Exclusive extracts from this 104-page-long report:
- What is the business?
Advertising companies' core business includes the conception, production and distribution of advertising campaigns, which can be distinguished from other activities such as advertising space brokerage, marketing, and related services. Most of the companies analysed in this report cover one or more of these activities, but only a few players are fully integrated and diversified. Over the past years, Internet and tech companies have accelerated the sector's digital transition, with advertisers shifting ever larger shares of their ad budgets from traditional mass-media to digital/online media. […]
- What are the main markets?
Global ad spending remains strongly concentrated, with North America alone accounting for nearly 40% of the global market in 2017. Together with Western Europe and the Asia-Pacific region the three regions together accounted for approximately 86% of worldwide ad spending. Although emerging markets are expected to report faster growth in ad spending in the coming years, it is the larger regions that will continue to drive much of the growth in global ad spending. [...]
- Who are the key players?
Multinational full-service advertising groups are the key players of the global advertising industry, although digital pure-players such as Google and Facebook have come to dominate the market thanks to their unmatched scale in online advertising. Mergers and acquisitions are commonplace, but the industry remains fragmented, with a great number of small, specialised niche agencies or ad technology providers. [...]
- How intense is competition?
Competitive rivalry is intense and multifaceted, with leading traditional advertising agencies not only competing with each other for skilled employees and major customers, but also with Internet and tech companies whose all-digital business models and large online user bases make them serious contenders in the online advertising market. According to the market segment, advertising companies moreover face competition from more specialised agencies or marketing service providers. [...]