Advertising Sector

By

Nimit Kaul (38)

Pallavi (40)

Shivank Rastogi (57)

ADVERTISING

• Advertising is the means of informing as well as influencing the general public to buy products or services through visual or oral messages. A product or service is advertised to create an awareness in the minds of potential buyers.

AIDA Model

• The traditional conceptual model for creating any advertising or marketing communications message is the AIDA Model

History of Advertising in India

• Advertising in post-independence India can be divided into four key phases.

• The first of these began after Indian independence from Great Britain (1947) and lasted until the early 1960s. The overall style of advertising was factual presentation coupled with an overall lack of creativity.

• The second phase (early 1960s to 1980s) emerged in large part as a reaction to the first and stressed creativity and an Indian professional identity independent of Great Britain.

• A third phase (1980s) turned away from creative and innovative advertising and toward creating efficient marketing channels that would have a wide impact throughout the country.

• The fourth and current phase, which also came into being in the 1980s, is characterized by a synthesis of effective marketing mechanisms and a high level of creativity.

Categories of advertisements

• Commercial ads -designed to sell goods and services,

• Messages from the government and social organizations

• Regional ads -messages targeted to specific geographical regions.

Media For Advertising

• Television

• Newspaper

• Radio

• Magazine

• Internet

• Mobile Advertising

• Outdoor(billboards,blimps)

Indian advertising industry• The Indian advertising industry is talking business today. It

has evolved from being a small-scale business to a full-fledged industry.

• It will grow by 17 per cent in calendar year 2011 and is expected to add about US$ 889 million to the existing ad pie worth US$ 5248 million.

• Indian advertising spends as a percentage of GDP -- at 0.34% 

• India to be 5th fastest growing ad economy in the world by 2013

• The advertising industry in India is growing at an average rate of 10-12% per annum.

• India’s contribution will be $2.5 billion to the global ad spend growth, behind US, China, Russia and Brazil.

Market Share of Different Media

• The leading advertisement medium are newspaper and television with a share of 75%.

• The Magazine advertisement is nearly 3% and online is

close to 1%.

• Online spending on Advertisement is growing at a rate of 25% per annum .

• Online Advertising Market in India is Expected to Cross $219 Million By 2011.

• Biggest industry veterans like BFSI, Retail and FMGC are biggest online spenders ( in India) and going to remain so.

Online Advertising Market Share

Top leading advertising companies in India

• Ogilvy and Mather• J Walter Thompson India• Mudra Communication Pvt. Ltd• FCB-Ulka Advertising Ltd• Rediffusion-DY&R• McCann-Erickson India Ltd• RK Swamy/BBDO Advertising Ltd• Grey Worldwide (I) Pvt. Ltd• Leo Burnett India Pvt. Ltd• Contract Advertising India Ltd

Elements of a Successful Advertising Campaign

• Establish a feeling of urgency for the buyer.

• Show a list of benefits.

• Call to action.

• Do it again.

• Plan your advertising calendar and campaign several months in advance.

• Test your banners and your ads.

• Avoid misleading or dishonest advertising

Advertising Agencies Association of India

• On September 21, 1945, Advertising Agencies Association of India (AAAI) was registered as a society in Calcutta.

• 4 agencies from Calcutta – D J Keymer, General Advertising Agency, J Walter Thomson Co. and Press Syndicate – and 3 agencies from Bombay – Adarts, Lintas and National Advertising Service – were the signatories in the registrar’s office doing the honours.

Structure of  The Advertising Agencies Association of India

• The AAAI functions through the active, voluntary services of a President, a Vice-President, an Honorary Secretary, an Honorary Treasurer and an Executive Committee assisted by a full-time Secretary-General and his staff.

• Conventionally, a very senior agency person represents each member agency in the AAAI.

• The Association maintains a permanent office, in Mumbai

Objective of The Advertising Agencies Association of India

• To benefit Indian consumers and to protect their interests by helping ensure that advertising is honest and in good taste.

• To benefit Indian advertisers by promoting their sales, increasing their sales and increasing productivity & profitability, to stimulate business and industrial activity.

• To benefit media by establishing sound business practices between advertisers and advertising agencies and each of the various media owners.

• To benefit the nation by harnessing advertising for the good of the country, its institutions, its citizens; to co-operate with the Government in promoting its social objectives and in the task of nation-building.

• To question advertising that is wasteful and extravagant; to encourage market and media research; to serve society by meeting its social responsibilities.

AAAI’s Contribution• In 1988 and again in 1990, AAAI was actively involved in

determining the procedures and policies of the electronic media i.e Doordarshan.

• AAAI was highly supportive to the formation of Advertising Standards Council of India (ASCI).

• AAAI encouraged the formation of Indian Broadcasting Foundation so that it could address the needs of TV channels.

• AAAI provided a platform for training of advertising

professionals, recognition of creative work through its coveted Triple-A Awards and honouring outstanding advertising men through its AAAI-Premnarayen Award.

Advertisement Policy

• The Directorate of Advertising & Visual Publicity (DAVP) is the nodal agency of the Government of India for advertising by various Ministries and organizations of Government of India.

• All Central Govt. advertisements will be routed through DAVP.

• All Ministries / Departments shall pay for all type of

advertisements including tender, recruitment & display.

Celebrities as Brands

• The stars get a disproportionate amount of money to endorse a product. Their earning per day for endorsing a product is much higher than what they would earn in a day in a movie or a cricket match

• Essentials of celebrity endorsements

– Attractiveness of the celebrity

– Credibility of the celebrity

– Meaning transfer between the celebrity and the brand

Types of Celebrity Endorsers

• Money Minded - They will endorse almost any decent brand if the price is right. So concepts like brand fit do not bother them as brand managers force-fit their image attributes to what suits their products.

• Image Suitors - who are true to their image attributes and usually work with brands whose traits they think suit their image.

• Small Celebs - the ones that don’t have any positioning and are .nterchangeable

Celebrity endorsements – Do’s and Dont’s

• Consistency and long-term commitment• Three prerequisites to selecting celebrities• Celebrity–brand match• Constant monitoring• Selecting unique endorsers• Timing• Brand over endorser• Celebrity endorsement is just a channel• Celebrity ROI• Trademark and legal contracts

Celebrities and business

• In the last few years, as demand for the top celebs shot through the roof, their rates too looked skywards. Top stars today charge anywhere between Rs 1–1 .5 crore a day

• Motto of this business largely remains show me the money ! as Rod Tidwell (Cuba Gooding Jr) tells Jerry (Tom Cruise) in that famous scene in smash hit Jerry Maguire.

Risks associated with Celebrity Endorsement

• Negative publicity• Overshadowing• Overexposure• Overuse• Extinction• Financial Risk

Sponsorship

• Sponsorship is a cash and/or in-kind fee paid to a property.

• Commercial opportunities for sponsorship include signage at sporting events, local or national media coverage, promotional opportunities before and after the event, and the opportunity to entertain clients and prospective customers by inviting them as VIPs to sponsored events.

• Sponsorship is used to derive benefit from the associations created for a company's brand(s) or image as a result of the sponsorship.

Types of Sponsorships

• EVENT SPONSORSHIP

• ACITIVITY SPONSORSHIP

• MEDIA SPONSORSHIP

IPL and Advertising

• Corporates are lapping up advertising spots in the forthcoming IPL

• The main sponsors on Set Max, the official broadcaster of the IPL-4, are said to be spending a fortune to push visibility among the bunch of advertisers.

• A month back the price for a 10-second slot was Rs 6 lakh • Set Max holds 10 years exclusive rights for the tournament

since it started in 2008.

Current Season

• The joint presenting sponsors Vodafone and Videocon have allocated up to Rs 60 crore (Rs 600 million) each in media spends for 180 seconds of commercials per match.

• 11 associate sponsors have put in Rs 40 crore (Rs 400 million) each for 120 seconds of commercial time, this year.

• Generated advertising revenue to the tune of Rs 950 crore (Rs 9.5 billion) from IPL 2011.

• Sony Max is the official media partner and broadcaster for $1.026 billion.

• SET Max expects to rake in an impressive Rs 1,000 crore (Rs 10 billion) in ad revenue

Brands associated with IPL

• LG• TATA DOCOMO• RELLIANCE COMMUNICATIONS• TATA MOTORS• COCA COLA• HERO HONDA• GODREJ• NIKON• ULTRATECH CEMENT

• Telecom handset manufacturers and service providers have emerged as the largest advertising brands during the Indian Premier League (IPL)

Trend of IPLadvert

isers

Scope of Advertising Industry in India

• 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 recognised 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.

THANK YOU!!