Creative Advertising Category - Procurement Intelligence
In this creative advertising procurement intelligence report, we have estimated the pricing of the key cost components. Labor cost, production cost and equipment cost form the largest cost component of creative advertising category implementation. Labor costs in creative advertising agencies include salaries and benefits for creatives like copywriters, designers, and art directors. The average salary of copywriters in US in around USD 50,000 to USD 60,000 yearly. In the UK, average salary of copywriters is around USD 40,000 to USD 50,000 yearly.
These costs can vary based on experience and location. Production costs include creating advertising materials like print ads, TV commercials, and website designs. The typical daily cost of an ad on TV in the UK is USD 878 to USD 1,700. On the other hand, advertisements at primetime can run from USD 1,000 to USD 10,000 in the US. These costs vary depending on the media and production level. Equipment costs include computers, software, and other tools used by creatives. The frequency of equipment replacement and type of equipment used can impact these costs.
Order your copy of the Creative Advertising category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Operational Capabilities - Creative Advertising
- Industries Served - 25%
- Employee Strength - 25%
- Years in Service - 20%
- Key Clients - 10%
- Geographical Presence - 10%
- Revenue Generated - 10%
Functional Capabilities - Creative Advertising
- Cost Per Click - 20%
- Search Engine Optimization - 20%
- Virtual Reality - 20%
- Creative Development - 20%
- Social Media Marketing - 20%
Rate Benchmarking
The cost of living in the US is generally higher than in the UK, resulting in higher employee salaries and higher service costs for creative agencies. The US market is larger, leading to increased competition and expertise. Creative agencies in the US are considered more experienced and have a longer history of providing advertising and marketing services. Creative agencies in the US are constantly investing in research and development to stay ahead of the curve.
This includes the cost of hiring experts, conducting experiments, and testing new technologies. Requirements vary by market, for instance amongst US & UK owing to their demographics and customer preferences, which forces creative agencies to invest more time and resources in creating high-quality campaigns, further increasing the cost of their services. France's cost of living is often higher than Brazil's, creative agencies there are paid more. Due to a smaller advertising market in France, there is less competition, which leads to higher rates.
In France, advanced technologies like artificial intelligence and data analytics are more prevalent, but their implementation and upkeep can be expensive, which is driving up service costs. The French market is more demanding in terms of creative advertising when compared to Brazil, as it is a cultural hub which looks to create work that is both stylish and impactful necessitating that creative firms devote more time and money in producing campaigns of a high caliber, thus driving up the cost.
Supplier Newsletter
- In July 2023, Dentsu entered a partnership agreement with Microsoft to introduce enterprise-wide access to advanced Azure OpenAI technologies. Two new CXM solutions have already been created as a result of this partnership with Microsoft. They are “Merkle GenCX” and “AI Playground LATAM”. The former leverages generative AI to provide more impactful experiences for customers. The latter, AI Playground LATAM, is a region-focused set of customized solutions that combines integrated audience or consumer data with the latest technologies to increase daily efficiency and operational agility for clients.
- In April 2023, Amp, one of the top sonic branding companies in the world, was acquired by WPP. Amp's experience will improve WPP's experiential branding offerings and its capacity to provide customers with high-quality, distinctive, and ownable sound experiences.
- In January 2023, Fexy Studios, an award-winning creative agency that creates television shows, streaming and digital video programming, has been acquired by The Arena Group Holdings, which is an innovative technology platform that transforms media brands. Arena Group boosts streaming, sponsored content, television programming, sales, revenue generation using core brands, audience growth, and Fexy's production capabilities.
List of Key Suppliers
- WPP
- Omnicom
- Interpublic Group
- Dentsu
- Havas
- MDC Partners
- Ogilvy
- McCann Worldgroup
- BBDO
- Grey Global Group
Browse through Grand View Research’s collection of procurement intelligence studies:
- Disposable Medical Gloves Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Cyber Security Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Lab Equipment Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Commercial Real Estate Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
Creative Advertising Procurement Intelligence Report Scope
- Creative Advertising Category Growth Rate : CAGR of 9% from 2023 to 2030
- Pricing Growth Outlook : 8% - 10% increase (Annually)
- Pricing Models : Hourly rate pricing model and project fee pricing model
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria : Transparency, creativity, innovation, type, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
