Business Strategies: Growth and Competition in Advertising Sector

This essay examines the business strategies employed by an advertising company, focusing on its products, revenue generation, and competitive positioning within the industry. Starting as a small venture in Australia providing online advertising solutions, the company experienced significant growth, eventually becoming a substantial entity listed on the Australian stock exchange. The essay highlights the transformative impact of the digital revolution on the advertising sector, with the emergence of online advertising and mobile advertising as key trends. It also discusses the competitive landscape, where agencies compete on factors like media buying efficiency, market knowledge, creative skills, and global reach. The company differentiates itself through value-added services and specialized marketing offerings. The report concludes by emphasizing the importance of transparent and clear business strategies for achieving long-term success and providing insights into the modern advertising world.

Running head: BUSINESS STRATEGIES
Business strategies
Name of the student
Name of the university
Author Note:

2
BUSINESS STRATEGIES
Table of Contents
Introduction......................................................................................................................................3
Products...........................................................................................................................................3
Revenue...........................................................................................................................................3
Summary..........................................................................................................................................3
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

3
BUSINESS STRATEGIES
Introduction
Coming from a decent background of marketing and advertising, it is not an easy task to
think and estimate each idea down to the earth. The task of running a business in the modern
world has been further increased by the limitation of resources and time. However I decided to
venture into a new world of possibilities and started my own business. The company which I
started in Australia is an Advertisement company which provides online advertisements solution
to the private as well as public sector companies.
Products
The products of my company mainly constitute online advertisements in different web
pages, web portals and search engine pages. We also offer a variety of innovative ad ideas to ther
ad agencies. Apart from online contents we also design offline contents to be displayed in
television and newspapers.
Revenue
The company was started on a decent capital of just a few dollars and at the beginning we
had to take the help of demo software and free contents to our customers. But as time passed by
we were flooded with offers from different companies that led to a steady increase in our annual
revenue. Our company is now listed in the Australian stock exchange to be a 150 million dollar
company.

4
BUSINESS STRATEGIES
Summary
As mentioned in the case study the new decade has provided the advertising companies
with new challenges. The industry was seen to be undergoing a rapid transformation with the
emergence of new companies like Google and Yahoo that brought in the concept of Digital
Revolution. Earlier the different advertising agencies had the business objective to target a
specific audience on behalf of the clients with special information that encourages these
companies to try a product or service or ultimately purchase it. The following is performed
largely by the concept of brand name being advertised by the use of the different sources of
media (Esteves and Resende 2016). There are different brands that have a different choice of
target. Coca-Cola, Nike are some brands that target only the consumers whereas IBM, Boeing
are brands that offer Business to business value. Apart from the above two brands like Apple and
Samsung target both the consumers and business.
Advertisements in modern terms can be said to be the backbone in building a successful
brand. The importance of advertisement has gone up to such levels that apart from the private
sector companies the Government also uses them to advertise about different public sector
services, healthcare facilities, new schemes and policies or any other important information
related to the interest of public (Sayedi Jerath and Srinivasan 2014). The governments of
different countries generally spend a large amount of money behind advertising. Apart from the
public and private sector advertisements, there are also the NGO’s which takes the help of
advertisements to attract donations and revenue from the sources of interest. The companies
generally advertise their products and services through a number of different media channels like
television, radio and press. However there has been a change in the form of media selection as
online advertising and mobile advertising has turned out to be the latest trend in the world of

5
BUSINESS STRATEGIES
advertisement. The companies provides the necessary sources and information that they wish to
be advertised to the advertising agencies and depends on the immense experience of these
agencies to formulate a proper advertisement that is easily acceptable to the target population. As
mentioned earlier that the money spends on advertising has been increased by quite a fold over
the past two decades and it has been estimated at more than dollar 480 billion all over the globe.
However recent estimates have tracked the growth of the worldwide spending on advertisement
to more than dollar 500 billion.
According to, Dindaroğlu (2017) the advertising agencies have been showing a steep rise
in the different stock exchanges because of the increasing business that they are attracting. My
own estimate shows that compared to the year 2011-12 my own business grew by at least 15%
and it has been showing signs of constant improvement. The future trend shows a strong
emergence of the consumer brand specially in the areas where the global consumers are in a
minority.
The growth of the advertising industry has created a new source of competition as large
to small scale advertising agencies are directly or indirectly involved in competition that results
in acquisition, selling off and many other similar techniques. The large scale multi agency
advertising firms compete on the basis of different creative terms like the ability to buy media
more cost effectively, knowledge of the market in which they are operating, creative skills of the
employees that they employ, global reach and the type of services that they provide to the client
companies. My company is a medium sized one and we basically compete in the market by the
proper delivery of different value added services through an in depth knowledge of the specific
market sectors or by providing a number of specialized marketing services like digital marketing,

6
BUSINESS STRATEGIES
digital campaigns and many more as such. The smaller agencies are however mostly acquired by
the large agencies which decreases the competition instantly in the particular sector.
Online advertisements on the other hand have been the pillar of strength in the modern
advertisement world as it has completely changed the way by which companies approach their
target population. A new form of agency namely the AKQA established themselves in the online
world much before the emergence of the traditional agencies (Dinner Van Heerde and Neslin
2014). My company follows the similar line as the above mentioned online agencies and has
been able to gain quite a good reputation among our clients. Our strategy is simple which is to
advertise the content provided by the clients in the online web pages as well as the search
engines. The ads are targeted mainly to the potential customers so that they can view the
advertisements easily when they browse different web channels or online contents.
Conclusion
The business strategies of the organization must be transparent and clear enough so that
the company can walk in lines of success. The following report will be able to make the readers
understand the importance of proper business strategies to achieve profit in the long run. A
thorough analysis of the report can also help them to get an idea of the modern world of
advertisement and the components and concepts that are related to it.

7
BUSINESS STRATEGIES
References
Dindaroğlu, B., 2017. Competitive advertising on broadcasting channels and consumer
welfare. Information Economics and Policy.
Dinner, I.M., Van Heerde, H.J. and Neslin, S.A., 2014. Driving online and offline sales: The
cross-channel effects of traditional, online display, and paid search advertising. Journal of
Marketing Research, 51(5), pp.527-545.
Esteves, R.B. and Resende, J., 2016. Competitive targeted advertising with price
discrimination. Marketing Science, 35(4), pp.576-587.
Esteves, R.B. and Resende, J., 2016. Competitive targeted advertising with price
discrimination. Marketing Science, 35(4), pp.576-587.
Hatzithomas, L. and Zotou, A.Y., 2016. Measuring the impact of competitive advertising
environment and ad-exposure time on 3D posters' effectiveness. Journal of Customer
Behaviour, 15(2), pp.153-172.
Sayedi, A., Jerath, K. and Srinivasan, K., 2014. Competitive poaching in sponsored search
advertising and its strategic impact on traditional advertising. Marketing Science, 33(4), pp.586-
608.