Short answer
The Los Angeles metro area had 3,127 advertising, PR and related agency establishments in 2023, employing 40,316 people on a $4.10 billion payroll (Census County Business Patterns): 2,460 in Los Angeles County and 667 in Orange County. 1,401 were advertising agencies and 853 PR agencies. To choose one, decide the type of agency first, check directory rankings for sponsored placements, confirm who will staff your account, and put data handling in the contract.
- 3,127 agency establishments in the LA metro employ 40,316 people, 8.05% of the 38,864 US establishments.
- The City of Los Angeles tax registry lists 5,352 active businesses under advertising codes, because it includes one-person firms that Census leaves out.
- 2,189 of the 3,127 have one to four employees; 75 have 100 or more.
- Media representatives, who sell ad time and space for media owners, average $180,055 in pay per employee here.
- Disney, headquartered in Burbank, reported $6.5 billion of advertising expense for fiscal 2025.
On this page
This report is for brands and businesses hiring an agency in Southern California, people sizing the LA agency market, and companies that sell to agencies.
Two counties, one market
The Census Bureau's Los Angeles-Long Beach-Anaheim, CA Metro Area (CBSA 31080) is Los Angeles and Orange counties. For NAICS 5418, Advertising, Public Relations, and Related Services, County Business Patterns (CBP) 2023 reports:
| Area | Establishments | Employees | Employees per establishment |
|---|---|---|---|
| Los Angeles County | 2,460 | 30,421 | 12.4 |
| Orange County | 667 | 9,895 | 14.8 |
| Metro area | 3,127 | 40,316 | 12.9 |
The metro's agencies paid $4,104,010,000 in 2023, an average of $101,796 per employee. Employees per establishment for the counties is our calculation.
CBP counts establishments with paid employees. A firm with offices in Santa Monica and Irvine counts twice, and a freelancer with no payroll doesn't count at all.
Why the city's registry shows more
The City of Los Angeles publishes every active business tax account with its NAICS code. On 30 October 2026 it listed 5,352 active accounts under 5418 codes, 4,729 of them under the general code 541800, "Advertising & related services." That's more than CBP's 2,460 for the whole county, even though the city is only part of the county, because the registry includes sole proprietors and home-based businesses with no payroll. Use the registry to find names and addresses; use CBP to size the market of firms that employ staff.
Mostly small, with a heavy top end
| Employees per establishment | Establishments |
|---|---|
| 1 to 19 | 2,789 |
| 20 to 99 | 263 |
| 100 or more | 75 |
Within the smallest band, 2,189 establishments have one to four employees, 354 have five to nine and 246 have 10 to 19. In the middle, 203 have 20 to 49 and 60 have 50 to 99. At the top, 48 have 100 to 249 employees, 18 have 250 to 499, 8 have 500 to 999 and 1 has 1,000 or more. The Census Bureau doesn't publish that last cell for LA, because it drops size cells with fewer than three establishments; the 1 is derived as the total less the published cells.
The agency types, and the media effect
LA's eight 5418 codes add up exactly to 3,127:
| Type of business | NAICS | Establishments | Employees | Average pay |
|---|---|---|---|---|
| Advertising agencies, digital included | 541810 | 1,401 | 19,891 | $111,832 |
| Public relations agencies | 541820 | 853 | 5,421 | $98,765 |
| Other advertising services (promotional products, demonstrations) | 541890 | 357 | 6,480 | $57,792 |
| Display and out-of-home advertising | 541850 | 138 | 1,118 | $87,147 |
| Media representatives | 541840 | 123 | 2,216 | $180,055 |
| Direct mail | 541860 | 100 | 1,620 | $64,633 |
| Media buying agencies | 541830 | 78 | 2,931 | $100,662 |
| Advertising material distribution | 541870 | 77 | 639 | $115,006 |
Average pay is our calculation from CBP payroll and employment. Media representatives sell advertising time and space on behalf of media owners, so they're mostly the people agencies buy from, not firms you'd hire. Media buying offices are few but large, at 37.6 employees each.
Outside 5418, Census counts 4,870 marketing consultancies (541613) and 1,463 graphic design studios (541430) in the metro. Custom SEO is classified under 541511, custom computer programming. For which code fits which kind of firm, see the NAICS code for marketing.
The advertisers and the public companies
Agencies cluster near big advertisers. The Walt Disney Company, headquartered at 500 South Buena Vista Street in Burbank, reported advertising expense of $6.5 billion for fiscal 2025 in its 10-K.
The only SEC-listed company in the advertising SIC codes (7310 to 7319) with an LA-area address is Starco Brands, Inc., filed under SIC 7311. Its 10-K for 2025 lists a Los Angeles address and revenue of $37,314,827, from consumer products including Soylent, with 30 full-time employees. It isn't an agency you'd hire. The holding companies' 10-Ks don't list their LA offices.
Questions to settle before you sign
Is this ranking paid for? Directory pages rank for this search. Clutch's page of Los Angeles digital marketing agencies for small businesses labels some listings "Sponsored" or "Featured" and says "We may earn a fee for some placements." Use directories for names and verified reviews, then judge each firm on its own work.
Who handles our customer data, and on what terms? If you're covered by the California Consumer Privacy Act, an agency that processes your customer lists or pixel data on your behalf may be a "service provider," which the California Attorney General's guidance says the law treats differently from the business that hires it. Put its permitted uses, deletion on exit and security duties in the contract, and ask counsel which terms the CCPA requires.
Whose name is on the accounts? Google says an agency "must set up a separate Ads account for you" and must share your customer ID when asked. Keep Admin access yourself, and keep analytics and social accounts in your company's name.
Who owns the creative? A logo or campaign commissioned from an outside firm usually isn't a "work made for hire" (the Copyright Office lists nine eligible categories). Ask for a written assignment once you've paid.
How do we leave? Stagwell's 10-K says its client contracts "typically provide for termination by either party within 30 to 90 days." Agree a notice period in that range and a handover list.
Selling to LA agencies
Start with geography and type. Los Angeles County has 1,793 more establishments than Orange County, but Orange County's average office is larger (14.8 employees against 12.4).
Illustrative example. The company and figures are invented to show the arithmetic.
Cutroom (cutroom.example) sells cloud video review software at $250 a month per team. Its best fit is advertising agencies with 20 to 99 staff that produce video. In LA, 263 establishments of all types fall in that band. If an illustrative 45% are advertising agencies and half of those produce video in-house, about 59 offices fit, worth about $177,000 a year if each bought one team seat. The opener names a campaign the agency recently released and the review step that slows it down. Researching which of the 263 make video is the slow part; Bebop does that for each account in a list.
For method, see how to build a prospect list.
Where to look up LA agencies
| Source | What it gives you |
|---|---|
| City of Los Angeles, Listing of Active Businesses | Name, address, NAICS code and start date for every active city business tax account |
| California bizfile Online | The Secretary of State's search for an agency's legal entity and status |
| PRSA Los Angeles | The local chapter of the Public Relations Society of America |
| LAEDC | Los Angeles County's economic development corporation, for research on the regional economy |
Next step: before you shortlist, check which holding companies sit behind many agency brands in the largest advertising agencies and marketing firms.
Sources
- County Business Patterns (CBP), 2023, US Census Bureau, accessed 30 October 2026
- County Business Patterns methodology, US Census Bureau, accessed 30 October 2026
- Listing of Active Businesses, City of Los Angeles Open Data Portal, accessed 30 October 2026
- The Walt Disney Company Form 10-K for fiscal 2025, The Walt Disney Company, via SEC EDGAR, 13 November 2025
- Starco Brands, Inc. Form 10-K for 2025, Starco Brands, via SEC EDGAR, 14 April 2026
- Stagwell Inc. Form 10-K for 2025, Stagwell, via SEC EDGAR, 13 March 2026
- California Consumer Privacy Act (CCPA), State of California Department of Justice, accessed 30 October 2026
- Top Digital Marketing Agencies for Small Business in Los Angeles, Clutch, accessed 30 October 2026
- Advertiser guide: Working with third parties, Google Advertising Policies Help, accessed 30 October 2026
- Circular 30: Works Made for Hire, US Copyright Office, revised August 2024
Written by the Bebop team at Blackpearl Group. Published .
Questions people ask
How many marketing agencies are in Los Angeles?
County Business Patterns counted 3,127 advertising, PR and related agency establishments with paid employees in the Los Angeles metro area in 2023: 2,460 in Los Angeles County and 667 in Orange County, employing 40,316 people. The City of Los Angeles tax registry lists 5,352 active accounts under advertising codes, a higher figure because it includes sole proprietors without payroll.
How much does a marketing agency cost in Los Angeles?
No official source publishes LA agency prices. What is public is the cost base: agency staff in the LA metro averaged $101,796 in pay in 2023, and advertising agency staff $111,832, before benefits, rent and margin. Agencies typically charge fees or hourly rates, media commissions and sometimes performance bonuses. Ask each finalist for an estimate in hours and roles so you can compare like with like.
Are Clutch rankings of LA agencies paid?
Partly. Clutch's page of Los Angeles digital marketing agencies for small businesses marks some listings as Sponsored or Featured and says Clutch may earn a fee for some placements, so the top of the page isn't a pure ranking. Clutch also verifies client reviews, which are useful. Treat directory rankings as a list of names, then check each firm's own case studies, references and the team you'd get.
What's the difference between an ad agency and a media buying agency?
An advertising agency (NAICS 541810) creates campaigns and places them, often with planning and buying included. A media buying agency (541830) buys advertising time and space from media owners and resells it to advertisers or agencies. LA has 1,401 advertising agency establishments and 78 media buying establishments, but the media buyers are larger, at 37.6 employees each.