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Advertising Services Are Driven by the Increasing demand for Short Content and Video Ads - Grand View Research, Inc.
Wednesday, June 21, 2023
Advertising Services - Procurement Intelligence
SAN FRANCISCO, June 13, 2023 /PRNewswire/ -- The advertising services category is expected to register a CAGR of 5.9% from 2023 to 2030. The advertising services category is driven by the increasing demand for the short form of content and video ads.
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The global advertising services market size was valued at USD 600 billion in 2022 and forecasted to cross USD 949.12 billion by 2030. In 2022, North America accounted for 36% of the overall share followed by Europe and APAC. The increasing demand for short content and video ads, the increasing internet penetration, and the growing number of smartphone users are driving the growth of this category. For instance, in 2022, there were 244.4 million digital video viewers in the U.S. alone. According to Business Insider, more than 97% of U.S. users aged between 12 and 44 years consume a high amount of digital video content. In a 2023 survey, it was found that more than 91% of consumers want more digital content from brands which in turn is driving the demand for video advertising. More and more companies/brands are including video content as a part of their digital marketing strategy to capture the audience's attention. The return on investment is high for video marketers as they get 66% more leads per annum and can achieve a 54% increase in brand awareness. In 2022, almost 82% of internet traffic came from video streaming and downloads. One of the top technological trends is the increased adoption of chatbots and conversational AI in the digital marketing space. Voice searches, such as Cortana and Google Assistant are rising in popularity in the content marketing and advertising sector, which is expected to aid small business's growth.
Order your copy of the Advertising services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
The total cost of advertising services depends on multiple factors such as the type of ad, type of digital platform, complexity of the campaign, location, and strategy used to promote the products & services. On average, the prices for a project can range between USD 1,200 and USD 10,000 per month. Some of the services under advertising packages can include PPC ads, social media ads, display ads, banner ads, or influencer ads. Some companies have tier-pricing models such as basic, premium or professional, and enterprise level. A basic service can range from USD 100 to USD 5,000 per month and can include 2,000 to 3,000 keywords, Google PPC network, campaign development, strategy, copywriting services, etc. A premium or professional tier advertising service can range between USD 5,000 to 30,000 per month and can include network connections, 10,000 to 15,000 keywords, third-party audience targeting, account-based retargeting, CRM pipeline targeting, funnel measurement, landing page setup, etc. For an enterprise-level package, prices can start from USD 35,000 and can increase based on project complexity. Few services under the enterprise level may include connections to multiple networks, 15,000+ keywords, display ad creative sets, TV commercial ads, etc.
Request for a free sample of the "Advertising Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research" for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Advertising Services Procurement Intelligence Report Coverage
Grand View Research will cover the following aspects in the report:
-- Market Intelligence along with emerging technology and regulatory
landscape
-- Market estimates and forecasts from 2022 to 2030
-- Growth opportunities, trends, and driver analysis
-- Supply chain analysis, supplier analysis with supplier ranking and
positioning matrix, supplier's recent developments.
-- Porter's 5 forces
-- Pricing and cost analysis, price trends, commodity price forecasting,
cost structures, pricing model analysis, supply and demand analysis
-- Engagement and operating models, KPI, and SLA elements
-- LCC/BCC analysis and negotiation strategies
-- Peer benchmarking and product analysis
-- Market report in PDF, Excel, and PPT and online dashboard versions
Advertising Services Sourcing Intelligence Highlights
-- The global advertising category is moderately consolidated due to
increased forward integrations by leading players such as WPP, Publicis
Groupe, Omnicom Group, etc. More than 45% to 50% of the overall share is
made up of the top fifteen players.
-- Suppliers command a higher bargaining power due to this consolidation.
Companies have a high reliance on advertising agencies to boost and
enhance their brand growth. Another favoring factor is that agencies can
work across any industry and many industries
-- Production, office expenses, and labor form the largest cost component
of advertising services. Production cost components include digital
marketing and social media tools, SEO and PPC, software integrations,
cameras, projectors, other digital tools, etc.
-- From a sourcing perspective, the companies mostly prefer approved
provider models to reduce the risks and increase the potential for value
creation.
Browse more procurement/sourcing intelligence reports published by Grand View Research
Cost Intelligence Highlights
In this Advertising services procurement intelligence report, we have estimated the pricing of the key cost components. We have found that for an advertising agency, the total cost of ownership can be divided into five major categories - office expenses, production costs, labor, business setup costs, and other additional expenses. Office expenses include major cost components such as rent, maintenance, equipment, depreciation, and office supplies. Production costs include components such as multiple software integrations, customer relationship management (CRM) systems, SEO, digital marketing tools, social media tools, cameras, and other projectors. Labor accounts for 10 - 18% of the total services costs. Business set-up costs include licensing fees, corporate taxes, consultancy fees, and others. Production, labor, and office expenses form the largest cost components of advertising services. The different pricing models adopted by different agencies are - hourly-based pricing, project-based charges, retainer prices, recurring price model, performance-based pricing model, value-based pricing, and customized pricing. For a simple project, the average hourly prices can range from USD 50 - 600 per hour. For small to mid-sized companies, the average project prices can range between USD 1,000 - 12,000 depending on the complexity of the project.
Grand View Research has identified the following key cost components for the Advertising Services Category:
-- Office Expenses
-- Rent
-- Equipment
-- Maintenance
-- Depreciation
-- Office Supplies
-- Merchant Fees
-- Others
-- Production
-- Software Integrations
-- CRM
-- SEO
-- Digital Marketing Tools
-- Social Media Tools
-- Cameras
-- Projectors
-- Others
-- Business Set up cost
-- Licensing Fees
-- Corporate Taxes
-- Consultancy Fees
-- Others
-- Additional Expenses
-- Travel
-- Accommodation
-- Others
-- Labor
Production, office expenses, and labor form the largest key cost components of the Advertising Services category.
List of Key Suppliers in the Advertising Services Category
-- WPP Plc
-- Omnicom Group
-- Publicis Groupe
-- The Interpublic Group of Companies
-- Dentsu Inc.
-- Hakuhodo Inc.
-- Havas SA
-- MDC Partners
-- Publicis Sapient
-- Lamar Advertising
-- BBDO Worldwide
-- Epsilon Data Management, LLC
-- Accenture Song
-- BlueFocus Communication
-- Starcom Worldwide. Inc
Supplier Intelligence - Key Takeaways
-- In January 2023, Publicis Groupe announced the acquisition of a leading
Bulgaria-based marketing agency firm, Advertise BG. The deal aimed to
expand and strengthen Publicis's end-to-end marketing capabilities in
the social media, digital strategy, and digital content creation space.
The acquisition will merge Advertise BG with Digitas Sofia, which is a
connected agency with Publicis Groupe in Bulgaria
-- In January 2023, Publicis Groupe announced the acquisition of the
U.K.-based marketing company, Yieldify, which will become a part of
Epsilon. Yieldify's platform will combine with Epsilon PeopleCloud to
expand its presence in the mid-market and integrate with Epsilon's
industry-leading CORE ID. Audience targeting will become easier through
increased personalization.
-- In April 2023, WPP announced the acquisition of a major audio/sonic
branding company, amp, to expand and strengthen its sound branding
business line. Through this acquisition, WPP will provide an immersive
and customized audio experience for its customers via the amp's AI
platform. The platform uses generative AI and can effectively analyze,
create, and manage multiple audio assets. Amp's major clients include
Mercedes-Benz, Kraft Heinz, General Motors, Deloitte, Shell, and
Mastercard.
-- In April 2023, Omnicom Group Inc. announced a partnership with Adobe -
Content Supply Chain Solutions, through its enterprise licensing deal.
The deal will enable Omnicom's agencies to have complete end-to-end
visibility of the content process - from planning, production,
activation, and optimization. The agencies will have access to other
solutions such as Adobe Creative Cloud, Adobe Workfront, and Adobe
Experience Manager. To offer specialized integrated services to its
clients, Omnicom will integrate Adobe's technology with its platform and
marketing system.
-- In March 2023, WPP entered a partnership with Braze, a customer
engagement platform, to increase interactions between a consumer and a
brand. The partnership will help brands deliver personalized content
engagement across multiple channels by leveraging Braze's and WPP's
joint integrations of their first-party data. Braze currently offers 100
integrations with other major technology partners.
Browse through Grand View Research's collection of procurement intelligence studies:
-- Personal Protective Equipment Procurement Intelligence Report, 2023 -
2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging
Technologies, Pricing Models, Cost Structure, Engagement & Operating
Model, Competitive Landscape)
-- Cleaning Services Procurement Intelligence Report, 2023 - 2030 (Revenue
Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing
Models, Cost Structure, Engagement & Operating Model, Competitive
Landscape)
Add-on Services provided by Grand View Research Pipeline:
-- Should Cost AnalysisComponent-wise cost break down for better
negotiation for the client, highlights the key cost drivers in the
market with future price fluctuation for different materials (e.g.:
steel, aluminum, etc.) used in the production process.
-- Rate BenchmarkingOffering cost transparency for different products /
services procured by the client. A typical report involves 2-3 case
scenarios helping clients to select the best suited engagement with the
supplier.
-- Salary BenchmarkingDetermining and forecasting salaries for specific
skill set labor to make decision on outsourcing vs in-house.
-- Supplier NewsletterA typical newsletter study by capturing latest
information for specific suppliers related to: M&As, technological
innovations, expansion, litigations, bankruptcy etc.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
-- Market Intelligence involving - market size and forecast, growth
factors, and driving trends.
-- Price and Cost Intelligence - pricing models adapted for the category,
total cost of ownerships.
-- Supplier Intelligence - rich insight on supplier landscape, and
identifies suppliers who are dominating, emerging, lounging, and
specializing.
-- Sourcing / Procurement Intelligence - best practices followed in the
industry, identifying standard KPIs and SLAs, peer analysis, negotiation
strategies to be utilized with the suppliers, and best suited countries
for sourcing to minimize supply chain disruptions.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: sales@grandviewresearch.com
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SOURCE Grand View Research India Pvt Ltd
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