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Industry Analysis: Advertising

Industry Overview

Neway Interactive Advertising, LLC is a full service advertising creation company that is headquartered in Los Angeles, California. We are a limited liability company and own the rights to the company name and the company slogan.

Advertising spending through traditional mediums have increased 4% on average every year.

According to a 2013 Kantar Media report, American advertising spending has remained constant in 2013 and advertising spending down by 1% from 2012.

Some of the greatest declines in advertising spending were in newspaper and radio. However, advertising in magazines and television has rose since 2012. It is astonishing that Spanish language television had a 13.5% increase in television advertising spending. Lastly, advertising spending rose the most in personal-care products, restaurants, and telecom.

By Adrienne Grimes

Long-Term Outlook

Neway Interactive Advertising is geared long-term to understand how advertising affects the value of the brand in the over a certain amount of time. We want to establish brand loyalty through the creation of the advertisements. Additionally, we are looking to advertisements that build strong emotional ties, which will drive the sales. Lastly, we are looking to expand our services to include consultation services for strategic planning and research, social media, mobile marketing, and response marketing. Additionally, we are seeking to include transit advertising as one of our normal advertising mediums.

Financial Patterns

Industry Overview

Advertising growth since Wold War II has shown a flat time in growth when compared to the overall GDP spending.

Seasonality Cycles

Forecasted Trends

According to the Ooyala Global Video Index report, Mobile Advertising between 2012 and 2014 has increased over 400%. This trend is only going to increase with the expansion of the faster 4G/LTE coverage, smartphones, and tablets.

Accoring to eMarketer forecast, Native Advertising will rise from $3.2 billion in 2014 to $8.8 billion by 2018. Native advertising is typically a reflection of the content and style of a certain brand or website. Furthermore, 66% of American agencies and 64% of marketers plan to spend on native advertising within the next 6 months.

Video advertising is said to increase because advertisers are shifting advertising spending from television to video. This is largely due to consumers viewing habits. Consumers are spending an exceptional amount of their time watching digital videos. Since 2012, the amount of time spent watching digital videos has doubled.

During the summer time, consumers show more interest in travel. The advertiser will dedicate more time to advertise during this peak time offering added value sales to the ads to spark the consumer's interest.

Additionally, the holiday season is a peak time of the year for advertisers. The advertiser will determine how early they should start advertising the content to consumers.

Advertising companies uses tools such as Google Trends and Google Insights to determine trends and seasonality changes.

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Market Opportunity

Financial Patterns

The advertisements created by Neway Interactive Advertising LLC are geared to small and large scale for profit and non profit organizations. We maintain and demand strict integrity and confidentiality for the clients and the employees.

Currently, organizations are restricted to limited budgets, limited staffing, and limited resources. As a result, Neway is designed to meet the overall needs of the client when it comes to designing, creating, and deploying the high end multimedia advertisement. This gives the client the opportunity to reap the benefits associated to the advertisement being in public circulation without dealing with the overhead and operating costs of creating an advertisement. We will capitalize on the need for this service by advertising our final products to a wide range of companies through blast email tools and internet advertising.

With the introduction of new media advertising options, there has not been an increase in overall ad spending. Specifically in radio, television, and internet, each industry has never caused the advertising industry to grow faster than the economy. The introduction of new media options has generated a shift in how the existing advertising spending. According to this graph, Internet spending, which is considered the latest new medium, is seeing a 20% share of the advertising spending.