A shift towards digital design has allowed many small players and sole proprietors to carve out a niche for themselves.
Melbourne, Australia (PRWEB) December 03, 2014
Graphic designers depend on advertisers for a large share of their income. Design firms and freelance designers have benefited from the increasing willingness of advertising firms and the internal marketing departments of companies to outsource visual design work to external experts. According to IBISWorld industry analyst Ryan Kerin, “this trend has driven strong revenue growth over the past decade, mostly from the provision of graphic design and signwriting services.” However, as with other sectors of the economy, industry revenue growth was interrupted by the global financial crisis. In 2008-09 and 2009-10, operators in the Specialised Design Services industry in Australia followed the Advertising Agencies industry into decline, as companies brought their marketing work in-house and cut or delayed advertising expenditure. Over the past five years, the industry climbed up from a bottomed-out market with annualised revenue growth of 3.2%, to reach $4.6 billion during 2014-15. Solid forecast growth for the Advertising Agencies industry is expected to flow into the Specialised Design Services industry, resulting in revenue growth of 4.0% during 2014-15.
Much of the industry's growth is based on the adoption of digital technology. Growth in online advertising and mobile applications has outstripped growth in traditional media advertising. “The increased adoption of multichannel advertising and branding strategies is expected to increase the number of advertising projects, thus widening the revenue streams of graphic designers,” says Kerin. A shift towards digital design has allowed many small players and sole proprietors to carve out a niche. This trend has been driven by falling start-up costs, an oversupply of graduates and falling technological costs. The industry exhibits low levels of market share concentration.
Services provided by the Specialised Design Services industry that are less advertising-focused have not performed as well as graphic design and signwriting services. Interior design is holding its ground, but other services including web design, media production, and fashion and textile design are expected to lose ground. 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.
For more information, visit IBISWorld’s Specialised Design Services industry in Australia report page.
Companies in this industry plan, design and manage the production of printed materials, digital content, packaging, advertising, signage systems and corporate identification (logos). The industry includes graphic designers exclusively engaged in generating drawings and illustrations that require technical accuracy or interpretative skills. Architectural, engineering, computer system and set design services form their own industries.
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