Melbourne, Australia (PRWEB) April 28, 2013
Graphic designers depend on advertisers for their income. Design firms and freelancers have benefited from the increasing willingness of advertising firms and the internal marketing departments of companies to outsource visual design work to external experts. This has driven strong revenue growth over the past decade. However, like in many other sectors of the economy, industry revenue growth was interrupted by the global financial crisis.
According to IBISWorld industry analyst Sebastian Chia, in 2008-09, the Specialised Design Services industry followed the Advertising Services industry into decline, as companies brought their marketing work in-house and cut or delayed advertising expenditure. The industry continues its climb from a bottomed-out market, and revenue is expected to grow by 1.2% in 2012-13 to reach $ 4.36 billion. The solid forecast growth for the Advertising Services industry is likely to flow into the Specialised Design Services industry, resulting in annualised revenue growth of 0.9% over the five years through 2012-13.
Much of the industry’s growth is based on the adoption of digital technology, says Chia. Growth in online advertising and mobile applications has outstripped growth in traditional media advertising. The increased adoption of multichannel advertising strategies and branding strategy are expected to increase the number of advertising projects, thus widening the revenue streams of graphic designers.
Demand from users other than advertising firms of industry services is less volatile. Specialty companies routinely design packaging for manufactured goods. This accounts for a large slice of industry revenue. While this may be true for consumer goods sold by supermarkets, IBISWorld expects weak demand from other retail industries, primarily the Clothing Retailing industry. Increasing foreign competition is forcing the exit of small retailers.
The forecast stronger economic growth and tougher operating conditions in many industries over the next five years are expected to lead to a resurgence in the advertising market, as an increased willingness to spend supports renewed demand for marketing activities. This will contribute to revenue growth for the Specialised Design Services industry.
The industry is highly fragmented, with few major players with any market share of note. However, a few companies are considered significant in terms of revenue and reputation. The two largest players in the industry are Clemenger Group and Cato Partners.
For more information, visit IBISWorlds Specialised Design Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry plan, design and manage the design and production of printed materials, packaging, advertising, signage systems and corporate identification (logos). This industry includes graphic designers exclusively engaged in generating drawings and illustrations that require technical accuracy or interpretative skills.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call 039-655-3886.