Advertising and PR

Stuff

• $620B industry globally

• $285-300B spent on media ads– Show me the money!

• US Industry +7.7%

• +23K Jobs in 2010

• 5000/day in U.S.

• Ubiquity?!

Tattoo Advertising

Types of Agencies

• General ad agency:– Plan and create marketing campaigns and

place ads in media

• Boutique ad agency:– Focus on specific area such as direct

marketing, public relations, branding/logos/identity consultants sales promotion, field marketing, interactive, sports marketing, etc.

Compensation?

• Pre-1990:– standard commission = creative fee and 15%

of gross billings of media placements

• Post:– cost-plus fee, sliding scale fee, or fixed-rate

(lower than previous 15%)

WPP Group

• 2010, $14.4B

• UK

• Largest marketing services group

Omnicon Group

• 1986

• 2010, $12.5B, $1B Profit (44% Ad, 56%?)

• 5000 clients in more than 100 countries

• 84,000 employees

• 2,000 offices

• 106 countries

Publicis Groupe

• 2010, $7.2B• 1926, France• 200 cities in 104 countries

The Interpublic Group

• 2010, $6.5B

• 1961

• approximately – 43,000 employees – 130 countries

TOP 10 Agencies

» 1 Grey (WPP) New York » 2 BBDO (OMC) New York » 3 JWT (WPP) New York » 4 Euro RSCG (Havas) New York» 5 DDB (OMC) New York» 6 McCann Erickson (IPG) New York» 7 Foote Cone & Belding (IPG) New York » 8 Deutsch (IPG) New York » 9 Young & Rubicam (WPP) New York » 10 Leo Burnett Co. (Publicis) Chicago

Who spends the most?• Proctor & Gamble $3.34B

• AT&T $2.99B

• GM $2.87B

• Verizon $2.45B (-18%)

• American Express $2.22B (+63%)

• Pfizer $2.12B

• Walmart $2.06B

• Time Warner $2.04B (+9% from 2009)

• Johnson & Johnson $2.03B

• L'Oreal $1.98B

• Walt Disney Co. $1.93B (-1.5% from 2009)

• JP Morgan Chase $1.92B

PR

• What is it?

• How is it different than the advertising industry?

• How is it related to the ad industry?

• SPINdustry (Command PR)

To Consider???

• Blurring content and ad– What does it mean if culture is ad-friendly?– Are we merely consumers?– Collision of cultural and economy?

• Impact of clutter– Selling us ourselves or ideal selves– Identity– Consumerism– Materialism

• What is PR? How is it the same/different from ads?

• How is this industry a cultural industry?