INDIAN ADVERTISING INDUSTRY

Advertising is one of the key activities for potential business and is equally important as producing something using raw material, or as capital, manpower, planning, organizing etc. products or services. Publicizing that the business offers to the targeted customers is called advertising which forms the integral part of marketing, and an essential precondition for selling. Advertising is done with vast population and requires organizing and applying human skill and talent and technology backed media.

Advertising companies use multifaceted talents and ideas to carry out successful campaigns. With huge innovative development of electronic media, advertising has grown as an organized industry, offering a lot of employment opportunities. Indian Advertising Industry has been reshaped by regulatory and technological changes over the past times as before it did not have many opportunities. With the advent of radio, TV, Print and outdoor it has been able to gain much potential. The development involved the deregulation of FM radio, Direct to Home broadband, the implementation of conditional access system (CAS) and foreign direct investment has made the industry much faster than before. Indian Adversiting industry is increasingly attracting the attention of many foreign Companies and communication agencies, by opening business avenues for the small and medium marketing agencies in India.

After facing rugged recession, the Indian advertising industry must now begin to look at ways and means to rejuvenate its sagging market share, according to industry experts.After growing at nearly 20 per cent year on year for five years, the advertising market dipped in 2009 by as much as 10%. Just 0.4% of GDP is contributed by advertising market. Its time to grow now and make up for the lost time with sharp strategies and plans to develop brands, markets, creativity, media markets and research according to researchers.

Indian advertising industry is talking business today and has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in a short span of time has carved a niche for itself and placed itself on the global map.

Indian advertising Industry which has an estimated value of Rs.13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds of the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising.

In the year 2009 the industries attrition rate is as high as 20-25 % which was sober in that sense. According to industry executives the attrition rate is below 5 %, implying that most had to stay put and deliver on their briefs in their respective agencies.

The ads shown to us are sometimes innovative and sometimes they really get on your nerves, especially when they are repeated time and again and especially when they are repeated twice. This happens when there is something sponsored by them say a tennis match or an award ceremony, etc. Advertisements usually amaze people with their creativity and presentation whereas some are really horrible in the depiction of their ideas. Most of the times however we find quite interesting and appealing ads. The Indian ad agencies have some of the most creative and talented people around which is attested by the fact that global companies are approaching Indian ad agencies to handle their media campaigns.

At the last Cannes Awards, the president of the Jury was Piyush Pandey, Group President and National Creative Director of Ogilvy and Mather conveyed that India, is quickly becoming a viable online advertising center. There is expectation that the online advertising market in India to heat up. As Lionel Lim, Sun’s VP and MD (Asia South), recently stated, “Over the next three to four years, we want to help create up to 100 dot-com companies in India, each with a market cap of around $10 billion. That is, perhaps, the biggest investment we can make in this country.

• Television Current size: Rs 148 billion Projected size by 2010: Rs 427 billion; CAGR: 24%
• Filmed entertainment :Current size: Rs 68 billion :Projected size by 2010: Rs 153 billion; CAGR: 18%
• Print Media: Current size: Rs 109 billion :Projected size by 2010: Rs 195 billion; CAGR: 12%
• Radio: Current size: Rs 3 billion: Projected size by 2010: Rs 12 billion; CAGR: 32%.
• Music Current size: Rs 7,000 million crore projected size by 2010: Rs 7,400 million; CAGR: 1%.
• Live entertainment :Current size: Rs 8,000 million, Projected size by 2010: Rs 18,000 million; CAGR: 18%
• Out-of-home Advertising: Current size: 9000 million, Projected size by 2010: 17,500 million; CAGR: 14%.
• Internet Advertising: Current size: Rs 1.6 Billion, Projected size by 2010: Rs 7.5 billion; CAGR: 50%.

The turnover of Indian Advertising Industry is less than 1% of the national GDP of the country as compared to 2.3% of share of US to the GDP which indicates the tremendous growth potential for India. The Indian advertising industry is expected to grow by 13 %in 2010 to Rs 21,145 crore. According to the PITCH-Madison Media Advertising Outlook 2010 analysis, the Indian advertising pie is expected to be worth about Rs 21,145 crore this year, a 13 % increase over the previous one. The Indian media and advertising industry clocked a size of Rs 18,670 crore in 2009 and that saw a dramatic drop of 10 percentage points compared to 2008, where the industry was worth Rs 20,717 crore.Total advertising market grew 17% in 2008 and is projected to increase.

• 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

There are tremendous opportunities in Indian Advertising Industries in the country and abroad. The opportunities include that of account planner, executive, copywriter, visualizer, creative art director, animator, multimedia expert, photographer, printer, TV producer, media planner, web developer jobs, web planner, and marketing professional. Candidates qualified in Commercial Art have great opportunities. MBAs can also play a significant role in client servicing. However, individual creativity and ability for innovation are more important than academic degrees. The advertising industry always has a perennial demand of talent.

• The global Advertising Industry as far as scale of operations and scope is concerned the turnover is close to USD 450 billion annually. Indian Advertising Industry contributes less than 1.5% which is next to China and Russia. The Global Ad Industry is expected to reach a growth rate of 2% in 2010 which is better than 2009 while Indian Ad Industry in contrast estimates to reach the growth rate of 10% figuring about Rs.23700 crores. The reasons are because of the IPL, Foot ball World Cup and the Commonwealth Games.
• India contributes to 17 % of the world population but is only 0.7% of the world advertising market so it has huge potential to grow in future.
• Experts reveal that total advertisement spending by the political parties would be around Rs 800 crore. The Congress and the BJP alone could spend over Rs 400 crore on ads on television, radio and newspapers. Most of the ads appear on going to general entertainment and regional TV channels and hardly a small proportion in News channels.
• Worldwide Partne rInc are the Ninth largest global network of more than 90 marketing and communiation agencies in about 50 countries which has recently tied up with Indian Pressman Advertising and Marketing Ltd following repeated enquires about India.
• Indian advertising spends as a percentage of GDP — at 0.34% which is comparatively low, as opposed to other developed and developing countries, where the average is around 0.98%, which requires a lot space for development and enhancements in the Indian Advertising Industry.