- Tags : Marketing | Integrated Advertising Services | Price trend | Price forecast | Procurement research | Category market forecast
Recent Price Trend - Integrated Advertising Services
Prices for integrated advertising services have been increasing at an estimated annualized rate of 1.4% in the three years to 2017. Rising overhead costs for suppliers have been partially responsible for the increase in price during the period. Increasing demand stemming from growth in total advertising expenditure and the number of businesses has also contributed to price growth.
Total advertising expenditure has risen in response to rebounding consumer spending, which has compelled companies to invest more in their marketing efforts. As companies have spent more on advertising overall, they have increasingly required integrated advertising services to manage their advertising campaigns. Furthermore, as the number of businesses has expanded, the pool of potential buyers of market services has grown. Collectively, this demand growth has contributed to a surge in overall demand for integrated advertising, which has empowered suppliers to raise their prices and reduced their dependence on each individual buyer’s patronage.
Aside from price growth, the current pricing environment has been beneficial for buyers. Low price volatility has mitigated the harmful effects of rising prices. High competition has cultivated low price volatility by pressuring suppliers to keep their hourly rates within market norms to avoid becoming uncompetitive. Stability in most price drivers has also fostered low price volatility by limiting the extent to which demand and input costs vary, thus reducing suppliers’ need to change prices year over year. As a result of low price volatility, buyers can enter into contracts with suppliers without worrying that average prices will fluctuate greatly. Buyers should consider this option to lock in low rates soon, before prices rise further.
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