Trends affecting the advertising industry


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Trends affecting the advertising industry

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  • Trends affecting the advertising industry

    1. 1. Six Important trends  Consolidation and globalization The advertising industry has entered a period of extreme consolidation Full service agencies are acquiring and merging with other full service agencies
    2. 2.  Budget fragmentation The high degree of integration across all brands advertising and promotional efforts is being sought by advertisers
    3. 3.  Interactivity It is the communication between the advertisers and consumers . E-mail and tracking of internet surfing are two examples. The device like PVR reduces the viewership by 30% in 2005
    4. 4.  Media evolution This is the greatest trend because of the emergence of broadband Broadband is a high speed network provide the capability f transmitting video as well as voice transmission over the internet
    5. 5.  Media clutter Though it is Cluttered media Advertisers giving advertisement in a single media is going to be diminished
    6. 6.  Communication or distribution channels New communication or distribution channel are emerging such as catalogues TV shopping networks Online shopping consumer needs commercial experience rather than communication experience
    7. 7. Structure of the Advertising Industry
    8. 8. Advertisers  Manufacturers and service firms Large national manufacturers of consumer products and services are the most prominent users of promotion . (Procter & Gamble, Unilever, general foods,)
    9. 9.  Trade resellers It is simply a general description for all organizations in the marketing channel of distribution that buy products to resell to customers
    10. 10.  Government and social organizations Government bodies invest millions of dollars In advertising annually for their recruitment and social issues
    11. 11.  Advertising Agencies It is an organization of professionals who provide creative and business services to clients in planning, preparing and placing advertisements.
    12. 12.  Full service agency It is typically includes an array of Advertising professionals to meet all the promotional needs of clients.
    13. 13.  Creative Boutique Typically emphasizes creative concept development, copywriting, and artistic services to clients.
    14. 14. Interactive agencies Interactive agencies help advertisers prepare communication for new media such as the internet, CD ROMs and interactive television. RED SKY INTERACTIVE is the one of the best interactive agency in the world 
    15. 15.  In House Agencies It is a advertising department in a firm and takes responsibility for the planning and preparation of advertising materials
    16. 16. Promotion Agencies  Direct Marketing and database agencies These firms maintain and manage large databases of mailing lists as one of their services. These firms can design direct marketing campaigns either through the mail or telemarketing or direct response campaigns.
    17. 17.  E-commerce Agencies This agency handle a variety of planning and execution activities related to promotion using electronic commerce
    18. 18.  Sales promotion Agencies These agencies are experts in designing incentive program, trade shows, sales force contests, in store merchandising.
    19. 19.  Event planning agencies Organizers are experts in finding locations, securing dates and caterers, security experts, entertainers, celebrity participants, or who ever is necessary to make the event come about.
    20. 20. - Design firms Design firms Help a firm create Logo- the graphic mark that identifies a company and other visual representations that promote an identity for a firm
    21. 21.  Public relation firms This firms manage an organizations relationship with the media, the local community, competitors, industry associations, and government organizations
    22. 22. Agency services  Account services Account services entail identifying the benefits a brand offers, its target audience, and the best competitive positioning, and then developing a complete promotion plan.
    23. 23.  Marketing Research services Agencies can assemble consumers from the target audience to evaluate different versions of proposed advertising and determine whether the messages are being communicated affectively
    24. 24.  Creative and production services This agency comes up with the concepts that express the value of a company’s brand in interesting and memorable way. This group will develop message that will be delivered through advertising.
    25. 25. Agency compensation  1: Commission It is a traditional method, which is based on the amount of money the advertiser spends on media. 2: Mark up charge Add a percentage markup charge to a variety of services the agency purchases from outside suppliers
    26. 26.  3: Fee system in fee system the advertiser and the agency agree on an hourly rate for different services provided 4:Pay for Results Pay for results that base the agency’s fee on the achievement of agreed upon the results
    27. 27. External Facilitators  External facilitators are organizations or individuals that provide specialized services to advertisers and agencies
    28. 28. External facilitators     Marketing and Advertising Research firms Consultants Production facilitators Information intermediators
    29. 29. Media Organizations   1: Broadcast Television Radio 2: Interactive Media : Online computer services, Home shopping broadcasts, Interactive Broadcast, CD-ROMs, internet
    30. 30.    Media conglomerates : Mixed Media Combinations Print : Magazines, Direct Mail, Newspapers, Support Media: Out door, Directories, Premiums, Film and program brand placement, Event Sponsorship
    31. 31. Article discussion
    32. 32. Article discussion
    33. 33.    Potential factor in Indian culture and tradition. ART:- is the quality, production, expression, or realam, according to aesthetic principles, of what is beautiful, appealing, or of more than ordinary significance. Most of the Indian art forms were plat formed on religion and on stories associated with mythology.
    34. 34. Art in recent advt.       Kalarippayattu in DABUR SONA CHANDi, Yakshagana on SIPCE TELICOM, Kathakali on SONY BRAVIA LCD TV. STILT DANCERS for pramotion of apparels/ new retail outlets. Telugu desham party campaign of 1999. CHETTINAD & HYDREABADI restaurants/DABAS of Tamil Nadu
    35. 35. Context for TV advt.    The treditional programs get massive advt support from major FMCG companies. They use mythology to capture the attention of viewers. Akshaya thritiya promotion of jeweler groups.
    36. 36. Culture & Traditions in Indians   Though Indians are having a western lifestyle, they are highly influenced by the Indian Culture & Traditions. THE RECENT TRENDS IN SOCITEY GIVE STRONG FACT THAT WE ARE DEFINITLY GETTING BACK TO OUR PAST.
    37. 37. Article discussion
    38. 38. Advertising industry scenario    Life insurance industry had boomed in India on 21st century. 35% Market share owned by private companies. The private life insurers used persuasive advertising techniques to woo the Indian customers to increase their acceptability.
    39. 39. Advertising techniques.    B4 the year 2000 print media is the popular medium. Concept of safety & security. Celebrity endorsements.
    40. 40. Other alternatives  Chintamani advt of ICICI.