The advertising production services market is expected to grow at a CAGR of more than 6% during the period 2016–2020.
Procurement market intelligence analysts have announced the latest market research report on advertising production services for the period 2016-2020. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global advertising production services market during the forecast period. Some of the key suppliers in this market include RSA Films, Partizan, MJZ, 1stAveMachine, and Phenomena.
Geographically, North America accounted for around 45% of the advertising production services industry in 2015 and is the largest revenue contributor to the market. Th primary reason for this region’s growth in the global market is the increase in spend on television advertisements in the US.
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According to Angad Singh, a category specialist at Technavio for research on category spend intelligence, “Much of this market’s growth is due to the surging requirements from several organizations for creating a visual appeal of their brands, products, and services among the customers. Such needs have propelled vendors to implement several technological advancements such as the use of drones to create ad campaigns that attract more viewer attention. Vendors are also adopting the production decoupling strategy for saving costs and are utilizing external creative expert opinions for their ad campaigns.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Increased use of drones for video production
Drones or unmanned aerial vehicles can be remotely controlled or autonomously operated through software-controlled flight plans in embedded systems connected through GPS. They help buyers capture images and video from various aerial angles easily and at affordable prices. For instance, these are several types of drones for photography such as Parrot Bebop Drone, Phantom 2 Vision, and phantom fC40 that focus on diverse areas to get perfect angles and capture high-quality video.
Adoption of decoupling strategy
In recent times, many organizations are splitting production from ideation through decoupling or centralized production. This helps clients gain clear comprehension about the production aspects such as technical expertise, competitive pricing, control, faster TAT, consistency, and transparency of campaigns from a creative point. Also, through the implementation of such strategies, the chances to reduce overall campaign expenses increases considerably.
Increase in demand for integrated production activities
Integrated production is the formulation and delivery of ad campaigns for multi-channel marketing platforms. Several organizations around the globe are focusing on standardizing their ad campaigns across different media platforms through integrated production. Service providers are scaling up their capabilities by improving their expertise that allows them to offer multi-channel marketing ad campaigns.
Advertising agencies developing their in-house production capabilities
Several advertising agencies have started offering production services in-house rather than outsourcing their services on behalf of clients. Such developments enable clients to integrate their ad-production requirements and to source it from a single provider. For instance, in 2016, advertising agency Young & Rubicam launched its regional content production studios across South America to provide one-stop advertising solutions and reduce costs for their clients.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Advertising Production Services – Procurement Market Intelligence Report 2016’.
