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Revenues in the first six months of 2025 were up a further 20pc on the same period last year, according to the report, which is based on data from 22 agencies that are members of IAPI, representing two-thirds of the sector. “Our census highlights an industry that’s expanding, exporting and evolving,” said Siobhán Masterson, chief executive of IAPI. “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.” Profit margins fell from 8pc in 2023 to 4pc last year, according to the survey, but agencies say they expect a recovery to 7pc this year, reflecting growing confidence and stronger relationships with clients. There was a 13pc increase in media billings – the advertising space that agencies buy for their clients across TV, radio, print and outdoor channels. There are over 3,000 people working in IAPI member agencies. This is up 11pc year-on-year, and up 35pc since 2021. As a sector, advertising is well capable of facilitating staff working from home, and 86pc of agencies say hybrid models are working effectively. Almost two-thirds are operating two or three-day office weeks. Agencies undertook an average of 28 pitches last year, up 40pc. Pitching costs averaged €1.1m per agency in staff time and third-party costs, equivalent to the annual workload of five full-time employees. Almost 95pc of respondents to the IAPI survey said they had won new business this year. The Irish advertising sector is also showing international reach, with 59pc of agencies saying they have sold their services abroad. Just over a fifth (21pc) of total agency revenue is coming from overseas clients, up from 15pc last year. “However, the census also shows that 86pc of agency revenue currently comes from private sector clients, with just 14pc from public sector contracts,” IAPI says. “Given the critical role communications play in influencing public understanding and behaviour and social cohesion of long term public investment decisions, IAPI believes there is a strong case for greater government investment in the professional communications services.” Retainers account for 36pc of total agency revenue, up from 22pc in 2023, marking a significant shift towards stable and long-term client relationships. Short-term project work usually dominates. Half of agencies say they are working with new Irish brands that were established in the last five years, and they reported average growth of 14pc for those clients. IAPI is the main business representative organisation for the advertising and communications industry, and says it represents over 80pc of the sector’s workforce. Members include both indigenous and multinational agencies of all sizes. Ms Masterson said: “Our members are not just promoting products. Ours is an industry built on understanding people; what persuades them, what motivates them and what earns their trust. This is a sector that combines commercial creativity with national value, supporting innovation, entrepreneurship and public engagement right across the economy.”
