growth and development of advertising in india

7/30/2019 Growth and Development of Advertising in India

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Growth and development of advertisingin IndiaWith the opening of the economy in the 1980s there was a growth in the number

of alliances with multinational agencies and an expansion in advertising though

foreign network participation in agency ownership was limited. In 1987

Hindustan Thompson was affiliated to J. Walter Thompson. Lintas, the 2nd

ranking agency, held only 4% of its subsidiary, as did Ogilvie and Mather.

Saatchi and Saatchi/Compton had minority interests in Compton as did Lintas.

A study done in 1984 of the largest companies in India found that the ratio of

advertising expenditure to sales had risen from .64 in 1976, to .71 in 1980 to .74

in 1984. Foreign controlled corporations had the dominant share of totaladvertising expenditure, and 80% of these were in the consumer goods sectors.

Advertising was very concentrated with the top 50 advertisers accounting for

80% of the advertising spending and the top 10 advertisers made up 40% of that

figure, 32% of the total. The largest advertiser throughout the period was

Hindustan Lever which was nearly 10% of theadvertisingbudget of the

corporate sector companies.Pharmaceutical companies were also significant

advertisers at this time.

Development of Advertising in

IndiaPAYAL KAMAT

SHORT ESSAYS

Advertising in India has created an incredible awareness among thepeople in the past decade growing in to big industry. It has grownalong with the press and today it has found its way into the othertwo media - Radio and Television.

Advertising, which was an American concept originally, has foundits place in a country like India, so much so that the number ofcommercials has doubled in the media.

Advertising in India grew with the Indian press. In the initialperiod, to advertise meant to inform. The early newspapers and
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magazines announced births, deaths, arrivals of ships fromEngland, sale of household furniture etc.

In the beginning of the nineteenth century new products, discounts

and special services got their place in advertisements. Thus,gradually advertising started gaining power. It increased with thegrowth of trade and commerce.

The leading newspapers like The Times of India and the statesmanhad their own advertising departments which prepared layouts foradvertisements.

In early 20th century the advertising agencies such as Indian

Advertising Agency and Calcutta Advertising Agency were started.During Second World War, press advertising was used extensivelyto raise funds for the war.

The Indian professionals also learnt how to motivate the massesthrough advertising. Between 1922 - 1939 many advertisingagencies came up such as New India Publicity Co., Paradiseadvertising Agency of Calcutta, and National Advertising Agencyand so on.

The Advertising Agencies Association of India (AAAI) wasestablished in 1945, training an authority to represent the interestsand problems of advertising profession. At the time ofindependence, advertising business was expanding.

It grew technically also with the introduction of multi-colorprinting, and improved printing machines. Commercial art also

grew as a profession which boosted the advertising business. In1951, the Indian society of Advertisers was formed and in May 1958,the society of Advertising Practitioners was formed.

During pre-independence era, Indian advertisements were mostlyabout clothes, travelling, eating and entertainment places, India,hotels, four-wheelers, tea, gramophones and tailoring shops forBritishers in India and the princely families.

In the post independence period, the focus of advertisementsshifted from luxury goods to consumer goods bought mainly for


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time and labour saving purposes. In 1976, first commercial spotappeared on Television and in 1980, the first advertisementsponsors were allowed.

Advertising in India has urban image, i.e. the urban products areadvertised by urban models in urban living styles.

Many factors contributed to the advertising industry's growth andexpansion in India. The sharp increase in the media options in allspheres made it easy to reach the audience. This offered newadvertising opportunities of media planning.

Many companies were keen on encasing the innovations of the

media and trying to be the first to catch the fascination andattention of the target audience and advertising agencies readilyoffered their skills.

With the policy of liberalization, the business culture improved allaround. This led advertising agencies to raise their creativestandards and improvements in functioning of the ad agencies.

Moreover, many specializations came up in advertising. Such as,

financial advertising, direct marketing, social advertising etc. Thisresulted in the growth in number and size of the in-house agencies.

Mudra Communications was promoted by Reliance Industries,Shristi was set up by Lohia Machines, Ambience by Garden SilkMills and Govan Advertising was parented by Golden Tobacco.Later, these agencies grew in to fully fledge professional agencies,servicing several outside clients besides the owner company.


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Short essay on Advertising MediaPAYAL KAMAT

SHORT ESSAYS

The channel is needed to carry advertising message to theprospective consumers which is referred to as advertising mediumor media. The advertiser can choose from variety of media such asprint, audio-visual, broadcast media and so on.

The selection of a right medium is very important because thesuccess of promotional activity depends upon it.

The popular media for advertising are:

Newspapers and magazines

Radio and Television

Outdoor and transit advertising

Direct mail Point of purchase displays

Motion pictures

Other media

Newspapers and Magazines:

Newspapers carry the advertisements to a large cross section of thesociety. They have been the oldest leading medium for advertisingat local and regional levels. Newspapers are effective for local andretail advertising.

They provide flexibility in advertising. Advertisements can beaccommodated at the last minute to take advantage of some specialmarketing situation. This is a low cost advertising medium.

The main disadvantage of newspaper advertisements is that theyhave short life as they are of local nature and once the newspaper isread, it is kept aside thus the repeated exposure to theadvertisement is not possible.

Many people read the newspaper hurriedly and do not spare time inreading the advertisements. Moreover, 60 per cent of the space in
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the newspaper is full of advertisements, so readers tend to not getattracted by the messages in the advertisements.

Magazine advertisements are better in quality as compared to the

newspaper advertisements and they have longer life. They offer highselectivity. When the magazines are for special interest groups, thescope of advertisement becomes limited.

The disadvantage of magazine advertisements is that they manytimes lack timeliness as magazine printing takes long timedepending on the periodicity of the magazine. Compared tonewspaper, advertising in magazine is expensive, so it does notattract local retailer.

Radio and Television:

Radio was successful in advertising mainly because of large numberof illiterates in India, who could not take advantage of print mediatill the invasion of television to our living rooms.

Even after the television became the most popular medium foradvertising, radio still is a broadcast medium with great outreach. It

facilitates local advertising through its medium wave channels.

The production cost of live radio advertisements is much lowcompared to print media and television advertisements, as itsproduction is mainly concerned with effective oral communication.

It requires microphone and audio amplifier. When an advertiserwants different voices, sound effects and music in theadvertisement, recorded radio commercial is preferable.

In the recorded radio commercials, the recorded disc or tape is to besupplied. Retailers buy radio time for the advertisements of theirproducts. This is called Retail Radio Commercial.

Television advertising has grown tremendously in the last fifteenyears. Television provides for action, motion, sound and cameraeffects, music and verbal messages in advertisements. Therefore, it

has become a popular medium for advertising.


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Radio and Television sell air time in three general classes of area;network, spot and local.

Network refers to television commercial on national broadcast or in

prime time television programmes. Thus, the advertisers are able tohave best time and reach to the national audience.

It saves buying time on many local stations. Advertising during theprime time promotes the prestige of product as well as company.

Spot refers to advertising in a special or particular geographicalarea. Spot broadcasting time is given in the network programmeduring the affiliated Kendras breaks or during delinking period.

It enables the regional advertisers to use television as advertisingmedium and leaves scope for producing the commercial accordingto the regional consumer characteristics, needs and practices.

Local television commercial refers to advertisements of retailers.They sponsor some programmes on TV. Many a times it is a co-operative effort of the retailers along with the manufacturer.

Outdoor and Transit Advertising:

It includes a variety of outdoor media such as hoardings, posters,information panels, bill boards, directional maps, mobile vans withloud speakers, and huge painted portraits. It also includesadvertising on rail, bus and air terminals, building walls andhighways.

Advertising through wall displays, illuminated sky writings, electricspectaculars also come under this category. Outdoor advertising isthe oldest and an important form of advertising medium.

It is an effective medium of advertising in India, when illiteracy ishigher. These are very effective and appealing, and create awarenessand interest. These media draw the attention of the personspressing through certain spots.

These media offer long life. The details like contact addresses,names and addresses of local dealers, etc. can be given. Since they


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have large illustration with bright colors, they also make goodimpact.

The major limitation of outdoor advertising is that, since the

message has to be in a brief, many times it becomes merelysupplementary advertising. Detailed messages can becommunicated through print media. The outdoor and frontadvertising offer sure exposure and repetitiveness.

Direct Mail:

It is a postal publicity. In this, the advertisements are sent directlyto the prospective consumers by the advertiser himself. It could be

through hand delivery, door to door distribution of advertisementor materials.

It can be in the form of letter, leaflet, pamphlet, booklet, acatalogue, handout, circular etc. The main purpose of direct mailadvertisements is to promote consumer interest and creategoodwill, obtaining direct sales, to have personal touch, to providefor reading and thinking about the product at leisure.

Point of Purchase:

This method is also called dealer aids, dealer displays, or point ofsale. In this method messages are directly communicated to thecustomers, inside outside and around a retail store.

Window display, floor display, wall display, banners, samples,posters are usually used to promote sale at the store to attract theattention of the passers. These do not include labels, packages andcontainers.

According to Rayudu, "The advertising materials at point of salemust be attractive, create interest, confidence, impression,educative and of information value. It is the last state to remind thebuyer to buy".

Motion Pictures:


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Motion picture advertising is also called screen advertising. Movietheatres sell time for screening advertisement films as well as slides.These are shown before the main feature film, in intermission orbetween newsreel and feature film.

Other Media:

Advertising through other media includes advertising throughtelephones or any other directory. Bus or Train Time Tables,calendars, products such as key chains, pens, letter pads,appointment diaries, containers, and so on.


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Short essay on Advertising as

Mass MediumPAYAL KAMAT

SHORT ESSAYS

Advertising has been the tool of businessmen for centuries, to assist

them in selling of their goods.

As mass medium, it changes with changing markets, changing lifestyles, changing methods of distribution and changing techniques ofcommunication.

In the process of communication through advertisements,advertiser is the sender, the people and the technology used are thechannels, the regulatory agencies or pressure groups constitute both

feedback and noise and consumers are the receivers.

Advertising has grown into an institution performing essentialsocial and economic functions. The economic system of any countrydepends on the choices of the consumers. Through advertising,consumers are able to do much of their shopping before they everleave home.

Advertising in general renders a useful service to society and itsmembers. It disseminates information that indicates differencesbetween brands of products and types of services as also thedistinguishing characteristics of institutions and manufacturers.

Advertising serves as a powerful persuasive tool for themanufacturer creating a demand of his product. Many authors haveargued that the power of advertising is so great that it deprivesconsumers of their discretion in the market place and makes it

possible for suppliers to manage demand.


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Advertising contains an element of persuasion. Even purelyinformative advertisements have all that is needed to persuade areader or listener to buy the product.

It involves a recognition or belief on the part of the reader orlistener that the advertised product will satisfy a need or desire. Itinterprets the hidden qualities of the product in terms of basichuman desires.

Advertising communicates about a wide range of choices andfacilitates the selection process. It increases consumption, raisesstandard of living and improves the quality of life of people. Thus itcontributes to the development of the society.

Advertising also contributes substantially to consumer education.This is vital in a society where consumers enjoy great freedom inchoosing what to buy. Advertising educates with the help ofillustration, comparisons, literature, demonstration, etc.

Consumers choose the products they know and trust. Advertising asmedium creates awareness and builds confidence in consumers.Thus advertising helps in making the economic system moreresponsive to consumer preferences. Ultimately it speeds up theprocess of resource allocation.

It stimulates the manufacturers to compete in presentation of theirgoods in advertisement in an innovative way.

Advertising affects the human values. Sometimes it creates wantsfor wrong things such as beer, liquor, cigarettes, chocolates etc. It

creates value for luxuries. Thus people become dissatisfied withwhat they have.

They desire for things which are not within their reach. People tendto have things in excess and thus it contributes to the wastage ofmany things such as food items, appliances, clothes, furniture,cosmetics, etc.

Sandbag and Fryburger have rightly mentioned, "The Power of

advertising is not that great. The audience's predispositions, theirattitudes, beliefs, motives, and values largely determine the media


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they select, the advertisements they see, the messages they accept,and the products they buy.

Instead of forcing a response, advertising elicits responses the

audience was predisposed to make. Advertising succeeds when itgives people what they want.

Advertising as a medium is used for creating awareness about socialproblems. Advertising campaigns by government and socialorganizations dealing with importance of literacy, adult education,drug abuse, family planning etc., influence the thinking of thesociety and affect the consumption patterns of the consumers.

Advertisements on environment protection, save water, healthyliving, correct way to use cooking gas, save electricity etc.,contribute to the welfare of a nation by educating citizens aboutwhat is beneficial and to urge them to act to secure such benefits.

Advertising in India is performing a function of developing socialconscience. An extensive application of advertising has been noticedin social services like, clean Ganga, donation of eyes, immunization,family planning, pollution, anti-drug addiction etc.

Nowadays advertising is playing a crucial role all over the world ineducating, informing, inspiring and motivating layman on a numberof social issues and themes with casual commercial activities.

Short essay on Non-Product or

Social AdvertisingPAYAL KAMAT


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SHORT ESSAYS

The term 'non-product advertising is a new field of advertising. Itmeans advertising ideas which are not directly for the promotion or

sell of the products or commercial services.

It deals with the matters of public interest such as social change,political ideas, economic policies, developmental programmes etc.It is also known as 'Public Service Advertising' or 'SocialAdvertising'.

Advertisements are important today, as indicators of social andeconomic progress. They reveal the direction of change in our

values. In fact, a society without advertisements is inconceivable.Advertising has become an important medium of mass educationand therefore the role it plays should be taken seriously.

Advertising campaigns could improve in a way as to enhance thepace of development and usher social change. They can uplift thetone or tenor of the society. Social advertising is an important partof Indian public policy whether that policy relates tocommunications, family welfare, education, health, environment or

to national integration.

Various forms of persuasion are employed to educate people andcreate awareness among them regarding the prime issuesconcerning the country.

Advertising and marketing campaigns through mass media are alsogiven prime importance in this task so as to help masses understanddevelopment messages and participate in developmentalprogrammes with favourable attitude.

Today's big companies are becoming more and more conscious ofprojecting the image of a socially responsible company whichaccepts certain social responsibilities. This image is presented byway of public service advertising.

They give out the message like anti-smoking, anti-drugs etc. in

newspapers, on bill boards, and in the form of short advertisementson television.


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Sometimes big advertising agencies, which are socially aware andconcerned, produce these advertisements themselves, and produceit for the government or social organization on no profit, no lossbasis.

Advertisers can also sponsor cultural, social, sports or otheractivities or organized programmes related to health, hygiene oreducation including literacy by free distribution of booklets or otherreading material. Free health check up camps is organized by bigindustries or public sectors.

'Garden' took up massive tree plantation in Surat. 'Reliance'contributed to sport awareness by organizing cricket matches;

'Nirma' conducted Bhagwat discourses. The 'Times of India'organized musical concerts, workshops, seminars, public speakingcontests, essay competitions, etc.

Thus, the beginning has been made in India by the advertisers tocontribute to the development and welfare of the society, but still ithas to go a long way.

In the United States, public service advertising gets a big boost fromthe Advertising council, an organization those co-ordinatesvoluntary efforts of the entire advertising community. Advertiserand agency people donate their planning, research, and creativeskills and efforts.

The media donate free time and space, over a half-billion dollars ayear in value. Many of these campaigns have been credited withenormous success, for instance, Forest Fire Prevention campaign,

as said to have cut forest fires in natural resources.

Another campaign, on high blood pressure is supposed to haveresulted in increased testing for the disease, a doubling of patientson adequate therapy, and a three year increase in life expectancy.

The social and economic welfare of a nation can be greatlyenhanced when concerted and harmonious effort is exerted toeducate citizens to an understanding of what is beneficial and to

urge them to act to secure such benefits.


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Advertising ideas, such as, reduce traffic congestion, improvehealth, conserve natural resources, plan families, educate girls,increase marriage age etc. serve basic social and economic needs.

Thus, advertising approach is used in informing educating, andpersuading the electorate on basic issues.

Socially relevant advertising is still in its infancy in India. Certaincampaigns are tailored to create public awareness. Advertisementscampaign should have direct impact on social or public welfare.

Tata Steel Limited had followed a novel way of distributing to itsshareholders booklets like, 'Pearls of Wisdom' by Swami

Vivekananda along with their annual reports. Thus, profits can bespent in a good cause which also generates more goodwill.

growth and development of advertising in india

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