Advertising and branding industry

Contents
Advertising Agencies Industry Overview ...................................................................................................... 2 Competitive Landscape ............................................................................................................................. 2 Products, Operations & Technology ......................................................................................................... 2 Advertising Agency Functions ................................................................................................................... 2 Types of Advertising.................................................................................................................................. 3 Types of Advertising: Product-Oriented ................................................................................................... 3 Types of Advertising: Image ...................................................................................................................... 4 Types of Advertising: Advocacy ................................................................................................................ 4 Types of Advertising: Public Service ......................................................................................................... 4 Major Players ............................................................................................................................................ 4 Ogilvy..................................................................................................................................................... 4 Leo Burnett Company, Inc..................................................................................................................... 4 J. Walter Thompson Company .............................................................................................................. 5 BBDO Worldwide, Inc............................................................................................................................ 5 McCann Worldgroup............................................................................................................................. 5 Advertising in India ................................................................................................................................... 5 The top ten advertising agencies of India ............................................................................................. 6

Advertising Agencies Industry Overview

Companies in this industry are involved in creating advertising campaigns for their clients. Offerings include creative services, production, account management, and media planning and buying for media such as TV, radio, print, and online/digital. Advertising agencies generally work on a fee or commission basis. Companies in this industry create advertising campaigns, implement public relations campaigns, and engage in media buying, among other advertising services. Major companies include Interpublic and Omnicom, (both headquartered in the US); WPP (Ireland); Publicis (France); Dentsu (Japan); and Hakuhodo DY Holdings (Japan).

Competitive Landscape
Demand for advertising and marketing services comes largely from businesses that sell consumer products, entertainment, financial services, technology, and telecommunications. The profitability of individual companies depends on creative skills and maintaining client relationships. Large companies benefit from being able to serve the varied needs of major customers. Small companies can compete by focusing on niche markets or by offering lower pricing. The industry is fragmented: the top 50 companies generate about one-third of revenue.

Products, Operations & Technology

Major services are advertising for print, broadcast, and online media (25 percent of industry sales), direct mail advertising (15 percent), and public relations (10 percent). Other services include display advertising, media buying (reselling advertising time or space), and media representation (selling advertising time or space on behalf of media outlet owners).

Advertising Agency Functions

Professionals at advertising agencies and other advertising organizations offer a number of functions including:

Account Management Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. These responsibilities include locating and negotiating to acquire clients. Once the client has agreed to work with the agency, the account manager works closely with the client to develop an advertising strategy. For very large clients, such as large consumer products companies, an advertising agency may assign an account manager to work full-time with only one client and, possibly, with only one of the clients product lines. For smaller accounts an account manager may simultaneously manage several different, though non-competing, accounts. Creative Team The principle role of account managers is to manage the overall advertising campaign for a client, which often includes delegating selective tasks to specialists. For large accounts one task account managers routinely delegate involves generating ideas, designing concepts and creating the final advertisement, which generally becomes the responsibility of the agencys creative team. An agencys creative team consists of specialists in graphic design, film and audio production, copywriting, computer programming, and much more.

Researchers Full-service advertising agencies employ market researchers who assess a clients market situation, including understanding customers and competitors, and also are used to test creative ideas. For instance, in the early stages of an advertising campaign researchers may run focus group sessions with selected members of the clients target market in order to get their reaction to several advertising concepts. Researchers are also used following the completion of an advertising campaign to measure whether the campaign reached its objectives. Media Planners Once an advertisement is created, it must be placed through an appropriate advertising media. Each advertising media, of which there are thousands, has its own unique methods for accepting advertisements, such as different advertising cost structures (i.e., what it costs marketers to place an ad), different requirements for accepting ad designs (e.g., size of ad), different ways placements can be purchased (e.g., direct contact with media or through third-party seller), and different time schedules (i.e., when ad will be run). Understanding the nuances of different media is the role of a media planner, who looks for the best media match for a client and also negotiates the best deals.

Types of Advertising
If you ask most people what is meant by "type" of advertising, invariably they will respond by defining it in terms of how it is delivered (e.g., television ad, radio ad, etc.). But in marketing, type of advertising refers to the primary "focus" of the message being sent and falls into one of the following four categories: 1. 2. 3. 4. Product-Oriented Advertising Image Advertising Advocacy Advertising Public Service Advertising

Types of Advertising: Product-Oriented

Most advertising spending is directed toward the promotion of a specific good, service or idea, what we have collectively labeled as an organizations product. In most cases the goal of product advertising is to clearly promote a specific product to a targeted audience. Marketers can accomplish this in several ways from a lowkey approach that simply provides basic information about a product (informative advertising) to blatant appeals that try to convince customers to purchase a product (persuasive advertising) that may include direct comparisons between the marketers product and its competitors offerings (comparative advertising). However, sometimes marketers intentionally produce product advertising where the target audience cannot readily see a connection to a specific product. Marketers of new products may follow this "teaser" approach in advance of a new product introduction to prepare the market for the product. For instance, one week before the launch of a new product a marketer may air a television advertisement proclaiming "After next week the world will never be the same" but do so without any mention of a product or even the company behind the ad. The goal is to create curiosity in the market and interest when the product is launched.

Types of Advertising: Image

Image advertising is undertaken primarily to enhance an organizations perceived importance to a target market. Image advertising does not focus on specific products as much as it presents what an organization has to offer. In these types of ads, if products are mentioned it is within the context of "what we do" rather than a message touting the benefits of a specific product. Image advertising is often used in situations where an organization needs to educate the targeted audience on some issue. For instance, image advertising may be used in situations where a merger has occurred between two companies and the newly formed company has taken on a new name, or if a company has received recent negative publicity and the company wants to let the market know that they are about much more than this one issue.

Types of Advertising: Advocacy

Organizations also use advertising to send a message intended to influence a targeted audience. In most cases there is an underlying benefit sought by an organization when they engage in advocacy advertising. For instance, an organization may take a stand on a political issue which they feel could negatively impact the organization and will target advertisements to voice their position on the issue.

Types of Advertising: Public Service

In some countries, not-for-profit organizations are permitted to run advertisements through certain media outlets free-of-charge if the message contained in the ad concerns an issue viewed as for the "greater good" of society. For instance, ads directed at social causes, such as teen-age smoking, illegal drug use and mental illness, may run on television, radio and other media without cost to organizations sponsoring the advertisement.

Major Players
Ogilvy Ogilvy & Mather Worldwide does advertising by the book. Founded by ad pioneer David Ogilvy (author of Ogilvy on Advertising), the firm is one of the world's leading creative agency networks, providing advertising campaign development and management, brand development, public relations, and strategic planning services to clients such as American Express, IBM, and Cisco. Ogilvy & Mather offers specialized communications and relationship marketing services through OgilvyOne; its Ogilvy CommonHealth Worldwide unit offers services targeted for global clients in the health care industry. Operating through more than 450 offices around the world, it is one of the primary agency subsidiaries of UK-based WPP Group

Leo Burnett Company, Inc. This company has come up with some great ideas to promote brands. The #2 ad agency in the US (behind WPP Group's JWT), Leo Burnett has helped create some of the top consumer brands, including Kellogg's Frosted Flakes cereal and its Tony the Tiger icon. It offers creative development and campaign planning services through about 95 offices in almost 85 countries. Its Arc Worldwide subsidiary provides promotional and direct marketing services, as well as multimedia and interactive marketing

development, while Lpiz Integrated Hispanic Marketing targets Spanish-speakers. The company, which does business as Leo Burnett Worldwide, is owned by ad conglomerate Publicis. J. Walter Thompson Company J. Walter Thompson Company, doing business as JWT, is a leading advertising agency in the US and one of the largest in the world (along with McCann Worldgroup and BBDO Worldwide). It has provided creative ad development, campaign management, and strategic planning services to such clients as Ford, Kimberly-Clark, and Shell. JWT also offers brand development and specialized marketing services, including customer relationship marketing, event marketing, and sponsorships. Its Digitaria unit provides digital and new media marketing services. JWT operates in almost 90 countries through more than 200 offices. Founded in 1864, it is one of the flagship agency networks of UK-based media conglomerate WPP. BBDO Worldwide, Inc. This alphabet soup of advertising begins here. As the flagship agency of media conglomerate Omnicom Group, BBDO Worldwide offers creative development services for some of the world's top brands using television, print, and other media. BBDO Worldwide also provides campaign planning and management services, as well as other brand promotion services. The firm's Atmosphere BBDO unit offers interactive marketing services in North America. BBDO's clients have included such heavy hitters as Chrysler, FedEx, and PepsiCo (including the famous "Pepsi Generation" campaign). It operates through some 290 offices in about 80 countries, featuring outposts like Abbott Mead Vickers, Barefoot Proximity, and Proximity London. McCann Worldgroup If there was an interpretive dance to describe integrated advertising and marketing services, it might be called the McCann-can. A division of media services conglomerate Interpublic Group, McCann Worldgroup is one of the world's largest advertising agency networks, providing creative ad services, media buying, public relations, and brand development work through many main operating units, including McCann Erickson, Universal McCann, FutureBrand, and Momentum Worldwide. It offers relationship marketing services through MRM Worldwide, and it serves clients in the health care industry through McCann Healthcare. McCann Worldgroup's subsidiaries have offices in more than 100 countries.

Advertising in India

Advertisers in India have reached 75 percent of the population, using television as a media device, and the rest of the population is reached via radio. India, however, favors newspapers,
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magazines, television, radio, billboards and business publications to convey messages about various products. It is the advertising agencies' advertisements which portray ideas to the audience agencies that compete to be ranked as the best. The world's leading advertising agencies Ogilvy and Mather, J. Walter Thompson, BBDO, Lintas, McCann-Ericsson and Leo Burnett have successfully made a mark in the Indian market. The advertising agencies are ranked in order of their creativity as well as the expertise to deliver the content and message to the clientle. There are many parameters on which they are graded, and these are just a few.
The top ten advertising agencies of India

Ogilvy and Mather Limited:- Headed by Mr. Piyush Pandey:

The most local of the internationals, The most international of the locals are words written to describe the identity of Ogilvy. Basically, what this means is that the advertising agency follows the local market, understands the customer's needs and then networks worldwide with MNC and other relevant clients. In all its years of business, Ogilvy has struggled to build brands and has proved its ability to build brands. The agency does its best to enhance the customer-brand relation. For this, it undergoes the process of scrutiny of the tools and techniques which work well to build a long and lasting association with a brand.

Mudra communications Pvt. Ltd:- Head: Mr. Madhukar Kamath:

The agency practises the art of communication in order to express ideas that can shape the brands. As the name suggests, the agency is influenced by the artistic traditions of Indian dance, drama and painting. These, in turn, inculcate feelings, ideas, thoughts and emotions for the success of a brand. Mudra peeps into the local consumer markets, channels and media, and has its own identity in communication of brands. It looks for the entrepreneurial zeal which causes continuous and speedy growth for each brand. The advertising agency always believed in doing interesting work that pleases its clients.

Lintas India Pvt. Ltd:- Head: Mr. Pranesh Misra (President & COO - Lowe, India):

After the merge of Lintas India Ltd. with Lowe Lintas and Partners group of the UK, it is now known as Lowe Lintas. India Pvt. Ltd. The turnover of Lintas is Rs. 750 crore. The advertising agency inculcates advertising, media buying house, direct marketing, public relations, design consultancy, market research, events, rural communications and interactive communications. Enterprise Nexus, the agency partner of Lowe in India, continues to be a member and is known as the 'Independent Brands' division which is the only specialist in advertising and marketing communications. Lowe Lintas India is a successful agency which is inclined towards quality creative advertising and works for the benefit of its clients.

JWT (Hindustan Thompson Associates Pvt. Ltd.):- Head:Mr.Colvyn Harris (Chief Executive Officer):

The advertising agency has a special portfolio which includes creativity, innovation, clients, case studies, awards, well-thought out leadership and talent. Clients perceive the agency as a resource of ideas which tell the brand's story to the customer, dealing with market research. In this process, the agency includes innovative ideas.

FCB-Ulka advertising pvt. Ltd:- Head Mr. Anil Kapoor (Managing Director and CEO):

FCB, being one of the the top three advertising agencies in the USA, ranks number 10 in the world. FCB-Ulka has made its mark in India as Ulka Advertising. It was founded in 1961. On the creative front, Ulka is known to stand out. FCB-Ulka has made a smooth transition from a creative shop to a large mainstream agency. Around the mid-seventies, FCB-Ulka had become the fifth largest agency in India and has sustained this status till date. The efforts of FCB-Ulka deserve praise. It also gave recognition to those brands that were not in the limelight earlier but are now completely above other market players. Santoor soap did thorough research and focused on advertising which gave growing sales figures against stiff competition from Levers and P&G brands. Not surprisingly, FCB-Ulka is seen as a turnaround specialist - an agency that does brand building and more.

Rediffusion DY&R Pvt Ltd:- Mr. Mahesh Chauhan (President):

This advertising agency places its people first. It believes that the strength of a brand lies in the efforts the people of the organization make. Rediffusion DY&R follows system-driven 'thinking' in its culture. The agency attracts right minds because it thinks of a perfect balance between creativity and strategy.

RK Swamy BBDO Pvt Ltd:- Mr. Srinivasan K Swamy (Head)

It is the agency of the worldwide-renowned BBDO network. The advertising agency suggests comes up with solutions for its clients regarding their marketing communication problems and provides them with intelligent solutions and supports them in attaining their goals. The symbol or logo of the advertising agency is Hansa and is known to separate milk from the water. Similarly, RK Swamy of BBDO is capable of deriving the essential elements from the irrelevant ones in order to promote each brand. The agency practises high level of commitment and spirited teamwork for a common cause.

McCann-Ericsson India Ltd:- Sorab Mistry (Head)

This advertising agency is a leading global agency and has the power and passion to achieve its mission .McCann-Ericsson is known as a world class advertising agency and has found outstanding talent in its employees.

Leo Burnett:- Mr. Arvind Sharma (Chairman and CEO):

The advertising agency is totally idea-centric. It generates big brand ideas. It regards the pencil as its engine no matter the size - it is the means through which it can generate plenty of creative ideas. The agency is never too satisfied with its endless efforts in building up a brand. It believes
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that the brands can become and remain leaders by building better ideas. It's no wonder that the founder of the advertising agency, Leo Burnett, regards the pencil as a metaphor for the kind of ideas he was coming up with for his clients.

Grey worldwide (India) Pvt Ltd:- Mr. Nirvik Singh (President south east Asia & chairman South Asia, Grey Global):

The agency handles above the line advertising for the Grey group. It has launched Dominos in India. It has had Ambuja cement, Thums Up, Arrow, Lee and many more brands in its portfolio. The mission of the agency is to remain the largest global integrated agency to leading brand ideas.