- Tags : Marketing | Digital Advertising Agency Services | Price trend | Price forecast | Procurement research | Category market forecast
Recent Price Trend - Digital Advertising Agency Services
Prices for digital advertising agency services have been rising an estimated average 3.1% per year in the three years to 2017. Demand for advertising services has been rising, incentivizing suppliers to raise prices.
In particular, growth in internet traffic volume and total advertising expenditure have driven increases in demand. Internet traffic volume has had the biggest impact on demand and prices for this market’s services. This is because as consumers increasingly spend more time online, the audience for digital advertisements expands. Additionally, growth in total advertising expenditure has compelled buyers to spend more on services as part of their overall advertising package. These factors have supported price increases by fostering growth in market demand.
However, falling corporate profit has mitigated market price growth somewhat. Low oil prices have kept profit margins from growing for some sectors, such as finance, oil and gas, leading overall corporate profit in the economy to decline and dampening demand growth for services. Nonetheless, growth in the market’s other demand drivers has outweighed stable corporate profit, harming buyers by keeping market’s prices on the rise.
Along with rising prices, moderate price volatility has hampered buyer power. Fluctuations in internet traffic volume and the price of advertising placement have led to moderately volatile prices for digital advertising agency services. The medium level of price volatility has made prices somewhat difficult to anticipate, which disrupts buyers’ ability to budget accurately for future expenses. Moreover, prices are forecast to continue rising in the next three years. Thus, buyers are advised to secure a lower price now to avoid paying more in the coming years.
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