Present Status of Advertising Industry In India

Made byMeenal Kapoor Banasthali University

History of Advertising

It started with hawkers calling out their wares right from the days when cities and markets began.
18th century - Concrete advertising history begins with classified advertising.

Ads appear for the first time in print in Hickey's Bengal Gazette, India's first newspaper (weekly).
By the end of this century, Ads appeared in newspapers in the form of lists of the latest merchandise from England.

19th century - Many advertising agencies came into existence B. Dattaram & Co. Mumbai, being the oldest existing agency of that time.
Besides Indian, Foreign Advertising agencies also began to enter Corporate Advertising started in fifties. Creative Revolution in sixties. Glued to television by the end of this century.

Indian advertising Industry which has an estimated value of Rs 300 billion has made the jaws drop recording a growth of 8 per cent in 2011. Indian advertising industry is talking business today and has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in a short span of time has carved a niche for itself and placed itself on the global map. Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai.

A few Facts:
76% of the consumers dont believe that companies tell the truth in advertising. You cant bore people into buying your product- you can only interest them. Advertising Myths: Frequency is mostly not a driver for action. There is no Golden Rule about OTS.

What the Consumers Demand??

Statistics of Advertising Industry:

New Seasons of Big Boss, newer Formats like Master Chef, Celebrity programs, Blockbuster Movies, Award shows, Dance Programs, etc., the list is just increasing. Approximately 20% of total programming time is devoted to Reality shows today, up from 16% in 2010. These shows have high input costs and thus higher advertising costs.

Best Marketing Company of 2011

Company Name Vodafone Bharti Airtel Hindustan Lever Cadbury Coca Cola India Pepsi ITC Sony India Tata Motors Samsung Electronics Nokia Idea Cellular Procter & Gamble Maruti Udyog Colgate Palmolive Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Source : TAM AdEx

The Changing Times..

The SMBs
Local retailers in apparel, food, watches and jewelry have all increased their average ad spending by almost 50% in the past two years. The advertising and promotional spending by local brands is substantial during the festival season and almost 70% of the spending is done between September to January. Online advertising spending is holding its own and will continue to grow steadily over the next several years. Marketers are responding to the economic challenges with new techniques and strategies, along with research data to prove their effectiveness. According to statistics, online ad spending has reached $23 billion. Nonetheless, nearly three-quarters of web advertising space goes unsold and more than 99.7 per cent of banner ads are not clicked on.

Owing to the increased demand Indian ad agencies have some of the most creative and talented people around which is attested by the fact that global companies are approaching Indian ad agencies to handle their media campaigns. Ranging from innovative ads to sometimes they really get on your nerves, especially when they are repeated time and again. This happens when there is something sponsored by them say a cricket match or an award ceremony, etc. Advertisements usually amaze people with their creativity and presentation whereas some are really horrible in the depiction of their ideas. Most of the times however we find quite interesting and appealing ads. However, with the changing times the creativity and ideas projected in ads have changed drastically. From nave, happy and brilliantly crafted ads the trends have moved to more of a fear appeal and ironic ads. Most common is humor accompanied generally with a message which relies upon a famous song, Samajhne wale samajh gaye, jo na samjhe wo anari hai.

The advertising industry in India has several competitive advantages:

India has a rich pool of strategic planning, creative and media services personnel: Indeed, Indian advertising industry has been exporting senior-level talent to many countries, particularly to the Gulf, South-East Asia, China, the UK and the US. Indian talent is recognized and respected in global agency networks. No other country has access to so many trained management graduates who can provide strategic inputs for brand and media planning. Indians are multicultural: we learn at least two languages and that gives us a head start in understanding cultural diversity. Most of the top 20 agencies in India have a global partner or owner, which should provide an immediate link to global markets. Our production standards in TV and print have improved: With a vibrant animation software industry, we have access to this area of TV production. India's advanced IT capabilities can be used to develop Web-based communication packages for global clients.

A quick sneak peek at the top ten advertising firms of India as of today.

Ogilvy & Mather-Cadbury, Asian Paints and Fevicol. J Walter Thompson-Nestle, Cadbury, Bayer, Ford, Nokia and Unilever. Mudra Communication-Neutrogena, HBO, Philips, Reliance NetConnect, Big Bazaar. FCB Ulka Advertising Ltd-Tata Indicom, Whirlpool, Zee Cinema, Santoor, Sunfeast and Amul. Rediffusion DY & R McCann Erickson India Ltd.-Thanda Matlab Coca Cola Grey Worldwide (I) Pvt. Ltd.-Hero Honda, Maruti Suzuki,, Indian Oil, Ambuja Cement, UTV, P&G and Godrej. Leo Burnett India Pvt. Ltd-McDonalds, Heinz, Complan, Bajaj and HDFC. Contract Advertising India Ltd.-Religare, Asian Paints, Dominos Pizza, SpiceJet and American Tourister.

Thank You..