NAICS 541810 Quarterly Industry Report
Advertising Agencies
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 541810Sector: Professional, Scientific, and Technical Services (54)Updated: Q1 2026
About This Report
This report covers NAICS 541810: Advertising Agencies as defined by the U.S. Census Bureau[5]'s 2022 NAICS classification system. Industry data reflects Fair Market Value of services rendered and excludes pass-through media commissions. Additional data is drawn from Bureau of Labor Statistics[6].. Information is sourced from Census Bureau[7] classification data and SBA[8] size standards.
Industry Snapshot
Key metrics for the advertising agencies industry.
NAICS Sector
54
Professional, Scientific, and Technical Services
Industry Definition & Overview
Advertising Agencies (NAICS 541810) encompasses establishments primarily engaged in creating advertising campaigns and placing such advertising in periodicals, newspapers, radio and television, or other media. These agencies provide comprehensive services including creative development, account management, production, media planning, and media buying. Per Census Bureau[5] data, approximately 101,000 active businesses operate in this sector. Agencies work across traditional and digital platforms.
The U.S. advertising agency industry generated approximately $78 billion in revenue in recent years. Market consolidation has created large holding companies managing multiple agencies across specialized disciplines and geographic markets. Digital advertising has transformed the industry, with digital-first services representing about 42 percent of marketing agency revenue. Competition is intense.
Agencies now integrate programmatic advertising, social media marketing, content creation, and analytics into core service offerings. Data-driven decision-making, artificial intelligence applications, and performance measurement continue reshaping how agencies deliver value to clients. Small independent agencies and large global networks coexist, with independent shops often competing on creativity and client attention while holding companies offer scale and integrated service capabilities. Annual advertising spending in the U.S. exceeds $300 billion across all channels, creating a deep market for agency services at every scale. Regional agencies serve local and mid-market clients while national firms manage enterprise accounts across multiple media platforms.
What's Included in This Industry
- Advertising campaign creation and strategic development
- Media planning and placement across all channels
- Creative services including copywriting and visual design
- Account management and client relationship services
- Production of advertising materials and content
- Media buying and negotiation with outlets
- Digital advertising and programmatic services
- Marketing research and audience analysis
- Brand strategy and positioning services
- Performance measurement and analytics
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Professional, Scientific, and Technical Services | 54 |
| Subsector | Professional, Scientific, and Technical Services | 541 |
| Industry Group | Advertising, Public Relations, and Related Services | 5418 |
| NAICS Industry | Advertising Agencies | 54181 |
| National Industry | Advertising Agencies | 541810 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 541820 | Public Relations Agencies | Public Relations Agencies provide strategic communications and reputation management services, often working alongside advertising agencies to develop integrated marketing campaigns. |
| 541830 | Media Buying Agencies | Media Buying Agencies purchase advertising time and space from media outlets for resale to advertising agencies and companies, specializing in media placement functions. |
| 541890 | Other Services Related to Advertising | Other Services Related to Advertising includes advertising support services such as specialty advertising, point-of-sale displays, and advertising services not classified elsewhere. |
| 541910 | Marketing Research and Public Opinion Polling | Marketing Research and Public Opinion Polling provides data collection and analysis services that support advertising strategy development and campaign effectiveness measurement. |
| 541613 | Marketing Consulting Services | Marketing Consulting Services offer strategic business advice on marketing objectives, pricing strategies, and overall marketing planning separate from advertising campaign execution. |
| 541840 | Media Representatives | Media Representatives sell media time and space on behalf of media owners as independent representatives, working between media outlets and advertising agencies on placements. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 15.8% | 2,371 |
| 2 | New York | 10.2% | 1,532 |
| 3 | Florida | 8.9% | 1,332 |
| 4 | Texas | 8.2% | 1,225 |
| 5 | Illinois | 4.3% | 645 |
| 6 | Pennsylvania | 3.7% | 560 |
| 7 | Ohio | 2.9% | 435 |
| 8 | Georgia | 2.8% | 411 |
| 9 | Arizona | 2.6% | 393 |
| 10 | Colorado | 2.6% | 393 |
% Of Establishments
0%
16%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
2,184
Total SBA Loans
$989.3M
Total Loan Volume
$453K
Average Loan Size
10 yrs
Average Loan Term
10.59%
Average Interest Rate
17,792
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[8] size standard for NAICS 541810 is $26.0 million in average annual receipts (excluding funds received in trust for unaffiliated third parties). Businesses at or below this threshold qualify as small businesses for federal contracting and SBA programs. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 320 | $139.7M | $437K |
| 2 | The Huntington National Bank | 104 | $110.0M | $1.1M |
| 3 | First Internet Bank of Indiana | 56 | $100.0M | $1.8M |
| 4 | Northeast Bank | 288 | $63.8M | $221K |
| 5 | Readycap Lending, LLC | 232 | $62.7M | $270K |
Frequently Asked Questions
Common questions about this industry.
What services are included under NAICS 541810?
Advertising agencies provide creative development, media planning, media buying, account management, production, market research, and strategic campaign consulting. Agencies deliver solutions through in-house capabilities or subcontracting arrangements. Census Bureau NAICS 541810[7]
What is the difference between NAICS 541810 and 541820?
NAICS 541810 (Advertising Agencies) focuses on creating and placing advertising campaigns, while 541820 (Public Relations Agencies) specializes in communications strategy and reputation management. Many large firms operate both under different divisions.
How do advertising agencies differ from media buying agencies?
Advertising agencies (541810) create campaigns and develop strategy while also buying media. Media buying agencies (541830) specialize in purchasing advertising time and space, handling media procurement for agencies or direct clients. SBA size standards[8]
What is the SBA size standard for advertising agencies?
The SBA[8] size standard is $26.0 million in average annual receipts, excluding funds received in trust for third parties such as media commissions. This threshold determines small business eligibility for federal contracting.
How has digital advertising affected the agency industry?
Digital services now represent about 42 percent of agency revenue. Agencies have expanded into programmatic advertising, social media marketing, data analytics, and performance measurement. Traditional creative and media services remain important alongside these digital capabilities.
How many advertising agencies operate in the United States?
About 101,000 advertising agencies were active as of recent data, representing independent agencies, holding company divisions, and specialized digital agencies. Concentration is highest in major media markets and technology hubs. Census Bureau data[5]
What is the difference between 541810 and 541890?
NAICS 541810 covers agencies creating and placing advertising campaigns. NAICS 541890 includes specialized advertising support services like specialty advertising, promotional distribution, and related services not performed by traditional agencies.
How large is the U.S. advertising agency industry?
The industry generates roughly $78 billion in annual revenue across roughly 101,000 establishments. Market consolidation has created large holding companies, but independent agencies continue to compete strongly on creativity, specialized expertise, and client service quality.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Census Bureau data.census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]Census Bureau census.gov
- [8]SBA sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
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