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Industry employment levels continue to rise reveals IPA’s 2007 Agency Census

19,077 individuals were employed in 261 IPA member agencies, at an average of 73 individuals per agency, as surveyed on 1st September 2007. This is according to the IPA’s 2007 Agency Census, the definitive survey of employment trends in media, advertising and marketing communications agencies, which was published today (17th January 2008).

18/01/2008

19,077 individuals were employed in 261 IPA member agencies, at an average of 73 individuals per agency, as surveyed on 1st September 2007. This is according to the IPA’s 2007 Agency Census, the definitive survey of employment trends in media, advertising and marketing communications agencies, which was published today (17th January 2008).

This figure marks a rise in industry employment levels by 1,710 individuals from 2006 when 17,367 people were employed in 258 member agencies at an average of 67.3 per agency, and in 2005 when 15, 571 individuals were employed in 240 member agencies at an average of 65.6 per agency.

This year-on-year growth can be attributed to a number of factors:

• There was an overall growth in the employment of individuals within existing IPA agencies of 9.2%.

• There was a net increase of three agencies into IPA membership between 1st September 2006 and 1st September 2007.

• There was a loss of some smaller agencies, and some of these were replaced by larger agencies, resulting in a 21% growth in industry personnel. 

• Staff turnover also decreased by 4.3%, in comparison with the previous year, to  stand at 19.5% for the creative, full service and other non-media agencies that supplied an estimate of staff turnover/churn in 2007.

Says Hamish Pringle, IPA Director General, “It is great to see that overall employ-ment figures are up, and that this is in part due to the election of new agencies into the IPA. But I am particularly pleased to see significant growth of personnel within our existing agencies of 9.2%.”

Says Liz Nottingham People Team Director, Grey, and Chair, IPA People Manage-ment Forum, “There is some good news in the 2007 annual survey as the figures for staff turnover show the industry stabilising at around 20%. It will be interesting to see throughout 2008 what effect TUPE may have on people movement between agencies, as of course this figure may well increase.”

The highlights of the survey are:

Employed base

• An estimated 72.1% of employees (13,759) are employed in 205 creative, full service and other non-media agencies, whilst 27.9% (5,318 employees) are employed in 56 media agencies.

• The number of employees in creative and other non-media agencies has increased by 8.2% from 12,712 in 2006 whilst the number of employees in media agencies has in-creased by 14.2% from 4,655.

• First-year trainees account for an estimated 3.1% of the employed base, with 38.6% of these being found in creative, full service and other non-media agencies and 61.4% in media agencies.

• In addition to payroll employees it is estimated that there are 1,179 temps and freelancers working in member agencies on a regular basis, with the highest proportion of these (48.1%) being found in creative departments.

Region

• The 159 agencies based in London account for 78.3% of employed base, whilst the 84 based out of London, account for 18.6% of the employed base and the 18 based in Scotland the remaining 3.1% of the employed base. 

Gender

• An estimated 51.6% of the employed base is male and 48.4% female.  

Ethnic diversity 
 
• Of the 127 agencies providing a full census return, 67 provided information in respect of the ethnic diversity of their employees. Among these agencies 93.9% of employees are of white origin, 2.2% Asian, 1.7% black, 0.9% mixed origin and 1.3% from other backgrounds. (This is in comparison with the 2006 IPA Agency Census where, of the 88 agencies that provided information in respect of the ethnic diversity of their employees, 92.7% of employees were of white origin.)

Age
 
• An estimated 47.2% of the employed base in IPA member agencies is aged 30 or under, 33.9% is aged 31–40, 13.5% is aged 41–50 and 5.3% over 50. The average age of employees in member agencies is 33.5 years.
 
• In media agencies 61.6% of employees are aged 30 or under and the mean age is 31.0 years, whilst in creative, full service and other non-media agencies 41.8% are aged 30 or under at a mean of 34.5 years.

Seniority

• It is estimated that 2.2% of the employed base are in a Chair, CEO or Managing Director role, whilst a further 4.5% are classified as being in another agency management role. 

• At the highest level of seniority (Chair, CEO, Managing Director) it is estimated that 83.8% of those reaching this position are male, whilst 16.2% are female.

• At the broader agency management level, 71.6% of individuals in these positions are male and 28.4% female.

Staff turnover 

• Of the 127 agencies that responded to the survey, 101 provided an estimate of their staff turnover/churn during the year to 1st September 2007. In the 83 creative, full service and other non-media agencies that supplied an estimate staff turnover/churn was 19.5%, whilst in the 18 media agencies that supplied an estimate it was 16.9%.

View the full report
To compare and contrast these figures with the 2006 IPA Agency Census

Last updated 22/01/2009


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