Effect of Advertisements

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Research Methodology

Statement of the Problem

Through this report we want to find out how children are influenced by the
advertisements especially of confectionary products. So the statement of this
project would be ‘Effect of Advertisements on Children with special reference to
confectionary products’
The research process goes within the following confectionary products:
Biscuits
Chocolates
Wafers
Noodles
Sauces
Health Drinks

Objectives of the Study

The subject matter for this Project is to study the effects of advertisement on
children. Following are the main objectives of this report.

To know the children's awareness about confectionary Products & their
advertisements.

To study the impact of advertisement of confectionary Products on children.

To know whether is there any connection between TV watching habit of
children and their medium of study or not.

Research Design
Research design selected for this project is Descriptive.

‘ Effect of Advertisements on Children with special reference to confectionary products’ 1

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Scope:
The research will be done at Ahmedabad city only.

Sampling Plan:-

Target Population : - Target population for this research would be children
with age of 8-15 and their parents.

Sample Unit : - Sample unit for this research would be children with
age of 8-15 and their parents of a selected area.

Sampling Technique : - Stratified Random Sampling

Sample Size : - 300 (150 children and 150 parents)

Sampling Methods:

There are mainly two of sampling methods which are being used by the marketers:
1. Probability Sampling (Random Sampling)
2. Non – probability Sampling

Probability sampling is a method for drawing a sample from a population such that
all possible samples have a known and specified probability of being drawn.
Non probability sampling is a sampling procedure in which the selection of
population elements is based in part on the judgment of the researcher or field
interviewer.
The sampling method for this report would be probability sampling because
here each sample has equal chance of being selected and again it would be
stratified random sampling

Data Collection Method:


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There are mainly two types of data collection methods which are as follows:

Primary Data
Primary Data is the one that is being collected by the researcher itself and is being
collected for the first time. Researcher has collected this data with a specific
purpose of studying the problem.
Primary Data in the research process would be collected by filling up questionnaires
from children and their parents.

Secondary Data

Secondary Data is the data that already exists and in ready to use format and
gathered by somebody else. This data can be in the form of articles in magazines,
journals, government reports or any other historical data. It might even be the
different articles in newspaper and on the internet blogs.
Secondary Data that would be used by researcher in the research process as
supportive documents are from the various newspaper articles, magazines related
to specific industry, books in the specific field of advertising and various different
internet sites.

Instrument:-
The instrument selected for the primary data is structured questionnaire.

Tentative plan:-
The tentative plan for this research would be as following.
Research methodology
Advertising Industry
Indian Advertising Industry
Children and Advertising
Rules and Regulations of Advertising to Children
Analysis of Primary Data

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Testing of Hypothesis
Key Findings
Suggestions
Conclusion
Bibliography
Annexure

Expected contribution of the study
The research or study will help to understand how children are influenced by the
advertisements of confectionary products.

Beneficiaries
Beneficiaries of this research would be researchers, students & the company with
confectionary products.

Limitations
The major barriers in conducting the survey are:

1. Time Limitation
2. Financial Limitations
3. Geographical Limitations

1. Time Limitations

For a researcher time has always worked as a barrier to his/her research
process. As we are conducting the survey in the different schools of Ahmedabad
city and observing the students aging between 8 years to 15 years, time has always
worked as a limitation to the research process

2. Financial Limitations


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Another major limitation for this study is financial limitation. Finance is the major
limitation for any study. Again for this study finance does matter to the researcher
to some extent.

3. Geographic Limitations

As we all know that Ahmedabad is becoming a mega city. It covers big number of
people living in the area. There are thousands of primary schools where the
students are studying. Also the weather of Ahmadabad city is very hot and hence it
is impractical to work for more than 3 to 4 hours a day in field. (Because children
can be interviewed either at the school opening time or the recess time or the
school closing time only).

ADVERTISING
INDUSTRY

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2.1 What is Advertising?

Advertising is a form of communication intended to persuade its viewers, readers
or listeners to take some action. It usually includes the name of a product or
service and how that product or service could benefit the consumer, to persuade
potential customers to purchase or to consume that particular brand. Modern
advertising developed with the rise of mass production in the late 19th and early
20th centuries.

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 related qualities with the brand in
the minds of consumers. Different types of media can be used to deliver these
messages, including traditional media such as newspapers, magazines, television,
radio, outdoor or direct mail. Advertising may be placed by an advertising agency
on behalf of a company or other organization.

Organizations that spend money on advertising promoting items other than a
consumer product or service include political parties, interest groups, religious


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organizations and governmental agencies. Nonprofit organizations may rely on free
modes of persuasion, such as a public service announcement.

2.2 History

As education became an apparent need and reading, as well as printing, developed
advertising expanded to include handbills. In the 17th 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, false
advertising and so-called "quack"(fake) advertisements became a problem, which
ushered in the regulation of advertising content.

As the economy was expanding during the 19th century, advertising grew
alongside. In the United States, classified ads became even more popular, filling
pages of newspapers with small print messages promoting all kinds of goods. In
1843, the first advertising agency was established by Volney Palmer in Philadelphia.
At first, agencies were brokers for ad space in newspapers. N.W. Ayer & Son was

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the first full-service agency to assume responsibility for advertising content. It was
also the first agency to charge a commission on ads.

In June 1836, French newspaper La Presse 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.

In the early 1920s, 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 realized they could 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.

The radio station owners soon realized they could earn more money by
selling sponsorship rights to other businesses. In those days, each show was
usually sponsored by a single business, in exchange for a brief mention of the
sponsor at the beginning and end of the show. This practice was carried over to
television in the late 1940s and early 1950s.

However, a fierce battle was fought between those seeking to commercialize
this new medium and the people who argued that the radio spectrum should be
considered the commons, to be used only non-commercially and for the public
good. In Canada, advocates like Graham Spry were able to convince the government
to adopt a socialist funding model. England followed suit with the development of
the BBC. However in the United States, the capitalist model prevailed with the
passage of the 1934 Communications Act which created the Federal

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Communications Commission. To placate the socialists, the U.S. Congress did
require that commercial broadcasters operate in the "public interest, convenience,
and necessity". However public radio certainly exists in the United States.

In the early 1950s, the Dumont television network began the modern trend
of selling advertisement time to multiple sponsors. Dumont 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 norm for the
commercial television industry in the United States. However, it was still a common
practice to have single sponsor shows, such as the U.S. 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.

The 1960s saw advertising transform into a modern approach in which
creativity was allowed to shine, producing unexpected messages that made
advertisements more tempting to consumers' eyes. The Volkswagen ad
campaign—featuring such headlines as "Think Small" and "Lemon" ushered in the
era of modern advertising by promoting a "position" or "unique selling proposition"
designed to associate each brand with a specific idea in the reader or viewer's mind.
This period of American advertising is called the Creative Revolution and its
archetype was William Bernbach who helped create the revolutionary Volkswagen
ads among others. Some of the most creative and long-standing American
advertising dates to this period.

The late 1980s and early 1990s saw the introduction of cable television and
particularly MTV. Pioneering the concept of the music video, MTV ushered in a new
type of advertising. As cable and satellite television became increasingly prevalent,
specialty channels emerged, including channels entirely devoted to advertising,
such as QVC, Home Shopping Network, and ShopTV Canada.


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Marketing through the Internet opened new frontiers for advertisers and
contributed to the "dot-com"(.com) boom of the 1990s. 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 GDP has changed little across
large changes in media. For example, in the U.S. in 1925, the main advertising
media were newspapers, magazines, signs on streetcars, and outdoor posters.
Advertising spending as a share of GDP was about 2.9 percent. By 1998, television
and radio had become major advertising media. Nonetheless, advertising spending
as a share of GDP was slightly lower—about 2.4 percent.

A recent advertising innovation is "guerrilla marketing", which involve
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 increasing 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 MySpace

.


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2.3 Changing scenario of advertising

Marketing through advertising is considered an important variable in the global
business. Advertising is second only to films as far as its influence on the society is
concerned. History bears testimony to the fact that the great Romans practiced
advertising. Their surnames indicated their occupation. The potentialities of
advertising multiplied when manual press was invented in the 15th century. After
that the demand has been increasing.

Advertising is, in fact, the most influential and powerful medium in the
present commercial society. It creates an entire worldview, shaping our attitude and
beliefs. Advertisements pervade every aspect of our life and most of us are hardly
aware of it. In the movement for equal status and fair treatment to women, an
important part is attributed to the mass media, particularly to electronic media.

The central position of media in daily life ensures its role in advertising
business. The meanings that are created by media are not fixed, but they vary
according to cultural, historical and social context of the people concerned. The
common man judges the products on the basis of the understanding his society
and culture has inculcated into them.

Symbolism is one of the major aspects of advertisement and it is to be noted
that a change has occurred in this context. Use of women to promote a concept or
product is increasing day by day. In the advertisement world, advertisers have
picked up women for advertising of consumer commodities. Women are used in TV
commercials as weapon of persuasion.


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Women in many cultures make the majority of consumption decisions; hence
they are important target of these advertisers. So the advertisers find it easier to
sell the product by using the same gender. But most of these ads hardly need
women as models. For example, there is no need to ask females to do an ad for a
men’s shaving cream. The list is uncountable. Most of the companies want to
attract the consumers by using the physical look of the models. They have created
a world of fantasy. And we are drawn towards that world without realizing much
about the realities of life. We try to imitate whatever is shown on the Television.
The media must play the role of a watchdog in such a situation.


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2.4 Types of advertising

Virtually any medium can be used for advertising. Commercial advertising media
can include a 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, sides of buses, banners attached to or
sides of airplanes ("logojets"), in-flight advertisements on seatback tray tables or
overhead storage bins, taxicab doors, roof mounts and passenger screens, musical
stage shows, subway platforms and trains, doors of bathroom stalls, stickers on
apples in supermarkets, shopping cart handles (grabertising), 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.

Television

The TV commercial is generally considered the most effective mass-market
advertising format, as is reflected by the high prices TV networks charge for
commercial airtime during popular TV events. The annual Super Bowl football game
in the United States is known as the most prominent advertising event on television.
The average cost of a single thirty-second TV spot during this game has reached
US$3 million (as of 2009).


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The majorities of television commercials feature a song or jingle that
listeners soon relate to the product.

Virtual advertisements may be inserted into regular television programming
through computer graphics. It is typically inserted into otherwise blank backdrops
or used to replace local billboards that are not relevant to the remote broadcast
audience. More controversially, virtual billboards may be inserted into the
background where none exist in real-life. Virtual product placement is also
possible.

Infomercials

An infomercial is a long-format television commercial, typically five minutes or
longer. The word "infomercial" is a portmanteau of the words "information" &
"commercial". The main objective in an infomercial is to create an impulse purchase,
so that the consumer sees the presentation and then immediately buys the product
through the advertised toll-free telephone number or website. Infomercials
describe, display, and often demonstrate products and their features, and
commonly have testimonials from consumers and industry professionals.

Radio advertising

Radio advertising is a form of advertising via the medium of radio.

Radio advertisements are broadcasted as radio waves to the air from a
transmitter to an antenna and a thus to a receiving device. Airtime is purchased
from a station or network in exchange for airing the commercials. While radio has
the obvious limitation of being restricted to sound, this becomes its major
disadvantage.

Press advertising


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Press advertising describes advertising in a printed medium such as a newspaper,
magazine, or trade journal. This encompasses everything from media with a very
broad readership base, such as a major national newspaper or magazine, to more
narrowly targeted media such as local newspapers and trade journals on very
specialized topics. A form of press advertising is classified advertising, which
allows private individuals or companies to purchase a small, narrowly targeted ad
for a low fee advertising a product or service.

Online advertising

Online advertising is a form of promotion that uses the Internet and World Wide
Web for the expressed purpose of delivering marketing messages to attract
customers. Examples of online advertising include contextual ads that appear on
search engine results pages, banner ads, in text ads, Rich Media Ads, Social
network advertising, online classified advertising, advertising networks and e-mail
marketing, including e-mail spam.

Billboard advertising

Billboards are large structures located in public places which display
advertisements to passing pedestrians and motorists. Most often, they are located
on main roads with a large amount of passing motor and pedestrian traffic;
however, they can be placed in any location with large amounts of viewers, such as
on mass transit vehicles and in stations, in shopping malls or office buildings, and
in stadiums.

Mobile billboard advertising

The RedEye newspaper advertised to its target market at North Avenue Beach with a
sailboat billboard on Lake Michigan.

Mobile billboards are generally vehicle mounted billboards or digital screens.
These can be on dedicated vehicles built solely for carrying advertisements along


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routes preselected by clients, they can also be specially-equipped cargo trucks or,
in some cases, large banners strewn from planes. The billboards are often lighted;
some being backlit, and others employing spotlights. Some billboard displays are
static, while others change; for example, continuously or periodically rotating
among a set of advertisements.
Mobile displays are used for various situations in metropolitan areas throughout
the world, including:

Target advertising
One-day, and long-term campaigns
Conventions
Sporting events
Store openings and similar promotional events
Big advertisements from smaller companies
Others

In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes
placement of a product in visible locations in a store, such as at eye level, at the
ends of aisles and near checkout counters, eye-catching displays promoting a
specific product, and advertisements in such places as shopping carts and in-store
video displays.

Covert advertising

Covert advertising, also known as guerrilla advertising, is when a product or brand
is embedded in entertainment and media. For example, in a film, the main
character can use an item or other of a definite brand, as in the movie Minority
Report, where Tom Cruise's character John Anderton owns a phone with the Nokia
logo clearly written in the top corner, or his watch engraved with the Bulgaria logo.
Another example of advertising in film is in I, Robot, where main character played


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by Will Smith mentions his Converse shoes several times, calling them "classics,"
because the film is set far in the future. I, Robot and Spaceballs also showcase
futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the
front of the vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded,
which as a result contained many scenes in which Cadillac cars were used. Similarly,
product placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are
featured in recent James Bond films, most notably Casino Royale. In "Fantastic Four:
Rise of the Silver Surfer", the main transport vehicle shows a large Dodge logo on
the front. Blade Runner includes some of the most obvious product placement; the
whole film stops to show a Coca-Cola billboard

Celebrities

This type of advertising focuses upon using celebrity power, fame, money,
popularity to gain recognition for their products and promote specific stores or
products. Advertisers often advertise their products, for example, when celebrities
share their favorite products or wear clothes by specific brands or designers.
Celebrities are often involved in advertising campaigns such as television or print
adverts to advertise specific or general products.

The use of celebrities to endorse a brand can have its downsides, however.
One mistake by a celebrity can be detrimental to the public relations of a brand. For
example, following his performance of eight gold medals at the 2008 Olympic
Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was
terminated, as Kellogg's did not want to associate with him after he was
photographed smoking marijuana

2.5 Recent Trends in Advertising

Internet Advertising


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Internet Marketing is the online advertisement and selling of products,
services or businesses through the Internet. Online advertising is possible only if
one has its own website. Having a website for a particular business is worthless
until and unless people know about your business and put their trust and likings
on services that you provide. So, having a website is just like having a shop, if
people find you, they obviously visit it, and visit it again if they find it really
interesting.

Internet Advertising is the latest and most effective method of business
promotion. It is necessary to help people find you more easily, know your presence,
know more about the services and products that you offer and assure people what
real difference you can bring about in comparison to other similar service providers.
To make your website worth interesting, different Website advertising strategies
are available today, such as, pay per click advertising, banner advertising, email
marketing, search engine marketing through search engine optimization, affiliate,
article, blog and interactive marketing services. If these strategies are dealt
attentively, then you can experience the difference that online business can bring
on your business.

There are 26 million Internet users in India, largely in the age group of 20 to
40 - a target-base for India's rapid growth advertising industry is increasingly
looking at. It's reboot time for Indian advertising with predictions that the online
segment is likely to cross the 100 million dollar mark by 2010, according to a study
by MSN.

India's advertising industry generates about 2.2 billion dollars annually,
according to industry sources. Currently, online advertising comprises less than
one per cent of the pie. The total spending for 2004-2005 was about 18 million
dollars, but the Indian Online Association (IOA), predicts this will touch 57 million
in 2006-2007.


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Internet is increasingly a part of the media mix for advertisers as they realize
its high potential in reach and penetration. Print and television still hog a major
share of Indian advertising at 700 to 920 million dollars annually. But digital
advertising industry players point out that television too saw a sluggish beginning
and then exploded as cable TV entered the arena. So what's holding back the online
advertising boom? It’s the unfamiliarity with the new medium, a lack of
understanding of its reach and potential, a fear of venturing into a new area. The
limited reach of Internet - it has only 26 million users in a country of one billion -
is another reason. The mobile industry has far overtaken Internet with a user base
of 50 million in India and is growing by the day.

Unlike print and TV, the consumer can decide when and how he wants to be
exposed to a campaign, and the advertiser too can filter targets in terms of groups
and locales. The Internet has great cost advantage as well. The cost per 1,000
reach is very effective when compared to other media. Finance is the main sector
going for Internet advertising in India. Most in the advertising industry agree that
today even a brilliant campaign has a vital element missing if there is no Internet
presence.

Leading portals in India like Rediff, Yahoo and MSN are also seeing a revival.
Rediff saw an increase of over 70 per cent in online revenue on its India operations
in 2004. It largely comprised advertising and fee-based services like online
subscriptions, mobile downloads and online shopping. And there were more than
two dozen first time advertisers the same year. Yahoo! India saw a 100 per cent
growth in advertising in 2004. Indiatimes.com, the online operations of one of
India's leading media groups estimated total advertising on its site to be around
3.5-4.6 million U.S. dollars in 2004. All top advertising agencies in India from JWT,
Lowe Lint’s, O&M and Mudra have interactive arms or links with the same.


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Internet Users in India:

Year Users Usage Source

1998 14,00,000 ITU

1999 28,00,000 ITU

2000 55,00,000 ITU

2001 70,00,000 ITU

2002 1,65,00,000 ITU

2003 2,25,00,000 ITU

2004 3,92,00,000 C.I.Almanac

2005 5,06,00,000 C.I.Almanac

2006 4,00,00,000 IAMAI

2007 4,20,00,000 Internet world
star


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Mobile Advertising

Mobile advertising in India is at a very nascent stage compared to markets like
Japan, Korea and West, but many are reported to be preparing to get into the act.
“The future for mobile advertising is already here, despite not being on many
marketers’ radars yet. Hundreds of millions of ads are already being run,
click-through rates are much higher than online. The growth of 3G networks, IPTV
and high end gaming on mobile phones will open new avenues for advertising on
mobile.

The size of mobile advertising in India is miniscule, it has potential to grow
at 200% a year, giving operators a new revenue source. With the average revenue
per user (ARPU) constantly falling, it could be a saving grace for operators. From Rs
356 in March last year, the ARPU in December 2006 has declined by 115 to touch
Rs 316. The worldwide mobile advertising market is pegged at $1 billion currently.
IDC believes with more than two billion mobile users in the world, it prevails as the
first medium through which advertisers can reach such a large audience on an
individual basis.

In India, it is currently a Rs 5-6 crore market, set to grow to Rs 20-25 crore
by March 2008. It is clearly a medium that needs to be evangelised to brands as
how Internet advertising was done to brands in early 2000 - 2001. Mobile
advertising can take many forms like SMS broadcast, MMS broadcast, sponsored
content, WAP ads and product placement in games. Currently, it is restricted to SMS
based activities in the country. Some FMCG, beverage and entertainment companies
have tested MMS too and few operators have also tried to get sponsorship revenue
from value added services.

Seeing the huge potential of mobile advertising in future, operators like
Bharti Airtel, MTNL, Reliance and Tata Teleservices are exploring the option, but
feel it will take some time for the format to take off in the country in a big way.


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Targeted mobile advertising is 50% more acceptable to mobile internet users
than untargeted ads, according to the consumer mobile advertising report
conducted with more than 1,200 mobile internet users across the US, Europe and
India. As 70% of the SMSes have less than 40 characters, value added services
provider Cellebrum has come up with a solution where micro advertisements are
inserted into the text messages of subscribers who opt-in to the programme in
exchange for incentives such as free SMS or reduced tariffs.

In the not too distant future, we will have the freedom to choose whether we
wish to pay for our mobile calls or have it free. Soon enough we will be given a free
mobile phone and be allowed to make and receive calls for free provided we are
willing to pay with our attention to short advertising messages while using these
phone. For instance, when we answer or make a call, before we get connected, we
will hear the advertising message. This message will more than likely be of some
interest to us because the advertiser would have information about who we are
based on what content we subscribe to from the ocean of published content.

Freelance advertising

In freelance advertising, companies hold public competitions to create ads for their
product, the best one of which is chosen for widespread distribution with a prize
given to the winner(s). During the 2007 Super Bowl, Pepsico held such a contest for
the creation of a 30-second television ad for the Doritos brand of chips, offering a
cash prize to the winner. Chevrolet held a similar competition for their Tahoe line
of SUVs. This type of advertising, however, is still in its infancy. It may ultimately
decrease the importance of advertising agencies by creating a niche for
independent freelancers

Embedded advertising

Embedded advertising or in-film ad placements are happening on a larger scale
now than ever before. Films like Krish had over a dozen placements including

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Bournvita, Samsung, Faber Castell and Hero Honda.

Shift in Message from Product Features to Consumer Benefits

A common rule in the advertising industry is the “one message” strategy. In short,
it is based on the premise that one unique selling proposition (USP) is effective.
This reflects concerns over how communicating a multitude of messages in a single
advertisement may easily distract consumers and cause difficulties in
understanding the underlying message, thus weakening the advertisement’s effects.
So, a common and frequently made mistake made in current commercials is that
they often end up communicating product features while obscuring their message
and emphasizing technological prowess. In particular, this trend was noticeable in
industries where technological capability was a differentiating point and complex
functions were the competitive edge.

Recent successful commercials have instead adopted a strategy of soft
appeal focused on consumer benefits, rather than one of hard appeal,
communicating product characteristics. The keys to success for these
advertisements have been the use of consumer language and attractive images
when communicating features and technologies. Selecting a simple and clear
message as well as delivering messages focusing on consumers' benefits is helpful
to raise message appeal, brand awareness and brand power.


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2.6 The Role of Advertising:

Advertising is the means by which goods or services are promoted to the public.
The advertiser’s goal is to increase sales of these goods or services by drawing
people’s attention to them and showing them in a favorable light. The mission of
advertiser is to reach prospective customers and influence their awareness,
attitudes and buying behavior. They spend a lot of money to keep individuals
(markets) interested in their products. To succeed, they need to understand what
makes potential customers behave the way they do.

For advertising to exist, a number of factors have to be in place

The goods and services to be advertised


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Competition between different providers of the same kinds of goods and
services, for which there needs to be a significant potential market
The means of advertising cheaply to large numbers of people
A population with sufficient education to be able to understand advertising
messages

Advertising is a marketing function, and Kotler claims that advertising can
have a number of different, possible objectives. One objective can be to inform
customers about new product or a price change. The main objective here is to build
primary demand. Another objective can be to persuade the customer to purchase
the product. The use advertising as a way to build preference and to encourage
customers to change brand. The fundamental purpose of advertising is to influence
people to purchase various goods and products. In this sense advertising is a
phenomenon that aims to persuade or influence people.

What is the role of advertising in the demand function? One response of this
question is that a company can sell more of its product by informing consumers
about the product. The information may include its existence, price, promotion,
quality, etc. Therefore advertising is seen as providing information to consumers.
The other response is that advertising searches the way of persuading consumers
to purchase the advertised products by appeals to snobbery, associations of the
product with favored people or situations, repetition of the same message and so
on. Advertising shows the last style and the new popular products in the market. It
displays ideal individuals wearing the new clothes and looking good. Customers are
jealous of this perfection. So that, they go out and purchase in hopes of reaching
perfection.

There is a time dimension at advertising. Advertisement’s influence on sales
is immediate (i.e. it is mostly felt within seven days of an advertisement’s exposure).
A repetition of such effects, measured at the end of a year, amounts to a


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medium-term influence. The immediate influence of advertising on sales plays a
gatekeeper role to all further effects. Without it there will not be medium term
effect (i.e. a repetition of short-term effects); and long-term effect. Advertisement’
s full effect can be only valued if its long-term influence is taken into account as
well as its short and medium-term effects on sales. These terms make it possible
to evaluate the productivity of an advertising campaign; to measure if the campaign
shows a financial return on the investment and is thus accountable

According to Doole & Lowe (2004), advertising is the most important part of
the whole marketing strategy. There are many channels of media to use for
advertising, for example television, printed media, radio, cinema, outdoor and
transport poster. Marketers use television as the most powerful medium of
communication.

2.7 Leading Advertising agencies in the world

Here is the rundown of the top 10 advertising agencies that made significant mark
in the advertising business and has pioneered the known best practices in the
advertising industry.

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1. BBDO Worldwide, United States

BBDO Worldwide is one of the major three networks under the umbrella of
Omnicom. BBDO Worldwide has long been recognized as the most prestigious
advertising network globally. Its estimated total revenues for 2008 amount to
$2.0B.

2. McCann Erickson, United States
McCann Erickson is the largest agency with global coverage. Its main business
focuses on traditional advertising operations. It also offers a range of innovative
marketing services under the umbrella company known internationally as McCann
World group. Its estimated total revenues for 2008 amount to $1.7 B.

3. DDB Worldwide, United States
DDB is one of the triumvirate networks under the portfolio of Omnicom. It
maintains a lower profile compared to the other two networks that form the
triumvirate network of Omnicom. Its estimated revenues for 2008 are at $1.5 B

4. TBWA Worldwide, United States
TBWA Worldwide completes the triumvirate of networks under the Omnicom
advertising group. It is more on the non-traditional lines and usually dabbles on
the “quirky” side of the business. Its total revenues for 2008 are estimated to have
reached $1.4 B.

5. Euro RSCG Worldwide, France
Euro RSCG Worldwide is one of the two major advertising agencies in France. Its
global reach covers about 75 countries. After growing through some organizational
challenges, Euro RSCG Worldwide returned to the global scene under a new
management group and immediately earned recognition in major publication in the


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UK and the US. Its estimated 2008 revenues are placed at $1.2B.

6. JWT Worldwide, United States
JWT is sort of a legend in the advertising world. It is recognized as the first
advertising agency that was ever organized. The advertising agency implemented
major and strategic changes. Its estimated revenues for 2008 are about $1.2 B.

7. Y & R Advertising, United States
Y & R Brands is the umbrella organization of several leading marketing service
companies which include leading agencies Y & R and direct marketing outfit
Wunderman. It is a 100% subsidiary of WPP although it maintains a fairly self
contained operation. It has gone through difficult stages in its operations primarily
to the disparate performance of the member agencies. The estimated revenues for
2008 of Y & R are placed at $ 1.1 B.

8. Publicis Worldwide
Publicis Worldwide is the biggest ad network under the umbrella group Publicis
Groupe which also includes Saatchi & Saatchi and the Leo Burnett advertising
network. It has made significant inroads in its ranking with strategic acquisitions.

9. DraftFCB, United States

DraftFCB officially started business operations in 2006. Its core business is the
integrated marketing business portfolio focusing on a wide range of specialties and
disciplines. Its estimated volume of business for 2008 is about $955 M.

10. Wisdek, Canada
Wisdek is one of the emerging and leading online marketing and advertising outfits.
It is renowned for innovative and creative marketing solutions designed for
companies that are highly reliant on the Internet. It broke ground in 1998 and has


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since then been focusing on innovative projects on site placements on various
search engines. Wisdek is the pioneer in an erstwhile non-existent business
interest.


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INDIAN
ADVERTISING
INDUSTRY


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3.1 Introduction

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 13, 200-crore has 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 in the country 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 Mather (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.

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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 all this there is definitely no looking back for the
Indian advertising industry that is all set to win accolades from the world over.

With development in the technology, various avenues are opening up in
advertising industry. It is estimated that about 2.2 billion dollars are generated in
this industry every year. Be it is print, radio, television or Internet, every medium
plays a significant role in the growth of this industry. Today, Advertising Industry in
India is surging with revenues. To meet all the demands in adverting sector, many
agencies are coming to the scene.

India is a hub of creativity and this is evident from the fact that more and
more people from Indian advertising industry are being accepted world over and
imposing a lot of respect in international advertising community.

Visibility is the mantra of success these days and advertising makes sure that
your product, service is visible; thus saleable. Today Advertising Industry in India is
booming with revenue. It is a very successful industry which generates lot of
revenue. The Advertising Industry in India is getting recognized worldwide with its
superior quality work and innovation. It ensures tremendous growth and scope for
the employees.

During fiscal 2005, the gross advertising spend in India is estimated at Rs
111 billion, and is expected to grow at 14.2% to reach Rs. 127 billion by fiscal 2006.

The key factors which have contributed to growth of the Indian advertising
industry include:
- Growth in media vehicles leading to increase in media infiltration.
- Higher degree of competitive concentration among consumer companies
- Entry of global consumer companies with large advertising budgets

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- Increase in consumer riches.

Rapid economic growth of the country on the back of economic liberalization
and deregulation. Indian advertising industry is fast catching up with their western
counterparts. The change has been a slow and steady one, but if you look at the
advertisements on Indian television nowadays, you’ll be vastly surprised.
There were times, when it was believed that sex sells anything and
everything. Then came the era of glamour and celebrities. Film stars and cricketers
were roped it to sell soft-drinks to massage oils. Ads were made for cycles and
pens. The list is endless. Now, the times have changed. Humor, industry experts
say, sells the best. People remember jokes, the humor involved, and it becomes
easier to make an impact on the customer. The Indian consumer no longer falls
into an uneducated, easy to please.


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3.2 Top ten Advertising Agencies of India

Ogilvy and Mather Limited:- Headed by Mr. Piyush Pandey:

The most local of the internationals, The most international of the locals are words
written to describe the identity of Ogilvy. Basically, what this means is that the
advertising agency follows the local market, understands the customer's needs and
then networks worldwide with MNC and other relevant clients.

In all its years of business, Ogilvy has struggled to build brands and has proved
its ability to build brands. The agency does its best to enhance the customer-brand
relation. For this, it undergoes the process of scrutiny of the tools and techniques
which work well to build a long and lasting association with a brand.

Mudra communications Pvt. Ltd:- Head: Mr. Madhukar Kamath:

The agency practises the art of communication in order to express ideas that can
shape the brands. As the name suggests, the agency is influenced by the artistic
traditions of Indian dance, drama and painting. These, in turn, inculcate feelings,
ideas, thoughts and emotions for the success of a brand. Mudra peeps into the
local consumer markets, channels and media, and has its own identity in
communication of brands. It looks for the entrepreneurial zeal which causes
continuous and speedy growth for each brand. The advertising agency always

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believed in doing interesting work that pleases its clients.

Lintas India Pvt. Ltd:- Head: Mr. Pranesh Misra (President & COO - Lowe,
India):

After the merge of Lintas India Ltd. with Lowe Lintas and Partners group of the UK,
it is now known as Lowe Lintas. India Pvt. Ltd. The turnover of Lintas is Rs. 750
crore. The advertising agency inculcates advertising, media buying house, direct
marketing, public relations, design consultancy, market research, events, rural
communications and interactive communications. Enterprise Nexus, the agency
partner of Lowe in India, continues to be a member and is known as the
‘Independent Brands’ division which is the only specialist in advertising and
marketing communications. Lowe Lintas India is a successful agency which is
inclined towards quality creative advertising and works for the benefit of its clients.

JWT (Hindustan Thompson Associates Pvt. Ltd.):- Head:Mr.Colvyn Harris
(Chief Executive Officer):

The advertising agency has a special portfolio which includes creativity, innovation,
clients, case studies, awards, well-thought out leadership and talent. Clients
perceive the agency as a resource of ideas which tell the brand’s story to the
customer, dealing with market research. In this process, the agency includes
innovative ideas.

FCB-Ulka advertising pvt. Ltd:- Head Mr. Anil Kapoor (Managing Director
and CEO):

FCB, being one of the the top three advertising agencies in the USA, ranks number
10 in the world. FCB-Ulka has made its mark in India as Ulka Advertising. It was
founded in 1961. On the creative front, Ulka is known to stand out. FCB-Ulka has
made a smooth transition from a creative shop to a large mainstream agency.
Around the mid-seventies, FCB-Ulka had become the fifth largest agency in India
and has sustained this status till date. The efforts of FCB-Ulka deserve praise. It
also gave recognition to those brands that were not in the limelight earlier but are


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now completely above other market players. Santoor soap did thorough research
and focused on advertising which gave growing sales figures against stiff
competition from Levers and P&G brands. Not surprisingly, FCB-Ulka is seen as a
turnaround specialist - an agency that does brand building and more.

Rediffusion DY&R Pvt Ltd:- Mr. Mahesh Chauhan (President):

This advertising agency places its people first. It believes that the strength of a
brand lies in the efforts the people of the organization make. Rediffusion DY&R
follows system-driven ‘thinking’ in its culture. The agency attracts right minds
because it thinks of a perfect balance between creativity and strategy.

RK Swamy BBDO Pvt Ltd:- Mr. Srinivasan K Swamy (Head)

It is the agency of the worldwide-renowned BBDO network. The advertising agency
suggests comes up with solutions for its clients regarding their marketing
communication problems and provides them with intelligent solutions and
supports them in attaining their goals. The symbol or logo of the advertising
agency is Hansa and is known to separate milk from the water. Similarly, RK Swamy
of BBDO is capable of deriving the essential elements from the irrelevant ones in
order to promote each brand. The agency practises high level of commitment and
spirited teamwork for a common cause.

McCann-Ericsson India Ltd:- Sorab Mistry (Head)

This advertising agency is a leading global agency and has the power and passion
to achieve its mission .McCann-Ericsson is known as a world class advertising
agency and has found outstanding talent in its employees.

Leo Burnett:- Mr. Arvind Sharma (Chairman and CEO):

The advertising agency is totally idea-centric. It generates big brand ideas. It
regards the pencil as its engine no matter the size - it is the means through which
it can generate plenty of creative ideas. The agency is never too satisfied with its


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endless efforts in building up a brand. It believes that the brands can become and
remain leaders by building better ideas. It's no wonder that the founder of the
advertising agency, Leo Burnett, regards the pencil as a metaphor for the kind of
ideas he was coming up with for his clients.

Grey worldwide (India) Pvt Ltd:- Mr. Nirvik Singh (President south east Asia
& chairman South Asia, Grey Global):

The agency handles above the line advertising for the Grey group. It has launched
Dominos in India. It has had Ambuja cement, Thums Up, Arrow, Lee and many
more brands in its portfolio. The mission of the agency is to remain the largest
global integrated agency to leading brand ideas.

The list of the top ten advertising agencies is not always stable and remains
interchanging. The additions and deletion of a few of them formulates the list. But
each of them are making their way to becoming the best, and their efforts are
making are each making a mark in the Indian advertising scenario.


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CHILDREN &
ADVERTISING


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4.1 Introduction

Advertising to children is the act of marketing or advertising products or services
to children, as defined by national legislation and advertising standards.
Advertising to children is often the subject of debate, relating to the alleged
influence on children’s consumption. Rules on advertising to children have largely
evolved in recent years. In most countries, advertising for children is now framed
by a mix of legislation and advertising self-regulation.

Scope and Form
Advertising to children can take place on traditional media – television, radio and
print – as well as new media (internet and other electronic media). Packaging,
in-store advertising, event sponsorship and promotions can also be means to
advertise to children.

There is no universal definition of a child (although UNESCO - the United
Nations Educational, Scientific and Cultural Organization, defines early childhood
as ages 0– 8 years). Children are otherwise defined according to national
jurisdictions. For the purposes of advertising law, the definition of a child varies
from one jurisdiction to another. However, 12 is commonly used as a cut-off point,
on the basis of the widespread academic view that by the age of 12 children have
developed their behavior as consumers, effectively recognize advertising and are
able to adopt critical attitudes towards it.

There is no global data on ad spending directed at children, only data for
specific sectors. According to the Federal Trade Commission, food and beverage
companies (44 companies reporting to the FTC) in the US spent approximately $1.6
billion in 2006 to promote their products/services to children.


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4.2 Advertising standards

In many countries worldwide, advertising is also governed by self-regulatory codes
of conduct. Advertisers, advertising agencies and the media agree on a code of
advertising standards – a set of ethical and behavioral rules they commit to
respecting – which is enforced by a Self Regulatory Organisation, often an
independent industry-funded body, responsible for drafting, amending and
enforcing the code. Self-Regulatory Organizations for advertising are increasingly
following the best practice model agreed with regulators and consumer and public
health groups in Europe. At a minimum, the general aim of self-regulatory codes is
to ensure that any advertising is 'legal, decent, honest and truthful', but in most
countries detailed rules are in place for different advertising techniques and sectors.

Advertising self-regulation is built on different levels. On a global level, the
International Chamber of Commerce has drafted a global code on marketing
communications. All forms of marketing communications worldwide must conform
to the ICC Consolidated Code on Advertising and Marketing. The code includes a
specific section, detailing the special care needed when communicating with
children.

Since 2006, a global code of practice on food marketing communications is
also in place. The Framework for Responsible Food and Non-Alcoholic Beverage
Marketing Communications of the International Chamber of Commerce (ICC) sets
down global requirements for food and beverage marketing communications on all
media, including the internet Key provisions include: the need for substantiation for
claims or health benefits; no encouragement of excess consumption; no
representation of snacks as meals; no undermining of healthy lifestyle messages;

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no undermining of the role of parents.

These codes provide a minimum requirement for marketing communications
worldwide. National self-regulatory codes, based on the ICC codes, are established,
policed and enforced by local Self-Regulatory Organisations (SROs) and industry in
over 100 countries and apply to a range of media, increasingly also including
digital marketing communications. The ICC and national codes are reviewed
regularly to ensure that they remain relevant to local, cultural and consumer
concerns and that they promote best practice. The ICC Framework is applicable
globally but is a minimum standard designed to be adapted and transposed into SR
codes at national level. Many countries have implemented SR provisions that use
the ICC Framework as a basis, but go further in several respects, depending on
local considerations. Examples include Australia, Brazil, Canada, Chile, France,
Ireland, The Netherlands, New Zealand, Spain, the UK and the USA.

In addition to industry-wide self-regulation, individual companies and
industry sectors have introduced a wide range of additional provisions relating to
marketing communications directed at children. For example, most multinational
food and beverage companies have developed their own policies on food and
beverage marketing communications to children and, most recently, have
announced the joint implementation of these individual commitments.

In July 2007, 10 of these companies (now 13) announced a common pledge
in the US – the Children’s Food and Beverage Advertising Initiative, mirroring a
similar initiative by 15 companies in Canada – the Canadian Children’s Food &
Beverage Advertising Initiative; and followed by 11 companies in Europe with the
EU Pledge. Under these initiatives, participating companies will cease advertising to
children under 12, other than products that meet specific nutritional guidelines,
based on international scientific recommendations. A similar Pledge programme
was launched by leading food companied in Thailand in May 2008 and in Australia
in mid-2009


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4.3 Media Literacy

Media literacy is a relatively new discipline, aimed at teaching individuals and
children in particular to understand and use the media to their advantage. Media
literacy is increasingly recognized by governments and international organizations
such as the European Union and the World Health Organisation as a key tool to help
children understand and deal with today’s complex media environment.

Media Smart is an established media literacy education programme focused
on advertising. Launched in November 2002, Media Smart is a non-profit media
literacy programme for school children aged 6 to 11 years old. Media Smart
develops and provides, free of charge and on request, educational materials to
primary schools that teach children to think critically about advertising in the
context of their daily lives. Media Smart materials use real examples of advertising
to teach core media literacy skills. Media Smart is funded by the advertising
business in the UK and is supported by the UK government and EU institutions.
Since 2002, Media smart has been launched in Belgium, Germany, the Netherlands,
Finland, Sweden, Portugal and Hungary.

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Is it fair to advertise to children unless they fully understand the intent of the
advertisers? If young children do not understand that intent, then when do they
develop that ability? Is television an effective way to market products to children?
Are the products (such as food and toys) typically aimed at children, the type of
products that children should be encouraged to buy? Are children encouraged to
buy or try unsuitable products (such as alcohol or tobacco) from viewing
advertisements even when those advertisements are not aimed at them?

Does advertising encourage a more materialistic attitude in children? Or is it
appropriate that children learn to be effective consumers from an early age? Does
encouraging children to buy products lead them to pester their parents and cause
family disputes? Does television advertising present an accurate or misleading
image of the world to children?

Should advertising aimed at children be regulated? If so, how strict should
that regulation be and, in a global market place, should regulators draw up
common guidelines across different countries and cultures? Should we educate
children about advertising, and if so, who should take on the role of educator?
These are the questions that require to have a proper look at. Children aging
around 15 in India are having spending power. It is from their own allowances and
earnings. Almost 30 percentage of Indian population belongs to this age group,
and called to be the future of India. But the fact is that out of every rupee the
government spent, only five paisa went to child related programmes. In Bihar,
spending on per meal per child is about 15 paisa. Now can anyone explain that
what kind of nutritious food can be supplied at that rate?

When we talk of the Indian economy it is vastly segmented in different age
groups with different spending powers. Most of the Indian people live under the
poverty line. But the others are having a huge spending power with large amount of
selection in the product basket. The children from these segments are being
targeted by the companies to generate the sales.


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The market for selling products to children is potentially immense, and it is
not surprising that in those countries that have established traditions of advertising,
much of that advertising is aimed at children, often via television and other media.

4.4 Children and TV Advertising

In the 1940s and 1950s children were not considered consumers in their own right
but only extensions to their parents purchasing power. With the advent of
television and other mass media, children have come into their own right as
consumers and, consequently, they have become an important target market for
the business. Advertisers are the first to recognize children’s value as consumers
who are capable of making decisions about spending.

The 1950s dates the modern era of children's television programming, when
a deal between struggling television network ABC and Disney brought The Mickey
Mouse Club and Disneyland into children's afternoon television programming.


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Advertising at that time appealed generally to the personal gain of the consumer in
the case they decided to purchase the sponsored product. Over the next 15 to 20
years, children's television became an industry by itself.

Throughout this history of children's television advertising, researchers have
criticized in different ways the use of television commercials directed to children
(Tseng, 2004). In the late 1970s, a research team funded by National Science
Foundation (NSF) estimated that children viewed an average of about 20,000.-
commercials per year (Adler in Singer, 2001). There was so little study on this topic
during the 1950s, the majority of the studies on children's television advertising
environment goes from the 1970s onward (Alexander et al. 1998).

Four types of products advertised to children during the 1970s were limited:
toys, cereals, candies and snacks, and fast foods. Male voiceovers accounted for
the great majority of ads coded, and animated characters seldom appeared (Barcus
in Tseng, Eliana Shiao; 2004). While marketers and advertisers heightened their
interest in the child market during the 1980s, research on children's television
advertising of that period consisted mainly on replications and extensions of
previous studies (Tseng, 2004).

Children’s television advertising is rapidly becoming a major concern to
government agencies, citizens. groups and researchers in many areas of the social
sciences ( Resnik, Stern and Alberty; 1979).Children who watch a lot of television,
want more toys seen in advertisements and eat more advertised food than children
who do not watch as much television (Strasburger, 2002). Children also urge their
parents and friends to be sure to watch certain commercials (Fox in Jarlbo, 2000).

According to (Resnik, Stern and Alberty, 1979), television advertising and its
effect on consumption patterns, values, and social interaction have been hotly
debated for many years. But only recently has the controversy focused on its
differential impact on special

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interest groups- the elderly, minorities and children.

As many authors states, there are many television advertisements based on
children and it is faced that children urge their parents to purchase what they want
without needing. For a whole generation of new age children, television is as
influential as a parent or a teacher (Panwar, 2006). According to Wiman (1986),
children who talk with their parents more frequently about TV advertising and
commercials make more purchase requests. Children considered television to be
one of life’s necessities. Studies commissioned by cable television networks in USA,
found that an average of 43 per cent of total purchases made by parents were
influenced by children (Cooper in Caruana, and Vassallo; 2003). Exposure to it was
usually extensive – before school, after school, during homework, at weekends,
with or without friends (Hanley, 2000). Marketers understand this fact very well.
With the growing influence of media on children, an increasingly large number of
advertisements are today directed to them (Panwar, Agnihotri, 2006).

Children, for example, who come from disadvantaged backgrounds, or those
who have less access to their parents may not only spend more time with the media.
But, may continue to rely more heavily on TV advertising for the information that
they seek in various areas (Brown, Childers, Bauman and Koch in Evra; 1995).
Parents create direct opportunities by interacting with their children about purchase
requests, giving them pocket money and taking them to shopping excursions
(Ward, Wackman, and Wartella; 1977). Children spend a large amount of time
watching television. They pay more attention to commercials broadcast during
children’s programming. Commercials broadcast during children’s programming
are designed to capture the younger child’s attention by the use of cartoon
characters, music, subjective camera angles and editing (Stern & Harmon, 1986).

According to The Guardian newspaper, McDonalds, and Coca Cola spent
respectively 34,6 million USD and 16,2 million USD for television advertisement
presented for children. In this situation, firms do not hesitate to spend their money


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for the related advertisements. Therefore nowadays the expenditure of these
advertisements has been increased dramatically such as McDonalds and Coca Cola
as well as Disney. They are the best known brand in the world. It can be drawn
conclusion from here that the role of children as consumer on the world’s economy
has rapidly increased. The common features of the above mentioned brands are
easily to find and focus on children and family in their advertisements.

According to McNeal (1992) American children spent over USD 132 billion on
62 product categories of products were influenced by children. The number of
commercials per hour on American television increased significantly towards the
end of the decade. They provide a strong indication that American children are
today exposed to more than 25 000 commercials per year via television (Kunkel &
Roberts 1991). In 1997, $1,3 billion was spent on television advertisements
directed at children. Counting all media, advertising and marketing budgets aimed
at children approached $12 billion (McNeal, 1999). It is estimated that children may
view as many as 40,000 commercials each year (Strasburger, 2001). In one of the
research project about the influence of television advertising on children and
teenagers, Hanley (2000) found that the younger children (aged 9–11) were very
vague in their recall of current television advertising. The examples they came up
with were often unbranded, with the recall attached to the „story. or characters
instead, e.g. Honey Monster (Sugar Puffs), cartoon elephant (Charmin toilet roll).
Older children (aged 12–16) recalled advertising they enjoyed or disliked. The
appeal often related to the „storyline., characters featured or the product. For
instance, they mentioned Rolo (elephant never forgets), as well as KitKat, Argos
(toys), and McDonald.s. They identified three main ways in which television
advertising seemed to influence children: pester power; Many parents felt that
advertising had the power to make a significant impression on their children. Those
featuring children, cartoon characters, animals, „catchy. tunes and phrases, colour,
dynamic special effects, aspirational celebrity heroes, humor and children’s
products (e.g. confectionery, cereals and toys) were most likely to be referred to:


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www.itc.org.uk Generally advertisers use interesting characters in their
advertisement to catch children’s attention. Sometimes these characters are not
real. For example Corn Flakes, Nesquick advertisements and etc (Hanley, 2000).

It was very common for the advertiser to show ads in which the child would
acquire superhuman strength by eating a specific breakfast cereal, or would leave a
group of friends in choking clouds of dust by running with the sponsored sneakers.
Toys ads of that time were sponsored by unknown brands, which would generally
end up becoming famous after making deals with the television station (Alexander
et al; 1998).

Children’s ages are also significant to understand the advertisements.
Children’s comprehension of television advertising and its persuasive intent
increases with age, because of greater cognitive maturity and increased experience
with the medium. Even a majority of 5-8 years old have only a low awareness of
what a commercial really is; and although three quarters of 9-12 year old children
may demonstrate a medium level of awareness (eg. commercials tell you what to
buy) (Ward & Wackman in Evra; 1995). However it is possible to say that even
though they are very young to understand, the most important thing is the
advertisements impact on children.

De Bens and Vandenbruaene (1992 pg 27) conveys that children’s attention
is affected depending on whether they are watching TV alone, with their parents or
with other children of the same age. Children.s attention depends on whether they
are playing, eating or occupied with something else while watching TV. Generally it
is assumed that these factors contribute to reducing children’s attention to TV
advertising (De Bens and Vandenbruaene, 1992).

In less developed countries the trend appears to follow the same pattern as
in the developed world, although the market size may be comparatively small.
Increasingly, children have become not passive observers, but active participants in

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the family purchase decisions. Not only do children have their “own money” to
spend on a variety of products and services of their choice, they also have
extensive influence on how their parents buy products and services (Wimalasiri,
2004).

If children saw something new in a television advertisement or in a magazine
that they liked they were likely to buy it. This is in line with Buijzen and
Valkenburg.s (2003) findings that advertising is positively and directly related to
children’s purchase requests. McGee in Beder (1998, pg 100) says “children under
aged 12 spend more than $11 billion of their own money and influence family
spending decisions worth another $165 billion on food, household items like
furniture, electrical appliances and computers, vacations, the family car and other
spending”. For example, one study estimated that children influenced $9 billion
worth of car sales in 1994. One car dealer explains: "Sometimes, the child literally
is our customer. I have watched the child pick out the car."(Stanley in Beder, 1998,
pg 102)

Advertising offers consumer ideas and information, which we process and
evaluate in order to make rational choices. Brown (2004) defends advertising to
children on just such cognitive grounds: “Children are young consumers, interested
in making choices and needing information about them”.


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4.5 TV Advertising & Children in India

More than half of television viewers in India today are children of below 15
years. And yet there is hardly any sensitivity about the relevance and impact of
what is dished out by various television channels. All of them are operating in a
competitive mode for one upmanship in the race for viewership. In this order
channels are concerned more about “what interests or attracts” rather than what is
“in the interest” of children. Neither the Government nor the parents or the
teachers seems to be concerned about this situation. For, the generation next and
the civil society of the country is shaped and molded by what they are exposed to
today on the “idiot-box” day in and day out.

Research studies over the year’s world over; have brought out various types
of negative impact of intense viewing of television by children. The direct influence
of TV viewing on the extent of violence and deviant behavior pattern of children
has been reiterated – even in India. In fact, there are a couple of confessions by


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adolescents, even a biography, as to how they picked up ideas about a rape or
robbery or revenge or killing or suicide or kidnap, etc from one or other TV
programme. Even some court judgments have commented on such effect of TV
programmes. That TV has a double-edged effect and that it is the negative
character which impacts more than positive potential often is known.

But what is not realized is that there are no serious efforts to explore positive
virtues of TV and that parents who should be more concerned about such a
phenomena hardly do anything about it. In fact, studies have brought out, for
example, that in Punjab and Uttar Pradesh, parents enjoy the same fare of TV along
with their children and as keenly; where as in Tamil Nadu and West Bengal, parents
try to restrain their children in favor of some discriminative viewing. Teachers and
social activists in a couple of places have been occasionally demonstrating about
the influence of television contents. Political parties too do not seem to be
concerned to do something about. BJP, however, had referred to this adverse trend
in its election manifesto a few years ago. But did nothing on coming to power.

Even the code for advertising, although outdated and inadequate, is
conscious of “implications” to children of certain broadcasts and realizes the scope
for misuse. For example, under the code no advertisements should be accepted
which lures children to believe that if they do not own or use the product
advertised they will be inferior to other children or that they are liable to ridicule
for not owning or using a particular brand. However, in reality there is neither
strict monitoring of the advertisements nor a rigid follow-up despite that many ads
on television fall under this category. And most of these children’s channels have
become marketing outlets for brands altogether to India.

Against this background and in this context there are certain recent trends
on the Indian TV scene, which need to be taken note. More and more channels are
going for “children’s programmes”. In fact, more channels are coming in
describing themselves as “children’s channel” or positioning themselves as such.

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Most of these are beamed into the country as if no one in the country, the
Government the least, is concerned about such a trend. What is not taken note is
that:

(a) Most of these children’s channels and programmes are of foreign origin or
remake of them and are reruns over the years,

(b) They do not have anything to do with enrichment or supplementary scope for
school education or imparting moral standards (there are of course some good
pre-school programmes);

(c) Some of these foreign channels are now entering their second phase in the
country taking to marketing of toys and tools for children promoted in these serials.

And, worse, as a result of all this, there has been a decline recently in the
extent of locally originated programmes for children even in Indian channels. To
complicate the matter further these foreign programmes for children are now being
dubbed into Indian languages.

There are international lobbies operating aggressively to thrust upon
animation serials for children on countries like India. That is how today cartoons
have become synonymous for Children’s TV. Most of these serials are produced
after so much research. But not for ensuring educational or general knowledge
aspects but for capturing and retaining eyeballs of children again and again and to
see their serials have certain “dope-effect” on children.

This recent launch of DTH services in a competitive mode brings out the
urgency for Government take a view of this proliferation of uninhibited foreign fare
for children and doing something about it so that television is also used with more
concern and for positive ends.

The least the Government should do is to prescribe that every channel being
down linked must have certain percent of locally produced and originating
programmes for children. In fact, in the case of children channels, this percentage
of locally originated programmes has to be higher. Canada and European Union

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countries have one or other provisions in this regard. If France has prescribed 30
percent of contents of channels should be locally originated, India should go for a
higher percentage, not less.

India has a rich tradition of enriching children with folk tales and grandma
tales and imparting values and imparting discipline and moral values in an
entertaining format. When some of us advocated and argued a couple of decades
ago for expansion of TV network in the country and for going for color television,
one hope was that children’s fare will get some priority and all that treasure of
India gets a chance to figure. But what is happening now is contrary. The
exceptions are only a few. For, there is a decline in the extent of children’s
participation even in national channels. The best specific examples of course are
Malguidi Days, Panchatantra, Tenaliraman and the like. Realizing these strengths
of Indian tradition, some foreign producers are scouting in India to capture talent
for television, particularly in animation format. But what about our own initiatives?

We do not seem to learn from our experiences. All India Radio in the earlier
years has set good examples for children’s programmes, which were enriching as
well as entertaining and supplementary to school education. In fact, the format of
those AIR programmes was such that they were participatory and empowering
confidence and courage building in children and respect for elders and
environment. Today most imported children’s programmes are all out to promote
materialism, selfishness, consumerism and “at any cost” approach to life.

Realizing the significance of media in the context of children, a few years ago
UN has prescribed annual day for mass media when children are supposed to be
the producers of media contents. It is a good symbolic initiative. But it should be
followed up by some support to promote “creative TV software” for children of 6 –
12 age groups, in particular. For, there is UN Convention on Rights of Child with a
set of standards to promote well being of children. Unfortunately, there is no public
trust or foundation of civil society in India for this purpose. Even Public Service


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Broadcasting Trust, which is a good initiative otherwise, is yet to be concerned
about children’s interests.
It is most unfortunate that neither of the plethoras of Government agencies
claiming concern for children has taken note of this vacuum. Not even the Ministry
of Information & Broadcasting. All this despite ample creative talents across the
country to produce more positive, pro-active and relevant software for children
than what is available now. It is unfortunate that the Government has neither taken
pro-active or re-active initiatives in this regard. While we have a Children’s Film
Society to promote films for children and a Children’s Book Trust, we have none for
television despite the number of children who see television is several times more
and, even more critically, the frequency of their viewing television is more than a
couple of hours a day.


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4.6 How Children Process Advertisements

To be effective, marketing campaigns must get children to attend to the message,
desire a specific product, recognize and remember that product, and purchase it.
How well children understand the persuasive intent of advertisements also affects
the success of commercials.

Attention.
Commercials that are designed to attract and hold children’s attention are
characterized by lively action, sound effects, and loud music. The animated
character Tony the Tiger, for example, bursts onto the screen, proclaiming that
Kellogg’s Frosted Flakes are “GRRRRRREAT!!” One study found that preschoolers
paid more attention to commercials full of action, sound effects, and loud music
than to more low-key commercials. Audio features are particularly important in
gaining children’s attention. Another study found that children aged three to eight
were more attentive to commercials that were higher in audio than in video
complexity. Audio features have more recruiting power than visual features
because interesting sounds can get children who are not looking at the television
screen to direct their visual attention to it. These findings are consistent with
Piaget’s insight that young children are especially focused on the attention-getting
perceptual qualities of presentations. Children’s patterns of attention help reveal
how well they can make distinctions between the commercial and the television
program.
In one study, researchers trained mothers to examine their children’s visual
attention to Saturday morning cartoons and advertisements. The mothers reported
that the younger children (five to eight) continued to pay attention when a
commercial came on but that children older than eight looked away. The older
children’s awareness of the break in the content suggests that they are less
susceptible than the younger children to the effects of advertising.


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Recognition and retention.
Advertisers use visual and auditory production techniques and repetition to
enhance children’s memory of the content. One study found that preschool,
kindergarten, and second-grade children remembered food products that had been
advertised audio visually or visually better than they remembered products
presented in an audio version only. Advertisers use catchy auditory features, such
as jingles, repetitively in commercials to reach child audiences. Song lyrics and
rhymes can replay in children’s heads, leading to automatic rehearsal and memory
of content. When children are shown the same commercial repeatedly, they are
more likely to remember the product advertised. Repetition also undermines
children’s, even older children’s, defenses against product messages.

Comprehension of commercial intent.
As noted, children younger than age eight do not understand that the intent of
commercials is to persuade them to buy one product over another; instead they see
commercials as a means of informing them about the vast number of attractive
products that they can buy. In a key study demonstrating the developmental
advance during middle childhood, Thomas Robertson and John Rossiter questioned
first-, third-, and fifth-grade boys about their understanding of commercials. Only
half of the first-grade boys understood the persuasive intent of commercials, as
against 87 percent of third graders and 99 percent of fifth graders.

Product requests and purchases.
What aspects of exposure to commercial messages lead to product requests?
Researchers have found that repetition, in particular, increases children’s requests
for, and purchases of, specific food, beverage, and toy products. One study, for
example, measured three- to eleven-year-old children’s overall exposure to
advertisements at home and to specific advertisements in their laboratory. They
then had children visit a mock grocery store with a parent. Children who were


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exposed to more overall advertisements at home and who were most attentive to
advertisements in the laboratory setting made the most requests for the advertised
products. Premiums—bonus toys and treats that accompany the product—also
increase children’s product requests. For instance, Charles Aitkin found that 81
percent of mothers thought that premiums influenced their children’s cereal
selections. The more children watched Saturday morning television programs,
which are saturated with cereal commercials, the more children wanted the cereals
that contained premiums. Free downloads such as screen savers serve similar
functions in newer technologies, but researchers have not yet fully examined the
effects of such practices.

4.7 Marketing Promos Targeting Children

Children play an important role in the household decision making process by
attempting to influence their parents acquisition, usage and disposition behavior.
The most common is that children nag until their parents finally give in. Research
finds that success of such attempts on the type of offering, characteristics of the
parents, age of the child and stage of the process.

Children are more likely to influence the parents for the purchase of child
related products as cereals, cookies, snacks, car vacation and new computer
technologies. For clothing and toys, children often use that argument that
“Everyone else has one” and because parents want to avoid being identified as
‘scrim piers’ they will often given in.

Interestingly, children consistently overestimate how much influence they
have in most of the decisions.


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Working and single parents on the other hand are more likely to give in
because thay face more time pressures. Another important finding is that the older
the child the more influence he/she will exert on the parents.

Targeting Children
Marketers are increasingly targeting the young children because of the influence
that these kids have on their parents; buying decision. Advertisers are influencing
the kids through various educational programs, games and certain other
promotional events. The promos aim at increasing the brand visibility and
developing an emotional connect with the kids.

In India, kids have a considerable amount of demographic representation
which marketers want to capitalize on. Marketers are targeting the kids because
kids influence buying decisions, they exert pressure on the parents for a certain
product purchase and they are the future adult consumers.

In the earlier days, marketers aimed at influencing the parents for purchase
related to kid’s products. Of late, marketers are trying to influence the kids directly
through various promos and contests that provide them with lots of fun and
adventure. By doing so, marketers are aiming to occupy the young minds
successfully.

Generally, the contests are specially designed to target a particular age group
of kids. The response from the kids is usually high because of the emotional
tie-ups which is generated by the promos. This is the major success factor for the
marketers. The common thing in all these promos is that they provide fun and
adventure to the kids.

A Bag of Contests from Marketers


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Rasna – Slogan Contest
Rasna conducted a slogan contest for the kids between the age group of 4-10
years. The contest was very simple. The kids has to complete a slogan “I love rasna
juc up because …….” and send the same along with 10 single served sachets of
Rasna.

A panel of judges was identified to decide the winners of the contest. Ten
lucky winners could enjoy a ride on a flight with Karisma Kapoor who was the brand
ambassador of Rasna. The participants who could not make it to the finals were
also entitled to win 1000 early bird prizes.

Britania – “Jetix Power Your Rangers Contest”
This was one of the biggest kids contest conducted in India. The kids were given a
call by the rangers to save them from trouble by powering them through dinogems
which was hid by the villains. The dinogems were hidden in the fort of evil and the
map was destroyed. The kids through this contest had to put together and
indentify the dinogems which ultimately powered the rangers.

The contest was aired on the television channels everyday. With every pack of
Britania treat, one part of the map was given (fortress of Evil). The kids had to
collect the dinogems. By the end of contest, the dinogems which was the power
source of rangers.

The entries could be through SMS, phone calls or by e-mails. Five lucky winners
made a trip to New Zealand with their families. Fifty five other winners were given
playStation and power ranger game. Besides, 10,000 quick gun prizes and “Power
your ranger bravery medals” were also given.

Maggi Quiz contest


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