Spreading the Net: The Consolidation Process of Large Transnational Advertising Agencies in the 1980s and early 1990s

Abstract

AbstractThis article examines the recent ongoing consolidation processes of mega-agencies on the global level and the structure of the international advertising industry to illustrate the dominant power of these large transnational advertising agencies (TNAAs) from the political economic perspective. It discusses motivations behind TNAA expansion, analyses the market share of the world's top ten agencies over a thirty-year period from 1960 to 1989, and examines the current structure of some regional advertising markets, specifically Europe, Latin America and Asia. Findings reveal that the international expansion of TNAAs is motivated by market forces and that major TNAAs continue to perpetuate and dominate the global industry with leverage such as integrated networks, capital and research resources within the conglomerates. Implications of mega-merger movements and TNAA's dominance in the international industry are discussed.