The market value of the American advertising industry stands larger than the market value of the Banking industry. American giants such as Facebook and Alphabet (Google’s parent company) rely 97% and 88% solely on advertising revenue respectively. With a greater web presence of brands and online media viewership, advertising agencies are gradually incorporating advertisers seeking a digital presence.
Apart from the multi-national brands, American startups also depend on advertising revenue. For instance, technology giant Microsoft took over LinkedIn in the year 2016 primarily so that Microsoft could “monetize” through LinkedIn adverts.
Advertising in America adds-on to a significant chunk of its GDP (Gross Domestic Product) and is predicted to make a massive jump in the coming years. Advertising agencies have been observed to strengthen their digital advertising wing in the past couple of years to meet the rapid business demands for advertising on web platforms.
The American Dream Is On The Web
Facebook has six million advertisers – a number equivalent to almost one-fifth of all employees in American firms. Technology offering service providers are making it easy and practical for advertisers in America to expand their brand visibility among their target audience. This is also particularly beneficial for them as the brands get feedback from their online audience in qualitative and quantitative terms.
The advertising industry in the US understands that online advertising is much cheaper and more eco-friendly than traditional advertising. The advertiser (agency’s client) is able to economize its media strategy by not spending money on expensive billboards and banners. Having ad campaigns on the web helps save paper, reduces carbon footprint and ensures an equal impact on people, that too with a more niche and qualitative consistency.
Digital marketing expenditure is predicted to grow by a significant margin in the near future as more and more brands and brand personalities are building their presence on the web. The past few years have also seen a shift from desktop advertising to mobile advertising.
American Advertising Companies Which Rule The Industry
Accenture Interactive is the biggest advertising agency as per revenue generation. It handles the digital strategy, programming, content, and advertising of its clients. It is also a management consultant that takes care of the marketing, branding and public relations operations for its client. This is followed by Florida’s PwC Digital Services having teams across the world helping companies build strategy, brand innovation, and technological solutions for effective branding.
Other American advertising giants which are fostering an increase in the digital media market size of America include Deloitte which provides efficient and effective ad campaigns. Companies such as Epsilon from Texas and Ogilvy & Mather are known for excellent services in helping companies manage their worldwide product appeal and digital marketing.
The advertising industry is facing challenges of an advertising-saturated digital space. Consumers are moving towards ad-less platforms such as Netflix and Amazon Prime videos and this is giving advertising agencies a hard time in devising innovative digital spaces in order to create persuasive ad campaigns.