0601011 advertising & trends in on line advertising
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0601011 advertising & trends in on line advertising

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    0601011 advertising & trends in on line advertising 0601011 advertising & trends in on line advertising Document Transcript

    • A Project Report On “Advertising & Trends in On-Line advertising” For “Mona Advertising” By Ms Ashvini Shah Under the Guidance of Prof. Sunil Doke Submitted To Pune University In partial fulfillment of the requirement for the award of the degree of Masters in Business Administration Through Vishwakarma Institute of Management Pune-48 1
    • Chapter 1 Executive summary 2
    • Chapter 2 Company Profile 3
    • Chapter 3 Objective of the study 4
    • Chapter 4 Research Methodology 5
    • Chapter 5 Data analysis 6
    • Chapter 6 Findings 7
    • Chapter 7 Limitations 8
    • Chapter 8 Suggestions & conclusions 9
    • Chapter 9 Bibliography 10
    • Acknowledgement I express great pleasure in introducing my project report titled “Advertising and Trends in Online Advertising”. I take this opportunity to express my most sincere and heartfelt gratitude to Mr. Rahul Shiledar (President) and Mrs. Shubhangi Sapre (Senior Marketing Executive), Mona Advertising, Pune, for providing me with a wonderful opportunity to execute this project in their esteemed organization and for patiently monitoring and guiding me throughout the project. This project would not have been successful without the precious guidance of our director Prof. Sharad Joshi and my project guide Prof. Sunil Doke, to whom I express my sincere gratitude and all those who have helped me directly and indirectly in the successful completion of my project. I would also like to thank my parents and friends for their support. Ashvini Shah 11
    • List of Abbreviations Cdr file:- coral draw file format Pdf file:- acrobat reader file format Ads: - advertisements 12
    • List of technical terms 1. Brief: - the idea of the ad in short 2. Creatives:-the artwork or the ad prepared by the artist 3. Calligraphy: - a form of handwriting that is very attractive 4. Coral draw: - it is a computer software used by the artists to make the ads 5. Release order: - it is a document that is sent to the publisher that contains the details of the ads such as the dates on which the ad is to appear, its size, its position and if it is color or black & white and also the rate and amount. 13
    • Index SR.NO. TITLE PAGE NO. 01 Executive Summary 1-3 02 Company Profile 4-9 03 Objectives of the Study 10-12 04 Research Methodology 13-34 05 Data Analysis 35-41 06 Findings 42 07 Suggestions & Conclusions 43-44 08 Limitations 45 09 Bibliography 46 14
    • Advertising is a form of mass communication, a powerful marketing tool which can make firms and brands, leaders in the market provided they have just the product or services that are required in the market. It is an important element of the marketing mix. It is a paid form of mass communication that can be traced to an identified sponsor. Advertising is not as same as publicity although the latter is also a tool of mass communication. Publicity is an unpaid form of mass communication and its sponsor is not easily identified. Over the years advertising has grown from being just another marketing mix to a key strategic input in brand building and image creation. Definition:- “Advertising is any form of non personal presentation of goods, services or ideas for action, openly paid for by an identified sponsor.” Today we are exposed to a larger number of commercial messages than any time in the past. Newspapers and magazines are full of advertisements. Not only has the quantity increased but the quality also has improved considerably over the past decade. Today we not only have print advertisements but also ads on the radio, the television, hoardings, and now on the internet. 15
    • A new trend has taken the advertising scenario by storm and that is on line advertising. The percentage of people accessing the net today in India has reached 100 million and the number is growing by the minute. On line transactions have doubled and more and more people are using the net to access information regarding various products and services. We shall have a brief introduction on internet and the statistics for Internet usage in India and its future prospects. We will also examine the scenario today where on line advertising is concerned. We shall see the types of ads that are seen on line. This project was carried out in Mona Advertising Agency which is one of the oldest and the finest advertising agency in Pune. This project tries to give an overall view of how the work is carried out in an advertising agency today. Through this project report we will try to understand what goes on in the agency and how does the process of ad making occur. We shall also see the various types of ads and a brief introduction to them. Through this project I have tried to give an idea of what an advertising agency really does. Today the role of the agency is not only to make ads and publish them but at times it also has to carry out the market surveys and at times advise the client on the kind of media plan that they should follow to get maximum results. They also at times have to collect the feedback 16
    • analyze it and make further recommendations to the client regarding the next step that they should take. During this project I have found that the major problem that the agencies face today is that of collections. The clients are not regular in terms of making payments but at the same time are very particular when it comes to the ad that the agency is making for them. Based on this I have made a few recommendations which if put in action should help the agency to overcome the collection problem. This project work will also shed light on the current trends in on-line advertising and try to examine the future prospects in the same. 17
    • For 3 decades Mona advertising has survived in a business which gives sleepless nights, hyper tension & ulcers. To exist in such environs it is a feat. To do it successfully calls for rare tenacity and a constant need to reinvent you. From humble beginnings of local shop promotions to corporate success stories on a national level, Mona ads has always strived to keep the clients interests at the foremost. Creating campaigns not only recognized for creative, but affording the client that elusive element which every marketing person desires, The Turnover. 18
    • Established in 1973 A Powerhouse of Creative Ideas 360° Communication Solutions Establishing Brands across India Re-Defining Creativity Creativity – it is the most frequently used word in the advertising world. Many appreciate its value, a few understand it & fewer still practice it. Awards, accolades & laurels do add to its luster but the best reward for creativity is an appreciative client. The experience of Mona in the field of successful advertising has motivated it to set definite parameters for the creative process such as:  A studied analysis of the clients needs.  The efficacy of the creative solution.  Time bound delivery of the solution. These three maxims have proven to be the perfect guidelines to keep on creating higher standards of efficient advertising that works in the interest of the client 19
    • Re-Organizing the Work Place The work place has totally redefined the office of yester years. It has become synonymous with a place where a person thinks and creates. It provides the ideal environment where people can nurture ideas and enhance their own productivity. It is this creation of the inner space that fuels the dynamism and efficiency at which the agency approaches their subject. Centrally located work place, which houses the creative studio, media department, client servicing, production, accounts and administration. State of the art infrastructural facility, total computerization, telecom linkages, email, faxes lends the work place of Mona the technological edge needed in today’s fast paced environment. Re-Engineering People: The team- the nucleus of any organization. You can have a bunch of brilliant people, each treading his own path; or you can have individual talents that work in tandem and achieve. Team Mona is people who think different and yet think alike. Individual talents who complement each other with a shared knowledge base and are fired with the aim to better themselves, with out any room for complacency. 20
    • Generating novel ways of saying things mundane, aided with a work culture that suits their creative expression. At Mona Ads they have professionals dedicated to their respective fields of expertise guided by the dynamic core management. Because in advertising, change is the only constant. Re- Affirming Trust: Every relationship is based on mutual respect. Respect earned over understanding each others strength, abilities and short comings. Over the years Mona has nurtured these relationships with their clients, with the media, and with all of their associates with care and concern. Professional ethics along with the human touch has seen them through many triumphs and tribulations. For Mona no client is small or big. Each one is valued and respected as the other because they believe that companies do not make a difference, people do. 21
    • WHAT DOES MONA DO . . . ? ? ? Creative Designing Corporate Identity Programs Advertising Campaigns Marketing Consultancy Market Research Surveys Test Marketing Product Launches Press Releases Outdoor Advertising In shop displays Point of Purchase Printing Packaging Publishing Brochures Sales Literature Product Catalogues Radio Jingles Corporate & Industrial Films 22
    • Ad Films T.V. Spots Sales Promotion Exhibitions Electronic & Interactive Media Event Management & Promos Etc. . . . 23
    • Every research study needs certain objectives which gives the study is parameters and a defined framework. Lack of this framework results in the project becoming vague and it then becomes very difficult for the reader to find out what the researcher actually wants to highlight. Need for the study The world of advertising has changed significantly during the past decade. Now there are various media available other than the traditional print media and hence the client has a variety to choose from. Thus it has become necessary to know what an ad agency is all about and what goes on behind the making of an ad, the choice of the media and the message behind the ad. Also we live in the age of the internet. Today internet has become an inseparable part of the human life. The use of the net is growing and at a tremendous pace. Thus it is imperative for any company who wishes to make its presence felt over a larger area to think about online advertising. To do this one needs facts and figures to make a sound decision. Background Advertising is a communication link between the seller and the buyer or the consumer. It does not simply provide information about products and services but is an active attempt at influencing people to action by an overt appeal to reason or emotion. Advertising as a part of the total marketing mix influences the sale of the product. Together with the product or brand, price, channel of distribution and 24
    • personal selling, advertising attempts to reach the marketing objectives. Right advertising is as essential as the right product, the right distribution channel and personal selling. Primary Objectives The primary objective of this study is as follows: 1) To study the working of the advertising agency 2) To find out various functions of the various departments 3) To study the different types of ads 4) To study the trends in online advertising Secondary Objectives The secondary objectives of this study are as follows: 1) To study about the various other Medias of advertising 2) To study the execution of these various other Medias 25
    • Sources of data collection The primary source of data is based on my observation during the project study. The secondary source of the data is from various books and web sites. Significance of the project This project offers insight into the working of a modern day Ad agency. It also sheds light on the process that is carried out during the making of an Ad and the execution of the media plan. Also this project offers a look at online advertising. 26
    • The research design is descriptive. I have described the observations that I have made during the project study. The data has mainly been collected by asking questions to the concerned people and from various magazines, books, and web sites. The organization structure at Mona Advertising: The working of the Art Department The art department of Mona ads consists of 11 artists and 2 copywriters and they boast to be (and I have found rightfully so) one of the best creative teams in Pune city. This department is the most favored and pampered. This team is responsible for the creatives*. The work of the artists begins after the marketing executive President Art Department Media Department Marketing Department Accounts Department 27
    • visits the client and brings a brief* about what the client wants to project in his ad. The marketing executive then relays this information to the artist and accordingly the artist gets to work. The artist uses images that are downloaded from the net. At times they create the ad using calligraphy*. All the advertisements are created in coral draw*. Then the artist gives the printout of the creative to the marketing executive. On receiving approval from the client the artist then converts the cdr* file into a pdf* file and loads it on the computer of the media department so that it can be sent to the respected publication. Their work does not end here. They have to maintain backup* files for every creative they make even though the ad has appeared one year ago. The working of the media department The department of media is perhaps the department that has the most difficult task. This department draws up the schedule for the ads to be released in the papers and other media. This department also co ordinates the dead lines for the creatives to be submitted by the artists for particular ads. This department has to maintain relationship with all the publishing companies such as the Times of India, Indian Express, Sakal, Lokmat, etc. The media people maintain the rates of the ads, the day of release and the size and the position of the ad. They also suggest the client regarding the media to be used to allow maximum exposure and response. The media department on receiving the approval from the client regarding the schedule and rates send a release order* to the publishers. 28
    • Theirs is a very complicated job as they have to handle the confusing task of releasing the right ads of the right client on the right day and in the right publication. There have been times when a client has refused to pay for the ad as it was not in the position which he had asked for. The media people also have to negotiate with the publishers so as to get the best deal for the client. In addition they have to maintain records on daily basis. The working of the Marketing Department The marketing department is a very lively department. At the moment the strength of Mona’s Marketing department is 5. The job of the marketing people is very interesting as they are the ones who act as a link between the client and the agency. The marketing executive visits the client and discusses with him regarding the product or the service that the client wants to advertise. He also suggests the client, the media that the client can employ to get maximum results. At times he also discusses the strategies that can be put into action to ensure that the objective of the client is fulfilled. It is the marketing people who bring this brief from the client and relay it to the artists so that they can work on the creatives. It is these people who communicate to the media department about the media chosen by the client, date of release of the ad and the duration during which the client wants the ad to appear. They also communicate to artists and the media department the size of the ad and incase of print ads if it is color or black and white and the language in which the ad is to be published. After the artists have created their work, the 29
    • executive takes this work to the client and gets the approval or else if there are some changes communicates them back to the artists. It is also the job of this department to deliver the bills and recover the money for the same from the client. The working of the Accounts Department The accounts department generates bills according to the release of the ads of the particular clients. This department consists of five accountants. They maintain a record of the dues and the payments that the agency has to make to their publishers and associates. They also do revising of the bills incase of any discrepancy*. This department also takes care of the salaries of all the employees at Mona and all the other financial factors like income tax, sales tax, etc. for Mona. An Introduction to Different Types of Ads (Print Media) 30
    • A] PRESS ADS  These are known as the press ads  These are released not only in the news papers but also in various magazines  The color scheme is four colors CYMK* B] HOARDINGS 31
    •  Hoardings are those ads that are the part of outdoor advertising  Their objective is to catch the attention of the person passing by the hoarding and to pique the interest of that person  A hoarding is a great way of advertising for brand recognition & brand recall C] BROCHURES 32
    • 33
    •  A brochure is a booklet that gives information regarding the product or the service  It is usually used by businesses like real estate, institutes, banks, etc.  A brochure is more of use when the client is introducing new products  For example; if a builder is launching a new project a brochure of that project would carry all the details regarding the project, the amenities provided by the builder, etc. 34
    • D] LOGO DESIGNS 35
    •  A logo is an emblem of an organization  It creates the identity of the firm  It makes recalling of the company quicker  It is used by the firm on all its material beginning from the visiting cards to office stationery to ads 36
    • A FEW FACTS ABOUT PRINT ADS & OTHER MEDIA 1) The size of a print ad is measured in square centimeters 2) The width is measured in columns where one column is equal four centimeters 3) Only the width of the classified ads is always fixed at three centimeters 4) The height is measured in centimeters also and is flexible 5) The ads are divided in different categories like  Display ads  Appointment ads  Classified ads  Pointers  Ear banners 37
    • 6) Display ads are just for the display of the goods or services that the client has to offer 7) Appointment ads are those ads which communicate the requirement of a client to the masses 8) Classified ads are small ads which can be used for both display or to communicate requirement 9) Pointers are small ads usually at the left hand side corner of the front page on a newspaper which points at the ad in the inside regions 10) Ear banners are those ads which are on the top corners on the newspapers` front page 11) Other medium of ads used popularly today is radio jingles 12) A jingle is measured in seconds and the standard is of a ten second spot 13) The client can order for any number of spots to be played per day for the duration that he wishes 38
    • TRENDS IN ONLINE ADVERTISING Before we get any further with the details in online advertising lets learn some basic facts about the internet & the usage pattern in India . . . What Is Internet??  Internet is network of computer networks spread across the globe.  The scale and speed @ which the interconnected form of electronic communication known as the NET, “ THE INTERNET” has entered ordinary life in almost all its aspects  One of the greatest things about the Internet is that nobody really owns it. It is a global collection of networks, both big and small  These networks connect together in many different ways to form the single entity that we know as the Internet 39
    •  The Internet can powerfully leverage your ability to find, manage, and share information  Never before in human history has such a valuable resource been available to so many people at such little cost India-Key Facts  India currently has around 50 million Internet users with a growth rate of 40-50% YOY  The number of Leased Line Connections in India is 16,589. Number of Broadband connectivity (>=256Kbps) subscribers is 399,253. Minutes of usage per subscribers reported by 34 ISPs is approximately 300 minutes per Month.  Ecommerce in India expected to touch Rs. 1,180 crores for year 2005- 2006. Projected growth for year 2006-2007 is Rs. 2,300 crores  Top Ecommerce sites in India are Indiatimes Shopping, Irctc.co.in, ebay.co.in, Fabmall.com in that order 40
    •  Intended Use of Source in 07 - Internet=39% Cable TV=24%  Newspaper=8% National Network News=5% Relevance to Today’s World  It has provided an extremely reliable reach across the globe  A reliable and Affordable infrastructure to conduct business  Easy information access across segments has made the medium extremely popular  PC penetration has increased phenomenally resulting in increase in the number of online users  Popular with advertisers due to cost effectiveness & measurability 41
    •  Compared to other mediums, internet provides an actionable and instant response and fulfillment. It therefore becomes a formidable branding and fulfillment tool How does online advertising compare to offline advertising?  Online advertising betters offline advertising in many respects from cost to demographics to targeting.  Few benefits of internet medium:  Transparency and accuracy  Cost  Targeting  Control  Speed  Midstream tweaks 42
    • Key Takeouts  Internet medium is poised on the brink of a takeoff  With a sizeable audience from affluent background, the online medium is going to be the next big thing to seriously vie for advertising budgets of big brands  Compared to other mediums, internet provides an actionable and instant response and fulfillment. It therefore becomes a formidable branding and fulfillment tool 43
    •  With average internet usage of over 300 minutes per month per person, its taking some quality time away from other offline mediums like print & television NOW LETS TAKE A LOOK AT THE TRENDS IN ONLINE ADVERTISING IN INDIA While most advertisers are still focusing on the traditional advertising media, the target audience is rapidly moving to a more dynamic and interactive medium - the Internet. About 93% of the 28 million online Indians today belong to the age group of 18- 45 years, which has the maximum buying power - your prime TA. What's more, the Indian online population is estimated to be 100 million by 2007- 08 44
    • Advertising market 2003-04 2004-05 2005-06 2006-07 Online Ad Market (Rs. Crore) 42 107 162 218 % share of Online Ad Revenue across Categories Categories 2004-05 2005-06 Financial Services 27% 24% Tech 13% 11% Travel 14% 12% Automobile 9% 11% Consumer Durables 8% 9% FMCG 7% 9% Online Serives (P) 12% 11% Entertainment 4% 7% 45
    • Telecom 2% 6% Financial Services includes: Credit Cards, Loans-Personal, Home, Car, Banking Services, Utility Payments, Insurance, Investments) Online Services (Personal) (Matrimonial, Job Placement, Personalized Travel Verticals- advertising are predominantly pure-play net ventures) SOME INTERESTING FACTS 44% of Internet users believe that a film's online participation influences their judgment in watching a movie reinforcing the need for movie houses to be present online. 73% of Internet users spend less than Rs 500 on a visit to the cinema indicating an affluent demographic. The 18-35 age groups are the biggest spenders. 33% of Internet users have a penchant to buy movie merchandise online & this frequency is likely to grow as we are reaching to households owning DVD Players & Recorders (35%), VCD Players (56%) 46
    • 94% of users are susceptible to mobile marketing. Moreover, there is high propensity to talk, share amongst friends. 47% of Internet users would pay for mobile content like alerts, ring tones, wallpaper etc. ONLINE AD UNITS Till now we have seen the trends in online advertising. We have also seen the benefits of the same. The units of ad that is online are different from the units of off-line ads. As we have already seen the various components that are required in order to publish your ad whether a hoarding or a brochure or a pointer or a classified, etc. Similarly it is important to know where and when and how will your ad be displayed on a specific web site. To know these details it is important to have the core knowledge about the internet or online advertising units. 47
    • Let’s have a look at the online Ad units,  Top Text Link  Content Text Link  Ear Panel Slug  Left Navigational Banner  Top Banner  Tower Banner  Leader Board Banner  Section banner  Inbox Banner  Login Logout  Monster Banner  Hot Links  Bottom Leader board  Bottom Slug  Shoshkele  Frame spots  Interstitial 48
    • We have already seen the trends in on line advertising. On the basis of that I have collected some facts and figures that I have presented below. Due to online advertising there is an increase in the online shopping. Below given are a few most popular items that are bought online and their trends. The items that I have taken are as follows: 1. Apparels 2. Home Appliances 3. Computers & Peripherals 4. Railway Tickets 49
    • 5. Magazines 6. Electronic gadgets 1] Apparels Online Apparel sales, just like its offline counterpart, is supported by Multi Branded outlets (MBOs) online, with their value offering and details catering to a customer who is keen on ‘information’ before a purchase. The 18-35 age groups are the highest purchasers of Apparel online, accounting for 79% of purchases with the lion’s share of 50% falling in the 26-35 age groups. Apparel Demographics 50
    • By Age 51
    • 2] Home Appliances The 26-35 age groups are the highest purchasers of Home Appliances online accounting for 53% of purchases. 52
    • By Age 53
    • 3] Computers & Peripherals The 18-35 age groups are the highest purchasers of Computer and Peripherals online accounting for 73% of purchases with a greater share of 48% falling in the 26-35 age groups. By Age 54
    • 4] Railway Tickets Railway Ticketing is a perfect example of self-service e-economy with the Internet being the domain of information, options, bookings, and capacity-allocation. A perfect opportunity capitalized by IRCTC, a public sector company. The major group that buys tickets on line is 18-35 with 26-35 contributing a lions share of 47% 55
    • By Age 5] Magazines The 18-35 years age group is the highest purchaser of Magazines online accounting for 68%% of purchases with a lion's share of 47% falling in the 26-35 years age group 56
    • By Age 6] Electronic gadget 74% of Electronic Gadgets are being bought by 18-35 year age group, with the e- commerce-savvy 26-35 years having the lion’s share of 49%. By Age 57
    • During this project study I have found many interesting facts that I have listed below. These findings are based on the observations made during the project study and the information gained from the websites. 1. The scope for advertising is growing huge. 2. The competition in this field is huge 3. There are various other media available to the client for advertising other than the traditional print media 4. The major problem that the agency faces today is that of collections. 58
    • 5. The clients do not pay money in time despite the 30 day credit limit 6. There is a shortage of manpower in the media as well as the marketing department 7. The major spending group today is the 18-35 age group 8. The number of online population has grown to 100 million and is growing by the minute 9. This age group is net savvy 10.On line transactions have doubled and are expected to keep growing. Though the on line advertising is catching rage the publishing medium does not have to worry too much. The publishing medium remains by far the most favorite medium of advertising. During this project study I have observed that a few things that need to be changed. The agency is facing two major problems viz manpower and collections. Also I have seen the rising trend of on line advertising. Thus I have made a few suggestions which could help to solve the agency’s problems to a considerable extent. Suggestions 59
    •  The agency is facing the problem of manpower in the media and the marketing dept. to rectify this problem it is necessary hire adequate number of people so that the work can be carried out more efficiently and quickly  Also the additional benefit would be that the work would be properly delegated and wont fall on the shoulder of a single employee causing confusion and stress.  To solve the collection problem of the agency one thing that can be done is to take post dated cheques from the client  Or yet another idea that can be implemented is that the agency could take half the amount before the release of the ad and the remaining amount after the release of the ad so that at least not all the money is blocked by the client  Also looking at the on line advertising trends I feel that this is the right time for the agency to get into this field.  It should start offering their clients this medium of advertising along with the other Medias of advertising. Conclusion It was very interesting to be able to see the behind the scenes action and drama that is the part and parcel of an ad agency. One always sees the ads in the papers or listens to the jingles on the radio yet very few of us realize the amount of work 60
    • that is put behind every individual ad. I am glad that I got this golden opportunity to be able to get a chance to learn how an ad agency functions. There is still a lot left to learn and a vast area to be explored. I feel as if I have just touched the tip of the iceberg and I am sure that such is indeed the case. Every project work has a few limitations and this project is no an exception. The limitations are as follows 61
    •  The findings and suggestions have been based on the observations made during the two months.  A more detailed study could not be carried out due to the time constraint of two months  The facts figures are not completely accurate as they are updated regularly. Yet I have tried my best to collect as updated data as possible. Books:- 1] Foundations of Advertising (Chunawalla& Sethia) 2] Marketing Management (Rajan Saxena) 62
    • Web site:- www.iamai.in 63