Is inevitable, which in turn will have a further major impact on the advertising industry. Advertising on mobile devices, such as smart phones and tablets. is still in its infancy but accounted for 8 per cent of all search advert-ising in the last quarter of 2011 and is forecast to reach 15 per cent by 2016. which has attracted Google to make acquisitions in this sector. Factors that have driven competitive advantage to date may not be relevant to competitive advantage in the future. Traditionally this industry has embodied the idea of creativity as the vital differentiator between the best and the mediocre. Individuals have often been at the heart of this creativity. With the emergence of Google. Yahoo. Facebook and Bing. influencing and changing the media by which advertising messages are being delivered. a key question is whether creativity will be more or less important in the future. in relation to breadth of services and global reach.
Sources and Werences. ienehOpomedte. September 2012; Advesns-mg Age; OrenCOM Group herifiwww.urrne:orrigroup.00m. WPP Group retwlimwdsoo.00m. Pallas htto/Awatoutoiloswoupecom. Interounirc Grain or affiparlieS hrtoffivam.interoublic.com: Navas OCEISeiK MtpiA•ww.ha,res.60rninavas-d)neend, ntpdhomg.tInanclatantent.cant See also The Strategy Loperence; the Strategy Simulabon designed for Ecploang kre.egv. hapiktertmystranytab.00mes’irategy-evenence.

Questions

Carry out a PESTEL analysis of the advertising industry in 2012. with particular attention to megatrends, inflexion points and weak signals. 2 Carry out a Five Forces analysis of the advertising industry in 2012. Which forces are becoming more negative or positive for the major advertising agencies?