AOL - Competitors

AOL Competition

Now Viewing AOL's competition in: Advertising and Marketing

Recent Developments

Olympic Online Video Ads Lag - Despite big TV ratings, NBC didn't spend much on online video ads during the Olympics. Video ad spending on the Olympics totaled about $5.75 million, or just over 1 percent of the total $500 million marketers will spend on online video ads in 2008, according to eMarketer. Analysts attribute the low spending to few popular Olympic events, such as swimming, gymnastics, and track, available on video. eMarketer says that, despite the poor performance during the Olympics, Internet advertising will double its revenue by 2010.

GM Abandons High Profile Venues - GM will end its advertising in such high profile events as the Academy Awards and the Emmys to cut ad and marketing costs. GM has sponsored both blockbuster events for over 10 years and spent $13.5 million on the Oscars in 2008. GM is also examining its advertising role in motor sports, including NASCAR sponsorship. Company officials say that advertising will shift more to product launches and brand advertising.

P&G Keeps Media Budget - Procter & Gamble (P&G) won't cut its advertising budget, despite cuts elsewhere. P&G spent 10.4 percent of sales on advertising in 2008 (fiscal year ending June 30) and expects to maintain that level of advertising spending. While the company is making cuts in other parts of the organization, including reducing the number of executives, cutting capital spending, and reducing R&D, it will maintain its advertising presence.

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.

Full Industry Overview For Advertising and Marketing

Advertising and Marketing Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US ad services is forecast to grow at an annual compounded rate of 4.5 percent between 2007 and 2012.

Advertising Growth Steady

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.