The advertising agency market - France (2024)

1.2 A growing global advertising market

The size of the global advertising agency market has increased in recent years. It will rise from $***.** billion in **** to $***.** billion in ****, with a compound annual growth rate of *.*%.

Between **** and ****, it should continue to grow steadily at a compound annual growth rate of *.*%.

Size of the global advertising agency market World, ****-****, in billions of dollars Source: ****

The global advertising agency market is therefore a dynamic and buoyant one.

The chart above shows that the UK's WPPleads the world's largest advertising groups with sales of $**.* billion, followed by the US's Omnicom Group with $**.* billion and France's Publicis Groupe with $**.* billion.

Two French companies feature in the world rankings: Publicis Groupe and Havas.

Forecast share of global growth World, ****, in Source: ****

According to the Dentsu Group, the North America and North America regions will be the main drivers of global growth in ****, with **.*% and **.*% of global growth respectively. [***]

1.3 French market recovery

Growth in advertising agency sales France, ****-****, in billions of euros Source: ****

Sales growth for advertising agencies in France (***) between **** and **** shows an overall positive trend, despite some annual fluctuations. Moderate growth is observed until ****, with a steady increase in sales. However, a significant downturn is recorded in ****, probably due to the impact of the COVID-** pandemic on the advertising sector, notably as a result of travel restrictions and reduced marketing spending by many companies.

This contraction is followed by a recovery in **** and notable growth in **** and ****, indicating a certain resilience in the advertising market despite the challenges encountered. This trend also suggests that advertising agencies are able to adapt to market changes and bounce back from periods of economic turbulence.

Between **** and ****, advertising agency sales grew by **.**%.

Value of advertising spend by advertisers France, ****-****, in billions of euros Sources : Kantar, Kantar Between **** and ****, advertising expenditure by French advertisers rose by **%, from **.** billion euros in **** to **.** billion euros in ****. The trend in advertising expenditure by advertisers in France between **** and **** therefore shows a positive overall trend, with some variations from one year to the next. A notable increase is observed in **** compared with ****, indicating a recovery from the decline ...

2.1 Who are the main French advertisers?

Advertisers are companies and organizations that want to get a message across through advertising. There are * main categories of advertisers:

Large companies (***), which often have large advertising budgets. SMEs/SMIs with more limited budgets Non-profit organizations Public administrations and services The State Political figures

Top advertisers in ****:

The ranking is based on the diversity of the media mix* and the company's advertising budget.

Food retail brands will be very much present in the top * advertisers in ****, with * out of * brands.

Between **** and ****, competition for the top spot is seen between Lidl and Leclerc. Indeed, in **** and ****, Lidl leads, then in **** and ****, E.Leclerc takes the lead. In **** and ****, Lidl regains the lead, before being overtaken again by E.Leclerc in ****.

Top advertisers by category in **** :

TOP advertisers paid social **** :

TOP advertisers on creations tagged sport **** :

TOP advertisers with the broadest media mix* **** :

TOP CSR campaign increases in **** :

TOP BtoB advertisers **** :

*Media mix: all media channels integrated into an advertising strategy

Source: ****

Breakdown of net advertising and communication expenditure by macro-sector France, ****, % (***) Source : Kantar The breakdown of net spending on advertising and communication by macro-sector in France in **** reveals a relatively balanced distribution, with consumer goods and services in the lead, ...

2.2 Demand typology

Advertiser portfolio by media France, ****-****, in number of advertisers Source: ****

Analysis of the advertiser portfolio by media in France between **** and **** reveals significant changes in the distribution of advertising spend. Overall, we see a decline in the number of advertisers in most media in **** compared to ****, with the exception of digital audio, DOOH (***) are recording a very significant increase in the number of advertisers: +***%. Paid social allows you to pay to broadcast an ad to a very specific target.

This trend may reflect an evolution in corporate advertising strategies, with a growing preference for digital media and social networks to reach consumers in an increasingly digital environment.

On the other hand, traditional media such as print, radio and TV are showing a decline in the number of advertisers, which could be attributable to changing media consumption behaviors and a shift in budgets towards more targeted and measurable digital channels.

In total, by ****, the advertising market will rely on **,*** advertisers across all media.

In ****, the main communication channel remained non-media, with more than **% of advertisers' total communication spend. The five historical media (***) accounted for **.*% of communications demand, and digital media totaled **% of advertisers' spending. [***] Communication investments by channel type France, ****, in ...

2.3 Demand shifts to digital and social networks (paid social)

In France, digital media are increasingly used by advertisers. In ****, digital media will account for **. *% of advertisers' communication investments. (***)

Evolution of different communication levers France, ****-****, in € millions and as a % of sales Source : Kantar Advertiser spending on the various communication levers in France in **** reflects a significant distribution of investments, with a strong predominance of digital. Indeed, digital accounts for the largest share of spending at €*,*** million, highlighting the growing importance of digital channels in corporate communications strategies . Promotions and point-of-sale (***) advertising follow closely with **** million euros, underlining the emphasis on marketing tactics focused on the in-store customer experience.

Evolution of different communication levers France, ****-****, in % Source: ****

The evolution of the various communication levers between **** and **** highlights several significant trends. First and foremost, digital stands out with a remarkable **.*% increase, underlining the ongoing shift towards digital channels in companies' communication strategies. Promotions and point-of-sale (***) advertising posted modest growth of *%, testifying to the continuing importance of in-store experiential marketing tactics.

By contrast, direct marketing and directories recorded significant declines of **.*% and **.*% respectively, suggesting a decline in the perceived effectiveness of these traditional channels. At the same time, the press and cinema also suffered notable declines of **.*% and **.*% respectively, reflecting changes ...

2.4 An increasingly demanding and autonomous demand

The arrival of digital at the heart of advertisers' concerns and strategies has meant that demand has become both more demanding and more autonomous.

Today, advertising agencies can no longer rely on the promise of notoriety or buzz to win over major advertisers.) to win over major advertisers, who increasingly want to put data and profitability at the heart of their commercial and advertising decisions.What's more, a growing number of advertisers are now able to provide for their own media and space buying needs, using the various tools offered by Google or Facebook. Today, it is estimated that **% to **% of space purchases are already managed directly by advertisers. [***]

Last but not least, the irruption of digital into commercial communication has increased the scope of an advertiser's expectations to such an extent that the spectrum of skills required of agencies is, more often than not, well beyond their real expertise. [***]

2.5 The "Olympic Games effect" on the advertising market

With a record audience of * billion viewers for the opening ceremony and ** million visitors expected, the Paris **** Olympic Games offer an unprecedented opportunity for the French advertising market. According to forecasts by advertising group Magna, advertising investment is set to rise by *.*% in France this year, reaching **.* billion euros, surpassing the *.*% growth recorded in ****. [***]

Volume of new advertising creatives on the theme of the Olympic and Paralympic Games France, ****-****, number of creatives Source: ****

The volume of new advertising creatives on the theme of the Olympic and Paralympic Games in France has evolved significantly over the period from **** to ****. A trend marked by significant variations from one year to the next is observed, probably illustrating the impact of Olympic events on the advertising industry.

In particular, a sharp increase is noted in between **** and ****, with a total of *** new advertising creatives in ****. This growth can be attributed to the approach of the Paris **** Olympic Games, stimulating advertising activity in the country. This trend also suggests that advertisers are increasingly using campaigns focused on major sporting events to reach their target audience and capitalize on the excitement generated by these occasions.

Breakdown of ads with a link to the **** Olympics by type ...

3.1 Advertising campaign value chain

To accomplish its mission effectively, an advertising agency must first and foremost understand its client's needs. This requires careful listening, in-depth analysis and precise diagnosis of the advertiser's objectives and resources. Once these elements have been clarified, the agency can draw up a suitable communications strategy, including a strategic plan, integrating ambitions and available resources. To ensure the success of this approach, the presence of all the agency's experts at the briefing meeting is highly recommended.

In addition, adherence to the campaign's implementation stages is essential to achieving the set objectives and ensuring customer satisfaction.

Source: ****

A closer look at the different stages:

Briefing : Initial stage in which the customer outlines his needs, objectives and constraints to the advertising agency in order to frame the campaign.

Strategic plan: Development of a detailed communications strategy based on the information gathered during the briefing, including definition of targets, key messages and distribution channels.

Graphic research and design of advertising media : Creation of visual and editorial elements of advertising in line with the defined strategy, integrating aesthetic and persuasive aspects.

Purchase of advertising space : Selection and negotiation of the most appropriate advertising spaces according to the campaign objectives, whether on TV, the Internet, in ...

3.2 Number of advertising agencies and number of employees

The number of advertising agencies in France between **** and **** shows a generally stable trend, with relatively minor fluctuations from one year to the next. Although variations can be observed, notably a slight decrease between **** and ****, followed by a slight increase thereafter, the total number of establishments remains constant overall.

Between **** and ****, the number of advertising agencies decreased slightly by *% , from **** establishments to **** agencies.

Breakdown of French agencies by sales France, ****, in % of number of agencies Source: AACC So, while there are a great many advertising agencies in France, the sector is nevertheless fairly concentrated in terms of revenue: indeed, according to estimates by the Association des Agences-Conseils en Communication in ****, *% of companies accounted for **% of the sector's sales.[***] In fact, only *% of agencies generated sales in excess of ** million euros in ****. conversely, a very large proportion of agencies (***) recorded annual sales of less than * million euros. [***]

The trend in advertising agency headcount in France from **** to **** shows a general downward trend (***), with some variations from one year to the next. This gradual decline in the number of employees may reflect several factors, including adjustments in agencies' organizational structures, the increasing automation of certain tasks, or changes in customer demand.

A marked ...

3.3 Geographical location of business in France

The geographical distribution of advertising agencies in France in **** reflects a significant concentration in the Île-de-France region, with a total of *,*** establishments, representing a significant share of the overall national market. The most populous regions, such as Auvergne-Rhône-Alpes,Occitanie and Provence-Alpes-Côte d'Azur, boast a significant number of advertising agencies, with ***, *** and *** respectively.

The Centre-Val de Loire, Bourgogne-Franche-Comté and Corsica have a smaller number of agencies.

This distribution highlights a geographical disparity in the presence of advertising agencies, with a marked concentration in the most urbanized and economically dynamic regions.economically dynamic regions, while less populated regions have a more modest presence in this sector.

3.4 The different types of advertising and communications agency

Major integrated players

French groups such as Publicis and Havas, or international ones such as the UK's WPP or the US's Omnicom Group, are what we might call "complete" players: that is, they integrate a diversity of brands and agencies enabling them to meet all customer needs.

The example of Publicis' recent transformation to meet the new challenges of the sector is detailed below (***). Let's take the example of France's *nd largest group, Havas Group, and its main brands:

BETC Paris: a major name on the Paris communications agency scene, BETC Paris is active in media and non-media advertising, corporate communications and digital campaigns. The BETC Digital subsidiary offers expertise in the latter Havas Sports Entertainment: Havas Sports Entertainment does little in the way of media advertising, concentrating mainly on non-media and direct marketing.

Within its network, the Havas group offers the following expertise through its agencies:

Media buying, analytics and attribution: All Responsive Media Brand strategy and identity: BETC Paris and BETC Consulting, Fullsix Ecommerce: All Responsive Media Customer experience strategy : Data Strategy: Arena Media France, BETC Paris, Havas France

Source: ****

Agencies specializing in digital

More and more agencies are specializing in digital, whether in data or digital advertising (***)

Almost ...

4.1 Prices for advertising agency services

Price index for advertising agency services France, ****-****, base *** Q* **** Source: ****

The price index for advertising agency services in France, over the period from **** to ****, reveals a certain volatility, with rather moderate but significant fluctuations.

Initially, over the course of ****, the index shows a slight decline in the first quarter, followed by a slight increase in the second quarter, probably reflecting seasonal adjustments or cyclical variations in the demand for and supply of advertising services.

Then, throughout ****, there is a general downward trend, perhaps suggesting an initial impact of the COVID-** pandemic on the advertising sector.

However, this trend seems to be gradually reversed from the first quarter of ****, with successive increases through to ****, peaking in the third quarter with an index of ***.*. This upturn could be a sign of a broader economic recovery, or of advertising agencies successfully adapting to the challenges posed by the pandemic.

Overall, although the index fluctuated, its upward trajectory towards the end of the study period suggests a certain resilience and gradual recovery of the advertising services sector in France.

It is interesting to note that the prices charged by advertising agencies can depend on the pressure exerted by advertisers on advertising agencies, particularly with ...

4.2 The transformation of the offer under the influence of digital technology

The growing importance of digital and new types of media in corporate communications and advertising strategies has had a number of consequences for the advertising agency market.

Competition

Finally, a new type of competition has emerged, driven by consulting firms, which are increasingly encroaching on the turf of communications and advertising agencies. In particular, consulting firms are positioning themselves on the use of digital data to propose a new way of looking at advertising, a highly quantified approach, with a strong focus on profitability and "value for money".kPIs (***) such as ROI or break-even points, which were previously much harder to calculate. Competition based on figures and rational measurements is threatening the more traditional advertising agencies, which emphasize creativity, consumer insight and buzz without being able to quantify them as precisely and rationally.

Today, there are still few players capable of performing well in all segments of the new approach to advertising, from the profitability study to the originality and creativity of an advertising campaign.

A new organization

Just as a new way of producing advertising campaigns is emerging, based on new objectives, advertising and communications agencies must now modify their organization to meet the new challenges facing their profession.

Take, ...

4.3 Advertising media

Advertising media, essential communication channels for advertising campaigns, enable companies to broadcast their promotional messages and entice consumers to buy. With a variety of formats available, brands can choose media according to criteria such as budget, marketing objectives and target audience.

Advertising agencies can therefore offer their customers different advertising media to meet their requirements. Advertising media can be divided into two main categories: media, non-media and digital (***).

media :

Media communication is based on so-called "classic" advertising tools, which enable promotional messages to be disseminated on a large scale, reaching diverse or specifically targeted audiences.

out-of-home media:

To take advantage of non-media actions, a thorough understanding of your target audience is essential, as is direct engagement with them. This form of communication favors interaction with the consumer, and can even incorporate extremely precise personalization.

digital media :

5.1 Advertising protection

Advertising is protected by copyright, trademark law and unfair competition.

Visit Book I of the French Intellectual Property Code concerns copyright.

The mere fact of creation gives rise to intellectual property rights over a work: "The author of a work of the mind enjoys an exclusive intangible property right in this work, enforceable against all, by the sole fact of its creation. [***] The work is deemed created, independently of any public disclosure, by the sole fact of the realization, even unfinished, of the author's conception".

To be protected by copyright, a creation must be given shape and form, and not simply remain an idea. in law, the idea of a creation is not protected, unlike its shaping.

Advertising communications are often the result of a collaboration between the advertiser and the agency, and this raises the question of the intellectual property of this creation. Either the advertiser owns the intellectual property of the work, in which case the advertiser must pay additional remuneration to exploit the advertising product. Or the advertiser owns the intellectual property, in which case he can use it as he sees fit, without having to pay any additional remuneration to the advertiser. This must be specified in ...

5.2 Advertising regulations

Protecting the French language - Loi Toubon

The Toubon Law, or law n°**-*** relating to the use of the French language, is designed to protect the use of the French language in advertising. The use of the French language is mandatory for the offer, presentation and description of goods, products and services.

Consumers need to be fully informed in French, not only to be able to exercise their free will and competition, but also to use an object wisely and guarantee their safety.

Similarly, written, spoken or audiovisual advertisements must display a translation of any part of the text that is in a foreign language. It is not compulsory for the presentation of the original version and the translation to be exactly identical, but it is necessary for the French version to be no less comprehensible. Nor does the translation have to be a literal, word-for-word translation, if the rendered meaning is faithful to the original text. A case in point is the obligation to include a translation of an English slogan on a poster campaign, by means of an asterisk, for example. An exception is made for an excerpt from a work of art (***) accompanying an advertisement: this work ...

5.3 Self-discipline in advertising

several players are involved in self-regulation in the advertising and communications sector.

The International Chamber of Commerce

Since ****, the International Chamber of Commerce has published and regularly revised a Code of Good Practice on advertising and communications. [***]

This code establishes the following principles:

Basic principles : all communications and advertising must be decent, fair and truthful, and comply with the law. No communication should undermine public confidence in marketing and communication practices. Decency: advertising must not run counter to the rules of propriety accepted, tacitly or otherwise, in the country and culture concerned. Loyalty : advertising must not abuse consumer trust. Social responsibility : all commercial communication must respect human dignity and not encourage any form of discrimination. Under no circumstances may it use fear, suffering or superstition, or encourage violence or any illicit behavior. Truthfulness : advertising communications must never be misleading or deceptive, and must not include any element that could mislead the consumer. Comparison : commercial communication based on comparison must not mislead the consumer, and must respect the principles of fair competition.

The Code of Conduct also includes particularly detailed provisions concerning children and adolescents, stating that "special care must be taken in commercial communication targeting or showing children or adolescents".

Commercial ...

6. Segmentation

• Publicis Groupe
• Havas Groupe (Groupe Vivendi)
• WPP
• Omnicom Media group France
• Kwanko
• Milee Media (Hopps Group)