Rising advertising expenditure will boost demand for commercial photography, but price growth will remain slow.
Los Angeles, CA (PRWEB) March 17, 2014
Commercial photography has a buyer power score of 4.2 out of 5. This score reflects favorable purchasing conditions for buyers. While prices have increased over the past three years, price growth has been slow. Low barriers to entry have encouraged new operators to enter the commercial photography market, resulting in greater levels of competition. Rising competition has pushed the low end of prices further down. This trend has increased the range of prices available and moderated overall growth in prices. According to IBISWorld procurement analyst Erich Abellera, “over the next three years, improving demand will encourage slightly higher price growth, but competition is expected to continue limiting this growth.”
Contributing to competition is the low level of market share concentration. The majority of photographers are sole operators, and among employing firms, most employ less than 20 workers. “Because of these trends, no single supplier accounts for a significant portion of total market revenue,” says Abellera. The low level of market share concentration results in high price-based competition. Low switching costs and a low level of product specialization further encourage price-based competition. Because a wide range of prices are available and buyers can easily find alternative suppliers, photographers are often willing to negotiate prices to win customers. In addition, buyers have the option of purchasing stock photography. Although these photos do not offer customizability, they typically cost less than hiring an assignment photographer.
Buyers of commercial photography services further benefit from a low level of price volatility. Over the past three years, prices have not fluctuated significantly. This trend is due in part to the lack of risk in the supply chain for commercial photography. Upstream suppliers, including camera stores and software, experience low levels of price volatility. Thus, buyers of commercial photography services are unlikely to experience large swings in prices or disruption in service. These market conditions result in high negotiation power for buyers.
For more information, visit IBISWorld’s Commercial Photography procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of commercial photography services. Commercial photographers provide images for commercial use, such as for advertising, food and fashion photography, forensics and land surveying. This report covers assignment photography, in which a photographer is commissioned to take new photographs. However, stock photography is not covered under this report.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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