Copyright adworld
The Irish advertising industry continues to grow with over 3,000 people now employed by IAPI members, while the average increase in creative revenues in 2024 was 24% with media agencies reporting an average increase of 13% in 2024, according to IAPI’s latest Census report. However, rising costs and heavier pitching have squeezed margins to 4% according to the Census, which surveyed 22 member agencies representing roughly 65% of the industry workforce. While the response skews to larger agencies and excludes most digital-only shops, the findings indicate an expanding sector that’s still wrestling with profitability. According to the Census, respondents reported average revenue growth of 24% in 2024 compared with 2023, and a further 20% jump in the first half of 2025 versus the same period last year. A matched-sample view- comparing only agencies that answered in both years-still shows robust momentum with a 22% increase for 2024 and 18% for H1 of 2025. Meanwhile, average fee income per respondent amounted to €7.2m in 2024. Media billings also nudged ahead, up 3% in 2024 and 13% in H1 2025 on a matched basis, according to IAPI and its research partner, Amarach. According to the Census, margins dropped to 4% in 2024 (from 8% in 2023), with agencies forecasting 7% for 2025. IAPI notes the decline likely reflects higher operating costs and the growing investment demanded by pitches, alongside macro-economic headwinds. Integrated media & creative and PR shops are the most optimistic on 2025 margin recovery. One structural shift may help: retainers are back. 36% of 2024 revenue came from retainers (vs 22% a year earlier), suggesting clients and agencies are prioritising continuity after several years of project-heavy engagement. Creative agencies remain more dependent on projects, while commissions continue to loom larger for other agency types. Meanwhile, the pitch treadmill is turning faster and getting pricier for agencies. According to the Census, agencies undertook an average of 28 pitches in 2024 (up from 20), with H1 2025 at 13. The average cost per pitch is now €40.8k, according to the Census. Ireland’s agencies are also looking outwards to international markets with 55% of respondents saying domestic clients now use their services in international markets, while 59% say they are exporting services. In terms of talent, the 3,007 people employed by IAPI member is up 11% year-on-year and 35% since 2021. The Census also shows that employment costs for most agencies can be as high as 65% of revenues. In the post Covid agency landscape, working patterns also look settled, according to the Census. Most agencies report two to three office days a week; 86% say current arrangements meet business needs and 77% expect no changes in the next year. Paid maternity is offered by 86% of respondents and paid paternity by 68%, with an average of 29 days paid paternity leave (up sharply from 2023). 91% have formal wellbeing initiatives. Siobhán Masterson, CEO of IAPI, said: “The Census highlights an industry that’s expanding, exporting and evolving. Irish agencies are winning more business, partnering more deeply with clients and helping home-grown brands scale both nationally and internationally. Our challenge now is to ensure that this growth is sustainable and built on strong commercial discipline, talent investment and long-term strategic focus.”
