How Big Is The Advertising Industry?
10 Facts About The Advertising Industry
Hey readers, I hope you all are doing good. So, finally, after a long time I am writing, had a tiring week, in fact, a tiring month. I somehow felt disconnected when I don’t write, so I’ll make sure I’ll write. So, this topic is really different as we’ll dive deep into the advertising industry. So,
What’s Advertising?
Advertising is a marketing communication or as a means of communication with the use of products or services. Basically to promote a product or service. Advertising is almost as old as humankind, archeologists have actually found evidence of ancient Egyptian and Roman wall posters and letters that had the purpose of promoting activities and services. Ancient Greek and Arabian evidence were also found in the means of rock sculptures and papyruses as well as rock paintings.
We see advertisements in our lives as it plays a major role in our lives. Ads are seen in every format right from TV to Radio to Billboards to Social media to Product placements and celebrity endorsements.
Advertising is a part of our lives and it dictates
What do we like?
What do we dislike?
What do we eat?
How do we choose to wear it?
The Advertising industry is one of the most creative industries and also controversial. Without further adieu let’s dive deep into the 10 facts about the advertising industry:-
An Average consumer sees around 4000 to 10000 ads in a day.
Most Advertising agencies hire people from non-related backgrounds.
Guerilla Marketing can make brands go viral.
All campaigns and new launches are first tested incognito.
The advertising industry is worth $1.2 trillion.
People blame advertising for setting impossible social standards.
Advertising towards children is regulated in some regions.
The most expensive ad aired on TV costs $1 billion.
The biggest advertising company is WPP plc.
Social media jobs are considered, “Pink Collar” jobs.
An Average consumer sees around 4000 to 10000 ads in a day:-
Advertising is a part of our lives. From the moment we wake up to the second we fall asleep, the human brain is assaulted with images, lots of them representing ads in one form or another. Studies show that an average consumer sees approx 4000 to 10000 ads in a day. Right from seeing ads on TV to Social media to billboards or even seeing product placements in our favorite TV show. We see so many ads that our brains don’t even recognize 80% of them and think that they are just a part of the picture, but the truth is the advertising money is what keeps businesses alive and it’s difficult to cut them down.
Most Advertising agencies hire people from non-related backgrounds:-
Yes, most of the ad agencies hire people from non-related backgrounds or people from non-MBA backgrounds. Being a part of the advertising industry requires a lot of creativity and the ability to adapt and understand different aspects of an industry. It also requires understanding human behaviors, their needs and expectations is an important factor in being successful in the advertising business. Advertising requires a lot of teamwork and gaining insights from different industries. It means understanding people’s needs and what is important to be addressed. If you are a creative person and want to change your career path then give advertising a try. There are countless jobs in ad agencies like Media planning, SEO, Social media management, Graphic designing, Content Creation, Copywriting, etc.
Guerilla Marketing can make brands go viral:-
Guerilla Marketing is the concept of unconventional advertising strategy that allows brands to promote themselves in new and innovative ways. Guerilla advertising focuses on grabbing the public’s attention at a personal and memorable level. Guerilla marketing is a great alternative to traditional marketing. It thrives on original thinking and creativity, where imagination and ingenuity beat out big budgets. If used properly, it can thrive success to companies. One Eg. of it is Coca-cola’s hugging machine that proved to be a success. Back in 2012, Coca-cola set up a vending machine at the National University of Singapore, where they would give free cokes in exchange for hugs and people were crazy about it because it made them feel like sharing the love.
All campaigns and new launches are first tested incognito:-
Sounds strange, but yes every ad-campaign is pre-tested before it is launched. Ad-pre test is a market research type of study that allows brands to get consumer feedback and test ads before launching a new campaign to make sure they nail it!
It’s really important to test new products, they test their products on multiple groups to see where they need to adjust them and if the feedback is positive when companies spill so much money on campaigns that go live worldwide they’d better perform as expected. If your dream job is to be a copywriter then get ready to change your text a thousand times and be good at editing as nobody gets right on the first try.
The advertising industry is worth $1.2 trillion:-
Since, social media and the internet are evolving day by day, because of which the advertising industry is expanding, it’s not just the traditional media i.e, TV, radio, magazines, billboards anymore but mobile media, new social media platforms that are currently trending. With people spending a significant amount of time on social media and new content, there has been an increase in the budget and investments that are now being poured into this industry. In 2017 alone, the advertising industry saw huge growth and a market capitalization of $1.2 trillion worldwide. But in 2020, it has been hit really hard and the global advertising market has reached a value of $647 billion due to COVID-19 and it’s expected to grow further by $876 billion in 2026.
People blame advertising for setting impossible social standards:-
It’s such a widely discussed topic that it’s almost boring by now, yes the advertising industry just like the fashion industry sets the trends. Big companies pouring money into their marketing campaigns decide the new waves of what should be worth it and what causes you should support the advertising industry has been accused many times of being sexist or promoting impossible body standards. But the focus in the current trend has been shifted to gender equality and women empowerment.
The industry’s new strategy is pushing empowerment campaigns for women like Dove’s #RealBeauty.
But what women forget though is how much buying power they hold and it’s true and that’s the reason why brands are pouring money into and if female empowerment what sells for now it’s what everybody is getting.
Advertising towards children is regulated in some regions:-
It takes a lot of time, effort, and research to create a marketing campaign, and targeted ads rule our modern days we give so much data in exchange for free using the internet and advertising companies should not be stupid to use them. One of the big brands' favorite audiences as children mostly because their parents will do anything for their children and if they are spoiled they buy everything for their kids. This is where advertisers play an important role as they are good at showing clever ads and jingles to pursue children into wanting everything they see on TV, in the shops, or on the internet. This is where children don’t see the reality and they end up believing what they see on TV. Advertisers see that as a golden opportunity.
The most expensive ad aired on tv costs $1 billion:-
Yes, the most expensive ad-aired on TV costs $1 billion, and it aired on Feb 3, 2002. It was a Pepsi-cola ad starring Britney Spears and it was a 90 second commercial and it showed how Pepsi has evolved during the last 5 decades.
The biggest advertising company is WPP plc:-
In every industry, there is one company or one man that made it big. In the advertising industry, there is WPP plc, based in the UK. WPP plc is considered as one of the biggest ad agencies in the world, who are not only into advertisement but also into Public Relations, and Communications.
They have many holding companies like Ogilvy, Wunderman Thompson, Mindshare, Grey, Hill+Knowlton Strategies, etc. In advertising pretty much like in any other industry you can make a lot of money if you know what you are doing and are smart and play the cards right. Martin Sorell the founder of WPP plc is the richest person in the advertising industry who is worth £368 million.
Social media jobs are considered "Pink Collar" jobs:-
Social media has shaped up the entire world. It has made the world faster. And so does the job market. Social media has shaped up the job market. Jobs are not what they used to be and some careers last only as the job does. With the rise of new media and younger generations wanting fresh and different content, agencies must find super talented and skilled people to do these jobs. One of the jobs that are currently in trend is the social media management job. It sounds easy and interesting but it’s not, as it involves a deep knowledge about social media, you should be able to adapt to new media content and come up with creative ideas. It’s referred to as, “Pink Collar Job” as 70-80% of social media managers are women.
So, there we wrap up, 10 facts about the advertising industry. Question
What’s the best commercial you’ve seen?
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Oh! You are still here, of course, you do so here is a,
Bonus:-
Even though most products are marketed towards women they still feel misunderstood by the advertisers.
It’s tough to be a woman, am I right Ladies?
According to a study conducted by Terry and Sandy Solutions, women are responsible for 85% of all consumer purchases, which arms roughly around $7 trillion of buying power. But still, 91% of women feel misunderstood by the advertisers.
Why are women misunderstood by the advertisers? Why?
In fact, they have the highest purchasing power right from household items to groceries. Maybe there is this disconnect that comes arguably, from a misunderstanding of modern gender roles. I think the approach needs to change, as women are important. We have to understand what they want and take their feedback. We need more women creative directors in ad agencies.
