Advertising Industry

Firms in the advertising and public relations services industry prepare advertisements for other companies and organisations 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 ads for use in shopping malls, on billboards, or in similar media; and direct mail advertisers. A firm that purchases advertising time (or space) from media outlets, thereafter reselling it to advertising agencies or individual companies directly, is considered a media buying agency.

Most advertising firms specialise in a particular market niche. Some companies produce and solicit outdoor advertising, such as billboards and electric displays. Others place ads in buses, subways, taxis, airports, and bus terminals. A small number of firms produce aerial advertising, while others distribute circulars, handbills, and free samples. Groups within agencies have been created to serve their clients’ electronic advertising needs on the Internet. Online advertisements link users to a company or product’s Web site, where information such as new product announcements, contests, and product catalogue appears, and from which purchases may be made.

Overview of Advertising Industry in India

The structure of the advertising industry in Asia Pacific has been affected by globalisation and international alignments creating a smaller number of very large agencies and the growth of independent major media buying houses. Very sophisticated software optimisation and planning systems are now integral to the industry, enabling agencies to offer a unique positioning in the marketplace to attract new business.

American companies are discovering the appeal of marketing their products in India. With a population of approximately one billion, and a middle class that's larger than the total population of the United States, there's definitely money to be made. Local retailers in apparel, food, watches and jewellery have all increased their average ad spending by almost 50% in the past two years. Coupled with many other local players big retailing brands are spending to the tune of Rs 12,000 crores annually on advertising and promotional activities. This figure, according to industry estimates, was less than Rs 400 crores about 3 years ago. Which means the growth has been a whopping 40%. The local firms are using all the available advertising tools from electronic to print, outdoor advertising and even models. The advertising and promotional spending by local brands is substantial during the festival season and almost 70% of the spending is done between September to January. The advertising industry in India is growing at an average rate of 10-12% per annum. Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai.

Online Ad Spending in India

Online advertising spending is holding its own and will continue to grow steadily over the next several years. Marketers are responding to the economic challenges with new techniques and strategies, along with research data to prove their effectiveness. According to statistics, online ad spending has reached $23 billion. Nonetheless, nearly three-quarters of web advertising space goes unsold and more than 99.7 per cent of banner ads are not clicked on.

Scope of Advertising Industry in India

The advertising industry in India has several competitive advantages:

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.

The Indian advertising industry is a very upcoming and promising sector. However there is severe competition and survival is for the fittest and the best. In this sector what matters the most is knowledge and experience of the work and the industry and its functioning. The more the knowledge you can provide the better the productivity you give. Exchange4media is an ad agency that has the knowledge as well as experience that will be a big benefit in making your ad campaigns run successfully.

Source: advertising.indiabizclub.com