Integrated Advertising Services Procurement Category Market Research Report from IBISWorld has Been Updated - Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-

Integrated Advertising Services Procurement Category Market Research Report from IBISWorld has Been Updated

Posted:

This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.

SOURCE:

High product specialization characterizes the market for integrated advertising services because such services are very labor-intensive; the knowledge and experience of an agency's staff influence their approach to advertising campaigns, which means that the results that can be attained through a campaign vary by supplier. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Integrated Advertising Services in its growing collection of procurement category market research reports.

Los Angeles, CA (PRWEB) July 09, 2014

The buyer power score for integrated advertising services is 3.9 out of 5, indicating that buyers have a medium level of power in the market. High product specialization and high switching costs undercut buyer power, while low market share concentration and a high availability of substitutes counter these harmful effects, says IBISWorld business research analyst Kayley Freshman-Caffrey.

High product specialization characterizes the market for integrated advertising services because such services are very labor-intensive. The knowledge and experience of an agency's staff influence their approach to advertising campaigns, which means that the results that can be attained through a campaign vary by supplier. If a buyer is partial to a specific agency's methods, they will have little choice but to hire that agency so they can obtain the exact services they desire. Consequently, high product specialization harms buyer power by limiting the available selection of suppliers, says Freshman-Caffrey.

In addition, high switching costs inhibit buyer power. When a buyer switches to a new agency, they can face an array of penalties such as learning costs and performance risk. These potential expenses complicate the switching process, making it hard for buyers to acquire a new supplier if their current one is performing poorly.

These problems are eased by the market's low concentration level. Low market share concentration signifies that no particular supplier controls the market, empowering buyers to procure their integrated advertising services from a range of suppliers. Additionally, this characteristic cultivates competition among suppliers, further benefiting buyers by driving prices down.

A high availability of substitutes also aids buyers. Instead of purchasing integrated advertising services from an outside agency, buyers can manage the process in-house or purchase advertising services on an individual basis. The presence of these alternatives puts downward pressure on the price of integrated advertising services. Overall, the positive impacts of a high availability of substitutes and low market share concentration negate the harmful effects of high product specialization and high switching costs to give buyers a moderate amount of negotiating power. Major vendors include Cramer-Krasselt, Dentsu Inc., Havas SA and Interpublic Group of Companies. For more information, visit IBISWorlds Integrated Advertising Services procurement category market research report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of integrated advertising services. Advertising agencies included in this report are one-stop shops for companies looking to develop and implement advertising campaigns in a variety of media. Services provided by these suppliers range from basic conceptualization and design to media placement. This report does not cover advertising services purchased individually.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorlds procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/07/prweb12007584.htm

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

Powered by WorldNow

904 South Side Drive
Decatur, IL 62521
Primary Phone: 217-424-2500
Primary Email: news@wandtv.com

All content © Copyright 2000 - 2014, WorldNow and WAND. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms