Advertising Industry Analysis + Ogilvy And Mather Report

2 | P a g e A d v e r t i s i n g I n d u s t r y R e p o r t + O & M a n a l y s i s
Contents
HISTORY of Advertising:................................................................................................................................3
PESTLE analysis for advertising industry:......................................................................................................5
Demographic Environmental Analysis:.....................................................................................................5
Political & Legal issues: .............................................................................................................................5
Economic issues:.......................................................................................................................................5
Social issues:.............................................................................................................................................6
Technological issues:.................................................................................................................................7
Environmental issues:...............................................................................................................................7
PORTERS Five Forces Analysis for Industry:..................................................................................................8
Threat of new entrants: low ......................................................................................................................8
Power of suppliers : High .........................................................................................................................8
Power of buyers ........................................................................................................................................9
Threat of substitute products...................................................................................................................10
Intensity of rivalry...................................................................................................................................10
OGILVY AND MATHER:................................................................................................................................11
Mission, Vision, Values:.........................................................................................................................13
Resources And Capabilities:....................................................................................................................13
COMPETITORS:............................................................................................................................................16
Advertising Companies and their holding companies structure: ............................................................16
SWOT analysis:............................................................................................................................................18
Future of advertising:..............................................................................................................................20
CONCLUSION...............................................................................................................................................23
REFERENCES................................................................................................................................................24

“Advertising is any paid form of non-personal presentation and promotion of
ideas, goods or services by an identified sponsor”
(Kotler et all., 2008)
HISTORY of Advertising:
Advertising, the techniques and practices used to bring products, services, opinions, or causes to
public notice for the purpose of persuading the public to respond in a certain way toward what is
advertised. Most advertising involves promoting a good that is for sale, but similar methods are used to
encourage people to drive safely, to support various charities, or to vote for political candidates, among
many other examples. ( Source: Encyclopedia Britannica)
Advertising has been existent from medieval ages which was done through word of mouth. After the
printing industry rise in 15th
and 16th
centuries, a step towards modern advertising came with print ads.
Weekly newspapers started in 17th
century started carrying advertisements which were flourishing more
in 18th
century. 19th
century saw the growth of advertising industry and agencies. Agencies started
building brand image for many products and started using different mediums for advertising.
“The best ideas come as jokes. Make your thinking
as funny as possible.” (David Ogilvy)
Advertising History Timeline( source: Timeline created by LynnComm860 in Business & Mashable: The
Evolution of Advertising: From Stone Carving to the Old Spice Guy ):
1661 The first product branding was developed, for Dentrifice Tooth Gel.
1704 First advertisement appeared in a newspaper.
1776 At the dawn of American revolution, political ads appeared encouraging enlistment.
1835 The birth of the automobile fuels the rise of billboard Ads in US.
1843 Volney Palmer established the first advertising agency in Philidalphia 1843.
1882
First electric light in Times Square that made a huge difference in the world of advertising. Lit in
1882, this sign inspired people worldwide to use this light-up sign to attract the eyes of people
walking down the street.
1892 Direct marketing is born when sears sends out 8000 handwritten postcards and receives back 2000
orders.
1917 The American association of advertising agencies is founded.
1920 KDKA, the first commercial radio station, was founded in 1920 by Frank Conrad.

1941 The first official TV commercial aired in 1941 before a baseball game. The commercial was
advertising for the Bulova Watch. Bulova payed $9 for the 20 second commercial.
1963 David Ogilvy ushers in the modern age advertising age with this quote “The consumer isn’t moron;
she is your wife”.
1984 Apple sets a precedent at the super bowl with the most expensive TV ad: directed by Ridley scott,
the macintosh promo costs $90000.
1994 pay-per-click keyword advertising debuts at GoTo.com
1997 The first mobile ad is launched. A Finnish news provider offers free news headlines via SMS,
sponsored by advertising.
2006 A video advertisement is a TV commercial put on the internet that usually plays before a video or
game. Youtube metaphorically gave birth to this concept when it launched in 2006.
2007
Facebook launched in 2007 and we witnessed another metaphorical birth- the birth of social based
advertising. Social based advertising lets companies see what people like by tracking their social
interactions.
2012
Right now, online advertising is quite the rage and there are pop up ads everywhere, but TV
commercials are also on the rise. Though they technically can't rise any higher. Companies are trying
to weave their way through the loopholes of advertising laws and Facebook and Twitter are
becoming another type of advertising
Advertising & Branding Industry Spending Overview
Amount Unit Date Source
Worldwide
Global Advertising Spending 546.0 Billion US$ 2014 eMarketer
Projection 578.0 Billion US$ 2015 eMarketer
Global Digital Advertising Spending 171.0 Billion US$ 2015 eMarketer
Global Mobile Advertising Spending, Estimate 68.7 Billion US$ 2015 eMarketer
Global Social Media Advertising Spending 23.6 Billion US$ 2015 eMarketer
Global TV Advertising Spending 213.5 Billion US$ 2014 PRE
Global Radio Advertising Spending 36.6 Billion US$ 2014 PRE
Global Out of Home Advertising Spending 37.7 Billion US$ 2014 PRE
Worldwide Broadband Internet Subscriptions (incl. wireless)* 3.03 Billion 2014 ITU
Total Mobile-Cellular Subscriptions* 7.0 Billion 2014 ITU

PESTLE analysis for advertising industry:
Demographic Environmental Analysis:
Age
- Population age defines the target segment for the advertisement content and the medium
of advertisement. Advertisement targeted for kids should be appropriate for a specific age
group which will have higher impact. With advertising for a minor group, it’s the
responsibility of the advertisers to take care of the content that influences child’s
imagination.
Geographic distribution
- Ads in general can’t be used everywhere, in every demographics. The local sentiment,
culture needs to be captured in advertisements.
Increase in Income & education level:
- With increasing income, people are spending more on products that increases their
status symbol. They indulge into more gadgets and are connected to internet every
minute. Advertising industry changes the way of reaching people through various display
mediums and are targeting the section with different genre of advertisements.
- Today’s women are more confident and self-sufficient, there is a need to change the
way advertisers used to look at targeting advertisements for female consumers. The ads
that were targeted for house-wives may not be appealing in today’s scenario.
Political & Legal issues:
Legal aspects specific to a country changes the advertising industry preferences and target.
For example, ban on ads of cigarettes and other tobacco materials or a ban on explicit sexual
content in ads.” The government of the United Kingdom according to BBC (2005) ended the
TV campaigns of cigarettes in mid 1990s. “
Even the ads are regulated to the extent whether at what time the ads should be shown so that
audience under 18 years are not affected.
Changing political environment creates a good landscape for advertising. Now a days
political parties are focusing more on the quality of advertisements and their reach.
Consumer privacy is becoming an important priority where every device is capturing the way
an individual is sharing data. Government regulates the firms to ask individuals before
capturing any data that can be used to display ads specific to individual’s interest.
With comsumers increasing awareness towards product and its legal aspects, advertisements
have to be very careful in what they say in an advertisement. If the claims are false and
without any data, it can have legal implications.
Economic issues:
Economic crisis: Advertising has been affected by financial meltdown/recession. During
recession, advertising was the first thing that experiences a cut-down. Advertising is considered
as extra expense which can be loaded off, although, this can be the perfect tool to connect the
product with the consumer easily. It has been seen, that during recession, the companies who
have invested in advertising more got a better ROI

CHANGES IN ROI RELATED TO CHANGES IN ADVERTISING SPENDING DURING A RECESSION
Spending Changes in ROI
Decreased (ave 11%) 1.6%
Modest increase (ave +10%) 1.7%
Substantial increase (ave +49%) 2.7%
Source: The WPP Center for Research & Development, October 1990.
Looking at the WPP growth in different regions and impact of economy. The rate of growth in
WPP's organic net sales is being held back by a sluggish euro region economy, which still
accounts for 35% of the company's sales. A slowdown in emerging markets, particularly Brazil
and China, has also weighed.
Source: Bloomberg Intelligence
Social issues:
With increasing awareness of internet and its usage on multiple devices, advertising industry
has to change the way and ad reaches to its customers.
Advertisers has to follow the ethical and social standards of the society in which they are
displaying. Whenever social issues are violated, government comes to take corrective
measures to what is deceptive and fair.
With changes in social values and ethics, it’s the advertisers that have to change their way so
as to connect with the society.

Advertisement changes the way people look towards the society. It can change the view to a
materialistic society, where it will tempt viewers towards unnecessary spendings. Advertisers
effect the people outside their displayed product and create an unexpected cost to the society.
Although advertisers can found a leeway through the laws to exhibit their alcohol brand in
rock concert, it’s the responsibility of the advertisers now a days to create socially responsible
advertising.
Advertisements relate themselves to the society through a social issue, through a social cause
which shapes up the society for good.
Technological issues:
Technological advancements: With growing internet reach and other technological
advancements, advertisers target viewers in every medium (phone, TV, tablets, digital
billboards). YouTube, Facebook target viewers with displaying ads that are customized to
users interests.
With big data analytics, every user’s interests can be captured and can be used to display ads
that prompts user to click and buy. Industry earlier paid for opportunity to see and hear, but
they are now paying for engagement.
Source: Bloomberg Intelligence Report ( How tha ad spending is changing for various
mediums)
Environmental issues:
Advertising through print media, banners, posters and billboards are the traditional way and
are widely used today also. But with increasing awareness about the environment degradation
due to the wastage of papers used in advertisements and electricity and resources used in
billboard advertisements, this is really a concern for advertisers.
With more environmental concerns, advertisers have to come up with other innovative
solutions that will decrease the energy consumption and decrease the cost to environment.
People are more inclined towards natural organic products and appreciate products which are
environment friendly.

“Consumers [decide] to buy or not to buy [based
on] the content of your advertising, not its form.” (David
Ogilvy)
PORTERS Five Forces Analysis for Industry:
Threat of new entrants: low
Product engagements with advertising companies are long term and customers keep
going to the same advertiser.
The ad-space needed to reach to masses is expensive and is not easy for new players to
enter or to get space in them.
Making a market hold for a newcomer is not easy as the large companies pick the
advertising companies that are well established and have huge clientele.
The talent in advertising industry is very niche and is not easy to find good talent.
It needs many years of expertise and presence in the industry to understand the regional
demographics, social behavior and customer likings.
Looking at the biggest group in advertising and how it dominates the sector:
WPP is the largest global ad network in terms of revenue after Omnicom and Publicis
called off their planned $35 billion merger in early 2014. It also has the largest share of
global digital revenue, which generates higher growth. WPP generated $6 billion in
digital sales in 2013. WPP's size also lets it venture into data and insight, areas that are
shunned by some competitors, yet gives WPP superior credibility when pitching to
potential new clients. ( Source: Bloomberg Intelligence Report – Nov 11-2014)
Power of suppliers : High
Ad spaces are limited and there is high demand for advertising spaces from every
product. Every product needs the best space and time which gives suppliers more power.
Suppliers in this case are the entertainment channels, billboard and ad spaces in public,
OOH advertising and there is high concentration of products which are ready to pay high
prices for premium spaces.
Advertisers get more demand when there are some sports events and elections. During
these times the demand multiplies many times for an important date or event and prices
are demanded by suppliers at unimaginable prices.
(i) Advertisement costs during special events

ii) Advertising forecast in Europe’s sluggish economy ( Boosted by
Elections and Olympics)
Power of buyers
Every product needs advertising to increase their market reach to customers. There are
many such big companies who are always looking to create an impact on buyers.
Advertising industry is dominated by companies who are big and have greater market
share.
With less companies in advertising sector having a significant presence, power of buyers
is low.

Threat of substitute products.
Substitutes are not there in ad-campaign. There is no other alternative for advertising to
promote products.
There are different mediums to promote advertising. Substitutes exist in form of
television, radio, paper and any other medium through which an advertisement can
effectively reach masses.
Intensity of rivalry
Intensity of rivalry among existing competitors is high. If we look at the market share of
existing customers there are no dominant players. Most of the advertising companies are
under a single corporate umbrella and the parent companies are sharing the advertising
space.
Source: Bloomberg Intelligence, 2014
Most of the product companies who rely on advertisers for an effective campaign are
very result oriented and switch the companies if they are not satisfying.
Ogilvy & Mather group created an ad campaign for IBM to sell Monitors which were in
their warehouses for long and they wanted to clear the monitors. O&M created ads which
created a deep impact on viewers and all the IBM monitors were sold very fast and IBM
have to pull out the advertisement as the demand was getting higher.
Due to this one campaign which O&M won, IBM gave all there advertisement campaigns
worldwide to Ogilvy And Mather.
There are large budget spending for ads in big companies and have large stakes on
advertising companies for their products.

With increasing use of technologies and different mediums of advertising, there is always
a constant run for the new innovative ideas and improvement in advertising techniques’
“Advertising people who ignore research are as
dangerous as generals who ignore decodes of
enemy signals.” ( David Ogilvy)
OGILVY AND MATHER:
1948: Hewitt, Ogilvy, Benson & Mather is launched.
1964: Ogilvy, Benson & Mather merges with London-based parent company Mather & Crowther, to
form Ogilvy & Mather.
1988: WPP acquires the Ogilvy Group for $864 million, the highest price paid for an agency.
1994: In the largest account switch in history, IBM Corp. yanks its business from scores of agencies
worldwide and consolidates the entire account with O&M.
1997: WPP combines the media operations of JWT and O&M to form The Alliance, the largest U.S.
media buyer with more than $2 billion.
(Advetisment in 1959 , conceptualized by David Ogilvy)
Starting in 1948, David Ogilvy built his company into one of the eight largest advertising networks in the
world. Today it has more than 500 offices in 126 countries.

Over the past 66 years, Ogilvy has helped to build some of the most recognizable brands in the world:
The firm’s client roster consists of Fortune Global 500 companies and other major groups, including
Siemens, Dove, Coca Cola, Cisco, IBM, Yahoo!, Ford, Nestle and Adidas.
Ogilvy has received numerous industry awards for work that reflects the diversity of clients' customer
bases. In every country/city O&M is established, there are numerous awards won locally and globally.
It was named the Cannes Lions Network of the Year for three consecutive years, 2012, 2013, and 2014;
and the EFFIEs World's Most Effective Agency Network for two consecutive years 2012 and 2013
O&M is into various domains of branding, advertising and Marketing:
Ogilvy Public Relations, a fullservice consumer marketing, investor relations, public affairs
lobbying and creative media firm
OgilvyOne Worldwide, which is a direct marketing and interactive marketing network
Neo@Ogilvy brand is a digital and direct media agency, providing media strategy, planning
and buying, search marketing and mobile and social media marketing services.
OgilvyAction is a global activation services subsidiary that focuses on changing purchase
behavior.
RedWorks helps clients increase marketing efficiency.
OgilvyEntertainment is a development, production and distribution strategy subsidiary.
Ogilvy Commonhealth Worldwide is a subsidiary with services designed to increase the
value of health care communications
Important key persons at O&M are:
Miles Young - CEO
Nelly Anderson - Exec. VP Global Brand Mgmt.
Chris Graves - CEO Ogilvy Public Rel. Worldwide
Tham Khai Meng - Chief Creative Officer
Ben Richards - Head Integrated Strategy
Gunther Schumacher - Pres./COO OglivyOne Worldwide
According to 2011 data( Ogilvy.com)
Revenue: $1,878,600,000 (estimated)
Gross Profit: $183,749,526
Net Profit: $6,504,408
Employees All Locations: 15000 (Actual)
Employees At (Ogilvy & Mather Worldwide Inc.): 2200 (Actual)
“If you always hire people who are smaller than you
are, we shall become a company of dwarfs. If, on
the other hand, you always hire people who are
bigger than you are, we shall become a company of
giants.” (David Ogilvy)

Mission, Vision, Values:
“to be most valued by those who most value brands”
360 Degree Brand Stewardship:
As Brand Stewards, the agency works to leverage the brands of its multinational clients by combining
local know-how with a worldwide network, creating powerful campaigns that address local market needs
while still reinforcing the same universal brand identity. The hallmark of the agency's brand-building
capabilities is 360 Degree Brand Stewardship®, a holistic look at communications, using what is
necessary from each discipline to build a brand.
O&M believes the role of 360 Degree Brand Stewards as: Creating attention-getting messages that make
a promise consistent and true to the brand's image and identity. And guiding actions, both big and small,
that deliver on that brand promise. To every audience that brand has. At every brand intersection point. At
all times.
Resources And Capabilities:
Diversity in profiles. This makes O&M rich in consumer insights and understanding as the
people have understanding of local demographics.
Teaching school for advertising – There is an intricate training program for every new recruit.
Ogilvy and Mather is considered as the teaching hospital of advertising world. Training is
positioned as privilege rather than duty.
“The Big IdeaL” : Ogilvy’s framework for giving brand a purpose. An ideal is more
important than an idea. The idea behind this was to find a message between “cultural tension”
and “the brands best self”.
o Louis vitton identified the travel industry where the cultural tension was that travel
was not seen as something special. Then they looked at the brands best self-i.e.
luxury and created a message which made travelling a luxury thing.
o The message that was used to connect both these things was “Louis Vuitton believes
the world would be a better place if we lived life as an exceptional journey"
O&M philosophy of “we sell, or else” is practiced by every employee. Their philosophy
states that to be creative, one has to be dissatisfied and seeking to be better than good.
The culture of agency has been valued in every country where they work and have been the
same as it was started by David Ogilvy.

O&M have 4000 digital specialists around the world. Digital has been embedded in Ogilvy
culture much before anyone have started and can be seen in the new-age ads.
Companies business model has been to decentralize the control. Every country operations has
enough independence to work to ensure excellence locally. Sharing of resources globally
helps them to build a culture where a person has in-depth knowledge of how the culture,
socio-economic factors etc. work for a country.
O&M works on many disciplines, and that makes them to give a wholesome solution to the
clients. The integration of creativity and technology helps to build a platform where the brand
and users communicate and advertising is not just a one-way feed.
Popular innovative ad campaigns:
Anti-Littering Campaign Uses DNA to Identify Litterbugs and Put Their Faces on Ads
o Thinking of littering in Hong Kong? You could soon be a poster child for the
problem. A remarkable campaign from Ogilvy & Mather takes DNA from trash on
the ground and uses Snapshot DNA phenotyping to generate physical likenesses of
the litterers, who then end up on outdoor ads telling people not to litter. (DNA
phenotyping is the process of predicting a person's physical appearance based on
their DNA alone.)
Ogilvy Gets Potholes to Tweet, Asking to Be Fixed, Every Time They're Run Over.
o People aren't the only ones complaining about potholes in Panama City. The potholes
are complaining! With so many streets in Panama City damaged, local agency P4
Ogilvy & Mather placed special devices in potholes that automatically tweet nasty
messages at the Twitter account of the Department of Public Works whenever cars
drive over them.
British Airways ad campaign:
o The campaign helped British Airways highlight the breadth of its destinations.
Digital billboards in key London locations featured creative that encouraged passers-
by to look up and spot the aircraft flying overhead. A message on the board pointed
out the flight's city of origination.
Ogilvy Ads in India:
o MP tourism advertisement “MP ajab hai, sabse gajab hai”.
o Vodafone ZooZoo advertisement .
o IPL2 advertisement “MAX-Home of IPL
o Gujarat tourism.

o Coca-cola open happiness ad campaign which used vending machines to connect
customers from India and Pakistan through video cameras and virtually join hands.
“Never write an advertisement which you wouldn’t
want your family to read. You wouldn’t tell lies to
your own wife. Don’t tell them to mine.”(David Ogilvy)

COMPETITORS:
LEO BURNETT COMPANY, INC.
BBDO WORLDWIDE INC.
McCann Worldgroup
Satachi & Saatchi
Advertising Companies and their holding companies structure:
In advertising industry there are mainly two types of agencies: large international agencies and local
regional based companies.
Most of these local companies are eaten up by mergers and aquisitions and the large international
companies also have parent companies. Mergers and acquisitions enable small companies to cater to
different kind of services rather than giving traditional services of ad campaigns and choosing
advertisement media. There is always a continuous changing trend in the medium of advertising and
nothing remains an effective medium forever.Television changed the way advertising was used to be
there in newspapers. Internet changed the television advertising scenario. And with social media picking
up the pace, advertisements will get a new dimension.
Advertising industry has been dominated by the players who have formed a legacy of creative and most
impactful advertising. Most of the companies have been acquired by the parent companies and now parent
companies have the real rivalry in the market. Parent companies have various advertising agencies under
them who are reputed individually.
Some of the parent companies that have the best agencies under them are WPP, Omnicom, Publicis,
Havas, Dentsu.
Listed below are some of the companies having a wide range of portfolio:

Market share of these companies and how they are getting benefits of merger and acquisitions:
Source: Bloomberg Intelligence Report
The above illustration shows the revenues of the parent holding companies. O&M is the subsidiary
company of WPP ( Wire and Plastic Products )
“On the average, five times as many people read the
headline as read the body copy. When you have written
your headline, you have spent eighty cents out of your
dollar.”(David Ogilvy)

SWOT analysis:
Strengths:
o 450 offices in 120 countries with 18000 employees
o Strong distribution all over the world
o High reputation for quality work to corporates
o High number of mergers and acquisitions for expansion
o One of the biggest names in the world of advertising
o Clearly understand the nerves of the society to create impactful advertisements.
o Creativity with which different mediums of advertisements are used.
o Offering Multiple services to clients ( branding, advertising, viral marketing,
sustainability )
o Hiring and nurturing best talents from the country locally helps them to create the
brand connect with the society.
Weakness:
o Market share is limited due to many competitors
o Pricing is high; there are only big budget customers. In giving a rich creative solution
for clients, O&M has always served the niche upper segment.
o There are some untapped markets for O&M ( South America, Middle east , Africa)
o Clients of Ogilvy And Mather are the same old clients that have been with them for
many years. IBM, BP, American Express are some big old clients. They will have to
look for adding new clients in the portfolio.
Opportunities:
o Online advertising is a new source of revenue.
o Adapting new strategies for market research using more of data will bring in more
revenues.
o Decentralized decision making is helpful as local marketing needs vary from one
region to another.
o Digital channels to be used in advertising. This gives a low cost medium to advertise.
Also with increasing time spent on digital mediums, digital marketing will be the
most sought after medium.
Threat:
o Increasing lawsuits due to sheer negligence in preparation of ads
o Recession may hit the industry as cut is primarily on marketing budget of corporates
o Cut-throat competition offered by other players in the industry
o With increase in social media and advertisements targeted for platforms in social
media, there is a constant concern on how the products are using personal data.
Privacy in social media is the growing concern which may create as a dampener for
advertisers to target ads to relevant audience.
“Hire people, who are better than you are, then leave them to get
on with it. Look for people who will aim for the remarkable, who
will not settle for the routine.”(David Ogilvy)

Future of advertising:
Advertising Medium is the most important thing in advertisement which decides how many people will
be reached and how effectively. Medium for advertisement has been changing constantly and its fast.
From print media to visuals, from newspapers to smartphones and the most emerging of these is the
virtual reality.
The world after 10 years will have many innovative ways of advertising which is not easy to think upon.
People will be bombarded with advertisements everywhere, through watches, newspapers, billboards, 3d
generated images that can talk, signages, billboards.
Ogilvy is preparing for the future with more acquisitions, mostly in tech sector where they
can use the potential to analyze data, to give more insights to customer.
Ogilvy knows that TV will fade away slowly and with internet based smart TV’s, everything
will be integrated. The advertising should take into account TV plus, youtube or twitter or
facebook to give the viewers a wholesome experience.
(Digital ad spending is growing every year and will be the best mediums for advertising)
Mobile usage is growing fast and it’s growing exponentially in developing countries. With
new devices coming which are replacing laptop and TV’s will be the next market for
advertising. Most difficult point in mobile ads is the timing and the structure through which
ads will communicate.
This will need collaboration with clients and research departments to find what behavior of a
consumer is worth.

Consumers today wants brand to communicate with them on what they are thinking and what
is trending. Real time ads are the new way of marketing that needs a quick response to an
event. Social Media is the medium through which real time marketing is possible and
effective.
It’s easy to take the trending topic from social media. And then relating that topic to the
industry for which ads are targeted.
Taking an example of real-time marketing: Oreo’s response to the blackout that derailed the
Super Bowl XLVII in 2013.
-
Programmatic advertising is increasing and so the need for programmatic sale. The old way
of buying spaces for advertisements is changing. There is no need to buy whole lot of spaces
in bulk to keep the price lower. Earlier buyers have to purchase spaces fully through manual
process and that takes around 20 days. With Programmatic sale, buyers can bid for the space

real time, where they find their advertisements to be more consumers specific and apt to the
situation.
-
Consumers today are intelligent and more planned; they need updates on telephone, listen to
radio during commute and want crisp news on television at night. Almost all of the
consumer’s electronics are connected through internet and everybody wants more of
information in less time. Today’s consumer watches TV skipping ads, watch videos on
YouTube which can be skipped. There is a different need that needs to be analyzed and learn
and to give consumers an enriching experience.
Advertisements today don’t start and die on television, they have an extended life on youtube,
facebook and twitter. To be able to create a long lasting effect, advertisers now have to create
a short story that connects with the consumers emotions. Storytelling is becoming more
popular and when an advertisment hits the emotional chord, there are more chances for it to
go viral.
Brand engagement with consumers is more effective than forcing ads to consumers. Today,
there are YouTube channels of each product, which create new ads frequently and archive the
older ads. And once when they are able to entertain the audience, the bonding between
consumer and product will be long lasting.

CONCLUSION:
Advertising industry is a fast changing landscape in which its very difficult to predict how it will evolve.
Experts are tracking new trends and consumers behavior, but with a doubt in mind whether something
new will take-over this. Media landscape is creating new possibilities very fast competing for consumers
attention. Today, psychologists, anthropologists, technology wizards and gaming enthusiasts..all of them
might have a role to play in modern agency.
Some of the areas which can be identified out of all these uncertainties and on which O&M can have their
focus on:
Mergers and acquisition: To expand the reach to different countries and to get the benefit of
new innovative agencies, M&A is very important for O&M. O&M has been seen as a
company with old school of advertising, this needs to be changed in increasing tech world.
Data analytics of consumers behavior : Real-time ads are more attractive to consumers, as
they can relate easily to the story and creates a respect for the brand. Real time ads need a
constant thinking and its different from conventional advertising, where there was more time
to research, conceptualize and then display.
Story-telling in ads and viral marketing. O&M has a very strong background of storytelling in
their ads, which can be used to campaign through long video-ads and engrossing the
consumers.
Using more of technology in Advertising. O&M has been constantly trying to use technology
in their advertisements. For ex. “Finding litterbug through DNA testing and displaying the
face on billboard in HongKong” “Making potholes tweet about their condition to municipal
authority in Panama city”
New creative ideas to engage consumers in ad viewing. Like on websites there are video ads
going on in one corner, but the video is generally muted. Its rare that users will switch on the
volume. Now, this is the challenge for advertisers to create an innovative ad, that can catch
the eyes of viewer.
With more of digital display adding on day by day ( OOH, digital billboards, interactive
displays , 3D technologies), it has become essential to not force advertisements on
consumers.
More focus on programmatic advertisements and programmatic sale.
Green Advertising – With more emphasis of consumers on how organic the product is, and
how green the idea is, there will be a responsibility on advertisers to create advertisements
that use minimum of resources and how organically they are presenting their products.
Reverse Grafitti is one of the concept where dust settled on walls is used to create graffiti
messages.
Facebook, twitter, instagram, pinterest and many more social networking sites are new
mediums to the agencies. The more likes it get, the more it will be shared and the more
viewers will attach to a product. Other than social networking sites, brands are also engaging
into creating apps and games, which target a very different segment of consumers.

REFERENCES:
1) www.statista.com
2) www.plunkettresearch.com
3) http://www.slideshare.net/pradeep_loganathan/porters-five-forces-for-advertising-and-branding-
industry
4) http://b32g4.ntuentrepreneur.org/business-plan/market-analysis/porter-s-5-forces
5) https://prezi.com/hepdhjfyvb2l/advertising-agencies-industry-external-analysis/
6) Bloomberg Intelligence reports
7) www.adage.com
8) Adland: A global history of advertising ( Mark Tungate)
9) www.aef.com/pdf/arens_ch03.pdf (Advertising Educational Foundation - Web)
10) www.adweek.com

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