Presentation by students of Chitkara Business School

1. CHITKARA BUSINESS SCHOOL

2. Submitted to:
Dr. Sandhir Sharma
Submitted by:
Arnav
Anjali
Ankush Singla
Deepika Sharma
Kirandeep Kaur
Sonal Bajaj
(MBA-1st yr)
Section - A

3. Introduction to
Advertisement
 Form of communication
 Encourage or persuade an audience
(viewers, readers or listeners) to continue or take
some new action
 Drive consumer behavior with respect to a
commercial offering
 Paid by sponsors
 Viewed via various traditional media, including mass
media such as newspaper ,
magazines, television commercial, radio
advertisement, outdoor advertising or direct mail;
or new media such as websites and text messages.

4. Evolution of advertisement
 Advertising starts with the hawkers right from the days when
cities and markets first began
 The first newspapers published in India in the 19th Century
also carried advertising.
 The first advertising agency was established in 1905 B.
Datram and Company
 The India-Advertising Company commenced in 1907
 Advertising expenditure in the 1950s was estimated at $US
300,000.
 58% growth in the number of registered agencies from 106 in
1969 to 168 in 1979, and this included a growth in Indian
agencies
 The first advertising appeared on state television in 1976.

5. Contd…
 1990-Marks the beginning of new medium Internet
 1991- First India-targeted satellite channel, Zee TV starts
broadcasting
 1993:
- India's only advertising school, MICA (Mudra Institute of
Communications Ahmadabad), was born
- Tara on Zee TV becomes India's first female-centric soap
 1995- Advertising Club of Bombay calls its awards as Abby
 1997:
- Media boom with the growth of cable and satellite; print
medium sees an increase in titles, especially in specialized areas
- Government turns towards professional advertising in the
private sector for its VDIS campaigns in 1997

6. Contd…
- Advertising on the Internet gains popularity
- Equitor Consulting becomes the only independent
brand consultancy company in the country
- Several exercises in changing corporate identity
- Army resorts to the services of private sector
agencies
 2000
- Mudra launches magindia.com - India's first
advertising and marketing Gallery
- Game shows like Kaun Banega Crorepati become
a rage; media buying industry is bullish on KBC
- Kyunki Saas Bhi Kabhi Bahu Thi marks the return
of family oriented soap on TV

7. Purpose of advertisement
 Make the sale
 Break clutter
 Involve the consumer
 Touch the heart
 Hold appeal for the target
group
 Linger in the mind

8. Types of advertisement
 Television advertising / Music in
advertising
 Infomercials
 Radio advertising
 Online advertising
 Press advertising
 Billboard advertising
 Mobile billboard advertising
 In-store advertising

9. Market size of Advertisement
Industry
 In 2011, the total pie of the Indian advertising
industry stood at Rs 25,594 crore
 Recorded a growth of 8 per cent in 2011
 Earlier projection was 17 per cent
 As per the Pitch Madison Media Ad Outlook, the
growth projections for the ad industry for 2012
remained a cautious 8-9 per cent, with a total ad
pie of Rs 28,013 crore.
 In 2010, spending on advertising was estimated
at more than $300 billion in the United States and
$500 billion worldwide

10. Major Indian players in
Advertisement
 Ogilvy and Mather – Leading advertising company in India. This
company has offices across the globe. The objective of the company is
to build brands. The headquarter of the company is in New York.
 J Walter Thompson India- Their objective is to make advertising a
part of the life of the consumers. This is also world’s best advertising
brand with about 200 offices in 90 countries.
 Mudra Communication Pvt. Ltd- This advertising organization was
founded in the year 1980 at Mumbai. Recently the Ad company declared
the addition of public relations, rural marketing, events etc.
 FCB-Ulka Advertising Ltd- This advertising company ranks third and
tenth in the world having about 188 offices in 102 countries. Their aim
is to reflect the needs of the brand and not the personality of the brand.
 Rediffusion-DY&R- Made a benchmark in the field of creativity. This
advertising agency offers a wide array of integrated pr services for
external and internal communications. The primary strength of the
company lies in the media relations.

11. Contd…
 McCann-Erickson India Ltd- They define work in relation to the impact that
advertising has on the lives of masses. The testimony of the company in which
it firmly believes is the campaign of Coca -cola-’Thanda Matlab Coca Cola’.
 RK Swamy/BBDO Advertising Ltd- Established in 1973,this advertising
reached great heights. This is also India’s No.1 research company in the market
sector and is fully run by Indians. Brand Equity is an integral part of the
company.
 Grey Worldwide (I) Pvt. Ltd- Primarily based in Mumbai and has offices in
Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey
Worldwide. The company specializes in advertising and marketing services.
 Leo Burnett India Pvt. Ltd- Has a significant presence with 96 offices in 10
countries. It was awarded the ‘Worldwide Agency of the Year’ in 2004. They
are proficient in explain in how a single image is worth thousand words and
can break the barriers of language but not at the cost of the ad’s emotional
power.
 Contract Advertising India Ltd- It is one-to-one customer life-cycle
management advertising agency. It was founded in 1992 and is situated in
Mumbai. It offers a wide range of services like online marketing and strategy
and many others.

12. MAJOR CHALLENGES OF
ADVERTISEMENT INDUSTRY
 Falling audience of channels and broadcasters
 Ingress of internet slowly but surely (online sales have
several limitations though like credibility, tangibility and goods
return and refund)
 Problems of Zipping and Zapping
 Emergence of Direct Marketing networks led by companies
like Amway,Eureka Forbes, Tupperware and so on. The list
is growing fast. It is proving better and more effective and
cheaper too in some cases.
 Advertisement cluttering .

13. Contd…
 Rising costs of advertising both in electronic and
print media despite reduced number of exposures
and clutter.
 Intense competition between brands and product
and suppliers.
 Re arrangement of Indian Madison Avenue
by mergers and take overs by foreign ad
companies (BBDO,Rediffusion,JWT)
 Need for global advertising strategies thus
changing criteria for agency selection.
 Little margins for advertising clients and limited
role of advertising in building brands

14. Global players
Following is the list of notable advertisement
agencies worldwide
 AKQA
 Anomaly
 Amalgamated
 BBDO
 Bernstein-Rein
 Bozell Worldwide
 Cordiant Communications Group
 CORE
 JWT
 Ogilvy and Mather
 Jellyvision

15. Impact of global crisis
 Bad impact on business, operating results, or
financial condition.
 Decreased spending by current or potential
customers
 Delay in payments by customers for previously
purchased products and services.
 Increased bad debt reserve
 Fewer clicks on advertisers’ ads displayed on our
web sites and our Google Network members’ web
sites.
 If the banking system or the financial markets
continue to deteriorate or remain volatile, investment
portfolio may be impacted and the values and liquidity
of investments could be adversely affected.

16. Latest trends in Advertising
 Paid Search Rules:
Google ruled the past decade with paid search advertising. There
is no better, more effective form of advertising on the Internet.
 Organic Search Gains Momentum:
Marketers started to understand the importance of organic
search. Almost 90% of the entire Web’s search traffic flows
through organic search3.
 Display Advertising and Vertical Ad Networks: The past
decade spotted the rise of vertical ad networks like Glam
Media, Federated, HotChalk, Travel Ad Network, and others that
focus on specific verticals.
 Social Media Advertising:
Social networks, especially the big ones like Facebook, Twitter
and LinkedIn become important tool.

17. Contd…
 In-Game Advertising:
Consumers are spending inordinate amounts of time online
playing games.
 Advertising Apps and Games:
Apps have taken over the mobile web, and is even coming on
to PCs, advertising apps and games are a natural progression
 Interactive Infomercials:
Television infomercials are an effective way to market
products. But the Internet offers significantly more cost-
effective and targeted ways to market using the same concept
 Video Advertising:
YouTube videos are famous for video advertisement is a
powerful tool. This decade, there will be a huge amount of
creativity deployed on this art form.

18. Profile of Top Executives
 Miles Young MA (OXON)
Chairman and CEO of Ogilvy And Mather . He served as
Managing Director of Ogilvy & Mather Direct in London, Regional
Director of O&M Direct Europe , running the IBM account in
Europe , Chairman of Asia Pacific at Ogilvy & Mather Worldwide
, Director of Ogilvy & Mather Worldwide. He served as a Non-
Executive Director of STW. . Mr.Young was educated at Bedford
School and at New College, Oxford, he took a first class degree
in Modern History.
 BOB JEFFREY
CEO of JWT . He describes himself as someone who ''loves
challenges.'' He was hired in March by Chris Jones, chief
executive at Thompson, from Lowe & Partners/ SMS and he had
been executive vice president and managing director of the San
Francisco office. He is praised for his skills in the care and feeding
of large clients as well as his ability to stoke the fires of new
business.

19.  Madhukar Kamath
CEO and Managing Director, Mudra Communications
Pvt. Ltd. He serves as CEO and managing Director of
Bates India Private Ltd.
 Laurence Boschetto
CEO and President of Draftcb.He served as the Chief
Operating Officer of Draftfcb Inc., an affiliate of Interpublic
Group of Companies Inc. from January 2006 to February
2009 also he served as the President of Draftcb in New
York since 2002. FROMIona He did BA from Lona
College and MBA from Hagan School of Business.
 Mahesh Chauhan
Group Chief Executive Officer, Rediffusion Y&R Ltd. He
served as President of Rediffusion DY&R since
September 21, 2006. He served as President of Everest
Brand Solutions. Mr. Chauhan takes over at Rediffusion
after completing a three-year stint with Everest Brand
Communications.

20. Conclusion
Advertising is a big business in this era in India.
Indian Advertising industry has witnessed a
prominent globalization . With the inception of
various divisions , the advertising industry has
undergone a sea change. Indian consumer's
deepening pocket and blooming markets for ad-
spends have touched new heights in India. The
Indian Advertising Companies are creating stories
and brand experiences in a way that engages and
involves.