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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):

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

1 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)

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

3 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

4 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.

5 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.

6 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.

7

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

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

10 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

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

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

13 Omnicom Group Family WPP Group Family

14 Interpublic Group of Cos. Publicis Group Family

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