The Structure of the Digital Advertising Industry in Germany. Factors that Influence Decision Making and their Implications for Value Creation

Essay from the year 2016 in the subject Philosophy - Theoretical (Realisation, Science, Logic, Language), grade: 1,3, University Witten/Herdecke (Wirtschaftswissenschaft), course: Philosophy of Science and Evidence Based Management, language: English, abstract: This essay aims to analyze decision making in the field of digital advertising in the German market. In order to do this effectively, the structure of Germany's digital media industry will be analyzed, with a particular focus on the relationship between companies, their agencies and third party service providers. The role of these actors with regards to the value chains of companies' marketing efforts will be assessed. Moreover this essay aims to address the common factors that lead to inefficiencies in digital media decision making, which are often rooted in the structural relationship between the various players in the industry (e.g. asymmetry of information), the mismatch between mission statements and actual business conduct within agencies and service providers. The author will assess the possibility of 'best practices' in the conduct of digital media decisions and use empirical examples to which extent these decisions were aimed at maximizing the return of client investment. Finally, the author will provide normative suggestions for companies that engage or plan to engage in digital media and marketing activities that aim to improve the return of investment.