You are on page 1of 28

Amagi Media Labs

New product Concept definition, product diffusion


and sales force development.

8/20/2010
Group B-11
Amagi Media Labs 201
0

Table of Contents
Introduction................................................................................................................3
Industry Background..................................................................................................3
Concept Definition and Clarity....................................................................................4
What is the product?...............................................................................................4
Who buys and who uses?........................................................................................5
What customers buy and how they use it...............................................................6
How does the customer collect information?..........................................................6
Why customers prefer the product?........................................................................6
Benefits................................................................................................................6
Costs....................................................................................................................6
Value....................................................................................................................7
Stakeholders...............................................................................................................8
Group B-11
Amit Krishnan Subramanian
Competitor Analysis...................................................................................................9
-2008118 Bharath
5 C Analysis - Amagi.................................................................................................13
Raghunathan - 2008125
Segmentation...........................................................................................................14
Balaji V - 2008124
Pradeep Sundaram -
Low Involvement Customers.................................................................................14
2008136
Medium Involvement Customers...........................................................................14
High Involvement Customers................................................................................14
Marketing Mix - Amagi..............................................................................................15
Product Diffusion......................................................................................................16
Creating a Sales force..............................................................................................17
Recommendations....................................................................................................18
Appendix A...............................................................................................................19
Appendix A

2
Amagi Media Labs 201
0

Introduction
Amagi Media Labs, a startup based out of Bangalore was started in 2007 by three
engineer Mr.Srinivasan, Mr.Bhaskar and Ms.Srividhya. The company works on the
concept of narrow casting which is basically a method to transmit information to a
particular subset of people. In partnership with other stake holders in the country,
Amagi intends to expand the TV advertising pie in India by enabling many small
local businesses to advertise on national TV but to a local audience using new
technology created by the technical team at Amagi. The company was adjudged as
one of the best start ups in India in 2010 by the publication ‘Business Today’.

Industry Background
Amagi Media Labs tries to bring together a new ecosystem consisting of national
level television channels (content providers), cable TV multi system operators
( MSOs ), advertising agencies and small businesses together and garner value for
all the stakeholders. This section consists of a brief introduction on each of these
players. See Appendix A for a detailed description.

Nation Level Television Channels (Content Providers)

India has a television penetration of 207 million households as of 2009. This


represents a penetration of around 60%. This has been accompanied by a large
growth in the number television channel content providers. Currently there are
close to 500 satellite television channels in India with a 150 more slated to start
operations. While many are regional channels which cater to the tastes of a
particular state or region in the country, a large number of them are nationwide
television channels which cater to the entire country.

Cable TV Industry

The cable TV industry in India is highly fragmented with around 20000 MSOs. Most
of these MSOs have a very local foothold and there is a tendency for them to be
geographical monopolies. MSOs serve close to 60 million households in India are the
primary mode of Pay TV content delivery mechanism in India. In recent times they
have been facing competition from the Direct-to-Home (DTH) providers.

Advertising Industry in India

India has a robust advertising industry of size Rs.12000 crore. It is made of many
major players like Mudra, Ogilvy and Mathew (O&M), McCann Ericsonn, Rediffussion,
Leo Burnett etc. Most of these advertisers are high end advertisers who run a

3
Amagi Media Labs 201
0
national or at least a state level campaign. Most of the local campaigning is left to
small fragmented players in the advertising market.

Narrowcasting

Narrowcasting has traditionally been understood as the dissemination of


information (usually by radio or television) to a narrow audience, as opposed to the
complete set of possible audience. Some forms of narrowcasting involve directional
signals or use of encryption. In the context of advertising, narrowcasting refers to
the ability to distribute advertising that is focused and is contextual to a specific
geographic area. The advantage of narrowcasting in this context is local advertising
which is highly targeted. It is already used in the cable TV industry in the US where
the MSOs use customized hardware and software products to ensure that the local
advertising overrides the nationwide video stream ad slots on a per geographic
basis. This idea is slowly picking speed in India in the form of Amagi Media Labs.

Concept Definition and Clarity


In this section on the concept definition and clarity, we try to answer the traditional
questions that need to be answered before the introduction of any new product into
the market.

What is the product?


In the current TV broadcasting environment small businesses and advertising
agencies have to advertise in National channels even for regional or city based
events/businesses. This is wasteful expenditure as we can see that the advertising
agency or the business does not target the ad campaign at all the other places in
which this Ad had been displayed. The product from Amagi is a Narrowcasting
technology that avoids this wasteful expenditure through a technology called
Narrowcasting.

Thus each customer who needs to run a local ad campaign would only need to pay
a much smaller amount for the advertisement as the reach is now limited to a small
geographical. This leads to a much more efficient utilization of resources by
reducing the burden for each advertiser. This also increases the advertising revenue
manifold as the sum of the parts is much greater than the whole.

4
Amagi Media Labs 201
0
Amagi is a one stop shop for any small business’s local advertisement needs. It
works with the local business owner providing consultation on the elements of the
marketing mix and helps the customer understand how, when and where to market
his product. It can also work with the business owner to develop the advert. Thus
Amagi is not just a technology company that gets revenue from local advertising
but it also plays in all the links in the Advertising industry value change.

The way Mr. Srinivasan, one of the co-founders of the company, eloquently explains
it, Amagi does not look at changing percentages in a pie which is basically a zero-
sum game, Amagi is looking at creating a brand new pie and hence bringing more
money into the system.

Who buys and who uses?


Since the product is basically a B2B product, it becomes relevant to study the
buying process. Based on the kind of customer, the decision making process is
either simple or complex. This is basically a segmentation of the customer on the
basis of the purchasing approach used by the organization.

Small businesses – Here we define business without multiple branches or


employee count as well as having little or no functional departments in the
organization. These are usually organizations that are run by a person or family. For
marketing these organizations simply use flyers or local banners. The various
decision roles in purchase are performed by a single person and hence the process
is simplified. An example of such a business would be a local car showroom or a
local jewelry shop.

Medium Local business – These are businesses which are local to a single city or
area. They generally have products that require a distribution network. Hence such
businesses tend to a single office or in the city with a procurement manager who
deals with vendor payments. For marketing, such businesses use radio and
newspaper to reach the local audience. In such organizations the decision process
involves a person who would be the influencer ( procurement manager ) but the
final decision for making the purchase ( decider role ) would still reside with the

5
Amagi Media Labs 201
0
owner of the business. An example of such a business would be a local chain of
hotels.

Large Local Business – These tend to be businesses where the product might
have a larger sales/distribution network spanning more than one city in a single
state. These businesses have a need for managing multiple offices across the cities.
Also there is generally a sales department which acts as a feedback channel from
the market and hence has a strong influence on the organization. So in such cases,
the decision making becomes a bit more complex. We have the sales managers
acting as influencers with the decision made by the owner. If there is any marketing
department, they may act as initiators for the product. An example of such a
business would be FMCG products that are local in nature like say local pickles and
jams or local soaps.

For the large local businesses, we would have the following decision role/benefit
matrix

Buying Roles
Needs/Benefits Decider/Purc
sought Initiator Influencer
haser User
(Marketing) ( Sales )
(Owner)

Low Cost NA

Targeted
NA
Reach

Effectiveness
of Television

Association
with national
television

6
Amagi Media Labs 201
0
What customers buy and how they use it
Once the customer buys the service/product, there are multiple features of the
product that provide benefits to the customer. They are as follows,

Feature Benefit

Local audience Targeted message of the product

Greater consumer learning and


Audio Visual
perception as opposed to simply
ads
print (visual) or radio (audio) ads

The rates of that are comparable


Comparable to the current advertising costs.
cost Hence reduces the financial risk
of switching to the TV medium

Single point of contact for TV


Solution advertising needs. Provides all
Provider aspects from content creation to
TV time slot management.

How does the customer collect information?


Since the customer is usually a small business themselves, they are not reached by
traditional B2B channels like trade shows or seminars. The customers’ main source
of information shall continue to be the sales force of Amagi at least in the short
term. However once there is enough momentum, network effects may come into
play increasing the knowledge of Amagi via peer networks.

Why customers prefer the product?


The customer being a B2B one would primarily focus on the value aspects of the
product offering. Hence the focus of the customer would be on the benefits, costs
and consequently the value created. So the following analysis of the product is in
accordance to the effectiveness of the benefits.

Benefits
Most of the benefits have already been discussed in the previous sections. So we
can skip this section.

7
Amagi Media Labs 201
0
Costs
On the basis of cost, the value innovation can be done in two ways

More for same – In this pricing mechanism, Amagi can price their product to be
quite competitive with those of print and TV ads. Currently, it costs Rs. 5 lakh and
Rs. 45 lakh for one full-page advertisement in a newspaper, whereas Rs. 240 & Rs.
1200 for a 50 sec ad in radio. Based on the number of impressions required the
effective cost of these two mediums needs to be calculated. Amagi needs to price
itself competitively to this product.

More for more – In this pricing mechanism, the positioning of Amagi needs to be
based on the superior value derived out of the TV medium. This can then be
leveraged for better pricing based on the reduced number of impressions required
in TV vis-à-vis the other mediums.

Value
While the monetary value derived out of the product/service can be calculated, the
following strategic imperatives also need to be considered in understanding the
value derived by the customer from Amagi’s product.

Importance of usage situation

Most brands are increasingly using all types of media in order to create brand
awareness and capture market share. These large national/international brands
with their large marketing budgets can spend on a national advertising campaign.
In such situations, smaller brands and traders need to come up with a local
marketing campaign or risk losing market share to the national brands. Currently,
Amagi is the only provider in India who can provide the required services.

Effectiveness of the product

The product/service is based on a patent pending technology whose effectiveness


has already been proved in the pilot markets in which they have been launched.
Customer testimonials like the one below act as the best evidence of the
effectiveness of the product.

8
Amagi Media Labs 201
0
“Our brand awareness has shot up and the number of customer enquiries have
seen a huge increase” - Beam Telecom, Hyderabad

Relative Effectiveness of the brand

Amagi scores low on this aspect of brand benefits as it is yet to build its brand
equity.

Stakeholders
Stakeholder Value Provided Benefits Received Power

– Ad slots on popular – Constant demand for


national television ad slots.
Content – Ease of reach to – Ability to monetize
High
Providers customers irrespective non prime time slots
of the town in which for local advertising.
the service is rolled out

– Support for utilizing – Incremental revenue


the technology at the from ad slots that
local level. they were not getting
MSOs – Highly fragmented earlier Medium
nature of MSOs
provides scope for very
local targeting

– Upgrade marketing
campaign from less
effective medium to
more effective ones.
Customers NA – Cost savings as Low-Medium
opposed to budgets
required for
traditional TV ad
campaigns

Amagi – Technology provider – Create a new revenue Low-Medium


– Aggregator of ad slots pie where none exists
and potential earlier.
customers – Improves the revenue
streams for all the
other stake holders in

9
Amagi Media Labs 201
0
the ecosystem.

10
Amagi Media Labs 201
0

Competitor Analysis
The general mediums of advertising in India are listed below:

1. Television
Driven by increase in subscription revenues (due to growth in DTH subscribers)
and proliferation of televisions across households, the year 2009 was a good
innings for the Indian television industry. Currently estimated at Rs. 265.5 billion
in 2009 as compared to Rs. 245 billion in 2008, the industry reported a growth of
8.5%. Revenues from television distribution segment contributed 62% towards
the television industry’s overall returns in 2009 up from 61% in 2008, outdoing
other segments in this industry. The segment stood at an estimated Rs. 165
billion up from Rs. 150 billion in 2008.

The television advertising industry, that has shown a growth of 11.5% over the
last four years, slowed down in the last year (2009) to a meager 6% as financial
crisis that resulted in lesser spending by the corporate houses. In 2009,
television advertising industry contributed 34% to the overall television
industry’s revenues as compared to 37% in 2004. It stood at an estimated Rs.89
billion in 2009, up from Rs. 84 billion in 2008.

11
Amagi Media Labs 201
0
The reach of television has increased rapidly over the past 5 years and we see that
it covers 91% of the Indian households. The breakup of urban versus rural divide for
the TV households has been provided in the side.
Different genres of channels have a
different viewership ratings and
patterns. This would determine which
products are advertised on the
channel and at what time. It also
determines what the advertisement
spot rates of such channels can be.
The different rates for various
channels in different genres are also
shown at the top.
This shows that there is a very wide variance in the range of advertisement slots
based on genre of the channel, channel viewership & demographics that it
caters to and the time slots that the advertisements would appear in.

2. Radio

The year 2009 echoed a kind of landmark


achievement for the radio industry, as it was the
first full year of operations for all the radio
stations in India. By year end, there were 248
radio stations operational in India. Further
buoyancy is expected in this industry as 700
additional radio stations are estimated to come
up after the FM Radio phase-III auctions are
concluded. This is expected towards the end of
2010.
However, the first half of 2009 limped
lethargically as industries across the world slashed their marketing budgets and
tightened their screws due to the global recession. The radio industry too was
emaciated by the weak economy. Most advertisers focused on spending on

12
Amagi Media Labs 201
0
platforms which provided high and measurable returns on investment. In 2009,
due to recessionary pressure, advertisement rates were slashed by 20-25% by
most radio stations.

Radio slots are typically 30 seconds long and depending on the number of
listeners (it being a primetime or otherwise) the charges for the slot could vary
from `1000 to `5000.
Typically, the times 7AM to 8AM is considered as primetime, AM to 11 AM and
6PM to 8 PM is considered to be super prime time. This is the times when the
price of a slot of advertisement is the maximum.
Since the radio caters to audience in one region or one city, it is an excellent
mechanism by which the vernacular content and regional and targeted
advertisement can be created and deployed. The explosion in radio stations is
expected to give a further boost to this market.

3. Newspapers

News consumption trend in India


is witnessing a metamorphosis
with more interactive mediums
like television, internet and
mobile taking prominence. Unlike
the global trend in print industry,
where people read news over the

13
Amagi Media Labs 201
0
internet, people in India prefer to read the news in hard copy format and
digitization has not had any major impact on newspaper circulation. Though
Indian newspapers have a good online presence, no major shift has been noted
in readership to these online portals.

The Indian print media industry has grown at a healthy rate of 10.2% over the
last five years. In 2009, however, the delving economic conditions resulted in the
Indian print media industry remaining steady at the same size as previous year.

The Newspapers is an engine by which the advertisers can completely


regionalize their content and present it in a targeted manner to it’s the readers
of various regions. For example, the content conveying the same message could
just be made vernacular for ease of diffusion or it could involve subtle changes
in the message to suit regional
sensibilities.

Newspapers reach 94% of India and hence


are a very potent way of communicating
about the products & brands. Typically a
national paper charges upwards of 45
lakhs for a full page advertisement
whereas a regional paper may charge
about 5 lakhs for the same full page advertisement.

Summary
If we apply the measures of regionalization, reach, price and format, we get the
following scores

Regional National
Newspaper Radio Amagi
channels channels

Regionalizatio
High High High Low High
n

14
Amagi Media Labs 201
0
Low to Low to
Reach Med to High Low to Med High
Med Med

Low to
Price Med Low Low High
Med

Ease of recall
for end Med Low High High High
customer

So based on the above analysis we can say that compared to its competition of Print
and Radio, Amagi produces a much more balanced score card for its customers.

15
Amagi Media Labs 201
0

5 C Analysis - Amagi
Company
Climate
Customers
Collaborators
Competitors
Target
Makes
The
End
Ad
Primary
agencies
industry
Customers
TV
competitors
adssell
inaffordable
are
India
local
subscribers
are
has
ad Radio,
slots.
been
Sells
growing
of
ContentMarket
Regional
theLocal
MSO
partners
for
& Advertisement
National
in
alltie
its up
sell
constituents
Television
with Amagi
Slotsat
and
Narrowcasting
a
Advertisement
advertisement
minimum
Newspapers.
CAGR
technology
slots.
agencies
of 8%. buy – ad
First mover
Expected
slots
MSOs
Internet
for
delivering
their
&GDP
Mobile
clients.
growth
ads
based
toofthe
India
endin
Still next
the
Small
customers.
advertisement
inBusinesses
Early
decade
Adopter
mayat
directly
abe
mode
rate
a threat.
buy
of 8-
9%.slots.
ad

16
Amagi Media Labs 201
0

Segmentation
Segmentation of products can be done on the basis of the value derived from the
product to the consumer. The following segments can be created based on this.

Low Involvement Customers


These are typically time slots sold to ad agencies. These time slots are then utilized
by the ad agencies for the products that they work on. Typically the margins
derived out of such transactions are low for Amagi as it simply acts as an
aggregator of TV time slots. However one competitive advantage that it still has
with such customers is the patented technology that helps provide local advertising
capability.

Medium Involvement Customers


These type of customers are usually product companies who may already have the
creative content required for the ad campaign and might be looking at Amagi for
secondary marketing research. These avenues allow greater revenue to be
gathered by Amagi.

High Involvement Customers


Such customers are usually small businesses which do not have a set advertising
campaign and look forward for Amagi to play to role of an ad agency by both
providing market research as well as the creative content for the advertisements.

Given the above segmentation, we believe that Amagi can target all the above
segments with their product offering.

17
Amagi Media Labs 201
0

Marketing Mix - Amagi

18
Amagi Media Labs 201
0

Product Diffusion
Product Price
The first
ave any variations. step in product
The pricing will be in between the prices of Radio &various
diffusion would be to analyze the product on Regional/ National TV.
of the product is in its ability to offer image of advertising in national channelsbelow.
product characteristics that
Revenue will influence
share method diffusion
of as shown
interaction within the
MSOs table at lower price.
Additional revenue
known technology but first implementation will be generated by Amagi Acting as an advertising agency
in India.
Innovation
Comment Rating
Aspect

– Vis-à-vis Radio and print ads, audiovisual ads on TV


are much more effective and seen as an advantage.
Relative – Provide better local targeting than radio and print
High
Advantage ads as MSOs can support a more local targeting of
ads while print and radio ads are at more of a
city/town level. Marketing Mix
– Customers who are currently involved in marketing
Compatibility campaigns only on print or radio may feel Medium
uncomfortable with TV ads due to uncertainty.
Place Promotion
magi are still its
Thesales – Amagi
communication
force which scores
contacts smallon
is happening this particular
through
businesses
online
and characteristic
media
encourages as itto
like youtube,
them Facebook,
use localNot
TV advertisements
many ads run
rect sales route
Amagi
that
has
hasbeen
been acts
named
taken as
so
as both
far.
one ad
of creative
the agency
hottest and
startups of the aggregator
2010 and gotten first
Complexity High of finance by
round
of ad slots thus providing a complete solution to the
service provider.

– Given that the local advertising solution is going to


cost equal to or more than the current marketing
Trialability budget spent on print/radio advertising, it involves Low
the same or greater amount of financial risk. Hence
Amagi score low on trialability

– A follow through on the success of the ad campaign


needs to be performed for the customer to truly
Observability Low
realize the advantages. Hence immediate
observability is low.

Based on the above observations, in order to facilitate diffusion, Amagi needs to


improve its offering to reduce customer dissonance due to low trialability and
observability. Some ways to do this is provided in the recommendation section of
the document.

However despite the various aspects of the innovation that support diffusion,
communication of these aspects is key to diffusion of the product. Hence a strong

19
Amagi Media Labs 201
0
sales force which can span the country and pull in the various stake holders and
hence roll out the service in other cities is an important requirement for product
diffusion. This is dealt in the next section that talks about the building of a sales
force to achieve this.

20
Amagi Media Labs 201
0

Creating a Sales force


Amagi’s service of narrowcasting of ads needs to diffuse more in the 4 geographies
that they are already present in. It needs to establish its presence in geographies
where it is not present in presently. For this, Amagi needs to evaluate multiple sales
channels (both direct and indirect) that are available and select one that matches
its needs perfectly.

Assuming that the business team will be in-charge of the relationships with the
Content Providers and the MSOs, The Sales team will be required to market the
advertisement slots to Small & Medium businesses and advertisement agencies
with local advertisement needs.

The various different ways to use a direct sales force are:

Possible Cost

Face to Face Marketing

Tele-calling – In & Out


call

Trade shows &


Exhibitions

Bids & Tenders

Online shop

Viral selling

Relationship selling

21
Amagi Media Labs 201
0
The other decision that needs to be taken by Amagi is that whether they want to
expand to all other cities of India under their own capital or they want to collect
some royalty by expanding through the medium of franchise. While expanding on
their own will give Amagi much more control over the revenues and a better profits
(as a percentage), the franchisee route will ensure explosive growth and faster
break even.

22
Amagi Media Labs 201
0

Recommendations
1. Amagi can aim to improve diffusion by allowing initial customers to pay
based on the promise of a trial and measurement of the ad effectiveness. For
this initially Amagi may need to provide some services that relate to ad
effectiveness measurement also. For e.g. it may need to provide a common
phone number that will be monitored by both Amagi and the customer for
calls that make enquires about the end product for which the ad campaign
was launched. This is a good method of offsetting both the trialability and
observability dimensions of innovation.
2. Amagi can look at viral marketing and viral selling where it offers
benefits/discounts to current customers for referring their peer business
contacts to Amagi. This will decrease the cost/sale for Amagi.
3. External Advertising agencies typically have a lot of bargaining power which
will have an adverse impact on Amagi’s margins. Selling of advertising slots
via advertising agencies should be the last priority.
4. For fast growth of the company across the 20000+ MSOs that are present
across the country, it might make more sense for Amagi to go the franchisee
route as it will reduce capital requirements and increase sales force in an
exponential manner.
5. To enhance knowledge about Amagi, It should utilize some of the advertising
slots that it has to sensitize businesses about the possibility of local
advertising on television.

23
Amagi Media Labs 201
0

Appendix A
Indian Television broadcasting industry

Broadcasting and cable TV segment constitutes 33.5 % of the Indian media


industry’s overall revenues. The broadcasting and cable TV market consists of all
terrestrial, cable and satellite broadcasters of digital and analog television
programming. The Indian media industry generated total revenues of $14.8 in 2009
representing a CAGR of 8.2% for the period spanning 2005-2009. The broadcasting
and cable TV segment was the industry’s most lucrative in 2009, generating total
revenues of $5 billion, equivalent to 33.5% of the industry’s overall value.

Structure of TV Broadcasting industry

24
Amagi Media Labs 201
0

Future of DTH in India

Indian advertising industry

Indian economy is on a boom and the market is on a continuous trail of expansion.


Advertising agencies in the country 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. 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 led 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.

25
Amagi Media Labs 201
0
Firms in the advertising and public relations services industry prepare
advertisements for other companies and organizations and design campaigns to
promote the interests and image of their clients. This industry also includes media
representatives-firms that sell advertising space for publications, radio, television,
and the Internet; display advertisers-businesses engaged in creating and designing
public display ads for use in shopping malls, on billboards, or in similar media; and
direct mail advertisers. A firm that purchases advertising time (or space) from
media outlets, thereafter reselling it to advertising agencies or individual companies
directly, is considered a media buying agency.

Most advertising firms specialize in a particular market niche. Some companies


produce and solicit outdoor advertising, such as billboards and electric displays.
Others place ads in buses, subways, taxis, airports, and bus terminals. A small
number of firms produce aerial advertising, while others distribute circulars,
handbills, and free samples. Groups within agencies have been created to serve
their clients’ electronic advertising needs on the Internet. Online advertisements
link users to a company or product’s Web site, where information such as new
product announcements, contests, and product catalogue appears, and from which
purchases may be made.

The structure of the advertising industry in India has been affected by globalization
and international alignments creating a smaller number of very large agencies and
the growth of independent major media buying houses. Very sophisticated software
optimization and planning systems are now integral to the industry, enabling
agencies to offer a unique positioning in the marketplace to attract new business.

American companies are discovering the appeal of marketing their products in


India. With a population of approximately one billion, and a middle class that's
larger than the total population of the United States, there's definitely money to be
made. Local retailers in apparel, food, watches and jewellery have all increased
their average ad spending by almost 50% in the past two years. Coupled with many
other local players big retailing brands are spending to the tune of Rs 12,000 crores
annually on advertising and promotional activities. This figure, according to industry
estimates, was less than Rs 400 crores about 3 years ago which means the growth

26
Amagi Media Labs 201
0
has been a whopping 40%. The local firms are using all the available advertising
tools from electronic to print, outdoor advertising and even models. The advertising
and promotional spending by local brands is substantial during the festival season
and almost 70% of the spending is done between September to January. The
advertising industry in India is growing at an average rate of 10-12% per annum.
Over 80% of the business is from Mumbai and Delhi followed by Bangalore and
Chennai.

Scope of Advertising industry in India

The advertising industry in India has several competitive advantages:

• India has a rich pool of strategic planning, creative and media services
personnel: Indeed, Indian advertising industry has been exporting senior-level
talent to many countries, particularly to the Gulf, South-East Asia, China, the
UK and the US. Indian talent is recognized and respected in global agency
networks.

• No other country has access to so many trained management graduates who


can provide strategic inputs for brand and media planning.

• Indians are multicultural: we learn at least two languages and that gives us a
head start in understanding cultural diversity.

• Most of the top 20 agencies in India have a global partner or owner, which
should provide an immediate link to global markets.

• Our production standards in TV and print have improved: With a vibrant


animation software industry, we have access to this area of TV production.

• India's advanced IT capabilities can be used to develop Web-based


communication packages for global clients.

27
Amagi Media Labs 201
0
The Indian advertising industry is a very upcoming and promising sector. However
there is severe competition and survival is for the fittest and the best. In this sector
what matters the most is knowledge and experience of the work and the industry
and its functioning. The more the knowledge you can provide the better the
productivity you give.

28

You might also like