Industry Overview
Define the difference between a full service advertising agency and an advertising and design agency. Ask people who work for one of the giants and they will tell you, “Nothing.” That’s because their agencies do it all.
Small companies have limited budgets for advertising, requiring a local agency familiar with the specific marketplace.
Advertising agencies have generated revenue of over $40 billion during the past year. As major multi-national agencies gobble up smaller ones, the number of agencies decreases. With the onset of new methods and technologies, those within the industry have been rethinking the way business has to be conducted.
Many advertising agencies have diversity divisions that work with minority markets. Ad campaigns are created and implemented in the language of the community. This has created not only additional sales for corporate clients, but new jobs for those who can speak the required language.
New York advertising agencies remain home base for the major players. New York is no longer alone. Advertising agencies in Los Angeles have been generating campaigns for international clients that have been rivaling any produced elsewhere.
The Advertising Council still remains in New York and still provides the education and advocacy to the advertising industry.
Industry Trends
The Advertising Industry is patting itself on the back for creating a multi-cultural industry. It has taken them at least 2 decades to understand that advertising in this country cannot be in English only. It is interesting to see many ethnicities in TV commercials and print ads of old American standard brands.
Using new social networking capabilities has broadened brand recognition for advertising companies’ clients.
Internet advertising has jumped exponentially in revenue generated and visibility.
Brand Names
Havas, Interpublic Group of Companies and Publicis are among the multi-million dollar giants with branches spread globally.