Advertising industry essay

Last Updated: 09 Jul 2021
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The industry has evolved from small businesses to a whopping 300 billion worth industry. It is currently one of the major industries in the tertiary sector. Various businesses look up to advertising as a tool to cash on lucrative equines opportunities. The industry has been experiencing a sea of change from use of billboards and hoardings to luring offers, exclusive gifts etc and advertising on social networking sites.

The Indian advertising industry has various factors to its growth advantage:

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  • Huge pool of trained and creative personnel in the branding and media industry
  • Multiple cultural society which helps in understanding diversity of cultures
  • Growth of the animation software industry and better production standards in TV and print media
  • Increasing IT capabilities which enhance the web based communication with global clients

Key Trends for Growth

  • Digitization of film and TV distribution infrastructure
  • Digitization of distribution has brought more sustainable and profitable business models across media sectors. The digital technology is expected to drive the advertising sector's growth by spurring on end user spending and transparency.
  • Growth in new media

The rapid increase in the mobile and wireless connections continues to drive the growth of internet penetration in India. With better access, through cheaper and smarter devices, audiences are consuming more content and are getting increasingly engaged. Key beneficiaries are emerging new media segments which include internet advertising, online classifieds which are on a rapid growth path.

With traditional media still going strong India is a growth market for traditional media such as TV premiership, radio listeners and the print market however new media platforms are coming up.

Advertising Industry

By catalyst TV digitization enables greater diversity and niche television programming which would improve broadcast economics which in turn would help in increasing the investments in production quality, niche and targeted genres of content in the medium term. Internet and mobile platforms are a cost effective enabler to reach averse audience segments with customized content.

Regional Markets Remain Key Centers for Growth

Consumption from key regional markets continues to have a high growth. Key media players are focusing on acquisitions and expansion opportunities in regional markets based on higher rates of advertising revenue growth and better insulation from the slowdown than in metros. Revenue models still advertising dependent The revenue models are still advertising dependent therefore, it remains sensitive to the impact of the economic slowdown. Regulatory and policy support There is a dire need for measures to aid curtailment of piracy and encourage investments to support growth.

Regulatory interventions have been a key enabler of growth. Gaps in availability of skilled media and entertainment professionals With potential growth of TV and radio broadcast channels, skill intensive film sectors, animation etc, the need of skilled personnel would increase. In a talent driven media sector, companies could potentially differentiate based on ability to attract and retain the right people Size and Growth of the Market The total advertising annual spending is estimated to USED 5 billion, primarily on television and radio alone.

The advertising industry grew from 728 billion in 2011 to 20 billion in 2012. Despite the economic turmoil, advertising revenues saw a growth of 9% in 2012, 13% in 2011 and 17% in 2010. Print continues to be the largest beneficiary with a share of about 46 % ii 150 billion. Radio is expected to grow at a CARR of 16. 6 % over 2013-2017 and the Indian advertising market is likely to touch 2938 scores INNER by 2014. The online advertising market including display, mobile, social media has grown by 29% and the online advertising market is expected to grow by 40% annually in 4 years.

The amount spent on mobile advertising has doubled from RSI 115 core in 2012 to RSI 230 core in 2013. Advertisements on mobile phones and tablets grew from a 7% share in 2012 to 10% in 2013 totaling to spends of RSI 230 core. Social media, email and video advertising constitute 13% (300 core INNER), 3% (68 core INNER) and 7% (1 50 core INNER) respectively.

Advertising Industry: The Environment

With the internet turning more and more traditional markets into online economies, industry is faced with increasing global challenges dealing with everything from privacy concerns to commercial communications in these online environments.

The emerging markets are based upon a new approach utilizing search engines, portals, ammunitions along with algorithm-based product recommendations as new media channels for advertising. This is developing into one of this decade's focal points when it comes to communication with the public and social masses. This modified and new ways of communication leads us to a place where the advertising channel and media are changing and thus the advertising industry is shaping up accordingly to keep up pace with the changing media channels.

Driven by the general shift towards an online economy - as well as the role of regulation within this shift - industry and its utilization of these potential online resources represent a ajar transition effecting markets, societies and states. The conundrum presents itself as revenues enable uncountable content providers to put traditional and new content and services online, while on the other hand these markets as well as relevant connected markets often are considered oligopolies and profiling services infringing one's privacy.


Digitization is a engagement that has changed, and continues to change the global media industry and plays a key role in the media field. In Finland, for example, the Internet has already surpassed television as the most important media. Advertising, marketing, buying and selling also increasingly take place in the online realm. Digitization has also facilitated many other development trends that have a significant impact on the media industry, such as the popularity of social media and the rise of citizen Journalism. The way consumers use media is also undergoing a major shift.

As people feel busier and busier, their use of time becomes more fragmented and so do their media needs. Many people now seek media content to fill passing idle moments in fragmented daily life by using quick and location-independent platforms such as various mobile devices. The nature of media consumption and consumer expectations regarding the media they use can also change from one moment to the next: sometimes people. Just want to access information quickly and efficiently, at other times they look for more experience-oriented and thought-provoking content, characterized by a slower consumption speed. Media is also expected to facilitate interaction between readers and Journalists as well as between the readers themselves.

Evolving Advertising

Advertisers' primary objective has remained unchanged: the goal is to create and strengthen customer relationships and increase sales. The reach and effectiveness of advertising and the credibility of the media environment plays a key role in media choices: advertisers are looking for better ways to target their messages, measure their results and make buying their products or services as easy as possible.

Studies on the perceptions of American consumers regarding advertising in different media channels indicate that Americans have the most positive attitudes towards newspaper advertising and the most negative attitudes towards direct marketing. Digital advertising channels such as online and mobile advertising offer interesting opportunities for the targeting and measurement of advertising. Location-based mobile advertising is expected to make a major breakthrough in the near future.

Online commerce becoming increasingly commonplace is making it possible for marketing communications and the marketplace to come together online, allowing consumers to easily purchase a product immediately after seeing an advertisement for it. The role advertising can plays in today's marketing environment is very before, and where there's more competing for our attention than ever before, the best advertising follows a "less is more" approach. It strives to get the audience's attention, get them thinking, and then quickly presents a call to action, a next step where we can go to learn more or make a purchase. In short, today's great ads strive to start a conversation but resist the urge to try to have the whole conversation in one sitting

The Current Scenario

The Indian advertising industry is talking business today. It has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map.

Important statistics to support the above are Indian advertising industry with an estimated value of estimated 13, 200-core. It grew by 17% in 2011 and added about 890$ MN to the existing Ad. Pie worth US$ 5248 MN. Indian Ad spend as a percentage of GAP is 0. 34% India is 3rd in the growth rate of the advertising industry: The advertising industry is growing at a rate of 8-9% per annum Market share of different media in India: Leading advertisement channels are newspapers and television with a combined market share of 75%.

Online spending on advertisement is expected to grow at 25% per annum with online advertisement budget crossed USED $Mann by 2012.

The Competitive Scenario

Competition in the media industry has intensified greatly in the 21st century, with the battle over consumer and advertiser customers becoming tighter and more international. Advertisers can now choose from a broad variety of digital alternatives with a global reach to build and strengthen customer relationships. We have come a long way from the time when domestic newspapers were competing only against other domestic media for the euros spent on advertising.

As international rivals are entering the fray, the domestic competitive field in media advertising is also undergoing a major shift. Online advertising is constantly finding new forms and competing channels such as regional television advertising are also getting a strong marketing push. In printed media, developments in printing and distribution technology are enabling increasingly diverse and targeted media solutions such as regional or target group-based issues and accordingly targeted advertising. Publishers are actively looking for entirely new revenue models to complement subscription and advertising sales.

Below are the top 10 advertising companies in India with their key facts:

Company/No. Of employees/Divisions

  1. Googol & Matter Creative: 334, Servicing: 350, Production: 63, Account planning: 20, Others: 162 Googol Activation, Googol Public Relations Worldwide, Googol-One Worldwide Asian Paints, BP/Castro, Catbird, Gillette India, HALL, Hutchison Cesar, MM, Seagram, SIB, Data Motors
  2. McCann Erickson India Creative: 114, Servicing: 88, Production: 16, Account planning: 11, Media planning: 18 Result MR., Result Healthcare Coca-Cola, Hindustan Lever, Johnson & Johnson, L'Oreal, General Motors, Dabber, Intel, Marino, Mastered, Microsoft, Neuronal, Perfect, Data Indices, TV'S Motors
  3. Lowe Lint's Creative: 104, Servicing: 181, Production: 19, Account planning: 20, Others: 38 Lint's Personal, Earn Initiative, Elementariness, Lint's Healthcare Milliner, Idea Cellular, Britannic, LEG, Marti Dog, TIC, Baja] Auto, , The Hindu
  4. Not shared RUM, Portland, Designs Pepsico, DC, Hero Honda Motors, Gallo Smithies, Frito Lays India, HP, Milliner Home & Personal Care, Ford
  5. Leo Burnett Creative: 55, Servicing : 55, Production: 6, Account planning: 2 None P , Coca-Cola , Heinz India, McDonald's , Baja] Auto, Goodbye Phillips
  6. Madras Communications Stuffed Promos and Events, Reap Collins India, Tribal DB India, Primetimes, Brand Therapist, Videotape, Tanta, MOMS, MAGMA India The Godard Group - Godard Consumer Products & Godard Groove, Para's Pharmacy, Reliance ADAGE, Philips, Dabber, LICE, Modular Garments, TTS, Pantaloon, Hinkle
  7. Grey Worldwide Grey Exhibit, Grey Interactive, Grey Direct Ministry of Tourism, ONCE, Gujarat Ambush, Chastiser Tourism, Hairier Appliance, Wriggler's, Pearl, Deutsche Bank, Medici, TIC Foods
  8. FCC I-Jackal Creative: 96, Servicing: 101, Production: 68, Account planning: 22, Media planning: 66, others: 102 Cygnus PR, Lodestar Brand Experience, FCC Alkali Interactive, Cogitator Consulting, Orion Promo Cash, FCC Alkali Healthcare, Proctor Graphics Data Motors, Data Televises, Whirlpool, Maul, Hero Honda, CHIC Bank, Wiper, Zee Tilefish , TIC Foods, Data Consultancy Services
  9. Contract Advertising Creative: 94, Servicing : 81, Production: 5, Account planning: 10 'Contract, Designator : HASH, UNIT, Catbird , Dabber, Data Group, Shoppers' Stop, J Industries, Modular Garments , Wiper, Asian Paints
  10. Redefinitions DRY Creative: 83, Servicing : 102, Production: 25, Account planning: 9, Media planning: 65

The racketing implication is that the advertisement companies are offering a host of functions to its clients that include everything from start to finish that include client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services. Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. If the experts are to be believed then the industry in the coming times will form a major contribution to the GAP.

With all this there is definitely no looking back for the Indian implication for the existing players and new entrants is to keep up pace with the changing trends in the advertising industry. The technology and thus the media channels are changing. Online advertising is taking a huge leap and is rapidly gaining popularity and market share. Below is the industry wise expected market share by 2011 for online advertising

Customer Expectations and Buying Behavior

The customer expectations are pretty high when it comes to advertising industry. Given the brand equity of JET the expectations are even higher. They take all the necessary measures to make sure that the customers who come to them are not disappointed. They believe in the mantra that customer is the boss and listen to everything he has to say. They seldom contradict the view point of the customer because they believe that when it comes to advertising the customer knows what he wants the best. To make sure that the customer expectations are handled smoothly and aptly, JET has four departments which have specific roles assigned. Account planning division Client servicing division Creative team

Financial Division

The Client servicing division first understands the expectations of the client, makes a theme for the ad and passes the information to the Creative team. The creative team then conceptualized the ad and prepares a rough copy of it. This is then shown to the client in presence of the client servicing team. If there are any suggestions from the client these are included in the ad. This process is carried out this the client is satisfied with the output. JET charges the client on hourly basis. They also charge higher if the client changes his requirements during the ad making process.

From the customer's perspective, this is a high involvement purchase. Once the customer gives his requirements, the team from JET which handles the project does a thorough research of the market and incorporates all the important findings in the concept of the ad. This forms a very crucial step because the ad is a medium through which the company want to position itself or its product. An improper ad or an ad which is not in tune to the current markets tastes might lead to wrong positioning or ineffective ad campaign. There are two ways in which they carry out their business

  1. They approach a customer. E. G. Political parties, inactive clients etc.
  2. The customer approaches them In either case they have to present the customer the proposal for the ad.

If they like it they go ahead with the project. Sometimes they themselves approach an old client whose is inactive and present him with the market research the conducted three to four alternatives and leave the final decision to the customer. The new clients get information about JET from their past clients, projects, websites and WHOM. Target Segment and Positioning JET has positioned itself as a premium service provider.

It does not have a target segment but it only provides services to players in the market who can afford a premium pricing. They classify their clients based on the revenues they generate. Their major clients in India include PepsiCo., Monika, etc. They have been quite loyal to then courtesy their high levels of satisfaction with JET. They always believed in delivering on time specially when it comes to these major players. They have their presence in most of the major cities in India like Surgeon, Hydrated, Achaean, Bangor, and Iambi.

They have many clients who are not based in any of these cities. In such cases either the executives from JET go to the clients location or invite the client to one of their office whichever is comfortable. Thus, it can be inferred that they are targeting NC and Big companies in the metropolitan cities, having said that they are ready to provide service to players outside these cities it they are willing to pay the price the demand. They also undertake smaller ads from the companies. E. G.: request from pizza hut to create an advertisement to inform people about change in the menu etc.

Market Offering Product

The product that they offer is highly customized according to the acquirement listed by the client. The ad that they create initially will undergo a lot changes before the final delivery is made.


As discussed earlier they provide service at a premium. They charge on hourly basis and charge extra fee if there are any change in requirements from the clients end. Place: They have their offices in various cities across the country. They deliver almost all their services in either of these offices. These are then advertised through TV's, radios or print media across the country.


Today JET is a well-known brand in advertising industry. Its rumination activities are very limited. Their promotion is restricted to Participation in award shows and competitions organized amongst ad agencies. People: The role people play in service industry is very crucial, since a service is inseparable from the person providing it. JET acknowledges this fact and employees well trained staff. They do not contradict the view point of the client and always listen to what client has to say.


The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers. They have a recess blueprint which they follow for every project that comes their way. Physical Evidence: They have studios where they carry out the ad-project. They try to make the ambiance of the office in such a way that it would pleasing to the customer who walks in. Service Process and Blueprint: JET has a predefined sequence of activities which they adopt each and every time they get a project. They have a two process which they follow depending on the type of project they get I. . Either small project or a large one.

For a large project:

  1. The client's first interaction will be with the Account planner's team. They plan the whole campaign for the client's which includes which media platform to be targeted and other details. Sometimes they rope in other companies to do the media planning for them.
  2. The information is then passed on to the Client servicing team. This team requirements in detail. They then create a story line which forms the Jest of the ad film.
  3. This is then passed to the creative team who actually make the ad.
  4. Once an initial version of the ad is made it is shown to the clients in presence of all the teams involved.
  5. Any suggestions or feedback given by the client is noted and necessary hangers are made to the ad. This is repeated till the client is satisfied with the output.
  6. Once the ad is released many a time a review is done to find out how the ad performed with respect to their expectations.

A large project basically includes new ad campaigns of large companies like PepsiCo, Retailer, election campaign for political parties like Congress etc.

For a small project:

  1. The initial steps in the above process are skipped and the creative team gets involved directly.
  2. The remaining steps followed are the same. A small project includes change in existing menu of pizza hut etc. Etc. The finance division handles the financing operations for both the type of projects.

Demand and Capacity Management

JET faces a high and a constant demand throughout the year. This is because every company has its own schemes and product launch plans which it rolls out at different times of the year. They approach JET accordingly. Thus at any given point of the year, JET has it hands full. They admit that during festival season there is a slight increase in demand. They have a spread out network throughout the country. Most of the times, a given regional branch caters to the demand of the respective region. But sometimes they might refer the client to another branch if they feel that that particular branch is more competent in handling a particular project. The employees of JET believe in the philosophy 'customer is god' thus if the customer demands the project to be completed the next morning they would not mind to sit out the entire night to deliver the project on time.

Because JET positioned itself as an premium service provider and has a strong brand equity, it sometimes rejects a not so viable project if it feels that it cannot deliver it on time.

Customer Perception and Satisfaction

Some of the key highlights of consumers' perception of Advertising Service:

Advertising is everything with a name on it

The first key understanding based on our primary research on consumers' perception was the extent to which the term advertising encompassed for consumers every piece of brand, product or service communication. It obviously included the key media of television, posters (surprisingly high in a strong second place), press, cinema and radio. It also included other aspects of 'selling such as Direct Mail, door drops, the Internet, branding in store, branded clothing, sponsorship, commercial ext messages and even telephone sales. Advertising is simply everything that has a name on it. "It's Just in everything, newspapers and magazines and it's on television, you know you go in the high street and it's in the shop windows... It's on everything you do without realizing it" - A pedestrian customer shopping at a retail store in Vacant Junk, South Delhi.

Advertising is everyday culture over time

For some, mainly the older respondents, there is perhaps too much advertising, too much pressure to buy but the majority embrace it as part of life. The all-embracing nature of advertising means that all respondents believe it is absolutely part of everyday life

Life without advertising would be dull

When asked to think about life without advertising the response was that life would be very, very dull. There would be a lack of essential and desirable information. There would be less entertainment. There would be less street color. There would be less to talk about. "Life would be simpler but it would be boring.... Everybody would have what they've got and then that's it. You'd end up buying the same thing week in week out" - a shopper at the Nikkei Store, Stake

Advertising is an indicator of the vitality of a brand business

Advertising is inevitably perceived as a selling tool but it is also for consumers a barometer of the economy. For those not involved in business, the advertising is the key indicator of a company or brand's health.As one cus omer points out: "A brand that has a great deal of good quality advertising must 'be doing well'. "

Advertising size matters

The perceived scale of any advertising is important to the way consumers receive it. If advertising is thought to have a lot of money behind it or to have significant presence then this adds credence to the message and adds stature to the brand. So large spaces, mainstream media, sustains presence, the use of color, a clever or 'big idea' all add weight to the advertising and positive perceptions of the brand.

Advertising has improved over time

The public is more critical of advertising than it has ever been. This is because of a general belief that advertising is better than it ever was. It is felt to be cleverer, more reflective of real life, more entertaining and more tuned to different targets.

'Clever' advertising is good advertising

Throughout the research, regardless of consumer life-stage or sex, clever was the rod used to describe advertising that engaged and entertained. Clever could be clever in humor, originality of the idea, play on words or special effects.

Not all is positive

On the negative side consumers perceive one major trend. It is a trend that threatens to seriously undermine advertising in general. Advertisers are in some cases perceived to be manipulators who do not communicate the true or whole picture. It is advertising of serious products, mainly financial, that highlights substantial benefits but is vague in its communication of the implications or downsides. It is epitomized y the perceived growing presence of advertising for accident claims companies, consolidation of debts and loan offers.

Due to this, consumers have become more cynical, critical and doubtful about other advertising claims. "They are all the same", is one common perception of consumers on advertising. Customer Satisfaction in this service industry is largely dependent on the following factors: Adaptability of the advertising team to accommodate the consumer's preferences in the advertisement Ability of the service providers to induce creativity and ideas Timely Deliverables Degree of positive impact on sales of their business

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Advertising industry essay. (2018, Jun 20). Retrieved from

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