Snapshot

Advertising has not only come to reflect pop culture but has also become an important element of economic growth. Today, every person connected

with the Indian economy or public should be fully aware what advertising really is and why effective advertising campaigns can be performed by

full-service advertising agencies.

Advertising agency is one of the most important components of advertising industry. It has played a significant role in the development of modern

advertising.The advertising agency has evolved to provide the specialized knowledge,

skills andexperience needed to produce effective advertising campaigns.

The Association of Advertising Agencies of America (AAAA) definesadvertising agency as “An independent business organization composed of

creativeand business people who develop, prepare and place advertising media for

sellersseeking to find customers for their goods and services.”

The definitionA media marketplace

supports a many-to manyinteraction by bringing

togethercontent, tools, and consumer

activityinformation. Tools help

developcommunities and support

creation, sharing,mixing, and remixing of user-

generated orprofessional content across

multiple touchpoints.

NATURE OF INDUSTRY

• Firms in the advertising industry prepare advertisements for other companies and organizations and design campaigns to promote the interests and image of their clients.

This industry also includes

media representatives—firms that sell advertising space for publications, radio,

television, and the Internet;

display advertisers— businesses engaged in creating and designing public display for use in shopping malls, on billboards, or in similar media

direct mail advertisers.

• In an effort to attract and maintain clients, advertising agencies are diversifying their services offering advertising as well as public relations, sales, marketing, and interactive media services.

Process and type of media agencies

Process• Briefing• Creation• Production• Post production

Types of agencies• Full service• Modular• In house• Creative boutique• Mega agencies• Specialist agencies

SWOT analysis STRENGTHS:

1. Media And Entertainment is one of the most booming sectors in India due to its vast customer reach. The various segments of the Media And Entertainment industry like television and film industry have a large customer base.2. The growing middle class with higher disposable income has become the strength of the Media And Entertainment industry.3. Change in the lifestyle and spending patterns of the Indian masses on entertainment.4. Technological innovations like online distribution channels, web-stores, multi- and mega-plexes are complementing the ongoing revolution and the growth of the sector.

5. Indian film industry is second largest in the world and the largest in terms of the films produced and tickets sold.6. The low cost of production and high revenues ensure a good return on investment for Indian Media And Entertainment industry.

WEAKNESSES:1. The Media And Entertainment sector in India is highly fragmented. 2. Lack of cohesive production & distribution infrastructure, especially in the case of music industry.3. The lack of efforts for media penetration in lower socio-economic classes, where the media penetration is low.

SWOT analysis cont.

• OPPORTUNITIES:1. The concept of crossover movies, such as Bend It Like Beckham has helped open up new doors to the crossover audience and offers immense potential for development.2. The increasing interest of the global investors in the sector.3. The media penetration is poor among the poorer sections of the society, offering opportunities for expansion in the area.4. The nascent stage of the new distribution channels offers an opportunity for development.5. Rapid de-regulation in the Industry6. Rise in the viewership and the advertising expenditure.7. Technological innovations like animations, multiplexes, etc and new distribution channels like mobiles and Internet have opened up the doors of new opportunities in the sector.

THREATS:1. Piracy, violation of intellectual property rights pose a major treat to the Media And Entertainment companies.2. Lack of quality content has emerged as a major concern because of the 'Quick- buck' route being followed in the industry.3. With technological innovations taking place so rapidly, the media sector is facing considerable uncertainty about success in the marketplace.

•

SCENARIO IN INDIA

• India's E and M industry is expected to grow at a compound annual growth rate (CAGR) of 10.5% between 2009-2013 compared to the global rate of 2.7% for the same period, projects a PwC report .

• While the Indian media industry would touch $18.58 billion by 2013, the global EandM market is expected to grow 2.7% compounded annually over the five year forecast period to $1.6 trillion in 2013. After registering a growth of around 16.6% compounded annually over the period 2004-08, growth in the Indian media industry is set to decelerate to 8% in 2009.

• According to an Economic Times survey of 100 large private sector companies, the aggregate spending on advertising by these companies grew by a huge 22.4 per cent last year over the previous year. More than four-fifths of the sample companies have witnessed a rise in sales turnover in 2007-08 following higher advertising spend.

• Growth rates will increase in 2010 to 10.4% as economic conditions are expected to improve. For the remaining years of the forecast period, the industry will continue to grow at increasing rates, resulting in the overall CAGR for the period 2009-13 of 10.5%.

Media market place evolution

TRANSFORMATION OF MEDIA INDUSTRY

Famous advertising agencies in world

BBH (Bartle, Bogle & Hegarty) Crispin Porter + Bogusky Wieden + Kennedy JWT (formerly J. Walter. Thompson) Leo Burnett The Martin Agency N.W. Ayer & Son Ogilvy & Mather Saatchi and Saatchi TBWA\Chiat\Day

Most Recent facts & figures about ad agency

Source: The Economic Time, Brand Equity, December 27, 2006

Top 10 Ad agencies in India 10 most influential people in advertisingRank Name of agency No. Name1 O & M 1 Piyush Pandey2 McCann-Erickson 2 Prasoon Joshi3 Lowe Lintas 3 Prahlad Kakar• JWT 4 R Balakrishnan5 Leo Burnett 5 Madhukar Kamath6 Mudra 6 Sam Balsara7 Grey Worldwide 7 John Goodman8 FCB Ulka 8 Prasoon Pandey9 Contract Advertising 9 Arvind Sharma10 Rediffusion DYR 10 Arun Nanda

Ogilvy & Mather India

Founded in 1928, the first advertising agency in India

Over the years create some of India's most successful brands like Asian Paints Cadbury Fevicol in recent times- Perfetti, Hutch, Close Up and many more. part of Ogilvy & Mather Worldwide, one of the largest marketing communication networks in the world. The network services more Fortune Global 500 companies in five or more countries than any other agency

Their specialist skills include advertising, media investment management, information, insight & consultancy, public relations & public affairs,branding & identity, healthcare, communications, direct, promotion & relationshipmarketing and specialis communications.

Major Clients

· IDBI Mutual Fund (Mutual fund);· SBI Mutual Fund(Mutual Fund);· TTK Textiles (Tantex/Textile);· J K Tyres (Tyres);· Pantaloon Fashion India Ltd. (Garments);· Levers,· Asian Paints,· Cadbury,· Pidilite Industries Ltd. (Fevicol)· Louis Philippe (corporate);· UTI (MIP'97/Financial);· TVS Suzuki (corporate):· Tata Telservices (corporate),· Tata Communications Ltd (corporate);· Hindustan Lever Ltd (Brooke Bond, Lipton - tea and health);

· Discovery Channel Inc (Discovery Channel - television channel);· ITC Ltd (corporate);· MIRC Electronics Ltd (Onida - television);· The Chase Manhattan Bank (corporate);· Birla 3M Ltd (Scotch Brite - cleaning aid);· J M Morgan Stanley (J M Morgan Stanley - investment bank);· Hero Honda Motors Ltd (bikes);· United Television (television media);· Castrol India Ltd (Castrol - lubricants);· Hutchison Max Telecom Ltd (Max Touch - cellular operator);· TELCO (Tata Safari, Sierra, Sumo - sports utility vehicle)

· Mr.A G Krishnamurthy founded mudra communication on 25th march 1980

· Mr Krishnamurthy started mudra with one brand vimal .today mudra has 125 client this multifold increase is a testy many to his passion and zeal

It was started in 1980 mudra rose to become the 3rd largest agency in thecountry. In a short span of nine years.

Today the mudra group is one ofthe India s leading marketing communication networks

In the present year mudra is poised to exceed a turnover in excess of 15billion at it continues to maintain it s aggressive growth rate.

Mudra communication limited

Company profile

Mudra is one of the management admired marketing communicationnetwork in the country a highly rated agency both by client andindustry.

Mudra south won the agency of the year at the ad club cochin s paperawards 2009 10.4.09

Achievements of the mudra communication ltd*It was a mudra that first gave India double spread colors ads*it was mudra that first sponsored commercial telecast of a major sporting event with the India and west Indies series of 1983*it was mudra that first branded a public issue reliance khazana*it was mudra that made Indias first teleflim Janam*it was mudra that gave Doordarshan Rajani .The serial that heralded a new consumer awareness in India*it was mudra that gave Indias its first academy for advertising . THE Mudra Institute Of Communication(MICA)*it is a mudra that gave India s advertising community its first advertising archives marketing and Advertising Gallery(MAG)

Clients and advertisements

Mudra clients• 1. Paras pharmaceuticals• 2. Reliance communication• 3. Union bank of India• 4. Life Insurance Cooperation of India• 5. Godrej• 6. The Philips• 7. Hindustan unilever ltd.• 8. Pepsi• 9. Jet air ways• 10. Reliance ADAG• 11.Spice telecom• 12.ICI points• 13.Union bank of India• 14.Amrutanjan

Mudra advertisements• Only vimal• I love you rasna• my daddy strongest• Humko binie mangta• The world in your pocket

CONCLUSIONIn today’s world which is fast moving & dynamic, people’s wants, need anddesires are changing; it’s very important to know them and give them what

thewant.This is the main objective of advertising where ad agency plays major role in marketresearch, making of creative, launching it in the market, taking the feedback ofconsumer and making any product famous and acceptable among consumers. Adagencies are playing an important role in shaping present and future of not justselected brand but of entire company.

There is no one sure fire best way to advertise your product or service. Itis important to explore the various advertising media and select those which

willmost effectively convey your message to your customers in a cost-efficient manner.

Always remember, advertising is an investment in the future of your business.