- Language: English
- 263 Pages
- Published: January 2012
- Region: Global
Advertising & Marketing Services in the US
- ID: 302398
- May 2014
- Region: United States
- 10 pages
- First Research
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 Interpublic and Omnicom, (both headquartered in the US); Dentsu and Hakuhodo DY Holdings (both based in Japan); Publicis (France); and WPP (Ireland).
Worldwide, the advertising and marketing industry generates about $486 billion in revenue, according to Magna. The US is the largest ad market, accounting for about a third of total worldwide advertising, followed by Japan, Germany, and China. Large populations and the expansion of the middle class in 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 $95 billion. Key industry growth drivers include globalization, added fees and integration of services, and mobile marketing.
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....
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