Rising advertising expenditure will boost demand for commercial photography from 2014 to 2017, but price growth will continue to be slow
Los Angeles, CA (PRWEB) January 06, 2015
Commercial photography has a buyer power score of 3.8 out of 5, which reflects favorable purchasing conditions for buyers. According to IBISWorld market research analyst, Jesse Chiang, "Although prices have increased during the past three years, price growth has been slow." Low barriers to entry have encouraged new operators to enter the commercial photography market, thereby resulting in greater levels of competition. Rising competition has pushed the low end of prices further down, although higher-end photographers' favorable reputations buffer them from this effect. This trend has increased the range of prices available and moderated overall price growth. In the next three years, rising demand will encourage slightly higher price growth, but competition is expected to continue limiting the rate of this growth.
A low level of market share concentration contributes to vendor competition. "The majority of photographers are sole operators, and among employing firms, most employ less than 20 workers," says Chiang. Because of these trends, no single supplier accounts for a significant portion of total revenue in the commercial photography market. Low market share concentration results in high price-based competition because it causes suppliers to fight for business. Low switching costs further encourage price-based competition. Because a wide range of prices is available and buyers can easily find alternative suppliers, photographers are often willing to negotiate prices to win customers.
Buyer power is somewhat limited due to the moderate level of substitutes in this market because there are established alternatives to commercial photography, but each of these has a significant drawback. Buyers that choose to use stock photos instead of commercial photography can be limited due to stock photos' lack of customization or selection. Those that use graphic design services instead of market services lose out on the realism of photography, which might not appeal to the audience the buyer is targeting. Limited options beyond market services forces buyers to adhere to market conditions, even if buyers do not find such conditions favorable. 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 focuses on assignment photography, in which a photographer is commissioned to take new photographs. 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
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.