Monday, August 5, 2013

Publicis Omnicom Group vs. Google, Facebook, and others in Digital Advertising

The global advertising market is expected to reach approximately $505 B in 2013, representing a 3.5% growth rate. Digital advertising is the fastest growing segment within advertising, and within that segment, mobile is the fastest growing segment of Internet advertising with a projected 67% growth rate.

The merger of advertising giants would have more than 130,000 employees and will represent the number one advertisement firm with Omincom $14.2 B and Publicis $8.8, the combined revenue of $23B based on 2012 numbers. This surpasses the currently largest revenue producer WPP with $15.95B. Coming in at a current fourth place is Interpublic Group at $6.96B.

This research evaluates the proposed merger between Omnicom and Publicis including challenges, synergies, market opportunities, and recommendations for the combined company as it seeks to leverage its assets to obtain a greater stake in the digital advertising market. Recommendations include market focus, strategy, partnering, and acquisitions.

Target Audience: 
•Wireless carriers and Internet service providers
•Advertising groups, agencies, and media buyers
•Media companies, portals, and content providers
•Digital application, content, and commerce companies

Executive Summary 3
 Introduction 3
 Publicis 4
 Omnicom 4
 Digital Advertising Types 4
 Search Advertising 4
 Display Advertising 5
 Direct Response and the Marketing to Commerce Cycle 6
 Digital Advertising Ecosystem 9
 Facebook 9
 Google 10
 Others 11
 Merger Benefits 13
 Merger Challenges 14
 Recommendations for Publicis Omnicom Group 14
 More than Display Advertisements 15
 Work more closely with Wireless Carriers 17
 Focus more on Big Data 18
 Recommended Acquisitions 19

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