| SIC Codes: | 7311 |
| NAICS Codes: | 541810 |
In the US, about 35,000 companies offer digital advertising services; this segment of the advertising and marketing industry generates about $25 billion in annual revenue, according to media investment management firm GroupM. Major companies include digital units of big firms such as Interpublic, Omnicom, and the US operations of Publicis and WPP, as well as smaller specialist firms. Revenue comes primarily from clients seeking advertising services in online and mobile environments.
Demand is driven by businesses that sell consumer products, entertainment, financial services, technology, and telecommunications. The profitability of individual companies depends on technical and creative skills, as well as maintaining client relationships. Large companies have advantages in their ability to acquire other companies or digital assets and technologies to serve the evolving needs of major clients. Small companies can compete effectively by focusing on niche markets or providing competitive pricing.
Major services involve the development of advertising products for use in digital applications, such as the Internet, smartphones, and e-readers. Such products include search engine, Rich Media (interactive media applications that incorporate text, graphics, audio, video, etc.), online banner, social network, and email advertisements. In-stream advertising and video overlays are among the more popular online and mobile advertising tools. An in-stream is a video advertisement that typically plays on a Web page prior to or following another video, and is common on video streaming sites such as Hulu. Twitter introduced in-streaming to its users in 2010. Conversely, video overlays are static advertisements that typically reside near the bottom of a video in progress; clicking on the ad re-directs a user to the advertiser's site.