Main Project Bunty

8/8/2019 Main Project Bunty

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INTRODUCTION

Imagine a day in the life of an average urban Indian male living inan apartment by himself. He wakes up early in the morning to the

sound of a hi tech alarm (which he has recently bought, thanksto the ad of an alarm clock he seen on TV). He jumps out of bedand switches on the radio (to hear some good music on FMpunctuated with some news headline). The TV is then switched on(to the channel on Aerobics while he woks out with those slimwomen who promise a sexy physique in just a couple of months).With a brush in his mouth (of course with Close Up toothpastefor greater confidence and so that beautiful girls may say Talk tome), he scans the news paper for a quick update while heprepares some breakfast (the fast and highly nutritious Kellogswhich once again he purchased because of the attractive ad).

After a warm bath (with Dettol soap - for greater skin protectionand Head and Shoulders Shampoo so that he is neverembarrassed because of dandruff), and a cool shave (with thevery cool Gilette Shaving foam as shaving cream is out andshaving foam is in, and the Mac3 - for the closest shave), hebathes his cheeks with an after shave (Old Spice for thatmacho feeling). He dashes off to work (whizzing past posters,billboards, hoardings all bombarding him with different

messages, schemes, offers etc.). His bus and train journey arenever boring as he always carries the latest India Today to keephim abreast of the latest happenings. He is on the field workingwhen he feels thirsty (but he cannot make up his mind whether tohave a Thums up as he is grown up, or to have a Pepsi because he wants to live young forever; any way he decides toplay safe and have a Bisleri). His mobile suddenly buzzes. Its aprogrammed call, reminding of his date. He realises he is late. Atthe shopping center close by he buys his date a card (an Archies

Im sorry Card of course, because no one can say it better thanArchies). Obviously his date reacts as she is expected to by givinghim a hug (just like the ad). After the great date they returnhome. After some TV snacking, he sets the mood with some softmusic, spruces himself (any guesses with what? yes with thesexiest, irresistible, AXE deo spray). And the lights go out. (Heywait a second, I forgot to mention the extra soft. Kurlon


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mattress he had recently purchased thanks to the special Diwalioffer). That was Media and Advertisings influence for you.The word advertisingoriginates from a Latin word advertise whichmeans to turn to. The dictionary meaning of the term is to givepublic notice or to announce publicity. Advertising as a term isused by many to cover almost any topic in the promotional areaof marketing. Advertising is a marketing vehicle that is designedfor the masses.The American Marketing Association defines advertising as anypaid form of non personal presentation and promotion of Ideas,goods or services by an identified sponsor.Advertising is paid communication through a non-personal medium in which the sponsor is

identified and the message is controlled. Advertising clients are predominantly, but not

exclusively, for-profit corporations seeking to increase demand for their products or services.

Other organizations that frequently spend large sums of money on advertising include political

campaigns, interest groups, religion-supporting organizations, and the military.

Other non-profit organizations are not typical advertising clients, and rely upon free channels,

such as public service announcements Commercial messages and political campaign displays

have been found in the ruins of ancient Arabia. Egyptians used papyrus to create sales messages

and wall posters, while lost-and-found advertising on papyrus was common in Greece and Rome.

Wall or rock painting for commercial advertising is another manifestation of an ancient media

advertising form, which is present to this day in many parts of Asia, Africa, and South America.

For instance, the tradition of wall painting can be traced back to Indian rock-art paintings that go

back to 4000 BC. As printing developed in the 15th and 16th century, advertising expanded to

include handbills. In the 17th century advertisements started to appear in weekly newspapers in

England. These early print ads were used mainly to promote books and newspapers, which

became increasingly affordable thanks to the printing press, and medicines, which were

increasingly sought after as disease ravaged Europe.


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Importance of Advertising

Back in 1950s, it was said that doing business without advertising is like winking at a girl in the

dark; you know you what you are doing, but nobody else does. The message was: 'Come on, turn

on the light, it pays to advertise'. Today, in this complex world amidst heavy rush or everything,

having a densely crowded scenario of multiple ads even winking in broad daylight goes

unnoticed. Since everyone is advertising, the idea is to do it with innovation. Advertising is of

immense utility both to large and small business. There can be no doubt that advertising efforts

would result in creation of additional sales. All forms of promotion of sale of goods is in one

way or the other, supported by extensive advertising campaign. It is not possible to imagine

survival of any business, which is in the business of "make and sell" in the absence of advertising

efforts. Advertising has extended its coverage to include non-business enterprises also e.g..

Public Water Works advertises the need to preserve precious water and to cultivate the habit of

drinking clean water free from any form of pollution. Countless illustrations can be provided

wherein non business enterprises have recognized the importance of advertising and their use it

as a tool to promote ideas and services. Advertising is an economic activity and it generates

employment. Thousands of men and women are directly or indirectly, employed in professional

advertising. Advertising is an economic proposition. People who invest their money in

advertising anticipate positive results. Hence, advertising must be result oriented. Every

newspaper or magazine survives on the advertisements that it receives. Advertisements are

definite source of revenue to the publishers. Because of the advertisements inserted in

newspapers and magazines, they are sold at lower price, which can be afforded by the public.

Advertising is of paramount importance because it creates better informed public by making

available innumerable publications at an affordable price. Considering the response that


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advertisements generate, it can be stated that "advertising does not cost too much". In older to cut

down production cost per unit there is a need to increase the total sales turnover. When overall

sales increase, production cost per unit is automatically slashed and more people buy the goods.

Apart from towering production costs, advertising also pays for entertainment and education

through use of media like radio and TV. Consumer is the king in the market. He cannot be

compelled to buy anything. At the most, he can be persuaded to patronize a certain brand. It is

here that advertising plays a prominent role. There is no standard format to be followed to make

advertising liked by every person. Advertising is a creative field. Individual likes and dislikes

determine success of advertising or its failure. Advertising scores over personal selling because it

provides freedom of choice to the consumer. Decision to make purchases is independently

arrived at by the consumers. No civilized society can record constant progress and ensure better

standard of living to its people in the absence of information and education provided by

advertising.

Types of Media

Print media is one of the oldest and basic forms of mass communication. It includes newspapers,

weeklies, magazines, monthlies and other forms of printed journals. The contribution of print

media in providing information and transfer of knowledge is remarkable. Even after the advent

of electronic media, the print media has not lost its charm or relevance. Print media has the

advantage of making a longer impact on the minds of the reader, with more in-depth reporting

and analysis. Print industry in India is one of the most well established and oldest media forms in

the country. It is more than a century old and is one of the only two growing print industries in

the whole world. The Print Industry chiefly comprises of newspaper and magazines publishing.


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Book publishing forms a small but significant part of the revenue. Even though the industry has

reached the phase of maturity, new newspapers are being launched every year and this boom is

predicted to continue till 2011 at least. Print has successfully managed to reach out to section A

and B, its penetration in C is lower compared to the other two sections. Print media is forecasted

to increase its revenue with contribution from new segments like telecom, internet, OOH, etc.

Bundling of advertisement space can happen when companies diversify into different media

areas. Print growth dropped in late 90s due to the expansion of TV. However, this trend changed

and print started picking up in the start of 2000s.

History

For about 600 years printing has been the basic tool of mass communication, storing and

dissemination of information and knowledge. From about the second half of the last century

electronic media has somewhat taken over the mass media world by a storm but the print media

has not lost its sheen and its social relevance. The modern printing in India originated in Goa in

1550 by Spanish Coadjutor, Brother John de Bustamante, also known as Indian Gutenburg. The

first language printing press with vernacular types was established in 1557 at Vaipicotta. In India

the concept of the freedom of the press can be referred back to the Mughal Era. An emperor like

Aurangzeb allowed great freedom in news reporting, but the reports sent by the news-writers

were often unreliable. The East India Companys news-writers were under greater control than

under the Moghal Emperors. The first attempt to start a newspaper in India was made in Kolkata

in 1766 by William Bolts, the well known author of consideration on Indian Affairs. On January

29, 1780 the first Indian newspaper, the Bengal Gazette, two pages, twelve inches by eight,


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popularly known as the Hickys Gazette was published. During the later half of the 19th century

Anglo- Indian press established firm foundation in India. In 1861 there were 11 Urdu

newspapers and 8 Hindi newspapers. By 1870 the press in Indian languages was growing

rapidly. There were about sixty-two Indian languages newspapers in Bombay, about sixty in

North-West Provinces, Oudh and the Central Provinces, some twenty-eight in Bengal, about

nineteen in Madras (Tamil, Telgu, Malyalam and Hindustani). There were about 100,000 readers

and the highest circulation of any one newspaper was about 3000. Today the number of

newspapers has grown to 99 million copies daily. Indian newspaper sales increased 11.2 percent

in 2007 and 35.51 percent in the five year period. Newspaper advertising revenues in India were

up 64.8 percent over the last five years. Even when the electronic media is running the roost, the

print media has actually grown in circulation and readership. Though it is found that newspapers

are facing hard times, but circulation world wide increased by 2.57 percent in 2007, taking global

daily sales to a new high of over 532 million copies. The global paid - for circulation world wide

increased 2.57 percent year on year and 9.39 percent over the last five years. However, when free

dailies were added to the paid - for daily circulation, global circulation increased by 3.65 per cent

year on year to 573 million copies. Free dailies now account for nearly 7 per cent of all global

newspapers circulation. Print media remains the worlds largest advertising medium with a 40

per cent share. Timothy Balding, chief executive officer of WAN (World Association of

Newspaper), said, Newspaper circulation has been rising or stable in three quarters of the

Worlds countries over the past five years and in nearly 80 percent of countries in the past year.

With literacy level rising to approx 551 million people in India, more people - rural and urban -

are reading newspapers and magazines. The reach of print media has increased to an estimated

316 million readers. Print media has also attracted the global investors with maximum foreign


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investment in this segment. Currently Indian government has allowed Indian editions of foreign

magazines publishing news and comments periodicals falling under the news and current

affairs category with 26 percent foreign investment. The year 2007 saw launches of many niche

magazines. The print media industry has the potential to grow, as approx. 236 million people in

India are still not tapped by any publication. A survey of Indian Media and entertainment

scenario jointly conducted by FICCI and Price Waterhouse Coopers recently assumed that in

view in increasing literacy, there was a possibility of future growth and expansion of print media

in future. From 1990s India has witnessed an explosion in electronic media, online news

services. Media has acquired such great control on the mind of the masses that it now somewhat

controls their behavior to a great extent. Today compared to the print media, electronic media

has grown faster. The Indian press is experiencing a fundamental transformation because of

changes occurring in the larger polity and the economy. Liberalization, globalization, and

competition from the electronic media are forcing the media to adopt new technologies, become

more professional and be more sensitive to the market structure. Today Indias print media

structure offers a product line that is dizzying in its diverse array of languages, ownership

structure, and topics. While Indian economy was growing at around 8 per cent, the media and the

entertainment sector had a compound growth of 17 per cent. It isestimated that by 2008-09 it

would be about Rs. 52,000/- crore. A report for the World Editors Forum points out that

newspapers must innovate, integrate or perish. Greater emphasis needs to be placed on comment

and opinion. While newspapers survived the competition from television, the challenge is more

serious now in the digital age. The report indicates that the most communication form of news

consumption will be through the digital media. The challenges ahead call for new thinking. The

newspapers today face twin challenges: how to adapt to and monetize digital distribution and


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advertising revenue; and how to meet the fourth estates obligation of feeding them spinach

with the ice-cream in the interest of the civil society. Print media is changing rapidly. The

changes in technology and marketplace are responsible for the development. In societies where

these technology driven changes are more advanced, as in the West, there is a trend decline in

newspaper readership and circulation. In other parts of the world, print media has maintained its

place particularly in India and China. In India almost all newspapers are completely accessible

through the Internet and provide up to-date news and information. Major changes that can be

expected are in the field of technology used in the printing and the number of units per each

organization. Newspapers are by no means obsolete. The traditional benefits to the reader are

obvious, but todays customers expect more. Newspaper organizations now-a-days identify

themselves as a commercial enterprise and the newspaper as a commodity, rather an institution

to serve the society. In over two hundred years of its existence, the newspaper media has

survived many challenges - from radio, television and now online, as also from time to time

setbacks due to the shortages of essential inputs like paper and import restrictions etc. It has done

this essentially by staying in step with the whirl of technology - seeing it not as an impediment

but an impetus to growth. Today, as we all are aware that media industry like any other industry

is facing the recession. In a complete change of mood from a year ago newsprint prices are

falling from the sharp high they reached in the middle of the year. They are still higher than they

were a year ago. Advertising is dropping fairly sharply. Group M, the media arm of the worlds

leading communications agency WPP, has projected for 2009 that the average growth rate across

media will drop by 50 per cent which is half the growth rate of 16 per cent in 2008. The press in

modern times has become a powerful social institution known as Fourth Estate. It facilitates

the exchange of thoughts and helps to solve many complex processes on a large scale in the


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shortest time. The press becomes an indispensable weapon to stir the conscience of the people, to

enlighten them with new ideas. The press is also an instrument to develop modern culture

ushered in the science and arts. Newspaper reading is a habit. The importance of print media has

not diminished with the advent of electronic media. The fact remains that the print media still

holds its own position which can never be threatened by the onslaught of new media. In fact print

media can benefit from the new technology. If the print media is to survive the onslaught of the

electronic media and retain its glory as the thinking media, it has to look inward and do a serious

introspection. At no time in the history of the Indian press, the need for self evaluation has been

greater than now.

TYPES OF PRINT MEDIA

The two most common print media are newspapers and magazines, but print media also include

outdoor billboards, transit posters, the yellow pages, and direct mail. Print media is important

because it can reach such a large audience, and the great numbers of specialized publications

enable businesses to focus in on a target audience with a specific set of characteristics. Print

media are allowed to advertise most anything, such as cigarettes, liquor, and contraceptives;

however, many publications will not accept controversial ads.

NEWSPAPERS When deciding upon a newspaper in which to advertise, there are three

physical criteria to consider: distribution, size, and audience. Newspapers are either daily or

weekly, come in a standard or tabloid size, and reach nearly all of the reading public, which is

estimated to be around 85-90 percent of the population. Because of the broad demographic reach

of most newspapers it is difficult to target a specific audience; however, newspapers are effective


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in increasing awareness of a business' products and services in a specific geographical area.

Types of ads placed in newspapers include: display ads, classified ads, public notes, and

preprinted inserts. Newspaper ads have some flexibility in their size. For instance, some are

small boxes that take up only a small portion of a page, while others might span one or two full

pages (the latter, however, are typically only bought by larger corporations). Regardless of this

flexibility, newspaper ads can only use limited special effects, such as font size and color. These

limitations lead to advertising "clutter" in newspapers because all the ads look very similar.

Therefore, advertisers must use original copy and headings to differentiate their ads from their

competitors. The quick turnover of newspapers also allows the advertiser to adjust ads to meet

new market conditions; however, this turnover means that the same ad may need to be inserted

over a significant period of time in order to reach its target audience.

MAGAZINES With magazines an advertiser can focus in on a specific target audience. As the

Small Business Administration pointed out in "Advertising Your Business": "Audiences can be

reached by placing ads in magazines which have [a] well-defined geographic, demographic, or

lifestyle focus." An attractive option for many small businesses may be placing an ad in the

localized edition of a national magazine. But magazine advertisements often have a lag time of a

couple months between the purchase of ad space and the publication of the issue in question.

Magazines, then, are sometimes not the optimum option for businesses seeking to target fast-

changing market trends. In addition to the above factors, it is also important to consider the

nature of the magazine ad copy. Magazines allow elaborate graphics and colors, which give

advertisers more creative options than do newspapers. Also, recent surveys have indicated that

informative ads are the most persuasive. Therefore, it is important to include copy and art work


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that is direct and presents important product information to the consumer, such as how the

product works, how it benefits the consumer, and where it can be purchased.

DIRECTMAIL Many consultants feel that direct mail is the best way for a small businesses to

begin developing awareness in their target consumers. Mailing lists can be generated (even

though they are often difficult to maintain) with the names of those people most likely to

purchase the advertiser's products or services. However, direct mail is not always cost effective.

According to James W. Taylor, author ofMarketing Planning: A Step by Step Guide, a direct

mailing campaign can cost as much as $1,000 to reach 1,000 people, whereas television can

reach a similar number of potential customers at a fraction of that cost. But business experts

indicate that direct mail does tend to generate more purchasing responses than does television,

and they observe that the products of many small businesses are often more suited to a direct

mailing campaign than to indirect, image advertising.

YELLOW PAGES The Small Business Administration stated in "Advertising Your Business"

that a yellow page ad is often used to "complement or extend the effects of advertising placed in

other media." Such an ad has permanence and can be used to target a specific geographic area or

community. Essentially, a yellow page ad gives the consumer information needed to make a

purchase. Therefore the key information to include in such an ad includes: the products and

services available; location; phone number; business hours; special features, such as the

acceptable kinds of payment (i.e. credit cards, checks); parking availability; discounts; and

delivery policies and emergency services. The best way to arrange this information is in a list, so

that the consumer will be able to scan the ad for the desired information.


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A major consideration with a yellow page ad is where to place it, which primarily depends on the

directory (or category) under which businesses choose to locate their ads. Central to this choice

are the products or services that the company wishes to emphasize. The ad copy should

compliment the directory, indicating the main products and services for sale, so that the ad will

emerge from the similar looking ads that surround it.

OUTDOOR ADVERTISING Outdoor advertising usually comes in two forms: billboards and

transit posters. Like yellow page ads, outdoor advertising is usually used to support

advertisements placed in other media. As Alf Nucifora noted in the LI Business News, perhaps

the greatest strength of outdoor advertising is as a directional marker to point customers toward

your business. Since the prospective consumer often has only fleeting exposure to billboards and

transit posters, the advertising copy written for these media needs to be brief with the ability to

communicate ideas at a glance; this, of course, requires efficient use of graphics and headings.

Foreign Investment in Print Media

The process of economic liberalization in India, which began more than a decade ago, has taken

another significant step, namely opening up a very sensitive sector . the print media.

Government of India in June 2002 had decided to allow 26 per cent foreign direct investment

(FDI) in news and current affairs print media. Technical and medical publications have been

allowed a higher FDI of74 per cent. The decision, taken by the Union Cabinet, reverses the

1955 Cabinet resolution prohibiting any foreign investment in print media. A detailed policy

statement on FDI in print would be issued shortly. Foreign investments in news agencies,


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however, remain barred. The government has attempted to address the concerns of political

parties that fear FDI in print might lead to foreigners controlling the Indian media.

The pre-conditions to FDI in print media would be:

At least three-fourth of the board of a print media company with FDI must be Indians.

All key editorial posts must also lie with resident Indians.

Any print media company wishing to change its share-holding pattern must get prior

government approval.

The Opportunity

The desire for foreign help is palpable. India has 49,000 publications, but annual revenues total

just $1.1 billion. While they can be vibrant and gutsy, most are starved for technology,

marketing, and capital to expand. So, a handful of publications dominate. Chief among them is

the Times of India Group, which long used its political clout to block foreign entrants by

claiming news media are a "strategic" industry. Its seven newspapers (total circulation: 2.2

million) use strong marketing and distribution to overpower rivals. The group earned $40 million

in 2001, more than the rest of Indias print media combined. One affiliate, The Economic Times,

has 467,000 subscribers. Theres little doubt about Indias market potential. According to a

national survey, 248 million literate adults still dont read any publication. But readership of

newspapers and magazines is up 15% since 1998, to 180 million. Its a reflection of a younger,

more educated population, especially in small-town India, feel experts.

The Initial Euphoria


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Now that the doors to foreign investors in print media have been thrown open, one can expect

some action in the sector. Already, some publications have taken the leap. Among the first to do

so was Business Standard. Companies such as Pearson, Haymarket, Time India, News Corp.,

and Dow Jones have eyed Indias big, English-reading market. So the day the new policy was

announced, stocks of five newspaper companies shot up 10%. Bankers in Bombay began asking

other media concerns if they want to go public. ICICI Ventures, which holds stakes in three

media companies, is quite bullish about the industrys prospects. Trade books offer the best

openings, since as much as 74% FDI has been permitted in them. Britains Haymarket

Publishing Group already has ties to Auto carI

ndia, with 80,000 subscribers. Haymarket

doesnt own a stake, but helps with research and management. Now, it can invest, provide funds

to print more copies, market more strongly and use Auto caras a platform to bring its other

brands. Bombays Tata Info media, a $30 million publisher of yellow pages and trade magazines,

also has already started to solicit business with foreigners, sources say. The Tata Group is

selling the Indian edition ofReader's Digestmagazine, making it the first publishing property

offered for sale since the government last month scrapped the ban on foreign investment in the

print media. A reason to invest now is to snag the best partners. Indian media moguls will

push for more liberalization. And the experience of TV broadcasting, where foreigners can buy

49% stakes, suggests takeover fears are overblown. Rupert Murdochs Star TV has the top

entertainment channel, but its news station trails all-Hindi channel Aaj Tak. Three similar

channels are on the way. In print media as well, India ids likely to find that opening up the sector

to foreigners will strengthen local players as it breeds healthy competition.

The Flip Side


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As expected, there have been various anti-FDI lobbies, which are strongly voicing protests

regarding foreign investment in Indian Print Media. Their major contention is that foreign forces

might begin dominating the content of Indian publications, which is detrimental to national

interests. An extreme view given by a former Indian PM is that powered by their immense

finances and goaded by an ambition to control the emerging Indian market, the foreign

monopolies will impose their own agenda of ultimately controlling Indian politics. But there is

more than meets the eye. The English-language media, fearing competition from players with

deeper pockets, has been resisting this move by the Government. A survey commissioned by a

group of large New Delhi newspapers, showed that 34 out of 50 newspapers across the country

were opposed to foreign investment. Only 16 newspapers with a circulation share of 23.7 per

cent favored the proposal. In India while there is wide readership of daily newspapers in Indian

languages, the English press is taken more seriously by the government. And from a marketing

point of view, the English press reaches the most lucrative segment of society - the 300-million-

strong middle class. Foreign players are seen as a threat to market share. One of the few local

media houses in favour of foreign investment has been the India Today Group, publishers of

Indias largest circulating news magazine.

Concluding Remarks

The opening up of the print media sector to foreign investment is a bold decision

by the Government, considering the unwillingness of so many past Governments to do the same.

It is a policy decision that could have a very positive impact on the sector, provided the Indian

publications generate enough interest and exhibit their true potential to the overseas investors.


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It could enrich the quality of our morning dailies and other publications, and probably add just

that extra touch to make them more complete. However this is speculation and what actually

transpires depends on the intent of the Government to ensure that like so many other half-baked

measures in promising sectors, this one too doesnt get lost in the jungles of bureaucracy and

red-tape. Right now, the policy details are fuzzy and need crystallization. Once that happens, it

would be a matter of time before foreign media houses make their foray into the Indian print

media sector. Till then everyone here will wait, watch and wonder .

Advantages and Disadvantages of Print Media:

The print media is considered to be one of the most flourishing industries today. This medium is also

particularly very popular to reach the target audience for advertisers. The different types of print media give

a plethora of options for people to reach a varied bracket of users. So, be it newspapers or magazines,

every medium has its particular advantages, a thing which should be considered to be of utmost

importance by all advertisers and clients. However, print media also has its own disadvantages. Here, we

shall take a quick look at the advantages and disadvantages of print media.

Advantages of Print Media:

y Different types of print media (newspapers and magazines) have a loyal readership. This can be

very useful for advertisers as compared to advertising on the Internet.

y If you are targeting a particular geographical area, you can do so with ease through print media.

For example, a local newspaper would be a best medium to advertise about a new shopping

complex.

y You can choose the size of the advertisement space. This will help you to plan the budget of the

expenses to be incurred while advertising.


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y Certain forms of print media have a very loyal fans following in terms of readers. This would

guarantee you added readership.

y Magazines and newspapers are always in the eye amongst public. Magazines are read for a

period of a month, which brings more attention to an advertisement.

y You can even advertise through brochures or leaflets depending upon your target audience. If the

information is in detail, a brochure can prove to be an apt option. A leaflet in that case, would be

useful for a brief message.

Disadvantages of Print Media:

y The cost incurred can sometimes be expensive considering the medium you choose.

y The shelf life of any particular print medium is limited. Newspapers for example, are amongst the

public eye only for a day.

y This medium may not always give you a wide reach. Internet, on the other hand, can target a

global audience.

y There is a limitation in terms of the kind of people who may actually read your message. The

particular newspaper may not actually be accessible every time to your target group, which

means, your message may be missed! The Internet on the other hand, can be accessed from

anywhere.

y You may have to plan months in advance to advertise in print media. It does not offer you

flexibility when you are faced with a tight deadline.

y Advertisements may get lost in all the clutter of editorial and ads by competitors.

Electronic Media

Electronic media is increasingly widespread, electronic media is advancing very quickly into an era of

globalization. Each type of electronic media has roles that influence many societies and communities

which have contributed to the changes in popular American culture to this day. There have been


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improvements in technique in electronic media in advertising and propagation which demonstrates the

powerful influence that effect cultural values. These influences bestowed upon many communities and

societies all over the world lead to many different kinds of trends. Some trends spread throughout the

globe causing a global impact that contributes to cultural values.

Mass media is divided into print media and electronic media. In general, everyone has knowledge of

what media is and how media enables people to understand what is going on in the world. The

nineteenth century was coming to an end while film had just begun. Film show business as it was

referred to was a popular form of advertising at the time it was introduced. Film became the perfect

way for propaganda for popularity and societal purposes.

Types of Electronic Media:

Television: A television advertisement or television commercialoften just commercial or TV ad

(US), or advert or ad (UK/US), or ad-film (India)is a span of television programming produced

and paid for by an organization that conveys a message. Advertisement revenue provides a

significant portion of the funding for most privately owned television networks. The vast

majority of television advertisements today consist of brief advertising spots, ranging in length

from a few seconds to several minutes (as well as program-length infomercials). Advertisements

of this sort have been used to sell every product imaginable over the years, from goods and

services to political campaigns. The effect of commercial advertisements upon the viewing

public has been so successful and so pervasive that in some countries, the United States in

particular, it is considered impossible for a politician to wage a successful election campaign

without the purchase of television advertising. In other countries, such as France, political

advertising in television is strictly restricted, and some, like Norway, even completely ban it.

Many television advertisements feature catchy jingles (songs or melodies) or catch-phrases

(slogan) that generate sustained appeal, which may remain in the minds of television viewers


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one, with the Energizer battery. Years later, a revised version of this seminal advertisement had

the Energizer bunny escaping the stage and moving on (according to the announcer, he "keeps

going and going and going..."). This was followed by what appeared to be another

advertisement: viewers were oblivious to the fact that the following "advertisement" was actually

a parody of other well-known advertisements until the Energizer bunny suddenly intrudes on the

situation, with the announcer saying "Still going..." (the Energizer Battery Company's way of

emphasizing that their battery lasts longer than other leading batteries).\

Future of TV advertisements:

Though advertisements for cigarettes are banned in many countries, advertisements can still

occur by the broadcast of race events.The introduction ofdigital video recorders (also known as

digital television recorders or DTRs), such as TiVo, and services like Sky+, Dish Network and

Astro MAX, which allow the recording of television programs onto a hard drive, also enable

viewers to fast-forward or automatically skip through advertisements of recorded programs.

There is speculation that television advertisements are threatened by digital video recorders as

viewers choose not to watch them. However evidence from the UK shows that this is so far not

the case. At the end of 2008 22 per cent of UK households had a DTR. The majority of these

households had Sky+ and data from these homes (collected via the SkyView panel of more than

33,000) shows that, once a household gets a DTR, they watch 17 per cent more television. 82 per

cent of their viewing is to normal, linear, broadcast TV without fast-forwarding the ads. In the 18

per cent of TV viewing that is time-shifted (i.e. not watched as live broadcast), viewers still

watch 30 per cent of the ads at normal speed. Overall, the extra viewing encouraged by owning a

DTR results in viewers watching 2 per cent more ads at normal speed than they did before the


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DTR was installed.The SkyView evidence is reinforced by studies on actual DTR behaviour by

the Broadcasters' Audience Research Board (BARB) and the London Business School. Other

forms of TV advertising include Product placement advertising in the TV shows themselves. For

example, Extreme Makeover: Home Edition advertises Sears, Kenmore, and Home Depot by

specifically using products from these companies, and some sports events like the Sprint Cup of

NASCAR are named after sponsors, and of course, race cars are frequently covered in

advertisements. Incidentally, many major sporting venues, in North America at least, are named

for commercial companies, dating back as far as Wrigley Field. Television programs delivered

through new mediums such as streaming online video also bring different possibilities to the

traditional methods of generating revenue from television advertising. Another type of

advertisement shown more and more, mostly for advertising TV shows on the same channel, is

an ad overlay at the bottom of the TV screen, which blocks out some of the picture. "Banners",

or "Logo Bugs", as they are called, are referred to by media companies as Secondary Events

(2E). This is done in much the same way as a severe weather warning is done, only these happen

more frequently. they may sometimes take up only 5 to 10 percent of the screen, but in the

extreme, they can take up as much as 25 percent of the viewing area. Subtitles that are part of the

program content can be completely obscured by banners. Some even make noise or move across

the screen. One example is the 2E ads for Three Moons Over Milford, which was broadcast in

the months before the TV show's premiere. A video taking up approximately 25 percent of the

bottom-left portion of the screen would show a comet impacting into the moon with an

accompanying explosion, during another television program. Google's Eric Schmidt has

announced plans to enter the television ad delivery and optimization business. This is despite the

fact that Google lacks an immediate video production and network placement foothold. There are


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few details in place about how this may occur, but some have speculated that they will use a

similar model to that of their business strategy directed at radio broadcast, which included the

acquisition of operations system support provider. Online video directories are an emerging form

of interactive advertising, which help in recalling and responding to advertising produced

primarily for television. These directories also have the potential to offer other value-added

services, such as response sheets and click-to-call, which greatly enhance the scope of the

interaction with the brand. During the 2008-09 TV season, Fox experimented with a new

strategy, which the network dubbed "Remote-Free TV". Episodes of Fringe and Dollhouse

contained approximately ten minutes of advertisements, four to six minutes fewer than other

hour-long programs. Fox stated that shorter commercial breaks keep viewers more engaged and

improve brand recall for advertisers, as well as reducing channel surfing and fast-forwarding past

the ads. However, the strategy was not as successful as the network had hoped and it is unclear

whether it will be continued into the next season.

Radio:Old media dont die! They just bounce back in new avatars. Not so long ago radio had

been written off as fuddy-duddy, down market and not so cool. Television and later new media

were touted to being the media of the future. But thanks to technology radio is making a

comeback. In fact, in its new avatar-fm-radio is all set too become the hippest, coolest and most

with -it medium. FM radio is a new entity altogether and has to deal with new market dynamics.

Media owners dealing with new markets will virtually have to draw up their strategies as they go

along, create programming that is new, innovative and grab away eyeballs from TV sets and

make them tune into their radio sets. Its a whole new challenge and competition is never far

away. Ad revenues will also not be easy to come by, as advertisers will expect media players to

put their money where their speakers are before they commit large sums of money towards radio


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not forgot that radio continues to be a medium that has tremendous reach among the poor and

marginalized sections of society. With the coming of more channels, and the emergence of

lifestyle advertising, radio will become a push and pull medium. As said earlier, is not just

making a comeback but is being reincarnated into a new avatar.

Online Advertisement:

Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed

purpose of delivering marketing messages to attract customers. Examples of online advertising include

contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising,

interstitial ads, online classified advertising, advertising networks and e-mail marketing, including e-mail

spam.

Competitive advantage over traditional advertising

One major benefit of online advertising is the immediate publishing of information and content

that is not limited by geography or time. To that end, the emerging area of interactive advertising

presents fresh challenges for advertisers who have hitherto adopted an interruptive strategy.

Another benefit is the efficiency of advertiser's investment. Online advertising allows for the

customization of advertisements, including content and posted websites. For example, AdWords,

Yahoo! Search Marketing and AdSense enable ads shown on relevant webpages or aside of

search results of pre-chosen keywords. Another is the payment method. Whatever purchasing

variation is selected, the payment is usually relative with audiences' response.


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Ethics

Online advertising encompasses a range of types of advertising, some of which are deployed

ethically and some are not. Some websites use large numbers of advertisements, including

flashing banners that distract the user, and some have misleading images designed to look like

error messages from the operating system, rather than advertisements. Websites that unethically

use online advertising for revenue frequently do not monitor what advertisements on their

website link to, allowing advertisements to lead to sites with malicious software or adult

material. Website operators that ethically use online advertising typically use a small number of

advertisements that are not intended to distract or irritate the user, and do not detract from the

design and layout of their websites. Many website owners deal directly with companies that

want to place ads, meaning that the website linked to by the advertisement is legitimate. The

overuse of technologies like Adobe flash in online advertising has led to some users disabling it

in their browsers, or using browser plug-ins like adblock or noscript. Legitimate advertising

often is opt-in, or has a clear opt-out option, which differentiates it from spam.

Malware

There is also class of advertising methods which are considered unethical and may even be

illegal. These include external applications which alter system settings (such as a browser's home

page), spawn pop-ups, and insert advertisements into non-affiliated webpages. Such applications

are usually labelled as spyware or adware. They may mask their questionable activities by

performing a simple service, such as displaying the weather or providing a search bar. These

programs are designed to dupe the user, acting effectively as Trojan horses. These applications

are commonly designed so as to be difficult to remove or uninstall. The ever-increasing audience


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of online users, many of whom are not computer-savvy, frequently lack the knowledge and

technical ability to protect themselves from these programs.

Privacy

The use of online advertising has implications on the privacy and anonymity of users. If an

advertising company has placed banners in two Web sites. Hosting the banner images on its

servers and using third-party cookies, the advertising company is able to track the browsing of

users across these two sites. Third-party cookies can be blocked by most browsers to increase

privacy and reduce tracking by advertising and tracking companies without negatively affecting

the user's Web experience. Many advertising operators have an opt-out option to behavioral

advertising, with a generic cookie in the browser stopping behavioral advertising.

Indian Entertainment and Media Industry

The Indian entertainment and media (E&M) industry has out-performed the Indian economy

and is one of the fastest growing sectors in India. The E&M industry generally tends to grow

faster when the economy is expanding. The Indian economy has been growing at a fast clip over

the last few years, and the income levels too have been experiencing a high growth rate. Above

that, consumer spending is also on the rise, due to a sustained increase in disposable incomes,

brought about by reduction in personal income tax over the last decade. All these factors have

given an impetus to the E&M industry and are likely to contribute to the growth of this industry

in the future. Besides these economic and personal income-linked factors, there are a host of

other factors that are contributing to this high growth rate. Some of these are enumerated below:


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A. Low media penetration in lower socio-economic classes (SEC) Media penetration varies

across socio-economic classes. Though media penetration is poor in lower socio-economic

classes, the absolute numbers are much higher for these classes. Hence, efforts to increase the

penetration even slightly in these lower socio-economic classes are likely to deliver much higher

results, simply due to the higher base.

B. Low ad spends Indian advertising spends as a percentage of gross domestic product (GDP)

at 0.34 percent is abysmally low, as opposed to other developed and developing countries.

Advertising revenues are vital for the growth of this industry. While today the low ad spends

may seem like a challenge before the E&M industry, it also throws open immense potential for

growth. This potential can be estimated by the fact that even if India was to reach the global

average, the advertising revenues would at least double the current advertising revenues,

estimated at about INR 132 billion, for 2005. Source:


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C. Liberalising foreign investment regime

Today, India has probably one of the most liberal investment regimes amongst the emerging

economies with a conducive foreign direct investment (FDI) environment. The E&M industry

has significantly benefited from this liberal regime and most segments of the E&M industry

today allow foreign investment. Recently FDI was permitted in the two important sectors print

media and radio. Films, television and other segments are already open to foreign investment.

In the print media segment, 100 percent FDI is now allowed for non-news publications and 26

percent FDI is allowed for news publications. Printing of facsimile editions of foreign journals

are now also allowed in India. This policy is helping foreign journals save on the cost of

distribution while servicing the Indian market audiences more effectively. The FM radio sector

too was opened for foreign investment recently with 20 percent FDI being allowed. The FM

radio sector itself has expanded by opening 338 licenses for private investment, which currently

is underway. As a result, the radio sector is expanding rapidly with forecasted growth rates of 32

percent per annum.


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Summary of guidelines for FDI in the Indian E&M industry is given below:

Advertising FDI is permitted up to 100% through the automatic route

FM radio Total foreign investment including FDI by OCB/NRI/PIO etc., portfolio

investments by FIIs (within limits prescribed by RBI)

and borrowings, if these carry conversion options, is permitted to the extent of not

more than 20% of the paid

up equity in the entity holding a permission for a radio

channel subject to the following conditions:

One Indian individual or company owns more than 50% of the paid-up equity

excluding the equity held by banks and other lending institutions The majority

shareholder exercises management control over the applicant company

Has only resident Indians as directors on the board All key executive officers

of the applicant entity are resident Indians

Print FDI up to 100% is permitted in publishing/printing scientific and technical

magazines, periodicals and journals. In the news and current affairs category, such

as newspapers, FDI has been allowed up to 26% subject to certain conditions

including:


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The largest shareholder must hold at least 51% equity Three-fourths of

directors and all executive and editorial staff have to be resident Indians

Foreign investment

Owing to the strong impetus for growth from the economic and demographic factors coupled

with some regulatory corrections, the sector also recently witnessed increasing foreign

investment inflows in most segments of the E&M industry, especially the print media. Recent

examples include foreign investment in English dailies such as Hindustan Times and Business

Standard by Henderson Global and Financial Times respectively. Vernacular media too saw its

share of foreign investment with a strategic equity investment by Independent News & Media in

Dainik Jagran, a leading Hindi Daily. In the broadcasting space, most channels beaming into

India (such as Walt Disney, ESPN-Star Sports, Star, Discovery, BBC etc.) have established

foreign investment subsidiary companies for content development and advertisement airtime

sales. In the television distribution space arena, foreign investment is being drawn by the larger

cable operators referred to as multi-system operators (MSO) such as Hathway and Hindujas. In

the television content space, the recent investment in Nimbus Communications by a foreign

private equity player is seen as the start of a significant trend of foreign investment inflows.


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Current status of the industry and its growth potential

The Indian economy continues to perform strongly and one of the key sectors that benefits from

this fast economic growth is the E&M industry. This is because the E&M industry is a cyclical

industry that grows faster when the economy is expanding. It also grows faster than the nominal

GDP during all phases of economic activity due to its income elasticity wherein when incomes

rise, more resources get spent on leisure and entertainment and less on necessities. Further,

consumption spending itself is increasing due to rising disposable incomes on account of

sustained growth in income levels, and this also builds the case for a strong bullish growth in the

sector. The size of E&M in India is currently estimated at INR 353 billion and is expected to

grow at a compounded annual growth rate of 19 percent over the next five years. The television

industry continues to dominate the E&M industry by garnering a share of over 42 percent, which

is expected to increase by a further 9 percent to reach about 51 percent. The share of the film

industry, which currently stands at 19 percent, is not expected to change materially over the next

five years. Print media, which stands at over 31 percent, is projected to lose some of its share in

favour of the emerging segments.


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Key growth drivers

Television

Subscription revenues are projected to be the key growth driver for the Indian television industry

over the next five years. Subscription revenues will increase both from the number of pay TV

homes as well as increased subscription rates. The buoyancy of the Indian economy will drive

the homes, both in rural and urban (second TV set homes) areas to buy televisions and subscribe

for the pay services. New distribution platforms like DTH and IPTV will only increase the

subscriber base and push up the subscription revenues.

Print media

A booming Indian economy, growing need for content and government initiatives that have

opened up the sector to foreign investment are driving growth in the print media. With the

literate population on the rise, more people in rural and urban areas are reading newspapers and

magazines today. Also, there is more interest in India amongst the global investor community.

This leads to demand for more Indian content from India. Foreign media too is evincing interest

in investing in Indian publications. And the internet today offers a new avenue to generate more

advertising revenues.


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Radio

The cheapest and oldest form of entertainment in the country, which was hitherto dominated by

the AIR, is going to witness a sea-change very shortly. In 2005, the government opened up the

sector to foreign investment and this is the key factor that will drive growth in this sector. As

many as 338 licences are being given out by the Indian government for FM radio channels in 91

big and small towns and cities. This deluge of radio stations will result in rising need for content

and professionals. New concepts like satellite, internet and community radio have also begun to

hit the market. Increasingly, radio is making a comeback in the lifestyles of Indians.

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