This classification covers establishments primarily engaged in offering advertising services, not elsewhere classified, such as aerial advertising, circular and handbill distribution, distribution or delivery of advertising material or samples, and transit advertising. Establishments primarily engaged in direct mail advertising are classified in SIC 7331: Direct Mail Advertising Services; those that write advertising copy, but do not place the advertising with media, are classified in SIC 8999: Services, Not Elsewhere Classified; and those that provide services in commercial art, graphics, or other creative advertising services, but do not place the advertising with media, are classified in SIC 7335: Commercial Photography or SIC 7336: Commercial Art and Graphic Design.
Other Nonscheduled Air Transportation
Media Buying Agencies
Advertising Material Distribution Services
Other Services Related to Advertising
The advertising services offered by this industry include coupon distribution; display service, except outdoor; independent media buying services; poster advertising, except outdoor; distribution of product samples; shopping news advertising and distribution; and sky writing. Approximately 10,221 establishments operated in this industry, employing 88,892 workers.
Historically, one of the most active sectors of this industry has been media buying services. These companies are independent of traditional advertising agencies and serve their clients only by purchasing media. Responsibilities of media buyers include monitoring media space and purchase availability; verifying the accuracy of ads placed; and calculating rates, usage, and budgets. These services charge 3 to 5 percent of the cost for the ad, as opposed to the traditional 15 percent charged by agencies.
As clients have become more cost-conscious, many bypassed the traditional advertising agency and moved to independent companies to make their media purchases. For instance, more than 22 percent of the 201 agency executives responding to a 1992 Advertising Age Beta Research Corp. survey reported that their clients use independent media services. Since 1989, many accounts have moved to independent media services. These include the $90-million American Isuzu Motors account, the $90-million Nike account, the $70-million Reebok International account, and the...