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Global Advertising and Marketing Services Industry Report 2009
MediaAnalyst, Jan 2009
This report has been fully revised and covers a host of issues present in the advertising and marketing services industry. How will the industry be affected by an economic downturn and what happened last time, why is an understanding of structural changes in a client's industry important, what are the tensions between advertising and price promotion, how is the power of buyers changing and what have agencies done to retain some control, why did such large players emerge and how do they compete, how is new technology changing the industry, why is innovation so important, how is fragmentation opening up public relations to new competitors and how is social networking changing market research?
These and many other issues are covered in a comprehensive analysis of the industry dynamics for the global advertising and marketing services market. It is divided into four industries: advertising agencies, direct / specialist communications, public relations and market research. The report uses proven economic frameworks to provide a balanced and objective assessment of the challenges facing the industry.
Question answered on this report include:
Advertising Agencies
Demand factors
- What are the drivers of demand?
- Which cyclical factors are present in the market and what are the structural changes I need to be aware of?
- What are advertising agencies doing to capture growth?
- What is the reaction from agencies to a preference for fee based remuneration as opposed to commission based remuneration?
- How have marketing strategies of buyers influenced demand?
- How have buyers made advertising agencies more accountable for their output?
Supply factors
- How have the main advertising agencies raised barriers to entry?
- How competitive is this industry?
- Who are the major players in this industry and how has the industry evolved?
- Consolidation has been a feature of the industry for some time, but there are still lots of agencies, why is this?
- Does an agency need to build a global network to be a global success?
- What are the switching costs for buyers of advertising?
Direct / Specialist Communications
Demand factors
- How has the industry evolved and boosted demand?
- How is demand segmented and where is the growth coming from?
- How do direct marketing agencies derive their income?
- Why is a downturn not necessarily a bad thing for direct / specialist communications?
- How has the internet influenced demand for direct marketing?
Supply factors
- To what extent has this industry consolidated?
- This industry looks like it should be very competitive, but it isn't. Why is that?
- To what extent is this a global industry?
- What are the barriers to entry in this industry?
- What are the issues around recruiting staff?
Public Relations
Demand factors
- What exactly is public relations?
- What role does public relations play in the marketing mix?
- What has driven growth in public relations?
- How do public relations agencies earn their revenues?
- How has the internet created a more challenging environment for public relations practitioners?
Supply factors
- Who are the main players in this market?
- Why is the range of competitors wider than it first appears?
- What are the competitive pressures in this market?
- What is the biggest supply barrier to growth?
Market Research
Demand factors
- What are the drivers of demand?
- How are structural changes among buyers affecting demand?
- How is the market divided between continuous research and ad hoc research?
- What is the threat of substitute services and initiatives using corporate websites and blogs?
- Which segments of the market have the highest switching costs?
Supply factors
- How is supply in the industry organised?
- How do industry players differentiate their offering and how important is price?
- What are the issues around collecting reliable raw data?
- Why are buyers also important suppliers to the industry and how does this affect the competitive dynamics?
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