ARB 2012-03-30 Industry YS MK

ARB 2012-03-30 Industry YS MK - Advertising Industry-10...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Advertising Industry (25-40-10-10) Media United States Industry Type (3/20/12): Service Business Key Indices: S5ADVT Recommendation: Hold Investment Thesis: We give a Hold recommendation due to the characteristics of the advertising industry. In the long run, both advertising prices and advertising are slated to increase. However, the current volatile economic condition means that investing in individual companies within a specific industry is risky. Firms in the advertising industry prepare advertisements for other companies and organizations and design campaigns to promote their clients images. It also includes the companies that offer services, such as information analysis or TV station time slot purchase, to those advertising firms. The industry overall is projected to grow by 4% every year till 2016, as the major economies recover from recession. The fluctuation of this industry is closely correlated with the index. While the economy improves, driven by the increase in consumer disposable income and corporate profit, advertising industry illustrates an upward trend at the same time. When the economy tanks, most companies will cut cost from advertising budget. Individual company’s performance follows closely its clients’ performances. Waiting till the economy stabilize will be a better option. International Competitive Structure:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/30/2012 for the course BUSM 409 taught by Professor Bryansudweeks during the Winter '11 term at BYU.

Page1 / 2

ARB 2012-03-30 Industry YS MK - Advertising Industry-10...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online