Outlook of Advertising and Marketing Industry
Advertising means creating awareness about new products and services. Advertising industry bridges the gap between manufacturers and customers. It is one of the rapid growing industries and contributes to substantial extent for economic growth. Measuring the return on investment in marketing is very tough.
According to advertising and marketing industry reports, in terms of global economic development 0.99% in approximately 57 countries constitutes broadcasting; movies, internet, and print media. As per market research reports European countries incurred more expenses on promotion than U.S. in 2005. Reports also highlight that growth if advertising industry may 5.6% to 5.3% in coming years. From market study it is predicted that contribution of marketing industry towards GDP may rise from 0.96% to 0.99% in next year.
As per advertising industry report United States of America earned $13.10 billion in 2006 from media and publicity. In this research report it is found that more than 30000 companies in United States of America operate in marketing industry. Some of the leading companies in the industry are Omnicom, WPP, and Interpublic. They all together generate up to $60 billion annual revenue. The annual income generated from each employee in advertising industry is $150,000. Reports say that 50 leading companies in the industry hold 40% of market share. As per the reports advertising industry has to face three types of risks structural risk, growth risk and sensitivity risk. Several factors like exchange rate, government regulations, and interest rates may affect advertising industry to some extent.
Advertising industry trends highlights that marketing expenses related to magazines increased by 7.1% in 2007 compared to that of 2006. At the same time expenses made on business magazines covering reports, business articles and business statistics reduced by 5.2%. According to market reports the expenses incurred on all the media reduced by 0.3% in as compared to 2006.
Advertising industry reports highlighted that more than 1370 magazines were launched in U.S. and Canada in 2006. In this report it was predicted that the number will increase to 26960 by 2007. It was determined that number of advertisement pages in magazines may reduce by 9%. This shift occurred due emergence of internet advertising. Due to this drastic shift studies determined that publishers may reduce paper size and weight to cut off the expenses. Reports analyzed that near about 19.2% was spent on magazines in 2007. Means there was 0.9% rise in expenses compared to 2006. Nowadays people are surfing internet to get business information so the demand for magazines has reduced. To reduce the expenses on marketing, resources should be executed in optimum and efficient manner, and promotion projects should be formulated by using appropriate technology.
Keshav Dussal - About Author:
Keshav Dussal is the author of this article. He has been demonstrating his writing skills by writing the articles for B2B marketplace reports from last two years. He also has a keen interest in writing stuff for Company profile related topics. He has written various articles on Advertising and Marketing Industry .
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