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Indian advertising industry The Indian advertising industry is talking business today. It has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past.
The creative minds that the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate.
Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has lead to a consecutive boom in the advertising industry as well. The Indian advertising today handles both national and international projects. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services.
Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. If the experts are to be believed then the industry in the coming times will form a major contribution to the GDP. With al this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over. Therefore for more information on Indian advertising, advertising agencies, marketing and advertising or any related information please visit Indian advertising ndustry grappling with a new crisis- in-house ad agencies The Indian advertising industry is grappling with a new crisis these days. As if plunging margins after advertisers chose to be frugal post the slowdown wasn’t enough, companies are threatening to make their ads themselves, using in-house expertise. Showing the way are the chaebols???LG, Samsung and Hyundai???who set up in-house agencies with the idea of servicing the entire industry, but are doing business only with their parent companies in India.
At stake is `500 crores worth of business that the admen loathe having lost already. The Koreans may withdraw more accounts???their cumulative adspend is close to `1,500 crores???leading to even bigger losses, and who knows others won’t follow suit? An ‘in-house’ agency simply means placing your ads yourself. The company makes its own creatives and saves on the agency commission, usually 15%, when the ads are sold. During the 1960s and the 1970s, most big companies like the Tatas, Birlas, Crompton Greaves, among others, had their own in-house agencies, but they had to shut them eventually. The idea was to have control over creatives and save money that was spent on external agencies, but they could not sustain,” Josy Paul, chairman and national creative head of BBDO points out. Consumer electronics firm LG Electronics India, which has worked with several advertising agencies???from Lowe Lintas to Rediffusion DY&R???set up LGAds, an in-house agency, sometime ago. Since then, it has shifted its below-the-line activities alongwith product categories such as ACs, refrigerators, and washing machines to this creative-cum-strategy agency.
That amounts to a business of `150 cores approximately. Rajiv Singh, general manager of LGAds admits LG is the only client he services, but expects non-LG businesses to contribute 10-15% of their overall billing in the next one year. The agency’s total media spending is `500 crore, out of which around `250 crore is on account of advertising, which is billed to Rediffusion DY. Globally, LGAds is operational at different levels in various countries. They still retain DY as their global agency, with WPP Group. The arrangement also extends to India.
But as Singh says, eventually the company might shift the entire vertical of products to the ‘in-house’ agency. “We will work as a full blown ad agency, with more clients. ” Car-maker Hyundai Motors launched its global creative agency, Inn Ocean, in India in 2005 and operates out of twenty-two markets. “The realisation that advertising, marketing and brand communication is a critical resource that needs to stay guarded within the company is where the genesis of forming its own agency comes form,” says Vivek Srivastav, joint managing director of Inn Ocean.
Inn Ocean has billings worth `150 crore for Hyundai and it has mid-sized clients like KEI, Honeywell (home securities) and Fena detergent, among others. Samsung’s in-house agency Cheil Worldwide has been a success story globally as it has grown as a full-blown conventional agency with diverse clients apart from Samsung. In India, the company has parked accounts worth `500 crore with its Indian entity Cheil Communications. Advertising, direct marketing and trade promotion English-language advertising in India is among the most creative in the world.
TV advertising (especially in the Hindi language) has made major headway in the past 10 years, especially with the advent of satellite TV. Hindi TV channels – such as ZEE and Sony TV – have fashioned themselves on lines of Western channels, and most advertising on such channels is glitzy, smart and tailored for the middle classes. Such channels have forced the state-owned channel, Doordarshan, to add spice to their programmes which, earlier, were quite drab. The importance of the Hindi-speaking market (which is also fluent in English) is borne out from the fact that STAR TV, once an all-English channel, is now rich in Hindi programmes.
Even the British Broadcasting Corporation is reportedly toying with the idea of airing Hindi programmes. Most major international advertising firms have chosen local Indian partners for their work in this market. Mumbai (formerly Bombay) remains the centre of the advertising business in India. India has a diverse and growing number of daily newspapers. Since 1991, the increase of business and financial news reports in English-language and vernacular dailies has paralleled the economic reform programme and the movements of the stock markets.
Most leading publications have their circulation audited by the Audit Bureau of Circulation which has an India-dedicated office in Mumbai (formerly Bombay). Leading business newspapers include Business Standard and?? Economic Times. Magazines include India Today, Business India , Business Today, and Business World. In addition to advertising, other kinds of trade promotion activities are also well-developed in India. A large of exhibitions are held all over India, the most prominent ones at Pragati Maidan in New Delhi. Direct marketing The mail service in India is slow though generally reliable.
Telephone service is poor, but rapidly improving. While private courier services are growing strongly and the telecommunications sector is opening up for a range of modern services, until goods can be ordered conveniently and delivered with certainty, direct marketing will be limited to door-to-door sales. An inefficient state-owned banking system also prevents prompt transfers of funds from consumers to retailers. Credit card companies are increasingly targeting India’s one million cardholders through directly-mailed offers of goods and services.
The most successful direct marketers in India today are the millions of door-to-door sales representatives who visit neighborhoods and villages across India. From ice cream vendors to carpet sellers, India ‘s residential neighbourhoods are frequently visited by merchants offering a variety of products. Some soft-drink companies have used beauty queens to make surprise knocks on the doors! Advertising medium Internet Advertising has come a long way today. More and more new medium is being explored each day to make a successful ad campaign.
Internet that has in recent times picked up as an advertising medium in no time has become the favorite of the advertiser. Internet not only helps capture maximum audience but also broadens the exposure. Internet today, undoubtedly is one of the best mediums for brand promotion and advertising. In a country like India where in we are not dominated by a monopolistic market and have new products popping up each day advertising gains a whole new perspective. Today the contemporary market scenario is demarcated by cut throat competition where in each competitor tries to bet the others in the race.
To carve a niche for themselves one needs to be on their toes and for that knowledge of the latest advertising tools is inevitable. Internet as an advertising medium is versatile and this is it where it sands apart from the conventional advertising medium. It is a highly flexible medium that allows you to make changes during the course of the campaign as and when required without incurring much additional cost. This makes internet all the more important in a country like India where the business scenario is highly dynamic and changes with each passing day.
Online media advertising allows you to make changes as and when required to meet the latest demands of the market. Internet advertising is on an all time boom and is bound to take Indian advertising on an all-new level. If we are to believe the results of a latest research facts show that that approximately 30 million dollar is solely generated by online advertising. Going by this fact one can have an idea of the immense potential of advertising medium Internet and the future of online advertising. Further statistics reveal that advertising media Internet is likely to touch 57 million in 2006-2007.
The main strength of Internet as an advertising medium is its ability to reach out to a vast audience at one go. Internet advertising is also not bound by limitations such as time and accessibility as one can surf the net at any time of the day making your advertisement available 24*7 unlike television ads to which the viewers can’t go back or the newspaper ads that go in the waste once they are read in the morning. So if you are looking for Internet advertising as an option then there should be no looking back for you. Be ready to climb the ladder of success with this highly beneficial medium. For any related information simply log onto