The rise in service activities, along with increased digital marketing services and the success of the work-from-home trend, is enabling the Zacks Advertising and Marketing industry to counter the prevailing pandemic-related challenges.
Customer-centric approaches to business, digital strategies and technology investments are helping Publicis Groupe S.A. PUBGY, Omnicom Group Inc. OMC and The Interpublic Group of Companies, Inc. IPG to sail through the current testing times.
About the Industry
The Zacks Advertising and Marketing industry comprises companies that offer an extensive range of services, including advertising, branding, content marketing, digital/direct marketing, digital transformation, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Prominent players from the industry include Interpublic and Omnicom. The pandemic will continue to change the way industry players have conducted business and delivered services so far. Currently, the industry’s key focus is on channelizing money and efforts toward media formats and devices. To position themselves suitably in the post-pandemic era, service providers are increasing their efforts toward formulating strategic initiatives and identifying sources of demand.
What’s Shaping the Future of the Industry?
Economic Recovery: The industry is a beneficiary of service activities that are currently in good shape. The Services PMI measured by the Institute for Supply Management has stayed above 50% after contracting in December2022, following 30 consecutive months of expansion. It clocked 0.7% growth from March 2023 to April 2023, touching 51.9%.
Reviving Demand: The industry is mature, with demand for services remaining stable over time. Revenues, income and cash flows are anticipated to gradually reach the pre-pandemic healthy levels, aiding most industry players in paying out stable dividends.
Digital Marketing Gathering Steam: Amid the pandemic, digital media consumption has shot up, with consumers spending more time on various media platforms and video-streaming services. Thus, agencies offering digital