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CHAPTER 1
Change in Environemnt
Reason Why Policy Required
• Advertising has the power to manipuate so much than other
porfessions, hence the need for policy.
1. Mis-leading Ads
2. No control on Price
3. Maintaining standards
4. Labellng Issues
5. Surrogate Advertising
• Initially there were no rules & regulations to control the pres in any
form.
• As the East India Company became more and more powerful they
started to regulate press.
• Firstly, license required if anyone wanted to publish newspaer.
• 1823, Censorship laws were introduced.
• 1857, The Licensing law
• 1860, the first Indian Penal Code
POLICY POST INDEPENDENCE
• Both press and broadcast has been around for the longest. but it is
nothing in comparison to the excistence of press for four centuries.
• Precisely the reason, majority of rules and regulations before and
after independence have been related to press.
• The first advertising agency in India was set up by B. Dattaram and Co.
in 1905, Bombay.
• Even though brand ambassadors were rarely used for ads, there were
print ads showing Rabindranath Tagore.
Print Media
• Most acts & laws were introduced in the pre-independece era.
• Registration of Newspaper (Central) Rules, 1956.
• Balance between pure existence and just making profit 60:40.
• The initial phase of print media advertising was purely factual with
less creativity.
• The 70's and 80's industry started with more creative advertising
along with factual.
• Gradually, the concept of Brand Andoresement started showing
impact with more celebrites endorsing products.
Regulatory Body (Print Media)
• Press Council of India:
Set up in 1954.
Constituted on 4th July 1966.
Helps Print Industry with Guidelines:
1. Maintain Independence
2. Maintain Code of conduct
3. Maintain High Standard
4. Sense of responsibility
Broadcast Media
• The history of Broadcast statutory body goes back in 1885 to the
Indian Telegraph Act, 1885.
• According to the act, telegraph includes telecommunication,
television, radio, wiresless, mobile and video equipments.
• Thw act gives government the right to control media in times of
emergency or public safety.
Regulatory Body (Broadcast Media)
• Federation of Indian Chambers of Commerce and Indusry (FICCI):
Established in 1927,
It is a not-for-profit and non-goverment organization.
The biggest achievement of FICCI, Indian Film Sector was granted the
“Industry” status.
• Advertising Standard Council Of India (ASCI):
Indian advertising as a whole controlled and regulated by a non-
statutory body, ASCI.
1985, adopted a code for Self-Regulation in Advertising.
• ASCI has 4 classification members:
1. Advertisers.
2. Advertising Agency.
3. Media plaforms.
4. Other professionals.
The above came together and agreed on set of guidelines:
1. Protect consumer interest
2. Ensure fair play amongst competitors
• The Advertising Agency Association Of India (AAAI):
Formed in 1945
The association promotes professionalism and business practices
between Advertisng & Advertising Agencies.
The objective:
1. Benefit Indian Consumers
2. Benefit Indian Advertisers
3. Benefit Media
4. Benefit Nation
5. Encourage the interest of young individuals
POST 1990s
• Prasar Bharati:
Statutory autonomous body
Public Service Broadcast of country
• Telecom Regulatory Authority of India (TRAI):
Set up in 1994, established with effect from 20th Feb 1997.
Mission is to create & nurture conditions for growth of telecom.
• Cable Television Network Rules, 1994:
Restrictions on Advertisements
Present Criminality as desirable
The rules prohibiting Advertisements
Indecent Represntation of Women Act
• Information Technology Act, 2000:
Dealt with number of issues from increasing use of Internet
in commercial transaction to bring ths emerging technology
into scope of law
Convergence Bill
• Communication Convergence Bill, 2000 aimed at creating a single
regulatory authority that would repeal the other major acts.
• The bill is applicable to the following technologies:
Network Infrastructure
Network Service
Application Service
Content Application Service
Policy Initiatives
1. Industry Status to Entertainment Sector
2. Export
3. FDI in Film & Advertising
4. DTH Television
5. Regulation on Cable TV
6. Radio Broadcasting Opened Up
7. Improving Prasar Bharati Infrastructure
8. Advertising & Visual Publicity
Telecom Regulatory Authority on Duration of ADS
• Only 12 minutes of ads
• Time gap between ad breaks
• Live broadcast- only full screen ads allowed
Impact on Digital:
• A decrease in supply of advertising time on TV
• Increase in focus from channels on Internet
• Broadcasters getting triggered

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Change in Environemnt

  • 1. CHAPTER 1 Change in Environemnt
  • 2. Reason Why Policy Required • Advertising has the power to manipuate so much than other porfessions, hence the need for policy. 1. Mis-leading Ads 2. No control on Price 3. Maintaining standards 4. Labellng Issues 5. Surrogate Advertising
  • 3. • Initially there were no rules & regulations to control the pres in any form. • As the East India Company became more and more powerful they started to regulate press. • Firstly, license required if anyone wanted to publish newspaer. • 1823, Censorship laws were introduced. • 1857, The Licensing law • 1860, the first Indian Penal Code
  • 4. POLICY POST INDEPENDENCE • Both press and broadcast has been around for the longest. but it is nothing in comparison to the excistence of press for four centuries. • Precisely the reason, majority of rules and regulations before and after independence have been related to press. • The first advertising agency in India was set up by B. Dattaram and Co. in 1905, Bombay. • Even though brand ambassadors were rarely used for ads, there were print ads showing Rabindranath Tagore.
  • 5.
  • 6. Print Media • Most acts & laws were introduced in the pre-independece era. • Registration of Newspaper (Central) Rules, 1956. • Balance between pure existence and just making profit 60:40. • The initial phase of print media advertising was purely factual with less creativity. • The 70's and 80's industry started with more creative advertising along with factual. • Gradually, the concept of Brand Andoresement started showing impact with more celebrites endorsing products.
  • 7.
  • 8. Regulatory Body (Print Media) • Press Council of India: Set up in 1954. Constituted on 4th July 1966. Helps Print Industry with Guidelines: 1. Maintain Independence 2. Maintain Code of conduct 3. Maintain High Standard 4. Sense of responsibility
  • 9. Broadcast Media • The history of Broadcast statutory body goes back in 1885 to the Indian Telegraph Act, 1885. • According to the act, telegraph includes telecommunication, television, radio, wiresless, mobile and video equipments. • Thw act gives government the right to control media in times of emergency or public safety.
  • 10. Regulatory Body (Broadcast Media) • Federation of Indian Chambers of Commerce and Indusry (FICCI): Established in 1927, It is a not-for-profit and non-goverment organization. The biggest achievement of FICCI, Indian Film Sector was granted the “Industry” status. • Advertising Standard Council Of India (ASCI): Indian advertising as a whole controlled and regulated by a non- statutory body, ASCI. 1985, adopted a code for Self-Regulation in Advertising.
  • 11. • ASCI has 4 classification members: 1. Advertisers. 2. Advertising Agency. 3. Media plaforms. 4. Other professionals. The above came together and agreed on set of guidelines: 1. Protect consumer interest 2. Ensure fair play amongst competitors
  • 12. • The Advertising Agency Association Of India (AAAI): Formed in 1945 The association promotes professionalism and business practices between Advertisng & Advertising Agencies. The objective: 1. Benefit Indian Consumers 2. Benefit Indian Advertisers 3. Benefit Media 4. Benefit Nation 5. Encourage the interest of young individuals
  • 13. POST 1990s • Prasar Bharati: Statutory autonomous body Public Service Broadcast of country • Telecom Regulatory Authority of India (TRAI): Set up in 1994, established with effect from 20th Feb 1997. Mission is to create & nurture conditions for growth of telecom.
  • 14. • Cable Television Network Rules, 1994: Restrictions on Advertisements Present Criminality as desirable The rules prohibiting Advertisements Indecent Represntation of Women Act • Information Technology Act, 2000: Dealt with number of issues from increasing use of Internet in commercial transaction to bring ths emerging technology into scope of law
  • 15. Convergence Bill • Communication Convergence Bill, 2000 aimed at creating a single regulatory authority that would repeal the other major acts. • The bill is applicable to the following technologies: Network Infrastructure Network Service Application Service Content Application Service
  • 16. Policy Initiatives 1. Industry Status to Entertainment Sector 2. Export 3. FDI in Film & Advertising 4. DTH Television 5. Regulation on Cable TV 6. Radio Broadcasting Opened Up 7. Improving Prasar Bharati Infrastructure 8. Advertising & Visual Publicity
  • 17. Telecom Regulatory Authority on Duration of ADS • Only 12 minutes of ads • Time gap between ad breaks • Live broadcast- only full screen ads allowed Impact on Digital: • A decrease in supply of advertising time on TV • Increase in focus from channels on Internet • Broadcasters getting triggered