The advertising and marketing services industry in the US includes about 35,000 companies that have overall annual revenue of about $80 billion. Major companies include Interpublic, Omnicom, Publicis, and WPP. The industry is fragmented: the top 50 companies have less than 40 percent of the market.
Demand for advertising and marketing services comes largely from businesses that sell consumer products, entertainment, financial services, technology, and telecommunications. The profitability of individual companies depends on creative skills and maintaining client relationships. Large companies benefit from being able to serve the varied needs of major customers. Small companies can compete by focusing on niche markets or by offering lower pricing.
New competition for advertising and marketing business has come from database marketing companies, systems integrators, and telemarketers.
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