This means that the quality and efficiency of advertising output will not increase as the scale grows. And the operating costs of advertising companies will not decrease as the scale grows. And in fact on the contrary when the scale of the organization grows. The increasingly complex bureaucracy work process. And bureaucratic culture tend to stifle professionalism and creativity . In addition when there are more customers the number of personnel will also increase accordingly. The cost of searching, training, and retaining outstanding talents is high. And the growth of personnel will also rapidly increase the company’s management costs. So if you look at the scale effect that many industries have. The advertising industry not only does not have it, it even has an anti-scale effect.
Research framework
This severely restricts the development of advertising companies, and leads to the failure of the average profit of the advertising industry to rise. Many advertising companies will encounter bottlenecks when they reach a certain scale, and continued expansion will lead to a decline in professional standards and a decline in customer satisfaction for existing Cabo Verde Email List businesses. It seems that there is only one moat left in the advertising industry, intangible assets. Party A still attaches great importance to the brand of the advertising company and marketing company. Of course, there are two types of agency brands: one is the corporate brand , such as 4A advertising companies, customers recognize Ogilvy, Publicis, BBDO, and Dents; the other is personal brand , such as local marketing In the company.
Research background
Customers recognize experts and masters like Ye Mao Zhong and Hua Shan. I have always emphasized that to be a successful consulting company in China, there must be three things: masters, theories, and star cases. Only in this way can customers be convinced and willing to spend real money. And these are intangible assets, which are the real moat of an agency BWB Directory company. However, corporate customers’ respect for individual masters will further restrict the scale effect of agency companies. No matter how good a person is, his time and energy are still limited, and the projects that he can manage, follow up, and meet customers in person are limited. Based on this basic logic and judgment, I have always believed that the development trend of the advertising industry is to leave.