The Institute of Advertising Practitioners in Ireland (IAPI) has published its Census 2025 report. The study, based on data from 22 member agencies representing 65 per cent of adland, shows average agency revenues jumped by 24 per cent in 2024, with the first half of 2025 up a further a fifth on the same period last year.
Media billings grew by 13 per cent, underlining continued demand for Irish creative and communications expertise. While profit margins were down from eight per cent in 2023 to four per cent in 2024, agencies expect a recovery to seven per cent this year, reflecting growing confidence and stronger client relationships.
The report shows that over 3,000 people now work across IAPI agencies – up by 11 per cent year-on-year and a rise of 35 per cent since 2021. Work practices are still evolving with 86 per cent of agencies saying hybrid models are working effectively and 64 per cent operate two or three-day office weeks, in a effort to attract and retain top talent.
Pitching
IAPI chief executive Siobhán Masterson said agencies undertook an average of 28 pitches in 2024, up 40 per cent year-on-year, with pitching costs averaging €1.1 million per agency in staff time and third-party costs equivalent to the annual workload of five full-time employees. Almost 95 per cent of respondents reported winning new business this year.
The sector’s international footprint continues to strengthen, with 55 per cent of domestic clients now using Irish agencies in international markets and 59 per cent of agencies exporting their services overseas. Masterson said the trend points to an opportunity for indigenous Irish business to engage the industry to reach larger international markets.
IAPI believes there’s a strong case for greater Government spending on advertising
However, the Census also shows that 86 per cent of agency revenue now comes from private sector clients, with just 14 per cent from the public sector. Given the critical role communications play in influencing public understanding and behaviour, IAPI believes there is a strong case for greater Government investment in agency services.
Retainers account for 36 per cent of agency revenue, up from 22 per cent in 2023, reflecting a shift towards longer-term client relationships. Half of agencies now work with Irish brands launched within the past five years, with average growth of 14 per cent for those clients. A fifth of all agency revenue comes from overseas clients — up from 14 per cent last year.
The IAPI Census 2025 consolidates data on commercial performance, talent and leadership into a single report, providing the most comprehensive snapshot yet of Ireland’s advertising industry. It will now be published annually along with IAPI’s recently launched Pathfinder Pulse Survey, a quarterly barometer of industry sentiment conducted by Amárach Research.
Pictured above is Siobhán Masterson, chief executive, IAPI
