ISSN: 2229-6646
IJSTM, Vol. 3 Issue 2, September 2012
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Advertising-An Overview of Advertising Industry in India
TS Ezaz Ahmed
Research scholar
Sri Krishnadevaaraya Institute of Management, Anantapur
Email-ahmedezaz2@gmail.com
Ph: 91-8121692124
Abstract:
The rapid growth of social media and the mobile Internet is changing ways that businesses
reach out to their customers and even more importantly how customers are influencing and
shaping companies and their brands. Marketers everywhere are under pressure to deliver
increased ROI and better metrics. The challenge for Indian marketers is in not only
integrating these evolving communication channels, but in adapting them to India's unique
diverse cultures and audiences. Advertising involves the process where in a message is
designed so as to promote a product, a thought, an idea or even a service. The concept of
advertising has assumed a dynamic form with the use of the various mediums of
communication.
Key words: -Advertising, Indian Market, Growth, Communication, products.
Introduction: Advertising, generally
speaking, is the promotion of goods,
services, companies and ideas, usually
performed by an identified sponsor.
Marketers see advertising as part of an
overall promotional strategy. Other
components of the promotional mix
include publicity, public relations,
personal
selling,
and
sales
promotion.Advertising
involves
the
process where in a message is designed so
as to promote a product, a thought, an idea
or even a service. The concept of
advertising has assumed a dynamic form
with the use of the various mediums of
communication. From the newspaper,
magazines, posters, neon and fluorescent
signboards, billboards to the commercial
on TV, laser shows to inflated high-rise
figures and objects, advertising has come a
long way. The work is formidable as it
spearheads a process intended to attract,
modify, change and influences public
opinion.
Research Aim and Objectives
The aim of the study is to collect the
information that will lead towards the
knowing Advertising industry‟s impact on
India. In order to have access in all the
possible information, there are three
objectives that can guide the entire study.
First is to determine the recent trends
being implemented in the corporate world.
Second is to compare the trends along with
the theories in order to justify the
Advertising being applied. And lastly, is to
measure the effectiveness of the
Advertising approach in the middle of
challenges and changes within the business
environment.
Methodology
The suggested method in the study is the
use of comparative case study. Since the
study is seeking for the most applicable
solution, the use of the case studies from
the various businesses and industries are
preferred. Through the use of the
comparative case studies, the study can
reach to the level wherein the
organizations experience the downfall and
their comeback in the market through the
help of the Advertising. It is a great
opportunity to examine the case studies,
websites, journals and textbooks for they
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convey a lot of information and insights
which is useful for the study.
Meaning and Definition
Advertising:
Advertising is a form of communication
used to promote products and services of a
company primarily to generate sales and
secondary to create a brand identity,
introduce new products and services,
communicating a change in the existing
product
line. It
also helps in
communicating social messages to the
masses. According to the American
Marketing Association advertising is
defined as “Any paid form of non –
personal presentation and promotion of
ideas, goods or services by an identified
sponsor”.
Latin word:
“ADVERTERE”-Turning the valuable
attention towards the product”.
“Any paid form of non personal
communication of information about
products or ideas by an identified sponsor
through the media in an effort to persuade
or influence behavior of the people in such
a manner as to induce them to buy.”
Growth of Advertising in India
Advertising as we understand today has its
origin in the early historical period. It has
made steady progress over centuries. Its
need or importance is growing along with
the growth and expansion of business
activities. Many significant changes have
taken place during the process of evolution
of advertising. Like other countries,
advertising has a long history in India.
However, advertising was officially
recognized as a medium of mass
communication only in the 18th century.
The
first
newspaper
“BENGAL
GAZETTE” was published in India in
1780. By 1786, there were four weekly
newspapers and monthly magazines
published in Calcutta. Advertising on
radio started in India in 1950‟s.
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Advertising on radio proved to be a
powerful medium useful for creating new
markets. Commercial Broadcasting has
informed and entertained people for more
than 40 years. In 1928, two advertising
agencies were started in India. The
importance
of
advertising
started
increasing only after the Second World
War. The Association of Advertising
Agencies of India (AAAI) was established
in 1945.The Audit Bureau of Circulation
(ABC) was started in 1948. T.V. started in
India in September 1959.In addition to DD
Metro now we also many other channels
on television like Zee T.V., STAR PLUS,
COLORS, ETC. cable T.V. and many
more such channels for Advertising
purpose. Introduction of satellite T.V. has
made a revolution in the advertising field
in India. The progress of advertising in
terms of quality, creativity and coverage is
extremely fasten India since 1950 due to
the introduction of new advertising media.
Ample of scope is available for advertising
due to industrial growth.
Advertising Industry in India
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 es13,
200-crore has made jaws drop and set
eyeballs gazing with some astonishing
pieces of work that it has given in the
recent past. The creative minds 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.
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Scope of Advertising Industry in
India
what media should be used? Measurement:
how should the results be evaluated?
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.
Active Participants in Advertising
Statistics of Advertising Industry
The overall advertising and media industry
is expected to close at Rs 21,314 crore in
revenues in 2008, riding a 20 per cent
growth rate Television advertising market
is projected at Rs 8,674 crore in 2008The
print industry stands at nearly Rs 10,000
crore. The cinema medium will corner
around 0.7 per cent of the total advertising
budget in 2008.Outdoor media industry
will grow at 14 per cent to touch Rs 1,454
crore, Radio is likely to record a 40 per
cent growth in 2008 to touch Rs 672 crore
Internet advertising will constitute only 1.7
per cent of the overall advertising spends
in 2008, up from the current 1.4 per cent.
Advertising is a type of collective activity
which needs the support and participation
of certain individuals or organizations.
They are called active participants in
advertising. Such participants are called:
Figure 1 Participants of Advertising.
Advertisers
are
the
individuals/firms/organizations
which
desire to advertise their products or
services. They support the whole
advertising process as they provide finance
by paying the advertising charges.
Advertising agencies An advertiser can
implement his advertising plan directly
through his own sales or advertising
department or may transfer the entire
responsibility of advertising to a
specialized professional agency called
advertising agency.
Audience Advertising is for giving
message about goods or services to
readers, viewers or listeners. They
constitute the audience. It is for their
information
and
guidance
that
advertisements are given.
5 Ms of Advertising
Advertising Media Advertising media act
as a connecting link between the advertiser
and the audience. The media act as a
channel of communication for giving
message to two or more media for
advertising
purpose.
Newspaper,
magazine, radio and T.V. are some popular
advertising media and are used extensively
by advertisers.
While making an advertising program five
ms should be taken into consideration,
they are: Mission: what are the advertising
objectives? Money: how much can be
spent? (Advertising budget) Message:
what message should be sent? Media:
Government Authorities Government
authorities act as a one important
participant in the advertising field.
Government acts as a supervisory
authority in the field of advertising. It
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makes rules and regulations as regards that
use of media for advertising purpose.
Some advertising media such as radio and
T.V. operate directly under the control of
central government.
Impact of Advertising
Advertising plays an important role in
today‟s competitive business world. It
provides benefits to Manufacturers,
Retailers, Customers, Salesman and
Society as well.
Introduces a New Product: Advertising
is used to introduce a new product in the
market. It helps to compete with establish
brands and, thereby, ensures the survival
and success of new product.
Creates
Demand
for
Product:
Advertising creates demand for the
product. Advertising spread information
about the product or services and makes
consumers aware about it through various
mass media which makes positive effect
on the mind of the people and create
demand for the product.
Expand Market: It helps in expanding
local markets, to national level and even to
international level. Trading at national and
international level is impossible without
advertising
Assists Personal Selling: Advertising
reaches a prospect before a salesman
could. The prospect is well informed
through advertising. Makes the salesman‟s
job easier.
Building Brand Image: The purpose of
repeat advertisings is to make people more
brands conscious. Once good brand image
is developed, buyers generally become
brand loyal. Money spent on advertising is
a long term investment to build brand and
company image.
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Reduces the cost of goods: Advertising
generates more demand, which leads to
large scale production and distribution.
This results in economies in large scale
which in turn reduces cost of goods.
Persuades prospects: Every competitor
makes superior claims of his product.
Therefore, a prospect needs to persuade to
buy products. So, the role of Advertising is
not only to inform but also to persuade.
Employment:
Advertising
provides
employment in the field of advertising to
copywriters, models, etc. It provides
indirect employment in society due to
large scale production and distribution.
Role of Advertising in Marketing
Mix:
Marketing mix refers to advertising
combination of four elements of marketing
useful for large-scale marketing. Such
elements are: Production, Price, Place, and
Promotion (4 Ps).
According to W.J. Stanton “Marketing mix
is the term used to describe the
combination of the four inputs which
constitute the core of advertising
company‟s marketing system: the product,
the price structure, the promotional
activities and the distribution system”
Advertising and elements of marketing
mix:
Advertising and product: Product is the
core element in the marketing mix. The
market demand finally depends on the
popularity and utility of the product.
Popularity again depends on the Quality,
Benefits and uses of the product. It is
necessary to give publicity to physical and
other features of the product. Such
information needs to be communicated to
the prospects through advertising.
Advertising and price: Buyers are always
sensitive about the market price. They shift
from one product to the other due to
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quality or price. Price charged should be
reasonable. This is necessary for the
support and co-operation of consumers.
Advertising and Place: Place relates to
physical distribution which is possible
through various channels of distribution.
Advertiser has to decide whether to adopt
direct or indirect channels of also useful
for large-scale distribution. Advertising
plays a crucial role to ensure smooth
distribution of goods and keep the
consumers well-informed.
Advertising and Promotion: Promotion
is perhaps the most important element in
the marketing mix. Companies introduce
sales promotion campaigns for capturing
market. Price discounts and schemes like
buy one, get one free are also offered as
sales promotion. Various sales promotion
techniques are introduced at the consumer
and dealer levels. Window display,
provision of after sales services and
coordinal public relations also facilitate
sales promotion. Massive advertising is
useful to support the sales promotion
campaigns.
Findings:
Costly Functions The strong objection
and arguments against the advertising is
that it is a costly function. It is generally
criticized that the cost of advertising to too
high and that such high cost is covered by
the selling price of the advertising goods.
Encourage Monopoly Advertisement
restricts the competition among the
products.
Big
industrialists
and
manufacturers
may
exercise
their
monopolistic control over the market with
the help of advertisement technique which
is always against the public interest.
High prices It is undoubtedly true that
effective advertising increase the sales
volume. This increased sale will require
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more products. Thus the large scale
production brings down the cost of goods
per unit due to economies in various
sectors which reduces the consumes
selling prices. But the producers do not
lower the prices and the burden of
advertising remains on the shoulders of
consumers.
Disconnection of business Small firms
cannot properly advertise their products
due to limited resources. But on the other
side entire market is controlled over by
great advertisers. It becomes impossible
for small firms to continue their business
in the business field so small firms
disappear from the market.
Influences
purchasing
power
Advertising goods are generally available
in the market at high prices which
influence the purchasing power of the
consumers. So some people use foul
means to increase their income for the
purpose of meeting their necessities of life.
Thus unnecessary advertising creates the
corruption in the society.
Buying problems there are numerous
similar types of products which are
advertised in the market. But producers lay
great emphasis on minor differences in the
formula or technique of advertised goods.
For example there are many brands of
advertised Shaving Creams which perform
the same function.
Miscellaneous objection
(a) Inferior quality of goods are introduced
in the market to deceive the consumers.
(b) The new firm having limited resources
cannot compete with a already established
big firms, with the help of advertising.
(c) A large firm can divert demand from
one product to another with the help of
advertisement.
(d) Consumer's choice is greatly injured by
the advertisement.
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What is the perfect advertising
needed
After doing the study on advertising, I
think that the perfect advertising is the
advertising which should at least contains
the following things after planning and
doing research on the customer
preference:Jingle and signature tune: - Jingles are
like a song therefore it is more likeable by
Indians. It is easy to remember the product
which has jingle in its advertising and it
sounds nice.
Use different modes of advertising: Using different modes of advertising
makes chances of aware of products in a
large scale. Modes like online, TV serials
and show, billboards, standard newspaper,
magazines, word of mouth, etc give a
desired publicity to a product.
Location:-If advertising has to be made
within the home than its condition should
well enough because it reflects the
company image. Its environment should
look comfortable.
Advertising in sports: - The FIFA and the
Cricket are the medium through which the
millions of people are connected to the
advertising.
Brand ambassador:-Shahrukh, Amitabh,
Aishwarya, Aamir, Sachin, Dravid, Sania,
Dhoni and John are the brand ambassadors
who are popular and make the product sale
through their advertising. The personality
other than this had not make good effect
on their own.
Innovation in advertising:-Advertising
should also be published through
innovative media like outdoor campaign,
advertisings in the serials and show (Kit
Kat), use of that product in a movie
(Virudh-Calcium Sandoz, Bournvita-Koi
mil gaya, Motorola-Don, etc), streets play
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(Airtel), give advertising on the another
product („rang de basanti‟ printed on the
coke bottles), advertise through SMS or
Free Promos, neon, etc because it attract
the target people at cheaper cost.
Conclusion:
In today‟s competitive and a globalised
economy the need and importance of
advertising is increasing day by day, as the
development in all fields is taking place
rapidly. Advertising is really a very
interesting and a very important topic
related to marketing as marketing depends
a lot on advertising. Advertising helps the
advertiser to communicate the message to
the consumer in a proper manner.
Everyone needs advertising for promoting
its products or services in this competitive
market. Advertising acts a tool for the
companies to inform the consumers about
the latest product in the market and also to
give reminder to the consumers for already
existing products in the market.
Advertising is useful for both the
advertiser and the consumer, as the
companies boost their sales through it and
consumer get the knowledge of the
product or service in the market.
References:
Books

Advertising Management Concepts
and Cases by Manendra Mohan.
 Advertising Management by B. S.
Rathor.
 Ogilvy on Advertising by David
Ogilvy,
 4 Ps Business & Marketing.
 Economic Times.
Websites
 www.magindia.com
 www.google.com
 www.agencyfaqs.com
 www.adage.com
 http://en.wikipedia.org/wiki
 www.aaaindia.org
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
http://www.iimb.ernet.in
IJSTM, Vol. 3 Issue 2, September 2012
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

Journals
 Charles R. Taylor, International
Journal of Advertising, Vol. 30,
No. 3, 2011, pp. 369-371.

Sandy Thompson, International
Journal of Advertising, Vol. 31,
No. 1, 2012, pp. 215-216
Sandy Thompson, Worldwide
Planning Director of Y&R.
Iain Black, International Journal of
Advertising, Vol. 31, No. 1, 2012,
pp.
213-215
Iain Black reviews "Brand
Valued".
Jaeseok Jeong and Chan Yun Yoo,
International
Journal
of
Advertising, Vol. 30, No. 3, 2011,
pp. 509-535.
Figures:
Fig. 1: Participants of Advertising
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