All Press Releases for April 18, 2017

Digital Media Continue to Propel Global Advertising Market

Latest report on Creative Advertising market from Beroe Inc. Report provides data and information for Procurement and Sourcing managers



    HOLLY SPRINGS, NC, April 18, 2017 /24-7PressRelease/ -- Digital spend is expected to touch $161 billion by the end of 2017 and it continues to be the key driver of growth in the global advertising market , as per the latest report on Creative Advertising by procurement intelligence firm Beroe Inc.

Since digital channels allow reaching the same target audience with less spend, it scores over traditional methods and is being widely adopted by procurement managers. Sourcing managers can save costs if agencies consolidate the digital as well as the traditional spend - such a move can also help bring in a higher volume of business for the creative agencies, the report showed.

Holly Springs, North Carolina-based Beroe said the report can be accessed by procurement professionals on its recently launched on-demand market intelligence platform Beroe LiVE: https://www.beroeinc.com/beroe-live/

Key findings from the report:

- North America, Europe and certain parts of Asia Pacific (APAC) are categorized as most mature due to innovation in services, high adaptability to the evolving technologies and digital media
- Post the exit from the EU, the UK is expected to see a rise in wage rates which would directly impact supplier costs; this could in turn lead to a rise in prices
- Uncertainty regarding the movement of personnel from the EU to the U.K. could impact skill-intensive creative/marketing areas
- In North America and Europe, service providers are witnessing higher engagement with buyers who expect industry best practices across creative advertising contracts
- The major trends in global creative industry are rising digital spend (28 - 32 percent), production decoupling and increasing customization of advertisements
- Suppliers are improving their supply capability by adopting performance-based metrics for evaluation and monitoring their performance
- Marketers are increasing their focus on newer markets in APAC and Africa, which have higher growth expectations
- Pay for performance and digital asset management provide around 5-20 percent of cost savings
- The profit margins are expected to be around 15 - 20 percent of the total cost of the contract

The category intelligence report on creative advertising lets users understand the current scenario and trends in the global advertising market. It highlights market outlook, supplier environment, sourcing models, best practices and includes analysis on cost and pricing. The key source base for the report included:

o Inputs from industry experts with at least 10 years of experience
o Category-specific licensed subscriptions and industry associations
o Personnel involved in various stages of the value chain (buyers, suppliers, intermediaries)

The Beroe report offers insights for procurement teams to understand the advertising market and the agency landscape. It also throws light on the post-Brexit scenario in the industry which is set to usher in several changes.

Buyers are advised to look at price absorption clauses to protect themselves from any potential rise in prices as a result of Brexit. There may be an escalation in costs related to operations, legal services and taxation as some of the agencies may have to set up additional hubs in EU markets.

Marketers have a range of global and local agencies to work with as there are over 500 suppliers in developed markets. The supplier power is therefore low, as buyers have alternative agencies to work with. Some of the leading agencies are WPP, Dentsu, Omnicom and Publicis Groupe.

Sourcing models prevalent in the industry include in-house, outsource and partially outsource. Buyers usually outsource their creative services as agencies specialize in the knowledge and application of these regulations. The adoption range is 76 - 82 percent at the global level. Retainer model is reported to be popular in the industry to achieve spend visibility and cost savings.

The report includes various sections with details on each of the elements:

Market Analysis

- Global Market Maturity
- Global Industry Trends
- Global Drivers and Constraints
- Regional Market Outlook
- Industry Outlook
- Porter's Five Forces Analysis

Supply analysis

- Supply Market Outlook
- Key Global Suppliers - Holding companies and Network Agencies -- Service Portfolio
- Key Supplier Profiles

Cost and Pricing Analysis

- Cost Analysis and Expected Savings
- Cost Breakup -- Global and Regional
- Pricing Analysis

Procurement Best Practices

- Sourcing Models
- Sourcing Models -- Comparative Analysis
- Sourcing Models -- Pros and Cons
- Pricing Models -- Comparative Analysis
- Contract Payment Insights
- Value Chain Mapping
- Key Performance Indicator (KPI) and Service-Level Agreement (SLA) Components
- Creative Agencies -- KPI Description
- Opportunities for Reducing Lead Time

End-User Industry Update

- Retail
- Pharmaceutical

Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of large businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.

To learn more about Beore Inc, please visit www.beroeinc.com

# # #

Contact Information

Debobrata Hembram
Beroe Inc
Chennai, Tamil Nadu
India
Voice: +919873387413
E-Mail: Email Us Here