Advertising messages are usually paid by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as blobs, websites or text messages. Commercial advertisers often seek to generate increased consumption of their products or services through ‘branding” which involves the repetition of an image or product name in an effort to associate certain qualities with the brand in the minds of consumers.
Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Non-profit may rely on free modes of persuasion, such as a public service announcement (AS). Advertising is one of the key activities for potential business and is equally important as producing something using raw material, or as capital, manpower, planning, organizing etc. Products or services.
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Publicizing what the business offers to the targeted customers is called advertising, which forms the integral part of marketing and an essential precondition for selling. Advertising is done with vast population and requires organizing and applying human skill and talent and technology backed media. Indian advertising industry is talking business today and 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 a short span of time has carved a niche for itself and placed itself on the global map. Indian advertising Industry which has an estimated value of RSI. 1 3, 200-core 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 of 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. In the year 2009 the industries attrition rate is as high as 20-25% which was sober in that sense.
According to industry executives the attrition rate is below 5%, implying that most had to Stay put and deliver on their briefs in their respective agencies. The ads shown to us are sometimes innovative and sometimes they really get on your nerves, especially when they are repeated time and again. This happens when there s something sponsored by them say a tennis match or an award ceremony, etc. Advertisements usually amaze people with their creativity and presentation, whereas some are really horrible in the depiction of their ideas.
The Indian ad agencies have some of the most creative and talented people around which is attested by the fact that global companies are approaching Indian ad agencies to handle their media campaigns. Advertising companies use multifaceted talents and ideas to carry out successful campaign. With huge innovative development of electronic media, advertising has grown as n organized industry, offering a lot of employment opportunities. Indian Advertising Industry has been reshaped by regulatory and technological changes over the past times as before it did not have many opportunities.
With the advent of radio, TV, Print and outdoor it has been able to gain much potential. The development involved the deregulation of FM radio, Direct to Home broadband, the implementation of Conditional Access System (CASE) and foreign direct investment has made the industry much faster than before. Indian Advertising industry is increasingly attracting the attention Of any foreign companies and communication agencies, by opening business avenues for the small and medium marketing agencies in India. 1. 2. HISTORY OF ADVERTISING Egyptians used papyrus to make sales messages and wall posters.
Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. History tells us that Out-of-home advertising and billboards are the oldest forms of advertising.
As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons ND their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the customers.
As education became an apparent need and reading, as well as printing, developed advertising expanded to include handbills. In the 18th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote books and newspapers, which became increasingly affordable with advances in the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, else advertising and so-called “quack” advertisements became a problem, which ushered in the regulation of advertising content. 9th century As the economy expanded during the 1 9th century, advertising grew alongside. In the United States, the success of this advertising format eventually led to the growth of mail-order advertising. In June 1 836, French newspaper La Press was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volley B. Palmer established the roots of the modern day advertising agency in Philadelphia.
In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then resold the space at higher rates to advertisers. The actual ad – the copy, layout, and artwork – was still prepared by the company wishing to advertise; in effect, Palmer was a space broker. The situation changed in the late 1 9th century when the advertising agency of N. W. Are & Son was founded. Are and Son offered to plan, create, and execute complete advertising campaigns for its customers.
By 1900 the advertising agency had come the focal point Of creative planning, and advertising was firmly established as a profession. Around the same time, in France, Charles-Louis Haves extended the services of his news agency, Haves to include advertisement brokerage, making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Are & Son was the first full-service agency to assume responsibility for advertising content. N. W. Are opened in 1869, and was located in Philadelphia. 10th century At the turn of the century, there were few career choices for women in equines; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women’s insight during the creative process. In fact, the first American advertising to use a sexual sell was created by a woman – for a soap product. Although tame by today’s standards, the advertisement featured a couple with the message “The skin you love to touch”.
Modern advertising was created with the innovative techniques used in tobacco advertising beginning in the sass, most significantly with the impacting of Edward Barneys, which is often considered as the founder of modern, Madison Avenue advertising. The tobacco industry was one of the firsts to make use of mass production, with the introduction of the Bonsais to roll cigarettes. The Bonsais machine allowed the production of cigarettes for a mass markets, and the tobacco industry needed to match such an increase in supply with the creation of a demand from the masses through advertising.
On the radio from the 1 sass Advertisement for a live radio broadcast was first sponsored by a milk company and published in the Los Angles Times on May 6, 1930. In the early sass, the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups.
When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business’ name at the beginning and end of the sponsored shows. However, radio station owners soon realizes they loud earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station’s broadcasts, rather than selling the sponsorship rights to single businesses per show.
Public service advertising in VANS The advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non- commercial issues, such as HIVE/AIDS, political ideology, energy conservation and deforestation. Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences. Advertising justifies its existence when used in the public interest??it is much too powerful a tool to use solely for commercial purposes. Public service advertising, non-commercial advertising, public interest advertising, cause marketing, and social marketing are different terms for (or aspects of) the use of sophisticated advertising and marketing communications techniques (generally associated with commercial enterprise) on behalf of non- commercial, public interest issues and initiatives. In the united States, the granting of television and radio licenses by the FCC is contingent upon the taxation broadcasting a certain amount of public service advertising.
To meet these requirements, many broadcast stations in America air the bulk of their required public service announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers. Public service advertising reached its height during World Wars I and II under the direction of more than one government. During WI President Roosevelt commissioned the creation of The War Advertising Council (now known as the
Ad Council) which is the nation’s largest developer of AS campaigns on behalf of government agencies and non-profit organizations, including the longest-running AS campaign, Smokey Bear. Commercial television in the 19505 This practice was carried over to commercial television in the late 1 sass and early 1 9505. A fierce battle was fought between those seeking to commercialism the radio and people who argued that the radio spectrum should be considered a part of the commons – to be used only non- commercially and for the public good. The United Kingdom pursued a public funding model for the BBC, originally a private company, the British
Broadcasting Company, but incorporated as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were likewise able to persuade the federal government to adopt a public funding model, creating the Canadian Broadcasting Corporation. However, in the United States, the capitalist model prevailed with the passage of the Communications Act of 1934 which created the Federal Communications Commission (FCC). However, the U. S. Congress did require commercial broadcasting companies to operate in the “public interest, convenience, and necessity”. Public broadcasting now exists in the United States due to the 1967 Public
Broadcasting Act which led to the Public Broadcasting Service (PBS) and National Public Radio (NP). In the early 1 sass, the Demount Television Network began the modern practice of selling advertisement time to multiple sponsors. Previously, Demount had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the standard for the commercial television industry in the Ignited States. However, it was still a common practice to have single sponsor shows, such as The United States Steel Hour.
In Some instances the sponsors exercised great control over the content of the show??up to and including having one’s advertising agency actually writing the show. The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame. Media diversification in the sass In the 1 9605, campaigns featuring heavy spending in different mass media channels became more prominent. For example, the Sees Gasoline Company spent hundreds of millions of dollars on a brand awareness campaign built around the simple and alliterative theme put a Tiger in Your Tank.
Psychologist Ernest Ditcher and DB Worldwide copywriter Sandy Seller learned that motorists desired both power and play while driving, and chose the tiger as an easy??to??remember symbol to communicate those feelings. The North American and later European campaign featured extensive television and radio and magazine ads, including photos with tiger tails us episodes emerging from car gas tanks, promotional events featuring real tigers, billboards, and in Europe station pump hoses “wrapped in tiger stripes” as well as pop music songs.
Tiger imagery can still be seen on the pumps of successor firm Complexion. Cable TV from the sass The late 1 sass and early 1 sass saw the introduction of cable television and particularly MAT- Pioneering the concept of the music video, MAT ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and satellite television became increasingly prevalent, specialty Chain Nell emerged, including channels entirely devoted to advertising such as Q.V., Home Shopping Network, and Shop TV.
On the internet from the sass With the advent of the ad server, marketing through the Internet opened new reenters for advertisers and contributed to the “dot-com” boom of the sass. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users.
This has led to a plethora of similar efforts and an increasing trend of interactive advertising. The share of advertising spending relative to GAP has changed little across rage changes in media. For example, in the US in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GAP was about 2. 9 percent. By 1998, television and radio had become major advertising media.
Nonetheless, advertising spending as a share of GAP was slightly lower??about 2. 4 percent. A recent advertising innovation is “guerrilla marketing”, which involves unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. Guerrilla advertising is becoming increasingly more popular with a lot of companies.
This type of advertising is unpredictable and innovative, which causes consumers to buy the product or idea. This reflects an increasing trend of interactive and “embedded” ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social network services such as Backbone. 1. 3. TYPES OF ADVERTISING Virtually any medium can be used for advertising.
Commercial advertising Edie can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popup, skywriting, bus stop benches, human billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes (“logo jets”), in-flight advertisements on setback tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom tails, stickers on apples in supermarkets, shopping cart handles (asserting), the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an “identified” sponsor pays to deliver their message through a medium is advertising. Mediums of advertising, according to priority: Print (Newspaper, Magazines) Outdoor Digital Radio Activation Internal Branding/Shopper Marketing INDUSTRY STRUCTURE Fig A: Chart Showing the Structure of the Industry 1. 5. PLAYERS IN THE MARKET Googol and Matter: This is one of the leading advertising companies in India.
This organization believes that devotion to the brand defines the profile of their company. This company has offices across the globe. The objective of the company is to build brands. It is a subsidiary of WAP Group Pl. The company headquarter is in New York. J Walter Thompson India: One of the most popular companies in the advertising industry is J Walter Thompson India. Their objective is to make advertising a part of the life of the consumers. This is also world’s best advertising brand with about 200 offices in 90 countries. This company is the first one to introduce pioneer careers In d for women, seascapes ads and also produced the first ever sponsored -TV program.
McCann-Erickson India Ltd: The prominent name among the best advertising companies of India is McCann-Erickson India Ltd. They define work in relation to the impact that advertising has on the lives of masses. The testimony of the company in which it firmly believes is the campaign of Coca -cola-‘Than Mutual Coca Cola’. Lowe Lint’s India: It started in 1939 and Lowe Lint’s India is today, a star office of the Lowe Worldwide network headquartered in London and an owned company of the Interruptible Group headquartered out of New York. Leo Burnett India Private Limited: It has a significant presence in about 96 offices in 10 countries. This advertising agency was awarded the ‘Worldwide Agency of the Year’ in 2004.
They are proficient in explaining how a single image is worth thousand words and can break the barriers of language but not at the cost of the ad’s emotional power. Madras Communication Private Limited: This is one of the renowned advertising companies of India. This advertising organization was founded in the year 1980 at Iambi. Recently the Ad Company declared the addition of public relations, rural marketing, events etc. The head office of the company is in Bombay Area. Redefinitions-DAY&R: This Advertising Company of India has made a benchmark in the field of creativity. Indian’s 5th largest advertising company is Redefinitions. This advertising agency offers a wide array of integrated PR services for external and internal communications. The primary strength of the company lies in the media relations.
FCC-Luck Advertising Ltd: One of the best companies in India in the advertising arena is FCC-lack Advertising Ltd. In US, this advertising company ranks third and tenth in the world having about 188 offices in 102 countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It has about 500 professionals and no prima donnas. BAD Advertising Ltd (Batten Barton Duration Osborne): It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973, this advertising reached great heights. This is also Indian’s No. 1 research company in the market sector and is fully run by Indians. Brand Equity is an integral part of the company.
Crayons Advertising and Marketing Private Limited: This company is in existence from 25 years and the clients of this company include Air India, MINT, Bank of Maharajah’s and many more. Euro RISC Advertising Private Limited: The company is the global agency network and the largest brand of Haves, the 5th largest global communications group. The company has its presence in Bangor, Delhi and Iambi. It ensures to provide solutions according to the business requirements. Madison Advertising Private Limited: The company is 23 years old and is famous in this advertising sector. It deals in Advertising, Media, PR, Rural retail, entertainment, mobile and sports, business analytics. Sass Advertising Private Limited: This agency is 30 years old and is one of the largest among South Indian Advertising Agency.
The company deals with Branding Public Relations, Event Management, Direct marketing and many more Expediency Private Limited: The company offers variety of services like Brand Building, print Production, Advertising Public Relations and Market Research. It has clients like Taboo, Emphasis, Lip Data Systems, Bristlecone, BMW, Studentship. Com and many more. Day advertiser Private Limited: This company is based in India and deals in Train Branding in Delhi, Kola Iambi, Achaean etc. Boards & Glow Signs on Railway Stations, Bus Panels (Inside & Outside the bus), Train Panels (Inside & Outside), Souls Railway Station Branding, Complete Bus Exterior Branding, Complete Exterior Loc and many more. Contract Advertising India Ltd: Contract Advertising has built a reputation for igniting the flames of passion that have created trailblazing brands across industries.
Besides mass media advertising, Contract offers truly integrated marketing and communication solutions through its specialist divisions. Publicists Worldwide Publicists is the largest global network within the publicists Group, with more Han 200 offices, in 82 countries and over 9,000 communication experts. Publicists Grouper is a French multinational advertising and public relations company, headquartered in Paris, France. It is one of the world’s three largest advertising holding companies (the others being Income, and WAP). Its current president is Maurice L??ivy. Publicists Grouper S. A. Provides digital and traditional advertising, media services, and specialized agencies and marketing services (SAM) to national and multinational clients. 1. 6.
INDUSTRY VOLUME After facing rugged recession, the Indian advertising industry is now looking t ways and means to rejuvenate its sagging market share, according to industry experts. After growing at nearly 20% year On year for five years, the advertising market dipped in 2009, by as much as 10%. Just 0. 4% of GAP is contributed by advertising market. It’s now growing and making up for the lost time, with sharp strategies and plans to develop brands, markets, creativity, media markets and research according to researchers. The global Advertising Industry as far as scale of operations and scope is concerned the turnover is close to USED 450 billion annually. Indian Advertising Industry nutrients less than 1. 5% which is next to China and Russia.
The Global Ad Industry was expected to reach a growth rate of 2% in 2010 which was better than 2009 while Indian Ad Industry in contrast estimates to reach the growth rate of 10% figuring about RSI. 23700 scores. The reasons are because of the PL, Foot ball World Cup and the Commonwealth Games. India contributes to 17% of the world population but is only 0. 7% of the world advertising market so it has huge potential to grow in future. Experts reveal that total advertisement spending by the political parties would be around RSI 800 core. The Congress and the BGP alone could spend over RSI 400 core on ads on television, radio and newspapers. Most of the ads appear on going to general entertainment and regional TV channels and hardly a small proportion in News channels.
Indian advertising spends as a percentage of GAP – at 0. 34% which is comparatively low, as opposed to other developed and developing countries, where the average is around 0. 98%, which requires a lot space for development and enhancements in the Indian Advertising Industry. The turnover of Indian Advertising Industry is less than 1 % of the national GAP of the country as compared to 2. % of share of US to the GAP which indicates the tremendous growth potential for India. According to the PITCH-Madison Media Advertising Outlook 2010 analysis, the Indian advertising pie is expected to be worth about RSI 21 , 145 core this year, a 13% increase over the previous one.