Advertising Overview
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Basic overview of advertising with industry and segment-wise growth figures, future of advertising and types of agencies
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Advertising Overview
- 2. The Market The Future is Digital Digital Ad Spend Are these the Good Times? Who are the Biggest Spenders? Advertising Participants Where do you fit in? Conclusion
- 3. India’s Advertising industry is expected to grow at a rate of 16.8 per cent year-on-year to Rs 51,365 crore (US$ 7.61 billion) in 2016, buoyed by positive industry sentiment and a strong GDP growth of 7 per cent and above.
- 7. Online advertising, which was estimated at Rs 2,900 crore (US$ 429.9 million) in 2013, could jump threefold to Rs 10,000 crore (US$ 1.48 billion) in five years, increasing at a compound annual rate of 28 per cent.
- 8. Of the current Rs 2,750 crore (US$ 407.66 million) digital advertisement market, search and display contribute the most - search advertisements constitute 38 per cent of total advertisement spends followed by display advertisement at 29 per cent, as per the study.
- 12. “India is the fastest growing ad market among all the major markets of the world. 2015 was the best year for ad spend growth we’ve had in the last five years,” said C.V.L. Srinivas, chief executive at GroupM South Asia.
- 13. Consumer product, automobile and e- commerce companies will continue to drive growth (as they did in 2015) and telecom, banking and finance, and the government sector will join the party, according to Srinivas.
- 14. While digital media will remain the fastest growing platform, India is one of the few large markets where all traditional media platforms will show positive growth
- 15. The top ten spenders during 2015 were Hindustan Unilever, Amazon, Procter & Gamble, Flipkart, Maruti Suzuki, Mondelez, Godrej Consumer, ITC, Snapdeal and Reckitt Benckiser. Hindustan Unilever was the largest spender, with nearly Rs 2,500 crore ad expenditure.
- 18. Advertising Advertising agencies create, develop, and produce advertising campaigns across print (newspapers, magazines), outdoor (billboards, bus shelters etc), TV and radio. Some will also book advertising space as well (see Media below).
- 19. Brand Brand agencies focus on developing brand identities – the company, name, visual identity, positioning etc. Brand agencies often incorporate design (see Design below) as the process of developing a brand requires the development of a visual identity (logo etc). A brand agency is most commonly used when a company is starting up or an existing business is re-branding.
- 20. Design Design agencies provide graphic design services – converting a brand / message into a visual form. They will generally cover anything from designing a logo to producing the artwork for stationery, advertising and packaging.
- 21. Digital / Online Marketing Digital or online marketing agencies are concerned with any marketing relating to the Internet. They focus on maximising the number of visitors to a company’s website and engaging potential customers when they are on the site. Some digital agencies also provide email marketing services.
- 22. Market Research Market research agencies design, carry out and report on and / or analyse research on behalf of companies. The research may be qualitative (e.g. focus groups and in-depth research), quantitative (e.g. Omnibus) and / or fieldwork (providing personnel for e.g. street questionnaires).
- 23. Media Media agencies specialise in planning and buying advertising space. This role is often also incorporated into an advertising agency. Print Print agencies take on a company’s print jobs and outsource them to a printer. The agency takes responsibility for ensuring that the job is delivered on time, to budget and meets the specification.
- 24. Public Relations (PR) PR agencies are concerned with making sure that a company and its products /services are mentioned in the media (newspapers, magazines, TV and radio) and other important outlets (e.g. tradeshows, conferences) for getting information about the company to potential customers. They focus on generating free editorial not paid-for advertising.
- 25. Social Media A relatively new entrant, social media agencies help businesses to build and maintain a presence on social networking platforms such as Facebook, Twitter, LinkedIn, Google+ and YouTube. Web Design Web design agencies build, develop and host websites. Most web design agencies also provide digital online and social media marketing services.