Advertising & Marketing Industry

The marketing and advertising sectors have always been fueling one another. Market analyses show that the global advertising industry is on the rise and was projected to grow by 5.9 percent in 2021. Couple that with the ever-growing value of the M&A deals made in the marketing services sector, which grew by 15 percent in 2019, and we can see a bright future for both industries.

ADVERTISING

The advertising industry is highly dependent on the media for ad placement and the creatives for material production. Consumer use of media plays a role in determining the extent of advertising expenditures – in countries where the print is being substituted by all things digital, newspaper advertising spending will suffer while the internet will command a larger share of investments. However, the generally observed trend is that internet ad spend has already overtaken other media, leaving even TV advertising behind. According to market projections, the internet will continue to command larger shares of investments, a trend which will be reinforced by the coronavirus pandemic repercussions.

MARKET SIZE

Which global region will see the highest growth in advertising spending?

Advertising often varies by market maturity which directly affects the growth rates – developing markets will experience larger ad spend growth than those which are already saturated. North America is an example of a mature market, with ad investment growth of around three percent. On the other hand, the LATAM and CEE regions show the highest potential to develop in the coming years, at an impressive rate of over eight percent.

MARKET SEGMENTS

Digital is king!

Globally, digital advertising accounts for more than half of ad expenditures and is set upon a steady path towards future growth. Despite the slight dip in 2020 when even digital advertising suffered due to the coronavirus outbreak, the online segment of the industry will bounce back. Search, social media, and banner ads are now the dominant formats and will characterize the future of advertising, leaving traditional methods behind.

INDUSTRY TRENDS

Advanced TV is a term encompassing all forms of watching television that is not done in a traditional way, so excluding broadcast, cable, and satellite. Advanced TV advertising enables delivery of promotional messages straight to TV receivers (e.g. on connected TVs, VoD, OTT TV, etc ) but with greater accuracy. The advantages of this form of advertising include improved targeting and cross-screen measuring, while among the frequently cited challenges are ad fraud and data transparency.

INDUSTRY LEADERS

WPP - headquartered in London, has been on the advertising industry stage since 1971. The company became one of the 'top dogs' among global ad agencies based on revenue alone, and generated more than 50 billion euros (approximately 60 billion U.S. dollars) in annual billings since 2016. WPP also boasts an impressive market cap of roughly 18 billion U.S. dollars.

MARKETING

In a reality marked by COVID-19, with changing consumer needs and spending habits, marketers are kept on their toes to answer the demands of the new normal. More than ever, careful analysis of data, and monitoring the effectiveness of implemented strategies are key to success. While omnichannel marketing is still the preferred strategy for many, the efforts need to be aimed at driving consumers to the currently available distribution channels, which, in times of corona, are often digital only.

MARKET SIZE

A thriving sector, thanks to digital

Marketing services are a 475 billion U.S. dollars strong industry, showing positive growth all through the 2010s. The United States accounts for well over a half of the amount, followed by Europe with approximately a third. Both regions have also developed favorably in the last decade. A segment growing especially well in recent year is, unsurprisingly, digital marketing, estimated at over 300 billion U.S. dollars on a global level.

MARKET SEGMENTS

Direct marketing is king

Among the traditional marketing services segments, direct marketing attracts by far the highest spending, accounting for nearly two thirds of the total. It is followed by sponsorship, data investment management, public relations, and healthcare. Sponsorship makes up under 15 percent of the total and is the second largest segment. Data investment management (also known as consumer insight or market research) ranks third, with around 10 percent. PR and healthcare make up the remaining share.

INDUSTRY TRENDS

Technology to rule them all

Cost-conscious brands exercise proactive marketing, basing their decision on careful analysis of consumer and market data. This trend gave way to big data marketing and the development of new marketing technologies. Marketing automation in particular becomes more and more of a norm. Especially on digital platforms, users are served with increasingly personalized ads. However, the more intrusive the ads get, the more likely the users are to install an ad blocker, causing losses to advertisers.

INDUSTRY LEADERS

Giants' playground

Among the media holding groups, UK-based WPP is the largest, followed closely by Omnicom Group, headquartered in New York City. WPP is the owner of two top-10 digital agency networks – Wunderman Thompson and Ogilvy. Omnicom, on the other hand, owns the two most creative agency networks – BBDO and DDB. The French Publicis Groupe, Japanese Dentsu Group and Interpublic Group from the United States complete the top five of the leading holding groups worldwide.

ADDITIONAL REPORTS & MARKET OUTLOOK (COVERING A BROAD RANGE OF SECTORS):

Digital & Trend Reports:

High-quality in-depth information on important and trending topics, such as 5G, digitalization, or artificial intelligence (AI). From cyber security, cloud computing, & robotics to e-commerce and virtual reality (VR), all significant trends are covered.

Industry Reports:

Comprehensive data on markets and industries, including market overviews, revenues, number of employees, as well as the latest information about the state of the industries, trends, and forecasts.

Brands & Company Reports:

Information on top brands and companies in all major industries and regions with detailed company overviews and rankings, including revenue, number of employees, company value, stock price, and major competitors.

Consumer Reports:

Overview of what consumers are thinking, featuring survey data on usage, behavior, attitudes, opinions, & preferences. Get to know the customers in different countries and industries.

Country Reports:

Crucial information regarding the status quo and development of countries & regions (Asia, Europe, Americas, Africa, Australia & Oceania) including key economic indicators like GDP, national finance, demographics, and trade figures as well as major industry players.

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