Shaping the Future: Trends in Advertising Services Procurement Intelligence

The advertising services category is expected to register a CAGR of 5.9% from 2023 to 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. 

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. 

Order your copy of the Advertising Services 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

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 

List of Key Suppliers 

• 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

Browse through Grand View Research’s collection of procurement intelligence studies:

• Artificial Intelligence Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Digital Marketing Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Advertising Services Category Procurement Intelligence Report Scope 

• Advertising Services Category Growth rate (CAGR): CAGR of 5.9%

• Revenue Forecast in 2030:  USD 949.12 billion

• Pricing growth Outlook: 10 - 15%

• Pricing Models: Value-based pricing model and fixed price pricing model

• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence

• Supplier Selection Criteria: Digital marketing, SEO and PPC, email and social media marketing, content creation, print advertising, radio and tv commercials, software integrations, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

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 adopted 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



Comments

Post a Comment

Popular posts from this blog

Blow Molding Plastic Packaging Procurement Intelligence Insights

The blow molding plastic packaging category is expected to grow at a CAGR of 4.7% from 2023 to 2030. The Asia Pacific region accounts for the largest share of the category. The increasing demand for packaging processes in the business is boosting growth. Companies are focusing on adopting various technologies for efficient and eco-friendly production by reducing the wastage of materials and enhancing productivity. For instance, in 2022, Amcor used big data analytics to identify a way to reduce the amount of plastic used in its bottles by 10%. Within this category, companies are using Artificial Intelligence (AI), IoT, and big data as it helps to automate repetitive tasks and enables them to collect and analyze data that can be analyzed and shared in real-time to improve efficiency and productivity by reducing errors. For instance, in 2022, Bekum Maschinenfabrik GmbH announced that it was using AI to automate the loading and unloading of molds. Companies are continuously focusing on pa...
Read more

Future of Bearings Procurement Intelligence: Trends and Insights

The bearings category is expected to grow at a CAGR of 10.6% from 2023 to 2030. The Asia Pacific region accounts for the largest overall share. China and India have their major contribution to the market growth. Factors such as increasing demand for EVs, growth of the aerospace sector, rising industrialization, infrastructure development, technological innovations, and growing focus on renewable energy are driving the growth. One of the key trends is the increasing demand for electric and hybrid vehicles that utilize the use of developed technology which requires placing additional bearings within it. Additionally, precision bearings, which are utilized in several industrial automation applications, are in higher demand as the Industrial IoT and Industry 4.0 technologies gain traction and drive the need for bearings in industrial automation. Smart bearings, integrated with a tri-axial accelerometer to gauge the degree of system vibration. It assesses the post-process algorithm to pred...
Read more

Plasticizers Procurement Intelligence: Key Insights for Success

The plasticizers category is anticipated to grow at a CAGR of 5.5% from 2023 to 2030. A plasticizer is a compound or material that is added to a polymer solution in order to enhance its flexibility and plasticity. In the plastics industry, plasticizers are among the most frequently utilized additives. The most common polymer to employ plasticizers is Polyvinyl Chloride (PVC), which is the third largest by volume after Polypropylene (PP) and Polyethylene (PE). Numerous chemical families fall under the category of plasticizers based on the classification of chemical composition. However, the most prevalent ones are - Trimellitate ester plasticizers (like TINTM, TIDTM, and TEHTM), Phthalate ester plasticizers (like DIDP, DINP, and DEHP), Energetic plasticizers (like BDNPA, BTTN, and DNT), Benzoate plasticizers (like benzoate esters), Adipate plasticizers (like DIDA and DEHA), Bio-based plasticizers (vegetable oil plasticizers), and Citrates plasticizers (like TOC, ATBC, and ATOC). The gr...
Read more