Advertising Role and Overview

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Advertisement --- Role and overview of the industry.| March 21 2013
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A comprehensive report on advertising, which tells us that what advertising is, what is it role, who are the parties involved. The report also tells us about different Media of advertising like Television, Radio, Print and OOH advertising, | |

Advertising
Advertising is paid non personal form of communication from an identified sponsor using mass media to persuade or influence an audience. Advertising promotes ideas, goods and services of an identified sponsor. The paid aspect reflects that the space or time must be bought. The non-personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient.

Role of advertising
* Information and Persuasion
* Introducing a new brand or brand extension.
* Creating an image or meaning for brand.
Institutions involved
1) Control institutions
* Government
* Competition
2) Facilitating institutions
* Advertising agency
* Media
* Research suppliers
ROLE OF ADVERTISING AGENCY
* Creates new promotional ideas.
* Designs print, radio, television and internet advertisements. * Books advertisement space and time.
* Plans and conducts advertising campaigns

Types of advertising agencies:
* Full service agency
* Interactive agency
* Creative boutiques
* Media buying agencies
* In-house agencies

Media and publishing and advertising overview
Television
India is world’s third largest television market after China and USA. It has 138 million TV households and cable and satellite penetration has reached close to 80% due to high growth registered by DTH platform says the 2011 FICCI-KPMG analysis of Indian media and entertainment industry report, “HITTING THE HIGH NOTES” The figure below shows the growth in no of TV households and cable and satellite households in India: 1) Growth in number of TV households in India

2) Growth in number of cable and satellite households

Industry Size
Overall the industry grew from Rs 257 billion in 2009 to Rs 297 billion in 2010, recording a growth rate of 15 percent and it is expected that it will grow to Rs 630 billion at a CAGR of 17% by 2015. The figure below gives the details about the industry size: P = Projections, SOURCE: KPMG analysis, industry discussion

TOP 10 ADVERTISERS ON TV
Advertisers| % share in 2010|
HINDUSTAN UNILEVER| 8|
RECKITT Benckiser| 3|
Cadbury India| 2|
ITC Ltd| 2|
Coca cola| 2|
P&G| 2|
Colgate Palmolive| 1|
Ponds| 1|
SmithKline Beecham| 1|
Lo’real| 1|

TOP 10 SECTORS ON TV
SECTORS| 2010(%SHARE)|
PERSONAL CARE/ HYGIENE| 13|
SERVICES| 6|
HAIR CARE| 5|
TELECOM| 4|
AUTO| 4|
PEROSNAL ACCESSORIES| 4|
Banking/Finance| 3|
Personal healthcare| 3|
Household products| 3|
Food and beverage| 14|

Outlook for the future
Advertising revenues worldwide indicate a trend in terms of spend on TV surpassing that in print over the last few years. A similar trend is expected in India. In terms of overall revenues the growth rate is expected to be higher than all other media, except online. Growth will also come from the fact that currently only 10% of the advertisers in print media advertise on television too. A portion of the rest 90% could be tapped for further growth of the medium.

The print media
India is one of the largest newspaper markets in the world with more than 107 million copies circulated daily. It accounts for more than 20% of all dailies in the world. Total literate population in India is estimated to be 579 million with over 30% readership penetration. However this is highly fragmented industry with 77600 newspaper types in multiple languages says FICCI-KPMG report. The overall Indian media and entertainment sector was estimated to be Rs 65,244 crores in 2010, with print accounting for approximately 30%, i.e....
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