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

Creative Advertising Category Overview

“The creative advertising category’s growth is driven by the increase in adoption of digital marketing and increasing diversity of the target audience".

The creative advertising category is expected to grow at a CAGR of 9% from 2023 to 2030. The growth of digital marketing is driving this category’s growth as it allows businesses to target their advertising more precisely and to measure the results of their campaign more accurately. This makes it easier for businesses to see the value of creative advertising and invest in it. The growing importance of data analytics is another factor that is driving the growth of this category. Consumers’ rising demand for personalized advertising experiences has prompted firms to use data analytics to accurately target their ads, creating more successful and compelling campaigns. Emotional connection is a key component of effective creative advertising. When an ad can evoke an emotional response from the viewer, it is more likely to be remembered and acted upon. For instance,

• Apple's "Think Different" campaign is a great example of using storytelling in advertising. The campaign tells the stories of iconic innovators to inspire people to think differently and challenge the status quo.

• Google's "Don't Be Evil" campaign is a great example of using social media to create an engaging and interactive advertising campaign. The campaign asks people to think about the role of technology in society and to challenge Google to be a force for good.

The global creative advertising category size was valued at USD 321 billion in 2022. Consumer demographics are shifting, which is fueling the expansion of this category. Consumers are growing more fragmented and demanding, and they want advertising that speaks to their values and is relevant to them. Businesses that use creative advertising can interact with their customers on a deeper level. Video advertising is becoming increasingly popular, and this is also creating new opportunities for creative advertising. Video advertising allows businesses to tell stories and connect with consumers on an emotional level. This makes it a powerful tool for creating memorable and effective advertising campaigns.

Technology such as artificial intelligence is used in this category. It helps to create more personalized and relevant campaigns and analyze data about the target audience to identify their needs and interests. Using this data, campaigns are developed that are more likely to connect with the target demographic. Virtual reality (VR) and augmented reality (AR) are used to create immersive creative advertising experiences more engaging and memorable. Data analytics is an effective tool that improves targeting, understands consumer preferences and demographics, and creates innovative campaigns to improve this area. By tracking consumer behavior, it can identify the right audiences for ads, leading to better targeting and ROI. By tracking ad performance in real time, data analytics ensures that ads reach the right audience and improves the overall effectiveness of this sector. For instances,

• Nike uses data analytics to track the performance of its ads on social media and optimize its campaigns to reach its target audience. For example, Nike used data analytics to track the performance of its #BeTrue campaign on social media. The campaign was designed to celebrate diversity and inclusion, and it reached over 1 billion people on social media.

• Budweiser used AR to create a campaign that allowed consumers to see their favorite athletes in their own living rooms. The campaign was called "Budweiser AR Home Gating," and it allowed consumers to interact with 3D models of their favorite athletes. 

North America dominates this category, accounting for over 45% of global spending. The region is home to leading agencies and innovation, with emerging creative hubs and digital platforms. APAC is the fastest-growing category, while Europe is a major player with respected agencies and research and development centers. Middle East and Africa (MEA) are growing creative hubs, with mobile and social media platforms becoming popular. Latin America is a dynamic category with award-winning creative agencies and innovative experiential marketing strategies.

Supplier Intelligence

“How is the nature of the creative advertising category? What are the initiatives taken by the suppliers in this category?”

The global creative advertising category is highly fragmented as there are many different types of companies that offer these services. There are advertising agencies, marketing firms, holding companies, and many other types of companies offering these services. There is a lot of competition in this category and it becomes difficult for companies to stand out and make a name for themselves. There are many different types of media where companies advertise including television, digital media, and radio which means companies need to be able to adapt to changing trends and technologies to stay relevant. 

Key suppliers covered in the category:

• WPP

• Omnicom

• Interpublic Group

• Dentsu

• Havas

• MDC Partners

• Ogilvy

• McCann Worldgroup

• BBDO

• Grey Global Group 

Pricing and Cost Intelligence

“What are some of the major cost components or elements involved in the creative advertising category? Which factors impact the cost of creative advertising category?”

Creative consultants’ salaries/labor, production cost, equipment and technology, facilities/rent, marketing/advertising, administrative expenses/utilities, and legal cost are some of the cost components in creative advertising services. The creative consultants’ salaries/labor are the major cost component in this category. It can include a wide range of people such as copywriters, web designers, graphic artists, video production, art directors, etc. The cost of consultants, production, and equipment are significantly influenced by the size, scale, complexity, and location of the businesses. Factors such as traveling, the type of media to be targeted, and project duration can further increase the cost. While complicated projects with technical difficulties require expert professionals and specialized equipment, large-scale projects with moving components demand more labor and resources. The cost of labor may be greater for initiatives in large cities with high living expenses than in smaller towns or rural locations. Due to increased demand, projects carried out at busy times of the year, like the holidays, may have higher labor expenses.

The following chart below provides various costs incurred in this category.

Businesses generally use an hourly rate pricing model which involves charging clients an hourly rate for the time creative professionals spend on a project. This method offers several advantages, including flexibility, transparency, and control. Clients pay only for the time spent by the professionals, while hourly rate pricing ensures that they know exactly how much they will be charged. This transparency also allows clients to see the project's scope and make necessary changes to the scope of work. Overall, hourly rate pricing provides clients with a more flexible and cost-effective approach to their creative advertising projects. A project fee pricing model is a pricing method that charges a fixed fee for a project, based on the scope of work, estimated time, and company profit margin. This approach offers several advantages in the creative advertising category, including certainty, predictability, and efficiency. Clients know the exact amount they will be charged, benefiting those on tight budgets or requiring advanced planning. These companies also get benefit from knowing their earnings, ensuring profitability, and reducing the need for time tracking and billing.

The Creative Advertising Procurement Intelligence report provides a detailed analysis of the cost structure of this category and the pricing models adopted by prominent suppliers in this category.

Sourcing Intelligence

“Which countries are the leading sourcing destination for the creative advertising category?”

The United States is a diverse and large country with diverse cultures and demographics, offering advertisers a diverse audience. The country's leadership in research and development is evident in its advertising industry, with advertisers constantly investing in new technologies and techniques to reach their target audiences. Additionally, the country's talent attracts top talent from around the world, further enhancing its advertising industry. The UK is another leader in this category and has a strong reputation for producing high-quality and effective campaigns. The UK is one of the top European spenders on advertising, with an expected total expenditure of 39.4 billion pounds in 2022. According to the Interactive Advertising Bureau (IAB) UK, USD 15.23 billion was spent on digital ads in 2022, reflecting the industry's recent strong growth. This represents a 15% growth year over year and is anticipated to keep growing as more companies go online.

In terms of creative advertising category sourcing intelligence, most suppliers opt for in-house service provide. An in-house engagement model in this sector is a partnership between an advertiser and their internal creative team, focusing on all aspects of the creative advertising process from ideation to execution. This model offers several advantages, including increased control, familiarity with the advertiser's brand and goals, cost savings, and faster and more efficient processes. The advertiser's team can directly work with the advertiser to obtain feedback and approval, resulting in more effective campaigns. Additionally, it eliminates the need for external agencies and streamlines the creative process. 

An in-house engagement model in the creative advertising category allows businesses to hire their own creative team to develop and execute campaigns. This model offers more control, cost savings, and speed, as it eliminates agency fees and markups.

The Creative Advertising Procurement Intelligence report also provides details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis. 

Creative Advertising Procurement Intelligence Report Scope