2012 Barnes Reports: U.S. Advertising Agencies Industry-Capital and Expenses 4
Advertising Agencies Industry
(NAICS 54181)
2011 Industry Cost of Materials
Employee Size of Establishment
2011 1-4 5-9 10-19 20-99 100-499 500+ Total
Emps. Emps. Emps. Emps. Emps. Emps.
Cost of Materials ($M) 450.5 221.0 320.0 781.2 665.7 334.2 2,772.7
Materials Used ($M) 201.0 98.6 142.8 348.6 297.0 149.1 1,237.2
Commission Expense ($M) 39.4 19.3 28.0 68.3 58.2 29.2 242.4
Contract Work ($M) 166.5 81.7 118.3 288.8 246.1 123.5 1,024.9
Cost of Fuels ($M) 29.0 14.3 20.6 50.4 42.9 21.6 178.8
Electricity ($M) 14.5 7.1 10.3 25.2 21.5 10.8 89.4
2011 Industry Rentals
Employee Size of Establishment
2011 1-4 5-9 10-19 20-99 100-499 500+ Total
Emps. Emps. Emps. Emps. Emps. Emps.
Total Rentals ($M) 510.7 250.6 362.8 885.6 754.7 378.9 3,143.3
Building Rentals ($M) 488.9 239.9 347.3 847.8 722.5 362.7 3,009.2
Machinery Rentals ($M) 21.8 10.7 15.5 37.8 32.2 16.2 134.1
2012 Barnes Reports: U.S. Advertising Agencies Industry-Capital and Expenses 5
Advertising Agencies Industry
(NAICS 54181)
2011 Industry Capital Expenditures
Employee Size of Establishment
2011 1-4 5-9 10-19 20-99 100-499 500+ Total
Emps. Emps. Emps. Emps. Emps. Emps.
Capital Expenditure ($M) 18.2 8.9 13.0 31.6 26.9 13.5 112.2
Buildings/Structures ($M) 8.3 4.0 5.9 14.3 12.2 6.1 50.8
Machinery/Equip. ($M) 10.0 4.9 7.1 17.3 14.8 7.4 61.5
Autos/Trucks ($M) 0.2 0.1 0.1 0.3 0.2 0.1 1.0
Computer Equip ($M) 0.9 0.4 0.6 1.5 1.3 0.7 5.4
Other Machinery ($M) 8.9 4.4 6.4 15.5 13.2 6.6 55.0
Total Depreciation ($M) 140.8 69.1 100.0 244.1 208.0 104.5 866.5
2011 Industry Other Expenses
Employee Size of Establishment
2011 1-4 5-9 10-19 20-99 100-499 500+ Total
Emps. Emps. Emps. Emps. Emps. Emps.
Other Expenses ($M) 1,576.7 773.5 1,120.1 2,734.1 2,329.9 1,169.8 9,704.2
Expensed Equip. ($M) 49.2 24.1 34.9 85.2 72.6 36.5 302.5
Software ($M) 43.6 21.4 31.0 75.6 64.4 32.3 268.2
Repair/Maintenance ($M) 39.6 19.4 28.1 68.6 58.5 29.4 243.6
Advertising Expenses ($M) 90.4 44.4 64.3 156.8 133.7 67.1 556.7
Taxes & Licenses ($M) 44.9 22.0 31.9 77.9 66.4 33.3 276.5
All Other Expenses ($M) 1,309.0 642.2 930.0 2,269.9 1,934.4 971.2 8,056.6
2012 Barnes Reports: U.S. Advertising Agencies Industry-Capital and Expenses 6
Advertising Agencies Industry
(NAICS 54181)
U.S. States – Estimated Cost of Materials ($Millions)
Year: 2012
Area Name Materials Used Commission Contract Work Cost of Fuels Electricity Total Cost of
Expense Materials
U.S. Total 1,359.9 266.4 1,126.5 196.5 98.3 3,047.6
Alabama 10.3 2.0 8.5 1.5 0.7 23.0
Alaska 1.5 0.3 1.3 0.2 0.1 3.4
Arizona 18.7 3.7 15.5 2.7 1.4 41.9
Arkansas 9.1 1.8 7.6 1.3 0.7 20.5
California 190.4 37.3 157.7 27.5 13.8 426.7
Colorado 31.9 6.3 26.5 4.6 2.3 71.6
Connecticut 18.8 3.7 15.6 2.7 1.4 42.2
Delaware 2.2 0.4 1.8 0.3 0.2 4.9
District of Columbia 4.1 0.8 3.4 0.6 0.3 9.2
Florida 73.2 14.3 60.6 10.6 5.3 164.0
Georgia 33.1 6.5 27.5 4.8 2.4 74.3
Hawaii 3.1 0.6 2.5 0.4 0.2 6.9
Idaho 15.2 3.0 12.6 2.2 1.1 34.2
Illinois 83.5 16.4 69.2 12.1 6.0 187.2
Indiana 16.2 3.2 13.4 2.3 1.2 36.2
Iowa 7.8 1.5 6.4 1.1 0.6 17.4
Kansas 11.7 2.3 9.7 1.7 0.8 26.3
Kentucky 12.0 2.3 9.9 1.7 0.9 26.8
Louisiana 8.0 1.6 6.6 1.2 0.6 18.0
Maine 3.4 0.7 2.8 0.5 0.2 7.6
Maryland 21.0 4.1 17.4 3.0