Mergers and Acquisitions and the Structure of the Advertising Agency Industry

Abstract
The impact of mergers and acquisitions on the structure of the advertising agency industry has received little academic attention. Effects of the trend on industry structure over the past three decades are considered here. Specifically, strength of demand, market concentration, ease of industry entry, economies of scale, and international expansion are analyzed. Based on the findings, combination activity has not inhibited industry competitiveness to any great extent.