CURRENT SCENARIO OF ADVERTISING INDUSTRY

Unlike a lot of other services whether in advertising or in any other field, where the benefits are tangible and visible media planning offered a whole host of benefits in terms of scientifically planned media usage, innovative ideas, implementation, monitoring et al. However,

more often than not, these benefits were intangible and hence, people found it difficult to accept and appreciate them. Besides, the media scenario in India was very static, with very few real options to choose from. Clients, too, did not demand the same level of involvement from media planning as they did from creative, and maybe, to a much lesser extent, from media buying. Advertising agencies one-stop shops for all communication needs did not want to give up control over media as: * The same work could be done even without the support of real specialists. * Without investing much in databases, software, hardware, people and other media issues. infrastructure. * Account servicing people could act as the face of the agency even for

Current Scenario
Media Explosion and Shake-outs: With the advent of satellite TV and the corresponding media explosion, the media market became extremely vibrant, complicated and unwieldy. The static environment gave way to a very dynamic environment, not only in the field of TV but had its impact on other media as well, be it print, outdoors, cinema, radio, Internet et al. Leaders of the day lost out to the more innovative and aggressive players: in the field of television, it was DD v/s Zee earlier and Zee v/s Star now; the print revolution that was the forte of leading English and a few regional publications has now shifted to the likes of Dainik Bhaskar and Dainik Jagran; the outdoor market is inundated with technological breakthroughs as well as innovative options by the dozen; and radio is abuzz with FM channels about to be launched by the score. Internet is creating a tehelka and is likely to emerge as a strong candidate in the future. Customers to Consumers: The customers of yesterday have truly become the consumers of today. Far from being happy with what is available, they have fast-forwarded to being very demanding. They have the best of both worlds, access to everything without having to pay a substantial amount to receive the same...

No single brand, however well placed, can take its place for granted and may lose its position overnight if caught unawares, e.g. Zee TV to Star Plus. Therefore, clients have to focus on immediate as well as long-term means of communication more advertising being one of the means.

The Economy: With the opening up of the economy, advertising in the Indian market has undergone a dramatic change from being one of the less important marketing inputs, today it has transformed into a key ingredient for brand success. A lot more money is being spent on advertising than ever before for reasons that are varied but real (see chart below). Competition: Competition is at its peak, as never witnessed before. No single brand, however well placed, can take its place for granted and may lose its position overnight if caught unawares, e.g. Zee TV to Star Plus. Therefore, clients have to focus on immediate as well as long-term means of communication more advertising being one of the means. Fragmentation: Increase in media options is giving rise to fragmented media usage, leading to less time spent per medium or vehicle. In other words, lower TRPs per programme on television and lesser time per vehicle on press. This means the cost of reaching the prospective customer is increasing by the day.

Advertising Needs: Brand advertising for long-term results and tactical campaigns for shortterm rewards are both becoming imperative to outlast competition. With increasing competition, the need to advertise is increasingly higher. The need to advertise at optimum level of spends (at requisite Share of Voice) is becoming critical. This required optimum level is on the increase year after year. Overcoming clutter (through preferred positions and higher frequencies), ensuring roadblocks (by being present simultaneously across many channels) and investing in building media properties (that lead to word-of-mouth publicity or long-term cost efficiency) are all pointing towards an increase in cost. Advertisers are, therefore, forced to commit a much higher ad spend than they can actually afford. This is because the media inflation index is way above the consumer price index and this increase cannot be passed on to the consumer, thus affecting their bottom line adversely. Understanding the intricate science of determining the level of media presence required against a sales or market share objective is becoming an art.. N In this scenario, clients are now looking for specialists who can help them plan their media spends in the most optimum way as well as buy at the best possible rates for them without compromising in any way. They are looking upon a media agency as a partner that will respond to their marketing objectives with accountability and an agency that has a handpicked staff of top professionals so that clients get what they need on time at the best value for them. To quote from the Glaxo Wellcome (from the Net) on what it looks for in a media planning and buying agency an AOR to consolidate its Direct-to-Consumer advertising, media buying

and planning, including Internet buys, with one agency to improve efficiency, effectiveness and return from its advertising.

1. Experience as a media planning/buying AOR 2. Experience in buying major media categories 3. Applied integration of media and targeting tools 4. Staffing plans for the account 5. General philosophies and approaches to the media marketplace. The need, therefore, is to save the advertisers money to the maximum without diluting the advertising efforts needed for the brand. This is where the specialised skills come in. Save Maximum Advertising Money But Without Diluting Required Effort i.e. Minimum Risk. The Way Forward The need of the hour is a team under one roof that:

1. Is skilled enough to advise on the optimum spend levels. 2. Can do hard negotiation without compromising on the best values. 3. Has the right contacts across media that matter. 4. Is armed with all relevant tools and technologies, data bases, systems and global learning. 5. Is accountable, trustworthy, unbiased and ensures complete transparency. 6. Has complete service orientation The media professional needs to undergo a complete change in mindset from being a Media Professional to being a Business Manager and a Service Provider. brand, however well placed, can take its place for granted
and may lose its position overnight if caught unawares, e.g. Zee TV to Star Plus. Therefore, clients have to focus on immediate as well as long-term means of communication more ad