Essay on Global Strategy PESTLE Advertisment

Submitted By Alexandra-Horpos
Words: 707
Pages: 3

Political
Pressure from government about dangerous products.
Products have to reach a certain quality level.
Ads have to be approved for posting, cannot be too provocative.
Economical
Economics crisis of 2007-2008.
Lower global growth/output. (Slowdown in China, Europe, and Japan)
Price of inputs is falling.
Increases on Taxes as governments look to raise revenue.
A strong United States’ economy.
Social
People have stopped reading the newspaper.
Consumer habits have changed.
Too much exposure to the same advertisement, may lead to a negative consequence.
Technology
Rise of e-commerce.
App-advertising has increased dramatically.
More and more people are making purchases of goods and services through mobile devices.
Legal
Laws have been passed about what products can be advertised.
Unfair or deceptive acts affecting commerce are banned.
Environmental
The movement to online advertising has saved numerous trees from being used in ads.

Political- One of the duties of a national government is to protect its constituencies from dangers. Whether the danger comes from a radical group of people or from businesses, governments set quality levels for the products being advertised and make sure it is safe to consume. Protection from uncomfortable or provocative ads is also there duty.
Economics- The economic crisis of 2007-2008 hit the advertising industry hard. Many companies had to cut costs including advertising costs as sales declined globally. Many advertising agencies switched to online advertising during the recession. It was easier and cheaper to get ad space for one’s products, and they did not have to deal with contracts from the media outlets. Since 2007-2008 recession the world was recovering, but there has been a slowdown in Europe, China, and Japan. The slowdown is affecting growth prospects and manufacturing across the world. If quantitative easing is successful in Europe, the cheaper Euro will increase production and get businesses back to producing; Japan has already seen a decline in its currency, making its exports more competitive. Due to slower growth and an overinvestment in commodities, the prices of inputs (metals and oil) are falling dramatically; which can drive growth in regions where QE is going to be/has been implemented. Increase on taxes have been a common trend amongst Western governments as they to raise revenue to balance its budgets (taxing the consumer directly will be looked down upon as governments want to increase spending power). The United States is strong again. It is one of the world’s biggest consumer markets and the engine of growth is through spending. The United States’ consumers will be spending more as its currency will appreciate against the pound, euro, and yen in the upcoming months.
Social- A huge trend…