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Introduction to Advertisement Form of communication Encourage or persuade an audience (viewers, readers or listeners) to continue or take some new action Drive consumer behavior with respect to a commercial offering Paid by sponsors 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 websites and text messages.
Evolution of advertisement Advertising starts with the hawkers right from the days when cities and markets first began The first newspapers published in India in the 19th Century also carried advertising. The first advertising agency was established in 1905 B. Datram and Company The India-Advertising Company commenced in 1907 Advertising expenditure in the 1950s was estimated at $US 300,000. 58% growth in the number of registered agencies from 106 in 1969 to 168 in 1979, and this included a growth in Indian agencies The first advertising appeared on state television in 1976.
Contd… 1990-Marks the beginning of new medium Internet 1991- First India-targeted satellite channel, Zee TV starts broadcasting 1993: - Indias only advertising school, MICA (Mudra Institute of Communications Ahmadabad), was born - Tara on Zee TV becomes Indias first female-centric soap 1995- Advertising Club of Bombay calls its awards as Abby 1997: - Media boom with the growth of cable and satellite; print medium sees an increase in titles, especially in specialized areas - Government turns towards professional advertising in the private sector for its VDIS campaigns in 1997
Contd… - Advertising on the Internet gains popularity - Equitor Consulting becomes the only independent brand consultancy company in the country - Several exercises in changing corporate identity - Army resorts to the services of private sector agencies 2000 - Mudra launches magindia.com - Indias first advertising and marketing Gallery - Game shows like Kaun Banega Crorepati become a rage; media buying industry is bullish on KBC - Kyunki Saas Bhi Kabhi Bahu Thi marks the return of family oriented soap on TV
Purpose of advertisement Make the sale Break clutter Involve the consumer Touch the heart Hold appeal for the target group Linger in the mind
Types of advertisement Television advertising / Music in advertising Infomercials Radio advertising Online advertising Press advertising Billboard advertising Mobile billboard advertising In-store advertising
Market size of Advertisement Industry In 2011, the total pie of the Indian advertising industry stood at Rs 25,594 crore Recorded a growth of 8 per cent in 2011 Earlier projection was 17 per cent As per the Pitch Madison Media Ad Outlook, the growth projections for the ad industry for 2012 remained a cautious 8-9 per cent, with a total ad pie of Rs 28,013 crore. In 2010, spending on advertising was estimated at more than $300 billion in the United States and $500 billion worldwide
Major Indian players in Advertisement Ogilvy and Mather – Leading advertising company in India. This company has offices across the globe. The objective of the company is to build brands. The headquarter of the company is in New York. 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. Mudra Communication Pvt. Ltd- This advertising organization was founded in the year 1980 at Mumbai. Recently the Ad company declared the addition of public relations, rural marketing, events etc. FCB-Ulka Advertising Ltd- 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. Rediffusion-DY&R- Made a benchmark in the field of creativity. 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.
Contd… 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-’Thanda Matlab Coca Cola’. RK Swamy/BBDO Advertising Ltd- Established in 1973,this advertising reached great heights. This is also India’s No.1 research company in the market sector and is fully run by Indians. Brand Equity is an integral part of the company. Grey Worldwide (I) Pvt. Ltd- Primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide. The company specializes in advertising and marketing services. Leo Burnett India Pvt. Ltd- Has a significant presence with 96 offices in 10 countries. It was awarded the ‘Worldwide Agency of the Year’ in 2004. They are proficient in explain in 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. Contract Advertising India Ltd- It is one-to-one customer life-cycle management advertising agency. It was founded in 1992 and is situated in Mumbai. It offers a wide range of services like online marketing and strategy and many others.
MAJOR CHALLENGES OFADVERTISEMENT INDUSTRY Falling audience of channels and broadcasters Ingress of internet slowly but surely (online sales have several limitations though like credibility, tangibility and goods return and refund) Problems of Zipping and Zapping Emergence of Direct Marketing networks led by companies like Amway,Eureka Forbes, Tupperware and so on. The list is growing fast. It is proving better and more effective and cheaper too in some cases. Advertisement cluttering .
Contd… Rising costs of advertising both in electronic and print media despite reduced number of exposures and clutter. Intense competition between brands and product and suppliers. Re arrangement of Indian Madison Avenue by mergers and take overs by foreign ad companies (BBDO,Rediffusion,JWT) Need for global advertising strategies thus changing criteria for agency selection. Little margins for advertising clients and limited role of advertising in building brands
Global players Following is the list of notable advertisement agencies worldwide AKQA Anomaly Amalgamated BBDO Bernstein-Rein Bozell Worldwide Cordiant Communications Group CORE JWT Ogilvy and Mather Jellyvision
Impact of global crisis Bad impact on business, operating results, or financial condition. Decreased spending by current or potential customers Delay in payments by customers for previously purchased products and services. Increased bad debt reserve Fewer clicks on advertisers’ ads displayed on our web sites and our Google Network members’ web sites. If the banking system or the financial markets continue to deteriorate or remain volatile, investment portfolio may be impacted and the values and liquidity of investments could be adversely affected.
Latest trends in Advertising Paid Search Rules: Google ruled the past decade with paid search advertising. There is no better, more effective form of advertising on the Internet. Organic Search Gains Momentum: Marketers started to understand the importance of organic search. Almost 90% of the entire Web’s search traffic flows through organic search3. Display Advertising and Vertical Ad Networks: The past decade spotted the rise of vertical ad networks like Glam Media, Federated, HotChalk, Travel Ad Network, and others that focus on specific verticals. Social Media Advertising: Social networks, especially the big ones like Facebook, Twitter and LinkedIn become important tool.
Contd… In-Game Advertising: Consumers are spending inordinate amounts of time online playing games. Advertising Apps and Games: Apps have taken over the mobile web, and is even coming on to PCs, advertising apps and games are a natural progression Interactive Infomercials: Television infomercials are an effective way to market products. But the Internet offers significantly more cost- effective and targeted ways to market using the same concept Video Advertising: YouTube videos are famous for video advertisement is a powerful tool. This decade, there will be a huge amount of creativity deployed on this art form.
Profile of Top Executives Miles Young MA (OXON) Chairman and CEO of Ogilvy And Mather . He served as Managing Director of Ogilvy & Mather Direct in London, Regional Director of O&M Direct Europe , running the IBM account in Europe , Chairman of Asia Pacific at Ogilvy & Mather Worldwide , Director of Ogilvy & Mather Worldwide. He served as a Non- Executive Director of STW. . Mr.Young was educated at Bedford School and at New College, Oxford, he took a first class degree in Modern History. BOB JEFFREY CEO of JWT . He describes himself as someone who loves challenges. He was hired in March by Chris Jones, chief executive at Thompson, from Lowe & Partners/ SMS and he had been executive vice president and managing director of the San Francisco office. He is praised for his skills in the care and feeding of large clients as well as his ability to stoke the fires of new business.
Madhukar Kamath CEO and Managing Director, Mudra Communications Pvt. Ltd. He serves as CEO and managing Director of Bates India Private Ltd. Laurence Boschetto CEO and President of Draftcb.He served as the Chief Operating Officer of Draftfcb Inc., an affiliate of Interpublic Group of Companies Inc. from January 2006 to February 2009 also he served as the President of Draftcb in New York since 2002. FROMIona He did BA from Lona College and MBA from Hagan School of Business. Mahesh Chauhan Group Chief Executive Officer, Rediffusion Y&R Ltd. He served as President of Rediffusion DY&R since September 21, 2006. He served as President of Everest Brand Solutions. Mr. Chauhan takes over at Rediffusion after completing a three-year stint with Everest Brand Communications.
ConclusionAdvertising is a big business in this era in India.Indian Advertising industry has witnessed aprominent globalization . With the inception ofvarious divisions , the advertising industry hasundergone a sea change. Indian consumersdeepening pocket and blooming markets for ad-spends have touched new heights in India. TheIndian Advertising Companies are creating storiesand brand experiences in a way that engages andinvolves.