Introduction to the Advertising and Branding Industry

The size of the advertising market is difficult to assess and estimates by analysts vary to some degree. This is partly because the final cost of advertising for any organization includes creative and agency costs; local branding and marketing efforts; public relations; catalogs, brochures and other printed matter; the creation and maintenance of web sites, email campaigns and social media campaigns; and myriad other components, in addition to expenses for media. Numbers that are available for analysis and comparison are generally limited to actual spending on media, such as radio, TV, billboards and paid search or online advertising. Even these numbers are often educated guesses. Estimates of ad spending may include spending at both local and national media outlets, as well as spending on internet media via paid search and online ads.

In recent years, ads on social media sites have been added to the media spending mix. Another important development has been the use of data mining and predictive analytics to study patterns of consumer media use in order to place ads, especially digital ads, in front of the best possible audience for a particular ad. For example, Facebook enables the advertiser to drill deep into consumer demographics, tastes, habits and locales in order to have ads appear to highly niched groups. Short-form video sharing site TikTok has soaring advertising revenues.

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