Advertising Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

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.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Senior Marketing Manager for advertising services at WPP and Dentsu Aegis Network receive a 15% - 20% higher base salary compared to the salary received by Senior Marketing Managers working in companies such as Publicis Groupe, Lamar Advertising Company, and Omnicom Group. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Advertising Services category currently.

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.