Advertisement Production Category Intelligence
Report Coverage
- Global Industry Trends
- Global Drivers and Constraints
- Cost and Pricing Analysis
- Procurement Best Strategies
Production Size
Global Production Size/ Capacity
$65.9 Billion
Estimated Global AD spend
$659 Billion
North America advertising spend
$23–25 billion
LATAM advertising spend
$2–2.5 billion
Advertisement Production Market Trends
Category Intelligence on Advertisement Production covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Want a more detailed personalised report?
Industry Outlook & Drivers
Advertisement Production Global Market Outlook:
MARKET GROWTH: ESTIMATED GLOBAL AD SPEND (2020) $659 BILLION PRODUCTION APPROXIMATELY ACCOUNTS FOR $65.9 BILLION
EMERGING STRATEGIES:
- REAL-TIME VIRTUAL PRODUCTION
- SUSTAINABLE PRODUCTION PRACTICES
Porter's Analysis on AP
Supplier Power
- High availability of supply: The supplier power is low, as the marketers have a range of alternatives in the form of global, local, and in-house production houses to work with
Barriers to New Entrants
- Emergence of new entrants: The fragmented production industry acts as a low barrier to the new entrants, since the entire market share of the production service industry are unevenly distributed among the production houses
Intensity of Rivalry
- Client portfolio: There is a tough competition among production houses to retain clients across different industries. Production houses cut down on their profit margins and establish a long-term client engagement model
Threat of Substitutes
- Multi-channel production companies, in-house and new off-shore opportunities are all taking over the traditional market for production
- Engaging with end-to-end production service provider: The marketer’s engagement with a end-to-end service provider will act as a possible substitute for engagement. These vendors provide services, such as crew or equipment leasing, post production services, editorials, audio, special effect services, etc.
Buyer Power
- Higher buyer power: Buyers hold high negotiation power, as the supply base is fragmented
- With less work going to traditional production companies, the rates have been lowered, thereby, increasing competition for work among suppliers
