Comparative Analysis of Major Advertising Companies: WPP, Omnicom Group, Publicis Groupe, Havas Group, and MDC Partners
Comparative Analysis of Major Advertising Companies: WPP, Omnicom Group, Publicis Groupe, Havas Group, and MDC Partners
Best practices for calculating costs in service projects
The method of financial calculation is the cost of service projects?What is the calculation equation for service projects? with refrence and pptx
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Comparative Analysis of Major Advertising Companies: WPP, Omnicom Group, Publicis Groupe, Havas Group, and MDC Partners
Dana Altamimi
Introduction
WPP and its Subsidiary Agencies
WPP’s Entry into the Saudi Arabian Market
Competition in the Advertising and Communications Industry
Project Cost Calculation Methodology
Variations in Project Cost Calculation
Conclusion
References
World Public Relations (WPP) is a British global advertising and public relations firm. A major player in the global advertising and communications industries. The company, which was established in 1971 by Sir Martin Sorrell, has its headquarters in London. As a global leader in the advertising, marketing, PR, and branding industries, WPP manages a massive network of agencies in every corner of the globe (Sriweawnetr & Chaisuwan, 2021). Ogilvy, J. Walter Thompson (JWT), Young & Rubicam (Y&R), Grey Group, and many others are only some of its well-known subsidiary agencies. Advertising, digital marketing, media buying and planning, market research, and other services are only some of what these firms provide. WPP is a frontrunner in the advertising and marketing industry, and its offerings span many different fields and industries.
WPP has achieved unprecedented success because to its diverse family of marketing firms, which offer every conceivable form of advertising and public relations. These firms are not just market leaders, but also innovators in their fields, continually establishing new benchmarks for inventiveness and originality. Ogilvy, one of WPP’s most recognizable brands, is widely lauded for its steadfast dedication to creative brilliance. It provides a wide variety of brand-related services, including but not limited to advertising, branding, digital marketing, and more (Hardy, 2023). J. Walter Thompson (JWT) is a leading advertising agency known for its innovative campaigns, brand-building tactics, and persuasive ad products that appeal to a wide range of consumers.
On the other hand, Young & Rubicam (Y&R) takes a more all-encompassing approach to brand building, using a wide range of strategies and tactics to advance businesses through innovative advertising campaigns and well-thought-out marketing plans. A key part of Grey Group’s status as a multifaceted industry powerhouse is the firm’s ability to orchestrate integrated marketing communication campaigns that extend across several platforms (Fill & Turnbull, 2019). GroupM also plays a critical role by deftly managing the nuances of media planning and buying, methodically optimizing clients’ advertising efforts across a wide variety of channels for maximum reach and impact. WPP’s unyielding presence and impact in the ever-evolving advertising and marketing industry are further reinforced by this collection of subsidiary agencies.
WPP joined the Saudi Arabian market strategically to take advantage of the country’s diversification efforts under Vision 2030. To boost tourism, public awareness, and economic efforts, WPP uses its subsidiary agencies to create ads and marketing campaigns that are sensitive to local culture. Working with people from the area guarantees accuracy in terms of both culture and language (Reyes, 2021). WPP’s global insights shape campaigns, encouraging creativity and technological advancement. Aligning with Saudi Arabia’s development goals, the presence of the conglomerate encourages cooperation with government agencies and enterprises. WPP has adapted to the Saudi market in this way, helping to bring together brands and customers and therefore furthering the goals of Vision 2030.
WPP confronts competition in Saudi Arabia not only from domestic firms, but also from international competitors like Omnicom Group and Publicis Groupe. Omnicom Group, Publicis Groupe, IPG, Dentsu, and Havas Group are all significant competitors on a global scale. These giants of business offer a full range of advertising and communication services, helping their clients stay ahead of the curve in a rapidly changing global market (Sinclair, 2020). Competition in the advertising and communications industry is fierce, pushing businesses to improve their methods, come up with more innovative approaches, and stay flexible to suit the changing needs of their customers.
When estimating the cost of a project, WPP and its competitors use the same methodology. To do so, you must first define the parameters of your project, determine how many people will be working on it and how much time they will need to spend on it, calculate the cost of your resources, materials, and technology, add in your overhead, and set a profit target. Moreover, it is common practice to establish a separate contingency budget for handling surprises (Ayub, Thaheem & Ullah, 2019). Next, the client is shown the full cost breakdown, including the profit margin. Transparency and alignment with clients on financial aspects are ensured despite the fact that the procedure is comparable across rivals. Variations may develop owing to internal policies, pricing plans, geographical variables, and market demands.
Example of Project Cost Calculation:
Project: Comprehensive Digital Marketing Campaign
1. Scope Assessment: The project involves creating a digital marketing campaign for a new product launch, including social media content, email marketing, influencer collaborations, and a dedicated microsite (Aldoski, 2023).
2. Resource Allocation:
Design Team (2 members)
Content Creation Team (3 members)
Digital Marketing Strategist (1 member)
Project Manager (1 member)
Tools and Technologies (Digital marketing software, design software, etc.)
3. Effort Estimation:
Design: 60 hours
Content Creation: 90 hours
Strategy Planning: 40 hours
Project Management: 20 hours
4. Resource Costs:
Designers: $30 per hour (2 * 60 * $30) = $3600
Content Creators: $25 per hour (3 * 90 * $25) = $6750
Digital Marketing Strategist: $50 per hour (1 * 40 * $50) = $2000
Project Manager: $40 per hour (1 * 20 * $40) = $800
5. Material Costs:
Stock Images: $200
Email Marketing Platform Subscription: $150
Influencer Collaboration Fees: $500
Microsite Hosting: $100
6. Technology Costs:
Digital Marketing Software Subscription: $300
7. Overhead:
15% of total resource and material costs
(15/100) * ($13,150 + $950) = $ 2,115
8. Profit Margin:
20% of total project cost (resource, material, technology, overhead costs) (Aldoski, 2023).
(20/100) * ($ 13,150 + $950 + $300 + $2,115) = $ 3,303
9. Contingency:
10% of total project cost
(10/100) * ($ 13,150 + $950 + $300 + $2,115 + $ 3,303) = $ 1982
10. Client Consultation: Present the cost breakdown to the client:
Total Resource Costs: $13,150
Total Material Costs: $950
Total Technology Costs: $300
Total Overhead: $2,115
Total Profit Margin: $3,303
Total Contingency: $1982
Grand Total Project Cost = $21,800
The competition within the advertising and communications industry is fierce, with global competitors such as Omnicom Group and Publicis Groupe. WPP’s success in this competitive landscape can be attributed to its diverse portfolio of subsidiary agencies and its ability to adapt to changing market trends. By offering a comprehensive range of marketing services, WPP remains well-positioned to meet the evolving needs of clients in Saudi Arabia and beyond.
The project cost calculation methodology employed by WPP is a crucial aspect of its operations. By considering various factors such as internal policies, pricing plans, geographical variables, and market demands, WPP can accurately estimate project costs and ensure profitability. This methodology enables WPP to make informed decisions, effectively allocate resources, and deliver value to its clients.
Looking ahead, it is recommended that WPP continues to monitor the market dynamics within Saudi Arabia and adapt its strategies accordingly. Ongoing research into the local market preferences, emerging technologies, and evolving consumer behavior will further enhance WPP’s competitiveness and enable the company to seize new opportunities.
In conclusion, WPP’s entry into the Saudi Arabian market and its effective project cost calculation methodology demonstrate its commitment to growth and innovation. By capitalizing on market potential, leveraging its global expertise, and adapting to changing industry trends, WPP is poised to achieve continued success in the dynamic landscape of the advertising and communications industry.
References
Aldoski, G. M. H. (2023). Accounting For Brand Value The Case Of Chinese Listed Companies In Wpp And Interbrand’s Top 50 Most Valuable Chinese Brands In 2013 Report. TANMIYAT AL-RAFIDAIN, 42(138), 221-238.
Ayub, B., Thaheem, M. J., & Ullah, F. (2019). Contingency release during project execution: The contractor’s decision-making dilemma. Project Management Journal, 50(6), 734-748.
Fill, C., & Turnbull, S. (2019). Marketing Communications. Pearson UK.
Hardy, J. (2023). Assessing Integrations Across Media and Advertising Industries. The Routledge Companion to Advertising and Promotional Culture.
Reyes, C. (2021). Spinning at the border: Employee activism in’big PR’. Media and Communication, 9(3), 133.
Sinclair, J. (2020). Cracking under pressure: current trends in the global advertising industry. Media International Australia, 174(1), 3-16.
Sriweawnetr, P., & Chaisuwan, B. N. (2021). Conceptualizing a Business Model Innovation Framework for Advertising Agencies in the Digital Disruption Era. Journal of Public Relations and Advertising, 14(2), 161-181.
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