Indian advertising industry
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. Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop and set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mind-boggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising agencies too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. Indian economy is on a boom and the market is on a continuous trail of expansion. With the market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has lead to a consecutive boom in the advertising industry as well. The Indian advertising today handles both national and international projects. This is primarily because of the reason that the industry offers 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 GDP. With al this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over. Therefore for more information on Indian advertising, advertising agencies, marketing and advertising or any related information please visit Indian advertising industry grappling with a new crisis- in-house ad agencies
The Indian advertising industry is grappling with a new crisis these days. As if plunging margins after advertisers chose to be frugal post the slowdown wasn’t enough, companies are threatening to make their ads themselves, using in-house expertise.
Showing the way are the chaebols—LG, Samsung and Hyundai—who set up in-house agencies with the idea of servicing the entire industry, but are doing business only with their parent companies in India. At stake is `500 crores worth of business that the admen loathe having lost already. The Koreans may withdraw more accounts—their cumulative adspend is close to `1,500 crores—leading to even bigger losses, and who knows others won’t follow suit?
An ‘in-house’ agency simply means placing your ads yourself. The company makes its own creatives and saves on the agency commission, usually 15%, when the ads are sold.
During the 1960s and the 1970s, most big companies like the Tatas, Birlas, Crompton Greaves, among others, had their own in-house agencies, but they had to shut them eventually. “The idea was to have control over creatives and save money that was spent on external agencies, but they could not sustain,” Josy Paul, chairman and national creative head of BBDO points out. Consumer electronics firm LG Electronics India, which has worked with several advertising agencies—from Lowe Lintas to Rediffusion DY&R—set up LGAds, an in-house agency, sometime ago. Since then, it has shifted its below-the-line...
Please join StudyMode to read the full document