Affinion Group - Competitors

Affinion Group Competition

Now Viewing Affinion Group's competition in: Sales Promotion Services (primary)

Recent Developments

Ad Spending Growth Forecast Cut - ZenithOptimedia has downgraded its forecast for ad spending growth in North America and Europe in 2008 due to economic weakness and the credit crunch. The media agency cut its prediction for ad spending growth to 3.8 percent in 2008 compared to 2007 from 4.4 percent, but raised its worldwide ad spending forecast to 11.1 percent from 10.9 percent.

Company Fined for Selling Lead-Tainted Products - A promotional product supplier was fined $10 million in May 2008 for selling lead-laced lunch boxes to the state of California. T-A Creations had supplied lunch boxes with the logo "Eat Fruits & Vegetables and Be Active" in Spanish and English to the California Department of Public Health. The company was fined after it failed to appear in court for a lawsuit involving the tainted lunch boxes.

Falling Dollar Drives Up Costs - Product acquisition costs for sales promotion services are rising as the value of the US dollar falls. Prices of shirts, writing instruments, desk and office accessories, glassware, and headgear made abroad are rising as currency exchange rates shift, according to Counselor magazine. The value of the US dollar has decreased about 15 percent in relation to China's currency since 2005.

Competitive Landscape

Demand is driven by economic growth and by corporate profits. The profitability of individual companies depends on efficient order fulfillment and marketing. Large companies have economies of scale in procurement and the ability to offer other marketing services. Small companies specialize by type of sales promotion product and differentiate themselves on customer service, particularly speed of delivery. The industry is labor-intensive: average annual revenue per employee is about $125,000.

Full Industry Overview For Sales Promotion Services

Sales Promotion Services Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US advertising and related services, including sales promotion services, is forecast to grow at an annual compounded rate of 3.7 percent between 2007 and 2012.

Advertising and Related Services Growth Slow and Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.