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

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Presentation transcript:

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)

Five Major Players in the Advertising Industry Relationship between Advertiser (client) and Agency –  equal partners? Or Master-Servant relationship? Account Review? Account Pitch?

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

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.

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.

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.

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

Top 10 U.S. Advertising Agency Brands (US revenue in 2003, $ in millions)

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

Top 10 Marketing/Advertising Organizations ( by worldwide revenue in 2003, $ in millions)

Agency Business Market Share Top 5 groups dominate global advertising and media!!!

Omnicom Group Family WPP Group Family

Interpublic Group of Cos. Publicis Group Family