Indian Advertising Industry:
The earliest of ads that can be seen, appeared in newspapers, from England around the early 1700s. With a beginning like that, Indian advertising has come a long way in todays fast growing tech savvy world in the 21st century. During this journey, it saw the launch of independent advertising agencies, entrance of multinational companies and beginning of India’s only advertising school, MICA (Mudra Institute of Communications, Ahmedabad).
This section highlights the salient features of the advertising industry in India and how globalization has played a key role in making Indian advertising industry so impotent. After the tough time of global economic recession, a great fall out was seen in global advertising industry but now it seems to recover and thanks to growth in ad spend of developing countries. Global advertising spending will rebound to reach almost 450 billion US dollars by the end of 2010, and hit 500 billion dollars in 2012, according to the media buying group Zenith Opti media forecast. Markets in developing countries like India are predicted to grow much faster than developed markets, accounting for almost 36 per cent of all advertising. This can be attributed to following facts about India:
· It represents almost one-sixth of the global population.
· It is the fifth largest economy in the world
· It is one quarter of the earth’s urban humanity
· It stands for one –third of the world’s democratic population.
· It is the second largest among the developing economies
· It is the first massive, complex society to successfully transit from a socialist economy to a market economy;
The following table clearly depicts the significant growth in advertising industry in India.
Table 1.1.
Indian advertising has been placing more emphasis on the importance of both recall and persuasion as brand differentiating messages. Another factor that needs to be considered is the language in the country.
Growth Of Indian Media Industry
The process of communication to target audience in an Indian market is more complex because communication takes place across multiple contexts, which differ in terms of language, literacy, and other cultural factors. In addition, media differ in their effectiveness in carrying different appeals.
The upper middle class in India, unlike the rural market, is well aware of global brands via exposure to global media. A number of media options are available among Indians. Infect we are living in a clutter of different media which are competing with each other for their advertising revenue. The media wise advertising expenditure from 1996 to 2008 reveals that newspapers and TV owned over 90 percent of the Indian ad market, while all other media ad expenditure accounted for almost nothing. By 2010, TV and newspapers still own the biggest share, but some other media grow strong, such as the Internet.
Table: 1.2 Media wise expenditure in India from 2004 to 2008
Source: PwC
Reports India’s media and entertainment industry grew 15 per cent annually in the last five years And according to a report by the global consultancy firm KPMG and the Federation of Indian Chambers of Commerce. Growth rates in entertainment and media industry will increase in 2010 as economic conditions are expected to gradually improve.
The media wise advertisement expenditure in India from 1996 to 2010 (projected) reveals that the advertisement expenditure in television media is highest when compared to other Medias followed by Print.
