Advertising & Marketing Services Industry Overview

Excerpt from Advertising & Marketing Services Report

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); WPP (Ireland); Publicis (France); Dentsu (Japan); and Hakuhodo DY Holdings (Japan).

Competitive Landscape

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 industry is fragmented: the top 50 companies generate about one-third of revenue.

Products, Operations & Technology

Major services are advertising for print, broadcast, and online media (25 percent of industry sales), direct mail advertising (15 percent), and public relations (10 percent). Other services include display advertising, media buying (reselling advertising time or space), and media representation (selling advertising time or space on behalf of media outlet owners).