TD management

The Strategy case : the advertising industry in the2010'sGROUP 1 : Abebe Fikir - Alam Christina - Bellalouna Selima - Ferktaji Leila - Slimani Sarah - Macquet Océane

ORALPRESENTATION

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Start

SUMMARY

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Essentials items

Keys factors of sucess

Two axis map of the advertisement strategic groups

Analyse each force of the strategy case

5+1 forces

Through different aspects

PESTEL analysis

PESTEL analysis

PoliticalInfluence

Public authorities allocate their budgets for advertising to promote their policies.For example, the British governement spent £285 million on advertising in 2012.

EconomicInfluence

"emerging markets would contribute 63% of advertising investment growth between 2012 and 2015"

SocialInfluence

- Emergence of the consumer society in the 20th century- Marketing in advertisement is dependent on countries cultural and traditional background

TechnologicalInfluence

- Arrival of digital advertisers will change the methods of transmitting ads- Replacement of individual creativity by algorithms

+info

PESTEL analysis

EcologicalInfluence

- Increased lobbying from various associations to reduce exposure to ads and overconsumption- Even though there is lobbying, it didn't stop the ad sector from growing at a phenomenal rate

LegalInfluence

-Different rules and laws are applied in every region of the world, which can be a challenge for ad agencies

- The state acts as a major contributor in the sector of ads.- The state's decision can have an impact on the economic state of the sector (development or decline).

5(+1) forces

01. Threat of substitutes

- Shift from traditional methods to new methods of advertising.- Emergence of several social media plateforms (ex: Facebook)

02. Competitive rivalry

-The way companies convey their message and how much greater they are than their competitors.

03. Bargaining power of buyers

- Agencies need to focus on specific target groups and make sure the products/services satisfy their needs.- Competitive intensity in the ads sector between companies.

04. Threat of new entrants

- More agencies in the ad domain is equivalent to a higher level of competitiveness between them.

05. Bargaining power of suppliers

- The data collected by the suppliers and given to the ads agencies is negociated.- Depends on whether the relations between suppliers and agencies are smooth or not.

06. Power of the state

Proctor & GambleNestléSamsung

GoogleFacebookYahoo

Public OmnicomGroup

Young & RubicamAKQARazorfish

Adam + Eve

Budget for advertising

Size of the group

Two axis map

Somes keys factors of success for advertising companies include :

• Creativity
• Efficiency -> low costs
• Innovative
• Ecological responsability
• Competitivity
• Brand image (well-managed)
• Quality of work

• Well-informed
• Effective money management
• Good cooperation between stakeholders
• Effective model of governance
• Specialization in a field to target a more specific audience
• Expansion over a large geographical scale and bypassing of norms and regulations in countries
• Capacity for merging companies (ex: the merging of Omnicom and Publicis enabled the Group to obtain 40% of the US advertising market)

Keys factors of success

- New model of remuneration for advertisement agencies- Decrease of ad budgets and consumption in economic crises- The rise of emerging markets affecting advertising- Increase in expenditure for advertising by regions that neglected it- Capacity of merging companies with better control of the sector and more profits