Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house...

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Five Major Players in the Advertising Industry 1. Advertisers • Marketing or advertising dept. • In-house agency –> function? Pros and cons? 2. Agencies (External): Different Types, Its typical structure 3. Media 4. Suppliers/Vendors: • group of service organizations/individuals that provide specialized services. Examples? • Why do advertisers or agencies hire

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Transcript of Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house...

Page 1: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Five Major Players in the Advertising Industry

1. Advertisers

• Marketing or advertising dept.

• In-house agency –> function? Pros and cons?

2. Agencies (External): Different Types, Its typical structure

3. Media

4. Suppliers/Vendors:

• group of service organizations/individuals that provide specialized services. Examples?

• Why do advertisers or agencies hire them?

5. Consumers (target audience)

Page 2: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Five Major Players in the Advertising Industry

•Relationship between Advertiser (client) and Agency –

equal partners?

Or Master-Servant relationship?

• Account Review?

• Account Pitch?

Page 3: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Different Brands by different Agencies even within the same client

•Time Warner Company–America Online, HBO by BBDO Worldwide

–Time Inc. by Fallon Worldwide

–Time Warner Cable by Ogilvy & Mather

•Proter & Gamble Co.–Clairol, Cover Girl, Downey by Grey Worldwide

–Always, Max Factor, Secret by Leo Burnett

–Bounty, NyQuil, Vicks by Publicis Worldwide

–Old Spice, Crest, Tide by Saatchi & Saatchi

Page 4: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Top 10 U.S. Advertisers ($ in billions)

Source: Advertising Age Fact Sheet 2005

Data is based on their 2003 ad spending, the sum of measured media from TNS and unmeasured estimates by Advertising Age.

Page 5: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Top 10 U.S. Mega brands ($ in millions)

$ in millions --- measured U.S. ad spending in NPs, magazines, outdoor, broadcast and cable TV and radio.

Page 6: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

U.S. AD Spending Totals by Media ($ in billions, 2003)

Data based on 100 Leading National Advertisers.

*Broadcast TV includes network, spot, syndicated and Spanish-language TV.

Page 7: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):
Page 8: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Top 10 Media Companies (Estimated 2003 Media Revenues in millions of $)

Page 9: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Top 10 U.S. Advertising Agency Brands

(US revenue in 2003, $ in millions)

Page 10: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Different Brands by different Agencies even within the same parent company

• Time Warner Company– America Online, HBO by BBDO Worldwide

– Time Inc. by Fallon Worldwide

– Time Warner Cable by Ogilvy & Mather

• Proter & Gamble Co.– Clairol, Cover Girl, Downey by Grey Worldwide

– Always, Max Factor, Secret by Leo Burnett

– Bounty, NyQuil, Vicks by Publicis Worldwide

– Old Spice, Crest, Tide by Saatchi & Saatchi

Page 11: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Top 10 Marketing/Advertising Organizations

(by worldwide revenue in 2003, $ in millions)

Page 12: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

Agency Business Market Share

Top 5 groups dominate global advertising and media!!!

Page 13: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

• Omnicom Group Family • WPP Group Family

Page 14: Five Major Players in the Advertising Industry 1.Advertisers Marketing or advertising dept. In-house agency –> function? Pros and cons? 2.Agencies (External):

• Interpublic Group of Cos. • Publicis Group Family