SERVICE INDUSTRY

Service Industry

[Name of the Person]



Introduction

Congress has long regulated advertising in order to safeguard consumer interests and create an environment of transparent and fair competition. The lawmakers in the congress are debating on the issue of should they upgrade current advertising laws for the digital era, without undermining growth of the advertising industry which is depended on advertising revenues for their financial survival. The members of the house are devising plans to come up with legislation that could enable individual to have more online privacy which might restrict the development of behavioral advertising. The United states Food and administrative is looking into marketing practices of organizations in digital media and federal trade commission is calling on bloggers to limit paid product reviews.

The objective of this peer review article is to understand the scope of digital advertising in United States, the issues faced by the organization in this sector and solutions which will enable them to gain comparative edge in the changing yet recessionary market.

Advertising industry is one of the leading sectors in the United States overall economy, accounting for about 2% of the country's annual growth and employing thousands of workers across the nation. The objective of the advertising industry is to assist organizations to communicate product information and generate essential revenues television, radio, newspapers, magazine and many more mediums (Kirchhoff, 2009).

At the moment, the advertising industry is in the midst of crucial restructuring and change. The ongoing recession in the economy has limited the ability of majority of organizations to invest money on their advertisements. At the same, the entry of digital or media has placed many challenges for traditional advertising as consumers move from traditional mediums to new media platforms in the form of cell phones, gaming networks, social media websites, mobile e-readers and many more (Kirchhoff, 2009).

The Scope of Digital Advertising

The emerging digital platform provides great benefits in the form of low distribution cost, the capability to taller ads specifically to the target market instead of broad groups, and more importantly to generate one on one customer feedback and to evaluate the impact of placed advertisements (Kirchhoff, 2009).

However, the emergence of cut throat competition in this sector in the form of very low digital advertising rates has hurt digital businesses which only rely on this form of revenue. At the moment, there are thousands of digital companies who are selling and buying virtual spaces and assisting organizations to send their communicational message to their respective targeted audiences (Kirchhoff, 2009).

The current changes in the market has an impact at the appearance of ads and their related content, with issues related to customer privacy, the effective regulation of the internet, and profitability for media (Kirchhoff, 2009).

The advertising spending in the United States has declined in the recent years due to the ongoing recessionary environment in the country. According to Nelson Media Company, the total spending on advertising decline in 2008 as compare to 2007, and witness the decline of 15.4% in the mid of the 2009 as organizations pared ...