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Global advertising market

The global advertising market is an environment in which advertising activities promoting the export of domestic goods and services are carried out in conditions of real competition. As a rule, the specificity of this Environment is not so much contributes to it, but hinders. Therefore, knowledge of the features, status and trends of the global advertising market is necessary primarily to ensure that in the foreign economic sphere were prepared and carried out sufficiently professional and adequate marketing environment advertising campaigns. Changes in advertising are explained by its high dynamism.

It instantly reacts to the events taking place in the market, and to some extent serves as their indicator. The reason is that, being a part of the mechanism of market relations, in case of any failures in its work, advertising is forced to adapt to the created conditions, change forms, make adjustments to the content.Difficulties in marketing products and services are compounded not only by increasing competition. There are new, non-traditional problems, in particular, energy, fuel and raw material crises, the vital need to protect the environment. Changing socio-demographic state of society, there is a reassessment of values among its members, increasing their educational qualification, gaining strength social movement, which aims to protect the rights of the consumer. Manufacturers have to revise the technical parameters of their products, create more economical and environmentally friendly designs and technologies. In order to compete with transnational corporations, which have concentrated huge financial, production, scientific and technological resources and about half of the world trade, second-tier firms, in particular, have to intensify advertising. Under these conditions, the struggle for the consumer is becoming more sophisticated. The novelty and perfection of the product for him is now often more important than the price. Therefore, in today's market wins the one who, along with a fundamentally new product offers better services, forms and methods of marketing.Advertising costs represent a significant part of the budgets of foreign industrial firms.

In the United States, only advertising in the media spends more than 5% of the total cost of production and sale of goods. The share of companies producing consumer goods is even higher; drug manufacturers — 20%, perfume and cosmetics — 13.8%, kitchen accessories — 12.8%, alcoholic beverages — 11.9%, haberdashery — 9.4%, detergents — 8%. In many ways, the high level of advertising contributions in the leading industrialized countries is due to high rates for advertising space or airtime in the most effective media. Another characteristic of the global market process is the constant concentration of advertising activities, the absorption of large advertising agencies and means of advertising smaller. From the group of advertisers and advertising agencies stand out and every year strengthen the position of the Corporation, concentrating in their hands the most profitable part of advertising and increasingly subordinate means of advertising. The most tangible impact on the changes taking place in the market of advertising services is provided by advertisers. They are not only industrial firms that produce goods, but also service firms that offer services in research, design, transportation, financing, consulting, etc.the greatest influence is exerted by monopolies that produce consumer goods of mass demand.

Having huge advertising budgets, they actually contain the media and therefore have the opportunity to carry out their policies with their help. Monopolizing the market of advertising services, industrial firms receive a monopoly on the sale of goods produced by them. Dictating the conditions, the advertiser forces advertising agencies and means of advertising distribution to give big discounts, to accept favorable conditions for him when placing orders for the preparation and publication of advertising materials.Given all of the above, it can be considered a proven huge role of advertising in modern business, the fact that without advertising any company operating in the domestic or foreign market, not to achieve great success and that advertising — a process that must be carefully studied in order to successfully apply it in practice. The structure of the world market is complicated and updated, and experts who carry out their advertising activities on it have to respond adequately to these changes.

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