Unpacking the Role of Social Media in Advertising: A Critical Analysis

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Designing and Implementing

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................4
MLO2: Analysis of the nature of company's and industry environment....................................4
1.1 PESTLE analysis for Talon outdoor limited is below:........................................................6
1.2 Porter Five forces model for Talon outdoor limited is as below:.........................................6
Task 2 ..............................................................................................................................................7
MLO2: company's strategic capabilities ....................................................................................7
2.1 Talon outdoor limited resources ...........................................................................................8
2.2 Value chain framework.........................................................................................................9
2.3 Strength and weaknesses of company ..................................................................................9
Task 3.............................................................................................................................................10
MLO 3 : Possible future strategies for company......................................................................10
3.1 Key strategic issues.............................................................................................................10
3.2 potential future strategies using ans-off..............................................................................10
Conclusion.....................................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
The research study conducted on Talon outdoor limited which is situated in UK. Talon
outdoor serves in the sector of out of the home agency with the main focus on delivering
strategies on innovative and forward thinking out of home solutions. The company offers
experimental activities, traditional outdoor media, event sponsorship services and mobile
telecom services, So basically Talon outdoor falls under media and advertising industry with
some innovative ideas. Talon outdoor was founded in the year 2007 and based in London, United
kingdom. Talon outdoor is basically service provider company as it provides strategic media
planning and buying services to their clients. Regarding the financial data of Talon outdoor
limited as per the data till 2016 they have cash in hand and cash at bank 3,121,000 GBP, Net
assets of Talon outdoor limited is 1,117,000 GBP whereas current assets are 49,788,000 GBP.
Till the end of 2016 Talon outdoor limited have current liabilities of 49,438,000 GBP.
Task 1
MLO2: Analysis of the nature of company's and industry environment
Talon outdoor limited serves to media and advertising industry which is well known for
their fierce competition. Talon outdoor limited has ample amount of partners in their business as
their main competitive approach is partnership and collaboration. Talon outdoor limited works
with clients and media owners so that they can deliver them most strategic solution. They have
strategic relationship with various creative media agency partners. With the help of their unique
outlook and the composition of experienced team they communicate with their client on various
issue around out of home. Talon outdoor limited focuses on various factors to improvize the
environment within the organization so that they can perform well outside as they build a strong
portfolio of their area of expertise which consist planning, account management, strategy
development, activating insight about data and technology, investment, management and
collaboration, understand diverse set of international environment and activating the out of home
innovation.
As we already discussed the industry from which Talon outdoor limited comply is media
and advertising industry, The media and advertising industry in UK is growing with a rapid pace
from past few years, as the main function perform by media and advertising industry are provide
advice and produce place about material for advertising across the variety of range of media

which includes internet, print, T.V. And the radio. Advertising companies are also concerns with
the point of sale on billboards and by the use of direct mail they promoting various campaigns
which enhance their client reputation and spread the awareness about them. The advertising and
media industry provide various products to their clients such as print media advertising, online
advertising, TV and radio advertising, online advertising, out of home advertising and
consultation by professionals and expert. Talon outdoor limited mainly concerns with providing
the media and advertising product which enhance the out of home advertising.(Leung, Bai &
Stahura, 2015)
United Kingdom market for out of home advertising is facing the phase of continued
growth, as it cross the barrier of 1 billion in the year of 2014. Out of home media and advertising
industry mainly focus on the customers when they are not at their home or somewhere in transit,
public place or any commercial locations. The trade association for out of home advertising in
UK shows in their report that this industry grew at a 29.7 % growth rate from 2009 to 2014. Out
of home advertising agency have two different mindsets to reach to their customer these two
approaches are Digital out of home and printed out of home. Digital out of home functions with
various strategies such as digital billboards and signage, kiosks, jukeboxes and so on in the order
of making interaction with the customer so that point of purchase can happen, where as printed
out of home have functions such as aerial advertising, bus advertising, posters, billboards and so
on.(Couldry & Turow, 2014) The competitive landscape of out of home advertising industry
indicates that the demand for this industry is driven by spending more on transit infrastructure as
well as business activities in sectors such as health care, media, retail and banking and financial
services. The profitability of individual companies such as Talon outdoor limited so much
depends on the ability to attract and retain innovative and creative employee and develop and
maintain successful relationships with clients. As Talon outdoor limited is fall under small and
medium enterprise category but here in out of home advertising big companies have advantages
in providing outdoor advertising in various geographic market where small companies such as
Talon outdoor limited can compete efficiently by developing themselves in the local market or
providing lower prices.(Quester, Romaniuk & Wilkinson, 2015)
Talon outdoor limited are full time media and advertising agencies and they also cater to
different kind of customers. Client for this kind of advertising agencies are based on the services
they provides as some client are only looking for the in depth research for their prospective

customer and want to know from the advertising agency that how can they attract those
customers. Advertising agencies are considered as experts in providing creative services and
because of that clients are expecting quality and professional services by them. The clients are
expecting from the advertising agency that they will provide them more creative and innovative
platform to advertise their products and services. Media buying is also a way through which
advertising agencies can serve to their clients to provide them various media platform on a large
context where client can advertise their products and services. As the market for out of home
advertise provide a large platform to companies for tapping the customers for their client, It
makes lot of new business start in the vertical of advertisement and media agency. The
competition is getting fierce and crucial for the new entrants and small and medium size firms to
win over the market. There are various giants in the media and advertisement sector who already
build their reputation as the market leader such organizations are WPP, Omnicom, Publicis,
J.walter Thompson and many more. Talon outdoor limited is a small and medium enterprise in
these vertical so main competitor for them also those enterprises who falls under the same
vertical such enterprises are Wieden + Kennedy, Droga5, Karmarama, krow, BMB and The
corner.(Fuchs, 2015)
Talon outdoor limited wants to tap the market which is considers as one of the most
competitive market in terms of business. Talon outdoor limited have to understand their industry
well before implementing the development strategies. The macro environment of advertising
agencies is very unbalanced, PESTLE analysis can helps in understanding about the various
factors which can give some knowledge to Talon outdoor limited for business expansion.
(Ashley & Tuten, 2015)
1.1 PESTLE analysis for Talon outdoor limited is below:
Political, affairs and rules regulation affects each and every organization also if they are
small and medium enterprises like Talon outdoor limited. Company have to understand to not
provide their services to a product which is dangerous for general public. Government have
ample oif rules and regulations to stop such kind of advertising activities.(Schivinski &
Dabrowski, 2016)
Economical, Talon outdoor limited have to understand the economic environment of the
country before facilitates their services to client. Economical environment can produce so many

limitation to the ad agency. Economic crisis, price of ad's, increase in the tax and increase in the
price of raw material are such economic factors which can influence Talon outdoor limited.
Social, factors can also limit the efforts of Talon outdoor limited as there are elements
such as so many ads in the single line have negative influence on the people, behaviour of
consumer is unpredictable, written advertisement are not in the culture and so on.
Technology, is the backbone for the media and advertisement industry. Talon outdoor
limited have to keep them update with the latest technology as it has the nature to change at rapid
pace. Technology factor which can affect the enterprise can be increase in the innovation and
new support for the communication.(Kim, Kim & Nam, 2014)
Legal, and regulatory framework for this type of agency are also put limitations on the
business as the framework about ad's content and price transparency of ad's space.
Environment, also consist with various factors which have influence on the Talon
outdoor limited as the action which are affecting the planet can be work as negative influencer
for the organization.(Vincze & McNeill, 2015)
1.2 Porter Five forces model for Talon outdoor limited is as below:
Threat of new entrants, as the fierce competitive environment of the media and
advertisement industry it is difficult for Talon outdoor limited to easily make an effect in the
market. There are various entry barriers as it is very costly to attract, retain and nurture the
creative talent within the enterprise. There are also lots of constraints are presented in getting
access to key media space or channels. Threat of new entrants is low in media and advertisement
industry.
Bargaining power of suppliers, as supply is less compare to demand as premium ad
spaces are limited and seasonal campaigns also puts pressure on supply. Suppliers are dependent
on the industry so it is concluded that bargaining power of suppliers is high in advertisement and
media industry. (He, Zha & Li,2013)
Bargaining power of of buyers, is very high in the media and advertisement industry as
buyers are large and demand concessions, there is no possibility for buyer backward integration
and long term relationship with static fee structure.
Threat of substitute products, is low as because of the evolution of technology such as
social media tools, e-commerce offers new channels for the forward integration with the lower
cost.

Rivalry among competitors, is very high as the competition is very fierce and crucial.
The factors which are influencing the rivalry element are such as large budget for ad campaigns,
high premium on scarce resource, to build credibility there is high stakes with each campaigns.
By the use of the PESTLE and porters five forces model for the Talon outdoor limited one can
understand that in the overall scenario of media and advertising industry is not very much
attractive industry for the young players as it required a lot of investment and at the intial stage it
is difficult to earn above average returns. (Wagler, 2013)
Task 2
MLO2: company's strategic capabilities
Talon outdoor limited have various capabilities to effectively co-ordinate And redeploy
the competence within their industry with the help of their expertise in the area. The capabilities
which holds by Talon outdoor limited are below:
Planning, The team consist with the professional which are giving the best integrated
solution to client's media brief.
Account management, gives the dedicated thinking and solutions which provided by
experts or professionals.
Strategy, developing a clever strategic thinking which fully integrated with the
communication planning and processes for the creativity.
Insight, activating and understanding in-depth knowledge and figure the data around
people, technology and environment in the space of out of home.
Investment, is playing a very important role for the client Talon outdoor limited are
promising that they will drive value and commitment to the investment of their clients.
Management, can be a vital factor for Talon outdoor limited to redeploy the competence
as they are very positive and different of others in terms of supportive senior thinking and
collaboration.(Fulgoni, 2016)
International, approaches makes Talon outdoor limited different from other organization
and it can also coordinate with their competence as they have understanding of various sets of
environment that brings them consistency in brand and provide integration on huge scale.
Innovation, is one of the most important tool at the time of the fierce competition as
Talon outdoor limited using innovative techniques in the area of media and advertising such as

activating out of home campaigns that integrates context and simple communication to audience
and location.(Esteban-Bravo, Vidal-Sanz & Yildirim, 2015)
2.1 Talon outdoor limited resources
Talon outdoor limited is a media and advertising company so it is important for them to
use various resources for the growth perspective. Company is using various resources to make an
attractive effect within the industry.
Advertising agency news resources, is one the traditional resource use by Talon outdoor
limited. It is true that printing advertisement is no longer that much effective but still news
channels are a better resource which can be use by advertisement agency.
Top advertising blogs, is an excellent technique use by Talon outdoor limited for
spreading the awareness about their client products, there are various blog available at online
which can be use by the ad agencies.
Social media, is almost one of the common platform for any organization top market
their product. It is an effective resource use by Talon outdoor limited for the awareness concern.
Video marketing, become famous after the gigantic success of you tube that any
business can promote their products in the front of the video, this resource is also playing an
useful role for Talon outdoor limited.(Vandeberg & et.al 2015)
Creative space and time, is one the innovative technique use by Talon outdoor limited
so that they can be able to expand and stretch the level of their creativity.
Twitter, consist various tools which use by Talon outdoor limited as a resource to
creating awareness about the product some of the tools are such as, buffer, canva and hoot suite.
Marketing and advertising podcasts, resources are helping Talon outdoor limited to
build themselves as a better agency and expand their ways to reach to the customers and clients.
2.2 Value chain framework
For tapping the maximum opportunities that are there in the media and advertising
industry Talon outdoor limited has created a value chain framework which can provide them a
competitive advantage.(Benson, 2016)
Shifting from capital expenditure to operating expenditure, is adopted for the future
growth of Talon outdoor limited as it will benefits the enterprise to much lower up front
investments so that level of risk can be decrease.

Flexibility, use by Talon outdoor limited concerns that they will pay for only those things
which they are using. They can put up a new software fast and increase the storage to support at
the time when demand is on the peak level.
Lower cost, concerns most important for the small and enterprise like Talon outdoor
limited. Making the process in a way so that will be affordable for the company.
Full time support, to their client and customers gives greater level of benefits to Talon
outdoor limited and it helping them in these competitive environment.
Create and control content, across all the processes performed by the Talon outdoor
limited gives accountability to their activities.
Collaboration, between the team, with clients, with supportive partners is adding value
to the operations of Talon outdoor limited and give them benefit at a great extent.
2.3 Strength and weaknesses of company
Strengths of Talon outdoor limited
 Experienced employees
 Top position among the competitors as per the industry
 Complex marketing strategy
 Better planning, strategic development and account management
 Innovative and creative mindset
 Client loyalty
Weaknesses of Talon outdoor limited
 Fierce competition
 Uncomfortable with the unpredictable nature of industry
 Political risks and volatile cost
 Problem with the penetration strategy
Task 3
MLO 3 : Possible future strategies for company
3.1 Key strategic issues
 Big media and advertisement companies are monopolize the market and prevent new
entrants such as Talon outdoor limited to grow, so strategy will become in effectively

 Digital expansion and new technology are expensive to afford for a new company so this
create issue in expansion
 Creativity and innovation can only leads to success in case of small enterprises such as
Talon outdoor limited
 Limited advertising space
 High competition with big companies and also with the parallel companies
3.2 potential future strategies using ans-off
Market penetration, considers existing market and existing products, by using this
Talon outdoor limited can increase there market share within the industry either by expanding
their clients or look for the new clients or new innovation strategy.(Saxena & Khanna, 2013)
Product development, considers existing market, new product here Talon outdoor
limited is mainly a service based companies so they need to develop the effectiveness in their
services to meet the need of their clients.
Market development, considers new market and existing product which is very
important for the Talon outdoor limited in order to gain the competitive advantage from their
competitors. It depicts how company can be more innovative in their services.
Diversification, It mainly concerns with the new market and new product. Talon outdoor
limited needs to adopt a new market of the client with the different service which they offering
yet. It will help them to tap new opportunities and innovation and creativity in services will also
improve.(Rademaker, Royne & Wahlund, 2015)
Talon outdoor limited will be benefited with the ans-off strategy as it directly infuencing
the services and the market of the company. As Talon outdoor limited is a small companies and
at some extent it is a new entrants in the media and advertisement industry. Ans off industry will
get benefit for the Talon outdoor limited as it has the character as market penetration which
brings an understanding to company to expand, Product development will influece the quality of
their services, Market development will increase there client list and diversification will open
gate for new opportunities.(Harris, LoDolce, Dembek & Schwartz, 2015)

Conclusion
From the above study it can be concluded that advertising and media industry is way to
far competitive than other industries. Talon outdoor limited is providing the ample number of
services to their clients but still to prevent the stagnant position in the industry they have to work
on their organizational function more. PESTLE analysis done on the Talon outdoor limited
creates understanding that media and advertisement industry is fully influence with the each and
every area of the framework. Five forces model describes the environment of the media and
advertisement industry consist with the high frequency in all the factors of model. Talon outdoor
limited have very prudent strategic capabilities as they are innovative and creative in nature. The
amount of resources which Talon outdoor limited have are efficient enough for their success if
they use them correctly. As the media and advertisement industry is unpredictable in nature so
Talon outdoor limited should be flexible enough to grab the new opportunities at the earliest.

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