Advertising may be divided into local and national components. This advertising is usually placed directly by the advertiser with the assistance of media representatives and may not require the services of an advertising agency. It is responsible for the bulk of advertising agencies' revenues. National advertising is initiated by large businesses, such as automobile manufacturers or soft drink companies, which market their products and services nation-wide. It is coordinated by advertising agencies which create the message, develop media plans and ensure the proper production and placement of the advertising.
Television is the primary, but by no means exclusive, medium for national advertising.
In 1994, approximately 67,000 persons were employed by firms and as individuals in providing advertising services in Canada. On a company basis, the latest data reveals that, in 1992, there were some 8,382 firms engaged in providing advertising services in Canada. Advertising agencies are the dominant component of the industry and the remainder of the profile will concentrate on this sub-sector. During the 1980s, advertising agencies rationalized their operations through mergers and acquisitions, in response to slower growth. Thus, the 1993 gross revenues of the top 10 agencies in Canada accounted for over 50 percent of all agency earnings.