Advertising Services Sourcing Intelligence To Grow Substantially At A CAGR Of 5.9% Till 2030Posted by rahul nikade on April 18th, 2024 Advertising Services Procurement Intelligence In this Advertising services procurement intelligence report, we have estimated the pricing of the key cost components. We have found that for an advertising agency, the total cost of ownership can be divided into five major categories - office expenses, production costs, labor, business setup costs, and other additional expenses. Office expenses include major cost components such as rent, maintenance, equipment, depreciation, and office supplies. Production costs include components such as multiple software integrations, customer relationship management (CRM) systems, SEO, digital marketing tools, social media tools, cameras, and other projectors. Labor accounts for 10 - 18% of the total services costs. Business set-up costs include licensing fees, corporate taxes, consultancy fees, and others. Production, labor, and office expenses form the largest cost components of advertising services. The different pricing models adopted by different agencies are - hourly-based pricing, project-based charges, retainer prices, recurring price model, performance-based pricing model, value-based pricing, and customized pricing. For a simple project, the average hourly prices can range from USD 50 - 600 per hour. For small to mid-sized companies, the average project prices can range between USD 1,000 - 12,000 depending on the complexity of the project. Order your copy of the Advertising Services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis Operational Capabilities - Advertising Services
Functional Capabilities - Advertising Services
Rate Benchmarking The geographical location, type of business, and industry play a vital factor in analyzing the rate benchmarking of the Advertising services category. In our research, we have analyzed the rates of advertising services in the U.S. region. Factors such as the type of digital platform (for instance, Google, Facebook, LinkedIn, etc.), industry, ad quality, and relevance score also impacts the advertising prices. We also found that among digital advertisers, Google Ads has become one of the most popular PPC networks. The seven most used Google Ads are - Search Campaigns, Display Campaigns, Video Campaigns, Shopping Campaigns, Ad Campaigns, Local Campaigns, and Smart Campaigns. The type of industry affects the cost of Google Paid Ads. For instance, Google paid ad costs are higher for companies operating in the legal, real estate and accounting sectors. But the retail and e-commerce sectors have lower advertising costs. The average Cost per Click (Search) in the legal industry is around USD 5.88 - 7 compared to e-commerce which is between USD 0.88 - 1.5. The target country also impacts the prices. There are different CPC (Cost per click) based on the country. For instance, it costs more to target the U.S. compared to India. Similarly, prices for print advertising depend on the area circulation, the publication’s location, and the day of the week published. For instance, the minimum price for a full-page advertisement in the Los Angeles Times and Washington Post is USD 70,000 and USD 100,000 respectively compared to Milwaukee Journal Sentinel, which starts from as low as USD 15,000. Supplier Newsletter In April 2023, WPP announced the acquisition of a major audio/sonic branding company, amp, to expand and strengthen its sound branding business line. Through this acquisition, WPP will provide an immersive and customized audio experience for its customers via the amp’s AI platform. The platform uses generative AI and can effectively analyze, create, and manage multiple audio assets. Amp’s major clients include Mercedes-Benz, Kraft Heinz, General Motors, Deloitte, Shell, and Mastercard. In April 2023, Omnicom Group Inc. announced a partnership with Adobe - Content Supply Chain Solutions, through its enterprise licensing deal. The deal will enable Omnicom’s agencies to have complete end-to-end visibility of the content process – from planning, production, activation, and optimization. The agencies will have access to other solutions such as Adobe Creative Cloud, Adobe Workfront, and Adobe Experience Manager. To offer specialized integrated services to its clients, Omnicom will integrate Adobe's technology with its platform and marketing system. In March 2023, WPP entered a partnership with Braze, a customer engagement platform, to increase interactions between a consumer and a brand. The partnership will help brands deliver personalized content engagement across multiple channels by leveraging Braze’s and WPP’s joint integrations of their first-party data. Braze currently offers 100 integrations with other major technology partners. List of Key Suppliers
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Advertising Services Procurement Intelligence Report Scope
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