Advertising Agencies Industry Trends

Consolidation

To provide a complete range of services to customers, the large advertising companies have been built by acquisition during the past decade. Rather than absorbing acquired agencies into a larger organization, the advertising companies operate them mainly as separate entities. Consolidation has been encouraged by the growth of customers and of large media companies, like Viacom and Disney.

Internet Advertising

The expansion of the Internet as a communications medium has presented advertising agencies a new way to reach a highly targeted audience. Strategies for Internet advertising are still evolving, but many agencies have acquired the technical capabilities to operate in this medium.

Media Market Fragmentation

The proliferation of TV and radio channels, and declining readership at newspapers, has made reaching a national or regional audience more difficult for advertisers. Agencies have become more necessary to advertisers because they have the expertise to put together an advertising campaign that can use the increasing number of communications' channels to reach the correct audience.

In-store TV Ads

Experts say in-store marketing is a growing trend. In-store TV marketing, which runs commercials and infomercials on TVs in retail stores, has resulted in double-digit sales boosts for the products it advertises. The systems are expensive, but retailers can subsidize costs by negotiating with vendors to feature their products.

Hispanic Markets

With the Hispanic population quickly gaining importance in the US market, ad agencies are searching for marketing expertise to appeal to this audience. Publicis Groupe, Omnicom Group, WPP Group, and other agency giants have invested in or bought Hispanic-focused advertising agencies.