The advertising industry is the global industry of public relations and marketing companies, media services, and advertising agencies. Several large advertising agencies, including WPP plc, Omnicom, Publicis Groupe, Interpublic and Dentsu, are among the industry's largest. It is a global, multibillion-dollar business that connects manufacturers and consumers. [1] The industry ranges from nonprofit organizations to Fortune 500 companies.
In the United States, there are more than 65,000 advertising agencies employing nearly 250,000 employees with annual revenues of $166.8 billion as of 2014. [1] In 2016, global advertising sales reached $493 billion. [2] For 2017 it was estimated that digital ad sales were first to surpass the TV market. [2]
Trade associations representing parts or all of the advertising industry include:
Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to present a product or service in terms of utility, advantages and qualities of interest to consumers. It is typically used to promote a specific good or service, but there are a wide range of uses, the most common being commercial advertisement.
An advertising agency, often referred to as a creative agency or an ad agency, is a business dedicated to creating, planning, and handling advertising and sometimes other forms of promotion and marketing for its clients. An ad agency is generally independent of the client; it may be an internal department or agency that provides an outside point of view to the effort of selling the client's products or services, or an outside firm. An agency can also handle overall marketing and branding strategies promotions for its clients, which may include sales as well.
Omnicom Group Inc. is an American global media, marketing and corporate communications holding company, headquartered in New York City.
WPP plc is a British multinational communications, advertising, public relations, technology, and commerce holding company headquartered in London, England. It is the world's largest advertising company, as of 2023. WPP plc owns many companies, which include advertising, public relations, media, and market research networks such as AKQA, BCW, CMI Media Group, Essence Global, Finsbury, Grey, Hill & Knowlton, Mindshare, Ogilvy, Wavemaker, and VML. It is one of the "Big Four" agency companies, alongside Publicis, The Interpublic Group of Companies, and Omnicom Group. WPP has a primary listing on the London Stock Exchange, and is a constituent of the FTSE 100 Index.
Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising that uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising, and mobile advertising. Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising.
Hakuhodo Inc. is a Japanese advertising and public relations company owned by Hakuhodo DY Holdings. It is headquartered at Akasaka Biz Tower in Akasaka, Minato, Tokyo.
Publicis Groupe is a French multinational advertising and public relations company. One of the oldest and largest marketing and communications companies in the world, it is headquartered in Paris.
The Interpublic Group of Companies, Inc. (IPG) is an American publicly traded advertising company. The company consists of five major networks: FCB, IPG Mediabrands, McCann Worldgroup, MullenLowe Group and Marketing Specialists, as well as several independent specialty agencies in the areas of public relations, sports marketing, talent representation and healthcare. It is one of the "Big Four" agency companies, alongside WPP, Publicis, and Omnicom. Phillippe Krakowsky became the company's CEO on January 1, 2021.
Ad Age is a global media brand that publishes news, analysis, and data on marketing and media. Its namesake magazine was started as a broadsheet newspaper in Chicago in 1930. Ad Age appears in multiple formats, including its website, daily email newsletters, social channels, events and a bimonthly print magazine.
The American Association of Advertising Agencies (4A's) is a U.S. trade association for advertising agencies which was founded in 1917. It serves over 600 member agencies across 1,200 offices, which control more than 85% of total U.S. advertising spend.
The Advertising Association (AA) is a trade association representing advertisers, agencies, media and research services in the UK advertising industry. Its stated aim is to promote the “…role, rights and responsibilities of advertising and its impact on individuals, the economy and society". Its chief executive is Stephen Woodford.
Dentsu is a multinational media and digital marketing communications company headquartered in London, United Kingdom, and a wholly owned subsidiary of the Japanese advertising and public relations firm Dentsu. Its principal services are communications strategy through digital creative execution, media planning and buying, sports marketing and content creation, brand tracking and marketing analytics. It is organised into ten main divisions: Carat, Dentsu, Dentsu media, mcgarrybowen, Merkle, Fountainhead MKTG, Posterscope, Isobar, Soap Creative, iProspect and Vizeum. Dentsu Aegis Network manages all the Dentsu inc. owned businesses outside the Japan market, which includes the former Aegis Group business that it acquired in 2013. It also includes 360i, Amplifi, Amnet, BJL, Grip Limited, The StoryLab, Data2Decisions, Mitchell Communications, Cardinal Path and psLIVE. It has 66,000 people across 143 countries.
The News Media Alliance is a trade association representing approximately 2,000 news media organizations in the United States and in Canada. Member newspapers represented by the Alliance include large daily papers, non-daily and small-market publications, and digital and multiplatform products. The organization has organized and hosted mediaXchange, the newspaper industry's annual conference.
Penton was an information services and marketing company. The company's three largest revenue streams came from events, digital and marketing services. Although Penton had a long history as a trade publisher, in 2015 it reported that 35 percent of its EBITDA derived from digital products, 54 percent from events, and 11 percent from print. The main industry segments served by Penton include agriculture, transportation, natural products/food, infrastructure, and design and manufacturing.
Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing, mobile advertising can take place as text ads via SMS, or banner advertisements that appear embedded in a mobile web site.
Digital marketing is the component of marketing that uses the Internet and online-based digital technologies such as desktop computers, mobile phones, and other digital media and platforms to promote products and services. It has significantly transformed the way brands and businesses utilize technology for marketing since the 1990s and 2000s. As digital platforms became increasingly incorporated into marketing plans and everyday life, and as people increasingly used digital devices instead of visiting physical shops, digital marketing campaigns have become prevalent, employing combinations of search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, e-mail direct marketing, display advertising, e-books, and optical disks and games have become commonplace. Digital marketing extends to non-Internet channels that provide digital media, such as television, mobile phones, callbacks, and on-hold mobile ringtones. The extension to non-Internet channels differentiates digital marketing from online marketing.
VMLY&R was an American marketing and communications company specializing in advertising, digital and social media, sales promotion, direct marketing and brand identity consulting, formed from the 2020 merger of VML, founded in 1992, and Y&R, founded in 1923. It was a subsidiary of WPP plc multinational advertising and public relations holding company.
Michael E. Kassan is a digital media expert, entrepreneur, commentator, and adviser to media companies.
The International Advertising Association (IAA) is a global association that represents marketers, ad agencies and mass media that carries advertisements. The association is headquartered in New York City and maintains chapters in 77 countries.
Initiative is an American media planning and buying agency that is part of IPG Mediabrands, the media buying arm of multinational holding company Interpublic Group of Companies. Initiative's roots date back to 1970.