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Advertising and Marketing

DateApr, 2007
Pages10
Price / format$129 / Online Download

$129 

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Abstract:
 The advertising and marketing services industry in the US includes about 30,000 companies, with combined annual revenue of $60 billion. The industry includes large companies such as Interpublic, Omnicom, and WPP. The industry is fragmented: the top 50 companies have less than 40 percent of the market. A typical local agency has $5 million of annual revenue and 30 employees.

COMPETITIVE LANDSCAPE

Demand comes largely from corporations that sell consumer products, and telecommunications, entertainment, and financial services. The profitability of individual companies depends on creative skills and good marketing. Large companies are advantaged in being able to serve the varied needs of large customers, but small companies can be competitive through special talent or lower pricing or through special services. The industry is labor-intensive, but the high value of the product produces annual revenue per employee of about $150,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry provides advertising creative services, direct mail advertising, and public relations and media sales services. While large agencies provide a full range of services, smaller ones often specialize in market or product niches. The large advertising companies, like Omnicom, own dozens of small "brand name" agencies that provide the particular services that customers use.

The two major activities of advertising agencies are the creative development of TV, audio, print, and billboard ads, and the placement of ads with media outlet companies such as Viacom, Disney, and Fox that have a national audience, or with local TV and ...


Table of contents:
Industry Overview
Quarterly Industry Update
Business Challenges
Trends and Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Website and Media Links
Glossary of Acronyms




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