Advertising Industry Trends
What is one reason the advertising industry is in constant transition?
Power struggles and consumers avoiding ads.
What is a full-service agency? Give an example, too.
An agency that provides a wide range of services to meet all promotional needs. Omnicon.
What term do agencies use to refer to advertisers?
clients
What does IBP stand for?
IBP
What is the standard commission percentage for agencies?
15%
Which social media platform is known for its careful targeting of millions of users?
What type of agency focuses on creative concept development and artistic services?
creative boutique
Which organization is one of the largest spenders on advertising in the U.S.?
U.S. Government, auto manufacturers
Why is IBP important in today's advertising landscape?
It helps break through media clutter by integrating multiple promotional tools.
What is a "markup charge" in agency compensation?
Production cost plus a fixed percentage.
How has social media changed the advertising industry?
It has given consumers greater control over the information they receive.
What is the primary role of media specialists?
To buy media time and space and offer media strategy consulting.
What type of organizations use advertising to raise awareness and seek donations?
social & not-for-profit
What's 2 examples of a tool used in IBP campaigns to engage mobile users?
Branded apps. games.
What is a fee system in agency compensation?
Charging clients based on hourly rates or per project.
What technology is used to help advertisers break through media clutter?
V/R
What do digital/interactive agencies specialize in?
Using online, mobile, and social media for direct marketing and target communications.
What must advertisers understand about their brand before hiring an agency?
The value their brand provides to users.
How does crowdsourcing benefit advertisers?
It engages consumers and gets them more involved with the brand.
What does the "pay-for-results" compensation model rely on?
Achieving specific, agreed-upon outcomes, such as increased brand awareness.
What percentage of mobile users have installed ad blockers?
22%
What is the main responsibility of event-planning agencies?
To find locations, secure dates, and manage promotional events.
What is the role of trade resellers in the advertising process? What's an example?
To buy products and resell them to customers, with limited use of advertising. Amazon
What is the challenge caused by media fragmentation for advertisers?
Reaching a widely dispersed audience across many different platforms.
What is the benefit of having tightly specified objectives in a pay-for-results contract?
It ensures that compensation is tied to measurable outcomes.