Advertising Services – Procurement Intelligence
With the increased growth in the e-commerce sector, online shopping, the use of smartphones, penetration of OTT platforms, data-driven advertising and marketing services are on the rise. Companies are increasing their ad-tech spending to target a wider audience across different media formats and devices. Global advertising spending has increased by 22% in 2022. Other major factors driving the growth of the market are the rise in small businesses and digital companies that spend more on digital advertising. For instance, in 2022,
China-based marketers have widely used global digital platforms to capture overseas customers. Many consumer-facing businesses such as Walmart, CVS Health Corp., and DoorDash Inc. are providing advertisers with multiple ways to reach customers using the data they have on shoppers’ purchases.
Advertising Services Sourcing Intelligence Highlights
- The global advertising category is moderately consolidated due to increased forward integrations by leading players such as WPP, Publicis Groupe, Omnicom Group, etc. More than 45% to 50% of the overall share is made up of the top fifteen players.
- Suppliers command a higher bargaining power due to this consolidation. Companies have a high reliance on advertising agencies to boost and enhance their brand growth. Another favoring factor is that agencies can work across any industry and many industries
- Production, office expenses, and labor form the largest cost component of advertising services. Production cost components include digital marketing and social media tools, SEO and PPC, software integrations, cameras, projectors, other digital tools, etc.
- From a sourcing perspective, the companies mostly prefer approved provider models to reduce the risks and increase the potential for value creation
Browse Report @ https://www.grandviewresearch.com/pipeline/advertising-services-procurement-intelligence-report
Pipeline has a team of dedicated, experienced analysts with domain-specific expertise and extensive economic and business training that allows them to solve key client questions. They’re guided by highly experienced team managers and supported by skilled project managers.
Add-on Services
Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
