The Ad Industry 2 Objectives Know Current Intustry

Transcript:The Ad Industry 2 Objectives Know Current Intustry:
The Ad Industry 2 Objectives Know Current Intustry Trends Industry Structure Role of Agencies/Compensation Identify External Players Role of Media Conglomerates Trends Affecting the Advertising & Promotion Industry The “Undoing” of Agency Consolidation & Globalization Media Proliferation & Consolidation Media Clutter & Fragmentation Consumer Control: e-Search, Blogs & DVRs (e.g.,TiVo) Google Gives us Power? The Worldwide Advertising Industry U.S expenditures: >$250 billion Global expenditures: $550 billion Structure of the Advertising Industry Advertisers Manufacturers & Service Firms Procter & Gamble, MCI Trade Resellers Sears, McDonald’s Government Federal, State, Local Social Organizations United Way, Nature Conservancy In addition to companies, the Government Makes extensive use of advertising 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 & long-term Identify the target market(s) that are most likely to respond favorable to the brand Identify & manage the supply chain/distribution system that will most effectively reach the targets Be committed to using advertising & other promotional tools to grow the brand 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 Planning Design Firms Public Relations Firms Advertising agencies make extensive use of advertising to acquire new clients Full Service Agency Services Account Services Marketing Research Services Creative & Production Services Media Planning & Buying Services Administrative Services Agency Compensation Commissions: around 15% of airtime fees—in flux Markup Charges: production cost + fixed % Fee Systems: hourly rates, or by project Pay-for-Results: tightly-specified objectives External Facilitators Marketing & Advertising Research Firms Consultants: Creative, Media, Database Production Facilitators Software Firms: web tracking, fulfillment Media Organizations Broadcast TV, radio Print Magazines, direct mail, newspapers Interactive Media CD-ROMs, online shopping Support Media Outdoor, directories, Sponsorship Media Conglomerates AOL Time Warner, Viacom, AT&T Target Audiences Household consumers Businesses Professionals Government Organizations Review/?s Know Current Industry Trends Industry Structure Role of Agencies/Compensation Identify External Players Role of Media Conglomerates