Indian Advertising starts with the hawkers calling out their wares right from the days when cities and markets first began.
● Shop front signages.
● From street side sellers to press ads.
● The first trademarks
● Handbills distributed separately from the products
● Concrete advertising history begins with classified advertising
● Ads appear for the first time in print in Hickley’s Bengal Gazette (India’s first newspaper weekly).
Studios actually mark the beginning of advertising created in India. Newspaper studios train the first generation of visualizers and illustrators.
The Indian Advertising industry has been evolving at a fast pace over the past few years owing to an increase in the forms of media and communication and the emergence of new distribution channels. In 2005 this industry experienced a growth of 20%.Currently Indian Advertising Industry has a low contribution to the GDP ratio as compared to other economies. Competition for the outsourcing business and creativity leakage represent the major issues and implications. However the television advertising is expected to register high rates of growth, with India expected to become Asia’s leading cable market by 2010.
The Indian Advertising industry is being reshaped by regulatory and technological changes spanning various media platforms-radio, TV, internet, print and outdoor. Deregulation involving FM radio, Direct to Home (DTH), broadband, the implementation of Conditional Access System (CAS), foreign direct investment has laid the foundation for faster growth of the advertising industry. However stricter norms on social responsibility, obscenity and ethics are alerting the industry practices.
The industry is dominated by ten agencies, who account for the majority of capitalized billings. Top 10-15 advertisers with the biggest ad spend (like HLL, Maruti, Hero Honda, PepsiCo) wield high bargaining power and their account movement from one agency to another alters the competitive dynamics.
The business of media, advertising and marketing is driven by one resource- People. In this knowledge driven industry, its people’s ideas and accepted wisdom, which shape winning strategies and success stories and at times lead to major failures. So, it becomes imperative to study and ponder on what they say, when they say and how they say. Dialogue exchange4media’s interview of the week each time attempts to get into the mind of these honchos, to understand where media, advertising and marketing industry is headed.
The Indian advertising spends, as a percentage of GDP, is 0.34%, which lags behind other developed and developing countries. The Indian television industry has grown rapidly, especially since 1991, which saw the beginning of satellite broadcasting in India. This growth was also aided by the economic liberalization program of the Government. The growth of the satellite television audience saw proliferation of a number of satellite television channels offering more choices to media buyers and consumers of entertainment. Thus, the television broadcasting business, which started off as a single government controlled television channel, now has over 300 channels covering the Indian footprint, resulting in growing ad spends on this medium. Reforms and proliferation of private players were the key reasons for this rapid growth of the share of television in the advertising industry. Similarly, sectoral reforms and increased number of players could drive market expansion for emerging media segments including radio, outdoor, cinema and internet.
Business Processing Outsourcing (BPO) is booming in India. In 2002, it was a half-a-billion dollar industry employing 35000 people. The size has probably doubled by now. The industry’s perception of BPO seems limited to call centers that work through the night to support inbound and outbound customer service in the western markets. The limited perception is mainly responsible for Indian advertising industry’s lack of awareness of and interest in the BPO opportunity. The pace at which Indian Advertising Industry is growing, it could actually double its size if we r successful in catching up with the BPO bus. Today, BPO in IT-enabled services is soaring because the industry has an established track record. Brand India has been built through early body exports and lately by organized industrial efforts. Here I feel it’s probably necessary to form a body that will sell the image of India as a “centre of excellence in advertising and communication” to the world.