In this case advertising holding company Like WPP and Publicis are refers to Oligopoly as few firms control the supply of an advertisement between marketers and media platforms

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In this case advertising holding company Like WPP and Publicis are refers to Oligopoly as few firms control the supply of an advertisement between marketers and media platforms. The competing firms are few in number but each one is large enough so as to be able to control the total industry output and a moderate. However, increase of its output or sales will reduce the sales of rival firms by a noticeable amount. It has been a miserable year for the holding companies that own the world’s largest advertising groups, with shares in WPP and Publicis sharply over the past 12 months. Consumer groups, big marketers are cutting back on agency payments are rethinking their marketing spending doing more work in-house and expecting more transparency in media spending while unease about the effectiveness of digital advertising. The current holding companies’ business model, which has traditionally brought together creative agencies, media buying and planning groups, is under attack on multiple fronts. Meanwhile, Facebook and Google have effectively become a “digital duopoly” to the extent that they represent about maximum advertising market share of the global digital ad market. The ad holding companies are seen as being vulnerable and disintermediated. Companies are increasingly allocating “customer experience” in the marketing effort – hired data scientists and researchers and other digital-media consulting firms for media planning and management of the company’s customer data used in automated ad buying. That make a very strong case that anything that generates data, you need to own as a business will be done in-house.

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