Report: Analyzing Trends in the Global Advertising Industry

This report delves into the dynamic landscape of the global advertising industry, analyzing key themes and developmental trends. It examines the impact of digital transformation, increased competition, and globalization on advertising strategies. The analysis highlights the shift from traditional advertising methods to digital platforms, the emergence of new competitors like search engines, and changes in compensation models. The report also discusses the industry's focus on data-driven insights, targeting new markets, and the rise of innovative consumer brands. The study emphasizes the role of technology as a driving force behind these changes, influencing advertising platforms, compensation structures, and market focus. The report further explores trends such as increased expenditure, the diversification of competition, and the importance of adapting to evolving consumer behaviors. In conclusion, the report underscores the necessity for advertising agencies to adapt to the digital revolution and leverage technology for effective competition.

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Thriving in a Competitive Global Context
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1. What do you think are the main themes emerging from the Global Advertising Industry case
study?
Introduction
The nature of the global market is alarming to all stakeholders associating with it. It is as
a result of transformations steered by forces leading to the dilemma in the advertising industry.
The advertising industry is made up of various components such as consumers, technology, and
competitors. They are the sources of different ideologies. This forms the topic of discussion
which is the themes prevalent in the case study titled Global forces and the advertising Industry.
Body
The main idea emanating from the work is change. The effects felt in the industry are as a
result of changes that have taken place on various elements making up the advertising industry.
They are as a result of competition or other forces that pressurize the actors to behave in a certain
way. Change is the central theme. The concept is indicated by the following attributes from the
case study;
Advertising has reformed form traditional ways. The new millennium brought the
changes as companies adopted modern ways of informing the consumers of their new products
or persuading them to go for their products (Ventriss, 2012). The phenomena were primarily
aided by changes in communication whereby digitization was incorporated. Through this
platform new strategies of contacting consumers emerged (Kaul, 2013).
The new strategies changed the mode through which adverts were relayed. Previously
advertisement was solely the role of the agencies. They were supposed to create the adverts to
suit the target audience. Brands such as consumer goods and Business-to-Business relied on

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media platforms such as television and radio. The theme of change is evident is in the case study
as new methods of advertising have emerged and companies no longer rely on the agencies. The
internet has opened borders have enabled search engines that have been preferred as they reach a
large number of audience.
The change in the preceding discussion has been as a result of the transformation in
telecommunication. Digital revolution aided transformation in communication as the
advertisement industry has effectively utilized this platform to reach more audience.
Globalization has played a significant role as the word is brought to the arms of the industry
(Lanzolla & Anderson, 2010)
Digital revolution has made it easier for companies to implement changes in the
compensation program. In the traditional industry, payment was made based on creativity in the
creation of advert and cost incurred. Currently, compensation is on the results obtained from a
particular advert. Analytic tools used to analyze information on the behavior patterns of
consumers and the effects of an advert on the audience have made it possible. Compensation is
on the value added.
The case study indicates that there is an increase in spending. The new advertising
models require clients to invest a lot in the sector. The platform used is capital intensive, i.e.
digital. Analytic tools are incorporated into the phenomena as they are used to monitor the
actions that are taking place. The case study indicates that billions of dollars are spent in the
united states in advertisements.
There is a change in the competition niche. As per the case study, new competitors have
emerged. Technology belonging to the global forces is the source of the competition as

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companies are now using it to advertise their commodities. Search engines such as Yahoo and
Google have been used. Companies such as WPP have categorized the subjects as the major
rivals in the advertising field. The platform disadvantages other competitors as it can be used to
target different audience as for the case of Microsoft &Apple. The two can target businesses and
consumers at the same time (Enetti et. al. 2014).
The increased expenditure illustrates the positive growth of the industry. It is among the
themes prevalent in the case study. Companies are spending billions of dollars in the global
advertisement industry. A shift in attention also indicates growth. Advertisement companies are
now targeting areas that were previously neglected. An example is a focus on BRIC bloc and the
Middle East. The emergence of new consumer brands such as FMCG (fast moving consumer
goods) is an indicator of growth.
Conclusion
In conclusion, the theme of change is prevalent in the case study. All actions are
revolving around transformations in the industry. The major difference is in the advertisement
platform whereby modern ways outdo traditional ways. Technology is the global force that is
impacting this industry as all transformations have a digital revolution as the genesis.
Technology is the determiner of the occurrences taking place in the field as it is through it that
new platforms are created, compensation models changed, diversion of focus taking place as
borders are opened by globalization. Primarily technology: the global force is the cause of the
themes present in the case study.

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2. What do you think are the major developmental trends taking place within this industry?
Introduction
The global advertising industry is the backbone of any business unit or organization. It is
through it that companies come into contact with the public who are the consumers of their
products. The success of the organizations is dependent on the relationship present (Oldfield &
Kushniryk, 2017). This ideology forms the basis for changes that take place in global forces and
advertising industry as the agencies have to come up with better ways of relating to the
consumers. The changes taking place in a particular field are the trends. The case study on
Global forces and the advertising Industry provides the following developmental trends
associated with the advertising industry as per the case study;
Body
Introduction of digital advertising is among the main trends that have emerged. Initially,
companies relied on media platforms for advertisements. This is not the case as per the case
reading as the digital revolution has provided a new platform for advertising. The subject has led
to the emergence of new communication mediums that are targets of the advertisement
companies. The internet has provided the medium through which digital communication
platforms are founded. An example is the use of Ads through search engines. They have been
categorized as the major rivals in the advertisement industry as they have outdone all other forms
of advertising (Ziaul, 2014)
A trend in the behavior patterns in the advertising industry is evident. Due to competition
emanating from platforms provided by digitization, advertising agencies had to change their
mode of relaying information to the target audience. Globalization called for an increase in the

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number of audience; therefore, firms have to adapt to the modern ways provided by technology.
Digital revolution provided a medium through which companies track the occurrences taking
place in their advertising niche (Appelgren, 2017)
Changes in the payment budget is a developmental trend. Currently, advertising agencies
are compensated based on the value added or the results obtained from a particular advert. The
rise in market share or an increase in sales are the indicators used to evaluate the payment.
Companies such as Procter and Gamble have adopted this strategy as per the case study. Analytic
tools have assisted in this phenomenon. Initially advertisement was solely the role of the
agencies, but currently, companies are taking full responsibility of the undertakings (Chultz,
2016)
Diversion of attention has led to the emergence of new consumer brands appearing to be
sophisticated such as Islamic brands. The case study indicates that areas that were once neglected
are now targets of the advertising agencies. Improvement of traditional means of operations has
aided the shift (Sohn et. al. 2013). Firms are now targeting regions such as the middle east that
were of no importance in the previous decades. The emergency of blocs such as the BRICS has
also diverted the attention of the advertisers.
An emerging developmental trend is on the increased expenditure. The rise as a result of
consumer transformations, compensation plans and the need for a large number of audience.
Companies need to evaluate the behaviors of their customers. This requires an extra cost as
analytic tools have to be incorporated. The internet is attributed to be the cause of the increase as
it is the only medium that one can reach a broader audience (Jobs.et al. 2016)

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There is an emergence of different types of competitions. Different conglomerates
compete on different brands. For example, boutiques compete on value addition while other
large companies are based on quality. This brings in another approach in the industry whereby
advertisers have different strategies to use to attract consumers
Conclusion
In conclusion, the trends prevalent in the case study weigh the effectiveness of creativity
adopted by traditional means against the trends that are as a result of the digital revolution. The
outcome of digitization has brought all the changes prevalent in the global advertising industry as
the approaches that were previously used had to be eliminated. Technology categorized as the
worldwide force as the source of all the trends in the industry (Nooh, 2012). The case study
indicates that firms have to be updated by adopting changes that come inform of trends for
effective competition (Ali, 2013)

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