Assignment On Media and Advertisement Industry

Submitted to:
Kruti Maam

S K Patel Institute of Management & Computer Studies, Gandhinagar.

Submitted By:
Dinal Patel Roll No.070

What is Advertisement????
Advertising is considered an important variable in the global business. Advertising is second only to films as far as its influence on the society is concerned. History bears testimony to the fact that the great Romans practiced advertising. Advertising is, in fact, the most influential and powerful medium in the present commercial society. It creates an entire worldview, shaping our attitude and beliefs. Advertisements pervade every aspect of our life and most of us are hardly aware of it. In the movement for equal status and fair treatment to women, an important part is attributed to the mass media, particularly to electronic media. The definition of advertising has not changed. It still comes down to telling a story about a brand, it is still about creating ideas that people respond to. But the consumer has changed. They have the power to avoid marketing, and they know it. Brands have to work a lot harder. More than ever, brands have to offer something of value is something truly entertaining, or surprising, thoughtprovoking or useful. They have to be more generous. The message on a huge billboard at a suburban railway station here is clear and one of several saying the same thing: Contact the following number for this site. Across rail stations and main roads in this financial capital, billboards lie vacant. Advertising industry is still not out of the woods. Mumbai, March 10, 2012: In 2011, the Indian Media & Entertainment (M&E) Industry registered a growth of 12 percent over 2010, to reach INR 728 billon, says the FICCI-KPMG report. The growth trajectory is backed by strong consumption in Tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the industry is expected to register a CAGR of 15 percent to touch INR 1,457 billion by 2016. The report will be formally released at the inaugural session of FICCI FRAMES 2012 on March 14, 2012. 2011 has been a challenging year not just for the Indian M&E industry, or even the Indian economy, but for the larger world economy. While India is still expected to grow at a healthy pace, growth is projected to be lower than earlier expectations. While television continues to be the dominant medium, sectors such as animation & VFX, digital advertising, and gaming are fast increasing their share in the overall pie. Radio is expected to display a healthy growth rate after the advent of Phase 3. Print, while witnessing a decline in growth rate, will continue to be the second largest medium in the Indian M&E industry. Also, the film

industry had a reason to cheer, with multiple movies crossing the INR 100 crore marks in domestic theatrical collections, and INR 30 crore marks in C&S rights. Advertising spends across all media accounted for INR 300 billion in 2011, contributing to 41 percent of the overall M&E industrys revenues. Advertising revenues witnessed a growth of 13 percent in 2011, as against 17 percent observed in 2010. In terms of performance, 2011 proved to be a year with mixed results in terms of growth across different sub sectors. The traditional media businesses experienced a slow down compared to last year, especially in the second half of the year. However, the new media segments like Animation and VFX, Online and Gaming businesses witnessed phenomenal growth rates. The key highlights are rise in digital content consumption, launch of diverse content delivery platforms, strong consumption in Tier 2 and 3 cities, rising footprint of the players in the regional media, rapidly increasing new media business and regulatory shifts. The Media & Entertainment industry landscape is undergoing a significant shift. Cable digitization, the promise of wireless broadband, increasing DTH penetration, digitization of film distribution, growing internet use are all prompting strategic shifts in the way companies work. Traditional business models are evolving for the better as a host of new opportunities emerge.

Key trends and industry drivers: Growth in digital content consumption across media Digital technology continues to revolutionize media distribution be it the rapid growth of DTH and the promise of digital cable, or increased digitization of film exhibition - and has enabled wider and cost effective reach across diverse and regional markets, and the development of targeted media content. There has been increased proliferation and consumption of digital media content be it newspapers and magazines, digital film prints, and online video and music or entirely new categories such as social media. Accordingly, online advertising spends have seen a spurt in growth viz-a-viz spends on traditional media. Rise of new age user devices Smart phones, tablets, PCs, gaming devices, etc. all form the foundation of a new wave in media usage. This is gradually impacting the way content is being created and distributed as well. Multiple media including TV, films, news, radio, music etc are being impacted with this change. New age consumers adapting themselves to the newer technologies As Indian consumers evolve, there is a heightened need to engage them across platforms and experiences. There is a greater need for integration and innovation across traditional and new media, with changing media consumption habits and preferences for niche content. Media companies today have no choice but to provide more touch points to engage with audiences. Regionalization Regional television and print continued its strong growth trajectory owing to growth in incomes and consumption in the regional markets. National advertisers are looking at these markets as the next consumption hubs and the local advertisers are learning the benefits of marketing their products aggressively. An advertising revenue dependant industry The ARPU (Average Revenue Per User) for television, average newspaper cost for print and average ticket price for films continue to be low on account of hyper competition in these industries. Segments like radio and a significant portion of online content are available free of cost to consumers. Owing to this, the Indian consumer is still not used to paying for content and hence the industry players are sensitive to the impact of the slowdown which affects the budgets of advertisers.

 Awaited regulatory shifts Lastly, apart from the shifts in consumer preferences, company strategies and business models, one big change awaited for the next growth wave is the implementation of recently enacted and regulations on digitisation for cable, implementation of Phase 3 and copyright for Radio and the roll out of 4G. These shifts are expected to be game changers in terms of how business is being done currently and what could be the path going forward. Top 10 Indian Ad Firms With globalization penetrating every realm of our lives today, it is not surprising that advertising in India too undergone tremendous growth over the past decade. The 30-second slot between TV shows is a largely coveted space for most advertising companies today. Indian television viewers are very much influenced by visual ads and print ads, thus expanding the product consumer base. Mumbai continues to be the major advertising hub of this country. Here is a quick sneak peek at the top ten advertising firms of India as of today. 1. Ogilvy & Mather is an international advertising, public relations and marketing agency established in 1948. This New-York based firm operates in 125 countries across the world, with its Indian operation centreOgilvy Advertisingin Mumbai. Ogilvy & Mather is the creative team behind Indias most successful and renowned brands such as Hutch (Vodafone), Cadbury, Asian Paints and Fevicol. The O&M network offers services to countless Fortune Global 500 companies across the world. Ogilvy Advertising continues to remain Indias number one advertising agency. 2. Popularly known as JWT, J Walter Thompson is headquartered in New York having offices in over 90 countries. It was set up in 1864 and even today, continues to create, innovate and define the world of communication in India. JWT has many feathers in its cap including Nestle, Cadbury, Bayer, Ford, Nokia and Unilever. Among its several accolades, JWT was recently proffered with the Grand Prix award at the 2008 Cannes Lions International Advertising Festival for the Lead India campaign. 3. Mumbai-based Mudra Communication was set up in 1980 with the aim of using the art of communication to express ideas that shape its brands. The Mudra team focuses on its consumers and their needs and experiences. Its four agency networks ensure a customized and collaborative approach to create a brand experience for its clients. Mudra Communication has promoted famous brands like Neutrogena, HBO,

Philips, Reliance NetConnect, Big Bazaar and Mary Kay in such a way that it creates a lasting impression in the hearts of the its consumers. 4. FCB Ulka Advertising Ltd., since its inception in 1961, has continued to be among the top 5 advertising agencies in India. This companys aim has always been to create advertising that is noticeable and that is most relevant to the buyer, not the seller. Some of FCB Ulkas successful ads include Tata Indicom, Whirlpool, Zee Cinema, Santoor, Sunfeast and Amul, among others. FCB Ulka is considered as a turnaround specialist that indulges in more than just brand building. 5. Rediffusion DY & R is a Mumbai-based advertising agency that was set up in 1973. It focuses primarily on integrated PR services and media relations. This firm stands proud at number 5. 6. The tagline Thanda Matlab Coca Cola is the brainchild of one of Indias leading advertising agenciesMcCann Erickson India Ltd.McCann Erickson was born out of a successful and profitable merger in 1930, and its offices in Australia, Southeast Asia, Latin America, Europe and India speak volumes about its advertising success till date. One of the many feathers in its cap is the famous brand line For everything else, theres MasterCard. 7. RK Swamy BBDO Advertising Ltd. is one of Indias leading integrated communication services providers, which is committed to developing marketing solutions for its clients. Its focusto offer intelligent, cost effective and creative solutionshas led it to achieve a remarkable double-digit growth in the past recession-hit period. R K Swamy BBDO is a subsidiary of the R K Swamy Hansa Group, which boasts of over 1000 employees and operations across India and the USA. 8. Grey Worldwide (I) Pvt. Ltd. is a Mumbai-based advertising agency specializing is providing effective advertising and marketing solutions. With offices in Delhi, Kolkata, Bangalore and Ahmedabad, Grey Worldwide India Pvt. Ltd. is part of the larger family called the Grey Global Group. Following are some of the brands that feature on Grey Indias noteworthy list of clients: Hero Honda, Maruti Suzuki, Nestle, Indian Oil, Ambuja Cement, UTV, P&G and Godrej. 9. The creative team of Leo Burnett India Pvt. Ltd. has, over the years, successfully offered consumers with powerful brand experiences using ads like McDonalds, Heinz, Complan, Bajaj and HDFC, to name a few. A regular award winner at the Cannes festival, Indias Leo Burnett has been proclaimed as one of the most creative agencies of the country.

10.Since its inception in 1986, Contract Advertising India Ltd. has skillfully delivered successful results to its high-profile clientele including Tata Indicom, Religare, Asian Paints, Dominos Pizza, SpiceJet, Samonsite and American Tourister. Contract Advertising India Ltd. is known for its one-of-a-kind specialty divisions that provide complete advertising solutions. These divisions include DesignSutra, iContract and Core Consulting. Top 5 World Ad Firms: 1. Omnicom Group: The Omnicom Group, Inc was founded in 1986 after a merger among the advertising agency networks of DDB, Needham Harper Steers, and BBDO, and is based in New York City. The companies in this group are world leaders in their respective markets; active in advertising, interactive and digital marketing, public relations, and strategic media planning and buying 2. WPP Group: The WPP Group is active worldwide in communications. Its main management office is in London and its executive office is in Dublin. The worlds largest advertising company in terms of revenue, WPP has over 2,400 offices in 107 countries. The group comprises advertising, market research, and public relations networks such as Grey, Hill & Knowlton, JWT, Ogilvy Group, TNS, and Young & Rubicam. WPP stands for "wire and plastic products," the original company's chief pursuits. 3. Interpublic Group: The Interpublic Group (IPG) emerged from companies whose history dates back to the 1870s. Based in New York, NY, the group is a global leader in advertising and marketing services. Its subsidiaries furnish every kind of marketing solution to leading advertisers, ranging from public relations and consumer advertising to interactive marketing and search engine marketing. 4. Publicis Groupe: Publicis Groupe SA is a French multinational with its headquarters in Paris. It focuses on providing traditional advertising, media and communications services, and specialized agencies and marketing to domestic and international clients. The companys regular advertising services concentrate on creating advertising campaigns for products, services, and brands. Publicis also does strategic planning, analyzing a given product, service, or brand against its competitors using market research and sociological and psychological studies.

5. Dentsu Group: The Dentsu Group, dating back to 1901, is one of the largest advertising agency brands in the world, based in Minato, Tokyo. It defines its area of business and principal strength as integrated communication design. Dentsu states that client issues come first, and aims to design and provide genuine, integrated solutions in communications.

1st Ad Agency: B. Dattaram & Co, Mumbai; set up in 1905- 1 in India The first modern advertising agency started operating around 1875 in the United States of America, when Mr N. W. Ayer and Sons of Philadelphia offered to produce advertisements and also to contract for space in newspapers. st -1 in World. 1st Print Ad:
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