Marketing Services Risk Factor report
Significant and disruptive challenges lie ahead for the marketing services industry. Taken together these challenges have the potential to fundamentally alter the way that companies in the sector do business with their clients, and how they generate future income. A decline in traditional advertising channels in favour of new technologies, relentless pressure from clients on price and more aggressive, global competition are some of the issues weighing heavily on the minds of leaders of marketing and advertising businesses the world over. Given added pressure from regulatory change, currency fluctuation and an escalating war for talent, it is easy to understand why WPP, one of the world’s leading marketing companies has defined the market as one of ‘caution and conservatism’ dominated by a ‘confidence-sapping sense of uncertainty’1. The businesses best placed to win in this more complicated environment will be finely tuned to the risks ahead. A deeper understanding of these risks will help marketing services companies adapt their strategy, operations and financial model to ride out future shocks and retain the competitive advantage they need to thrive. But which risks should be top of the agenda for marketing services companies?
Which will have the most disruptive impact? And which risks lie undetected on the radar that companies need to give more attention?
To answer these questions BDO has investigated the risks self- reported by 50 of the largest marketing services and digital media companies across 10 different global markets in their most recent annual results statements. This research has been combined with insights from in-depth interviews with executives at marketing services companies in the UK, Germany, Canada and South Africa to gain a global perspective on their risks and opportunities for the year ahead and the longer term.
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