Advertising & Marketing Services

First Research, Inc.
August 18, 2014
10 Pages - SKU: FRRS5315283
Countries covered: United States

Advertising & Marketing Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry create advertising campaigns, implement public relations campaigns, and engage in media buying, among other advertising services. Major companies include Dentsu, Interpublic, Omnicom, Publicis, and WPP.

Worldwide, the advertising and marketing industry generates about $515 billion in annual revenue, according to Magna Global. The US is the largest ad market, accounting for about a third of total worldwide advertising, followed by Japan, Germany, and China. Expanding middle class populations in the BRIC nations (Brazil, Russia, India, and China) are expected to offer significant growth opportunities for the industry.

The US advertising and marketing services industry includes about 37,000 companies with combined annual revenue of about $110 billion.

COMPETITIVE LANDSCAPE

Demand for advertising and marketing services comes largely from businesses that sell consumer products, entertainment, financial services, technology, and telecommunications. The profitability of individual companies depends on creative skills and maintaining client relationships. Large companies benefit from being able to serve the varied needs of major customers. Small companies can compete by focusing on niche markets or by offering lower pricing. The US industry is fragmented: the top 50 companies generate about one-third of revenue.

New competition for advertising and marketing business has come from database marketing companies, systems integrators, and telemarketers.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are advertising for print, broadcast, and online media (25 percent of industry sales), direct mail advertising (15 percent), and public relations (10 percent). Other services include display advertising, media buying (reselling advertising...



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