The Structure of the Advertising Industry: Advertisers, Agencies, and Support Organizations
Chapter 2
The Structure of the Advertising Industry:
Advertisers, Agencies, and Support Organizations
© 2006 Thomson/South-Western
Trends Affecting the Advertising and Promotion Industry
1. The “Undoing” of Agency Consolidation and Globalization 2. Media Proliferation and Consolidation 3. Media Clutter and Fragmentation 4. Consumer Control: Blogs and TiVos
© 2006 Thomson/South-Western
Ch 2: The industry 2
The Worldwide Advertising Industry
U.S expenditures: • >$250 billion
Global expenditures: • $550 billion
© 2006 Thomson/South-Western
Ch 2: The industry 3
1
Structure of the Advertising Industry (text Ex. 2.5)
Advertisers
Advertising and Promotion Agencies
External Facilitators
Media Organizations
Target Audience
© 2006 Thomson/South-Western
Ch 2: The industry 4
Advertisers
Manufacturers and Service Firms
• Procter & Gamble, MCI
Trade Resellers
• Sears, McDonald’s
Government
• Federal, State, Local
Social Organizations
• United Way, Nature Conservancy
© 2006 Thomson/South-Western
Ch 2: The industry 5
In addition to companies, the Government Makes extensive use of advertising
© 2006 Thomson/South-Western
2
The Role of the Advertiser in IBP
• Describe the value that the firm’s brand provides • Describe the brand’s position in the market Describe the firm’s objectives for the brand in the near-term and long-term • Identify the target market(s) that are most likely to respond favorable to the brand • Identify and manage the supply chain/distribution system that will most effectively reach the targets • Be committed to using advertising and other promotional tools to grow the brand.
© 2006 Thomson/South-Western
Ch 2: The industry 7
Agencies
Advertising Agencies:
• • • • • • • Full-Service Creative Boutique Interactive In-House Media Specialists Promotion Agencies Direct Marketing
Promotion Agencies:
• Direct Marketing/ Database • E-commerce • Sales Promotion • Event
The Structure of the Advertising Industry:
Advertisers, Agencies, and Support Organizations
© 2006 Thomson/South-Western
Trends Affecting the Advertising and Promotion Industry
1. The “Undoing” of Agency Consolidation and Globalization 2. Media Proliferation and Consolidation 3. Media Clutter and Fragmentation 4. Consumer Control: Blogs and TiVos
© 2006 Thomson/South-Western
Ch 2: The industry 2
The Worldwide Advertising Industry
U.S expenditures: • >$250 billion
Global expenditures: • $550 billion
© 2006 Thomson/South-Western
Ch 2: The industry 3
1
Structure of the Advertising Industry (text Ex. 2.5)
Advertisers
Advertising and Promotion Agencies
External Facilitators
Media Organizations
Target Audience
© 2006 Thomson/South-Western
Ch 2: The industry 4
Advertisers
Manufacturers and Service Firms
• Procter & Gamble, MCI
Trade Resellers
• Sears, McDonald’s
Government
• Federal, State, Local
Social Organizations
• United Way, Nature Conservancy
© 2006 Thomson/South-Western
Ch 2: The industry 5
In addition to companies, the Government Makes extensive use of advertising
© 2006 Thomson/South-Western
2
The Role of the Advertiser in IBP
• Describe the value that the firm’s brand provides • Describe the brand’s position in the market Describe the firm’s objectives for the brand in the near-term and long-term • Identify the target market(s) that are most likely to respond favorable to the brand • Identify and manage the supply chain/distribution system that will most effectively reach the targets • Be committed to using advertising and other promotional tools to grow the brand.
© 2006 Thomson/South-Western
Ch 2: The industry 7
Agencies
Advertising Agencies:
• • • • • • • Full-Service Creative Boutique Interactive In-House Media Specialists Promotion Agencies Direct Marketing
Promotion Agencies:
• Direct Marketing/ Database • E-commerce • Sales Promotion • Event