Knowing how advertising works

Date of publication: November 27, 1985


The advertising industry is rapidly changing. Advertisers are looking for immediate results; often at a very short notice. Advertising agencies try to expand their service functions from merely creative to overall marketing services. The recession period didn't only slow down the growth of advertising expenditures, but lead to a further shift from above the line towards below the line activities; direct marketing being the big winner. It also lead to an increased pressure on prices and margins via media broking and media buying instruments. The real or perceived value for money no longer was determined by value but merely by price/discounts. In the publishing industry the not to be stopped growth of TV time available decreased the market share of print dramatically. One of our studies shows per product category a direct decline of the marketshare for magazines, where the share of TV swings upwards.

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