| SIC Codes: | 7311 |
| NAICS Codes: | 541810 |
Companies in this industry provide advertising services, including creative services, account management, ad production, and media planning and buying, primarily in the online and mobile environments. Major companies include digital units of large advertising firms such as Interpublic and Omnicom (both based in the US), Publicis (France), and WPP (Ireland).
Demand is driven by spending on advertising, mainly 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 tablets. Paid search and display-related advertising together account for more than 80 percent of revenue. Search revenues come from fees advertisers pay Internet companies to list their company's website or link it to a specific search word or phrase. Display-related offerings take advantage of online space to display advertising, and include banner ads, rich media (interactive media applications that incorporate text, graphics, audio, and video formats), digital video, and sponsorship. Classifieds, mobile, lead generation, and email advertising account for most of the industry's remaining revenues.