INDUSTRY ANALYSIS

1. Introduction
1.1 Evolution and Growth of Advertising Industry in World

Advertising is a non-personal form of upgrade that is delivered through designated mass

media passages that, under most situation s, require the marketer to salary for missive
placement. Advertising is, in fact, the most prominent and powerful average in the
currentcommercials world. It generates an full world view, decisive our arrogance and
beliefs. Advertisements permeate every characteristic of life and most of us are barely alert
of it. it chiefly depend on how an different bring everything and so chief care is taken to
adventure the reactions that play an vital role in beginning a firm remembrance of an
announcement and disposing the buyers to buy the brand that is being advertised. Over a
period of time, advertising has been suffering morphing alterations gradually and
progressively with multi-facet method.

Advertising also has a past of being considered a one-way procedure of marketing message
where the message headset (i.e., target market) is not in site to straightreply to the message
(e.g., seek more information). This too is moving. For example, in the following few
yearsmachineries will be readily available to allow a TV viewer to click a key to request
more details on a creation seen on their favorite TV program. In fact, it is predictable that
over the next 10-20 years advertising will alteration away from a one-way message model
and developed one that is highly communicating.

Mass media of Advertising

(Figure 1- Mass media of Advertising)

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 1.1.1 Advertising History Timeline:

Year Milestones
1661 The first product branding was industrial, for Dentifrice Tooth Gel
1704 First announcement seemed in a newspaper
1776 At the dawn of American rebellion, political ads appeared positive mobilization.
1835 Birth of the automobile fuels the rise of poster Ads in US
1843 Volney Palmer recognized the first advertising activity in Philadelphia 1843
1882 First electric light in Times Square that made a enormous difference in the world of
advertising
1882 Lit in this sign enthused people universal to use this light-up symbol to attract the
eyes of people mobile down the street.
1892 Direct advertising is born when burns sends out 8000 handwritten postcards and
obtains back 2000 orders
1917 The American connotation of advertising activities is originated
1920 KDKA, the first commercials radio station, was originated in 1920 by Frank Conrad
1941 The first authorized TV commercials aired in 1941 before a baseball game. The
commercials were marketing for the Beloved Watch. Bulova played $9 for the 20
second commercials
1963 David Ogilvy helpers in the current age promotion age with this price “The customer
isn’t moron; she is your spouse”.
1984 Apple sets a pattern at the super bowl with the greatest expensive TV ad: directed by
Ridley scott, the macintosh advertisement prices $90000
1994 Pay-per-click keyword vending first entrance at GoTo.com
1997 The first mobile ad is flung. A Finnish news consequences offers free news captions
via SMS, subsidized by advertising
2006 A video advertisement is a TV commercials put on the internet that frequently plays
before a video or game. YouTube figuratively gave birth to this idea when it
launched in 2006
2007 Face book launched in 2007 and we witnessed another figurative birth- the birth of
social based advertising. Social based advertising lets corporations see what people
like by pursuing their social relations.
2012 Right now, online advertising is quite the temper and there are popular up ads
everywhere, but TV advertisements are also on the rise. Still they technically can't rise
any higher.
Corporations are frustrating to pile their way finished the dodges of advertising rules
and Face book and Twitter are flattering another kind of advertising.
Source: Timeline created by LynnComm860 in Business &Mash able: The Evolution of
Advertising

In the early 1950s, the DuMontTVCSystem began the present practice of selling ad time
to manifold sponsors. Before, DuMont had trouble discovery sponsors for many of their
packages and compensated by marketing smaller chunks of advertising time to several
trades. This eventually became the normal for the commercials TVCmanufacturing in
the United States. However, it was still a shared practice to must single sponsor shows,

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such as The United States Steel Hour. In definite instances the sponsors exercised great
regulator over the happy of the show – up to and counting having one's promotion
organization actually writing the show. The single sponsor model is much less main
now, a notable exception being the Stamp Hall of Fame.
The late 1980s and early 1990s saw the outline of cable TVC and mostly MTV. Ground-
breaking the idea of the music video, MTV escorted in a new type of advertising: the
buyer tunes in for the raise message, rather than it being a by-product or addition. As
cable and satellite TV became gradually prevalent, line stations emerged, including net
consequences completely enthusiastic to raise, such as QVC, Home-based Shopping Net
consequence, and Consequenceshop TV Canada.
TVC advertising is one of the most relaxed types of advertising; systems charge large
amounts for commercials airtime during popular records. The annual Super Bowl
football game in the United States is known as the most protuberant advertising event on
TVC - with a viewers of over 108 billion and studies watching that 50% of those only
adjusted in to see the advertisements. The normal rate of a single thirty-second boxed
during this game affected US$4 billion& a 60-second spot dual that amount in 2014.
Simulated advertisements may be inserted into even software design through computer
illustrations. It is typically inserted into otherwise blank surroundings or used to replace
local posters that are not related to the remote footage audience. Added controversially,
virtual posters may be inserted into the background where none exist in real-life. This
method is particularly used in televised sporting events. Virtual produce situation is also
likely.
A TVC advertisement (variously called a TV marketable, marketable or ad in American
English, and recognized in British English as an advert) is a distance of TVCsoftware
design produced and paid for by angroup, which transmits a message, typically to
market a product or service. Advertising income provides a vital helping of the money
for most confidentially owned TVCnet consequences . The vast mainstream of TVC
advertisements today consist of brief publicity spots, ranging in length from a few
seconds to several notes (as well as program-length infomercials). Advertisements of
this sort have been used to inspire a wide variety of goods, services and ideas meanwhile
the inaugural of TVC. The effects of TVC advertising upon the watching public (and the
effects of mass mass media in general) have been the topic of logical dissertation by
such superstars as Marshall McLuhan. The viewership of TVCprogram design, as slow
by corporations such as Nielsen Mass media Research, is often used as a metric for TV
advertisement assignment, and so, for the rates charged to agents to air inside a given
Net consequence, TVC program, or time of day (called a "day part").

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 TVC was still in its new phase in 1928, but the average’s future to sell goods was
a
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a
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y

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(Picture 1- Radio News with TVC Experiment)

In the United States, the TV advertisement is commonly measured the most real mass-
market marketing setup, and this is imitation by the high prices TV systems charge for
marketable distribution airtime through popular TV events. The yearly Super Bowl
American football game is known as much for its marketable advertisements as for the
game itself, and the average rate of a solitary 30-second TV commercials during this
ready (seen by 100 billion viewers) has reached US$4.5 billion (as of February 2013). It
has been recommended that, in general, TVCdirectors believe that advertisers covet the
18-49 age demographic and that elder viewers are of almost no interest to most
advertisers due to their unwillingness to alteration their purchasing habits. Produces
envisioned for older customers, such as sure health produces and insurance, are
advertised frequently on TVC, frequently during program writing that pleas to elder
adults.

(Picture 2- TVC commercials in 1948) (Picture 3-Filming a movie ad)

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Advertising & Branding Industry Expenditure Overview

Worldwide
Amount Us $ Year Data
Global Advertising 546.0 Billion US$ 2014 E-Marketer
Expenditure
Projection 578.0 Billion US$ 2015 E-Marketer
Global Digital 171.0 Billion US$ 2015 E-Marketer
Advertising Expenditure
Global Mobile 68.7 Billion US$ 2015 E-Marketer
Advertising
Expenditure.
Estimate

Global Social 23.6 Billion US$ 2015 E-Marketer

Mass media
Advertising
Expenditure
Global TV Advertising 213.5 Billion US$ 2014 PRE
Expenditure
Global Radio 36.6 Billion US$ 2014 PRE
Advertising Expenditure
Global Out of Home 37.7 Billion US$ 2014 PRE
Advertising Expenditure
Worldwide Broadband 3.03 Billion US$ 2014 ITU
Internet subscriptions
(incl. wireless)*

Total Mobile-Cellular 7.0 Billion US$ 2014 ITU

Subscriptions*
Source: Global Ads Expenditure 2012

1.2 Evolution and Growing of Advertising Industry in India

The Indian treat marketplace is foreseeable to be worth US$ 18 billion by 2017 from the
current level of US$ 14 billion with odd development in luxurygroupsincluding fashion, cars
and fine dining. With growing brand attention and growing acquiring power among the
youth, particularly in tier II and tier III cities, sum by Indian clienteles is expected to
produce four spells to US$ 4.2 trillion by 2017.

While innumerable calculations exists on the size and advance likely of the Indian
extravagance market; most estimates are common on expected growing rates of 20 per cent
given the tremendous likely in foodstuffs such as attires, pens, home-based decor, watches,
wines, jeweler, spas, doorman service, frivolous travel, fine dining &hostels, yachts, fine art,
cars and real park.

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Such high growing likely in customerexpenditureentices huge notice in different promotion
and strategy visions.

The Indian organization has given spectacular support to the publicity and promotion
industry. Advertising outflow is likely to rise in the monetary segment, determined by
Reserve Bank of India (RBI) policies which could significance in a more
favorableauctionablesituation. Also, future licenses for new sets and better market opinions
render the publicity and marketing industry in India a fertile space.
India is an immerging bazaar and Indian advertising has tolerated robust in spite of the signs
of apathy. The field of advertising has settled in leaps and bonds; today, it is copious more
than a few written lines or more pictures with certain in black and white text. It is like a
medley revealing different views enthralling, sundry and real. Advertising offers a free rein
to the art of urging, adapting itself to deviations with passing time.

Indian advertising is a vast field where new tendencies are unceasingly emerging every day.
The language used in the advertisement is prejudiced by many sociological factors like
market, governments, sports, and games, rural market, spiritual and education. The use of
English words in between Hindi words or Multilanguage to kind a ‘special effect’ is
flattering a fashionable trend it is more nearby to all. The Amul ads were one of the chief to
use Hinglidsh to countless effect “Amul Big boss of Makings”. Rehearsal of Multilanguage
an d decoded syntax like Fruit salad ehklittle main or Ekdum fit appeals to individuals of all
regions crosswise the country, as it simplifies the language. Thus, the inclination of by
means of Hingis is slow rank and unindustrialized as a language most suited for Indian
advertising and the fact that brand ambassador like Amirkh ansays this etymological in the
ad reproduces the pledge of the follower.

Indian customer has developed action for the swift alteration that has taken place in the
strategy and presentation of ads. With the evolution of print mass media, wireless and TVC,
advertising also score high and several mass media plans are now waged to meet dissimilar
advertising needs.

Brand diplomat are used by businesses to attain certain definite neutrality. Seeing his
favorite superstar in an advertisement inspires the buyer to use the product. In the up-to-date
scenario, corporations are testing with novel systems to entice customers. They are
repeatedly looking at new gaps to market. Today, online advertising and mobile marketing
growing at fast speed directing the ever puffiness amount of Indian netconsequence forces in
all likely talented ways.
With the treat marketplace expected to crop at over 20 per cent year on time, secluded
equity (PE) investments in the treat segment are expected to rise and support the improved
size of the Indian luxury market. Furthermore, high internet diffusion across tier-II and tier-
III cities along with growing the row away income shall lead to about 80 billiondealings on
the internet by 2020. As a result of the above, luxury ingesting is expected to grow various
in India.

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 With this level of growing and succeeding venture from luxury businesses, it is projected
that by 2020 the luxury market in India could be engaging 1.8 billion people. This will not
only help in antifungal traditional craft skills and tradition, but will also care communities,
create employment and afford training.
The online advertising market in India is predictable to touch Rs 3,575 crores (US$ 538.09
billion) in 2015 from Rs 2,750 crores (US$ 413.92 billion) in 2014. Of the current Rs 2,750
crores (US$ 538.09 billion) numerical advertisement market, search and show donate the
most - search advertisements establish 38 per cent of total ad expends followed by display
advertisement at 29 per cent, as per the study.
The Internet's share in total publicity income is expected to grow double from eight per cent
in 2013 to 16 per cent in 2018. Online advertising, which was projected at Rs 2,900 crores
(US$ 436.50 zillion) in 2013, could hurdle threefold to Rs 10,000 crores (US$ 1.51 billion)
in five years, cumulative at a multiple annual rate of 28 per cent.
It is exciting to note that Indians paid Rs 25,200 crores (US$ 3.79 billion) to admission the
Internet in 2013, a figure bigger than the Rs 22,300 crores (US$ 3.36 billion) that print
intermesh mediate reaped in payment and marketing.

Source: Nielson Total Audience Report

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Source: eMarketer.uk.businessinsider.com
The advertising and marketing segment in India is predictable to enjoy a good run. E-
commerce corporations are foreseeable to control advertising trends in 2015. Growing is
foreseeable in retail advertisement, on the back of subjects such as several businesses
entering the food and beverages segment, e-commerce ahead more admiration in the state,
and national businesses testing out the liquids. The rural area is a possibly moneymaking
target. For instance, in the cars segment, the emphasis of two-wheelers on rural areas power
mean more performances and added advertising expends. The telecom segment could see
fee as well, driven by better Smartphone spreading and service providers wounding
unfortunate on values.

1.3 Evolution and Growing of Firm

There has been a long organization of advertising in India since the first reporters published
in India in the 19th Century supported publicity. The first publicizing organization was
recognized in 1905, B. Dataram and Company, followed by The India-Advertising
Company in 1907, the Calcutta Advertising activity in 1909, S.H.Bensen in 1928, J. Walter
Thompson Connections through its Indian associate, Hindustan Thompson Connections in
1929, Lintas (Lever international Advertising Services) in 1939 and McCann Erikson in
1956. Advertising expenditure in the 1950s was projected at $US 300,000. Under the more
collective political situation of the 1960s and 1970s there was little inducement for
corporations to sponsor because advertising was not tax deductible. In the 1970s there was a
58% growing in the amount of recorded organization from 106 in 1969 to 168 in 1979, and
this contained within a growing in Indian organization. The first marketing looked on state
TVC in 1976.

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With the initial of the economy in the 1980s there was a growing in the amount of
associations with multinational organization and a growth in advertising though foreign Net
consequence contribution in organization possession was limited. In 1987 Hindustan
Thompson was allied to J. Walter Thompson. Lint as, the 2nd ranking organization, held
only 4% of its subsidiary, as did Ogilvie and Mather. Saatchi and Saatchi/Compton had
minority interests in Compton as did Lintas. A study done in 1984 of the largest
corporations in India found that the ratio of advertising expenditure to auctions had raised
from .64 in 1976, to .71 in 1980 to .74 in 1984. Foreign controlled corporations had the
dominant share of total advertising expenditure, and 80% of these were in the buyer goods
segments. Advertising was overemphasized with the top 50 advertisers accounting for 80%
of the advertising expenditure and the top 10 advertisers made up 40% of that figure, 32% of
the total. The largest advertiser throughout the period was Hindustan Lever which was
nearly 10% of the advertising modest of the corporate segmentcorporations. Pharmaceutical
corporations were also vital advertisers at this time.
In an advertising movement, mass media takes up bulk of the rates. Mass media rates
constitute about 80-85% of the total ad modest. The developments of the last two periods
have transported the mass media advertising at the center stage. Print and electronic mass
media (mainly TVC) form the two major marketing mass media in India. .The advertising
expends on print and TVC has been growing for the last two periods. In 1991, total
advertising expenditure was Rs 16,924 billion growing up to Rs 96110 and Rs 304612
billion in 2000 and 2008 respectively. Out of which print advertising grew from 10,690
billion to Rs 15,3750billion and TVC advertising graduated from 3900 to 119,521 from
1991 to 2008. TVC has developed the leader in publicity pie of late. The advertising income
w.r.t. to the Indian mass media and entertaining scenery was Rs 153.75 billion in print and
127.57 billion rupees in TVC in 2008. The supremacy of the journalists and TVC
advertising sustained intact even in original times.

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 Source: Ads Pie Split in 2011
TVC advertising in India has is one of the wildest growing market places in the Asia Pacific
regions of the globe. Since the Indian box is on a threshold of a main technicalalteration,
with new supply technologies like digital chain, DTH (Direct- to – home) and IPTV
(Internet Protocol TVC), TVC on publicity is surely positive to take on a new role. Because
of the raised interactivity in gratified and niche software design styles catering to very exact
target groups, advertising on TVC too is going to be more engrossed and will definitely
draw more eyeballs. Moreover, today, TV enabled movable handsets are ahead admiration
in India. This might alteration the nature of TV advertising. Bhatia, Vodafone and Reliance
will provide their stations on mobile handsets. Times Now, a 24 hours news and present
affair Net consequence from the Times Group was first hurled on Reliance mobiles and then
on the regular TV sets. Reality formats are general amongst TV and they lay emphasis on
spectator’s message. SMS voting and in-programmed advertising has developed a key
ingredient in most of these shows. This too gives new possibility of advertising. Because of
the rised spectator’s disintegration, both the advertisers and the newscasters are repeatedly
on their toes.
Also, the exhibition of six DTH stages in India will create groundbreaking advertising
spaces. In fact the received of the DTH services in India is being observed as a healthy
expansion for the advertising and the TVC industry. There has been a 29% growing in TV
marketing in during the first quarter of 2008. Hindustan Unilever Ltd. was the amount one

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TVC advertiser during the first quarter of 2008. At the same time, many concerns are
stopping to use this average because of the disorder and lack of emphasis in the average.

Source: TV Advertising share in top 10 Categories corporations in Q1 of 2007-2008

Advertising expend on TV has scaled up from 3,950 Billion in 1991 to Rs 119,521 zillion in
2008. Advertisers see a lot of likely in TVC, ad income from TV in India is evenhanded $
2096 in comparison to $ 57470 billion in USA and $6350 in UK. The advertisers feel Indian
broadcasting act is highly positive and proposals variety of groundbreaking potentials for
advertising and upgrade. Amongst all net consequences , Hindi general entertainment net
consequences have been getting extreme viewership consistently, followed by film based
stations and news net consequences . English and other language net consequences have
been growing though not at the same rate.

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Source: TAM The share of viewership of various TVCnet consequences in India
There has been a significant rise in TVCpromotional over the last five years. From 10-30
succeeding spots to long TV ad actions, most advertisers contain TVC as a vital module in
their mass media plans.

Source: TAM Growing of TVC advertising from 2006-2011

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In 2011, a mixed bag of diversities underwritten most to the TV ad share. Cellular
consequence’s, edible full food like complain, Colgate along with other FMCG’s like
shampoos, shampoos and bathing soaps conquered the share. 7.6 % of the TV’s ad income have
come from automobile segment .Tata Nano and Hero Motocorp being the top expenders in
current times.
TVC advertises or TVC advertisements are largely ads of various produces before the
beginning, in the middle or at the end of the packages being run on system, cable or satellite
TVC. Advertisers decide on when to air these advertisements. Various day parts include
daytime (9 am to 4 pm) early outlying (4:00pm to 5:30 pm), early news (5:30-7:30 pm), prime
access (7:30-8:00 pm), prime time (8:00-11:00 pm) and late outlying (11:00-1 AM).
It has vast collection of tools and effects to generate an advertising message exactly the way the
sender wants to. Noticeable features of TV advertising are:

 Mass Coverage
 Relatively low rate
 Selectivity
 Creativity
 Prestige
 Impact
 Social supremacy
 Frequency
 Reproduction quality
 Flexibility
 Versatile

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2.0 Industry Scenario
2.1 Global Scenario
The world advertising industry is branded by a large amount of small and average sized
advertising actions that function primarily in one country and by a small amount of very
large advertising organization with course in many countries. These activities have
industrialized extensive net consequences of offices through the world in order to manage
the advertising course in all the kingdoms where their clients do business. These systems
often comprise both wholly-owned corporations and formal relationships with local
advertising activities to begin attendance in new markets, particularly in emerging markets.
In inconsequence to establish larger control over their advertising, many main advertisers
are combining all their advertising with one organization. For certain major advertisers such
as IBM and Citibank, this signifies annual advertising expenses in excess of $500 billion
worldwide (Grain and Ducoffe, 1998). As a importance, advertising organization that do not
have a global Net consequence are at a serious difficulty when competing for new publicity
accounts or trying to retain current ones that are growing globally.
The popular of these large advertising activities are headquartered in the US. Of the ten
main advertising organization groups, seven are headquartered in the US, and one each in
the UK, France and Japan, though WPP, the British organization holding company, is made
up of two large US-based organizations. With the exclusion of Dents, the Japanese
organization, most other organization net consequences produce the popular of their
incomes outside their home country. The largest activity group, Omnicom, places over $37
billion of publicity for its clients everywhere the world and stems half its income from
outside the US. Omnicom has 891 offices in over 85 countries and employs 35,600 persons
international (57 percent consequence outside the US). US-based advertising organization
and their holdings are responsible for most of the marketing throughout the world. For
example, of the almost $60 billion in advertising placed by the top 25 organization net
consequences in Europe during 1955, 89 percentage of the total was placed by businesses of
US-based organization. This general pattern holds in most parts of the world that do not
have limitations on foreign ownership. The major exclusion is Asia where the three major
Japanese organization account for 62 percent of the promotion placed by the top 25
organization net consequences.
Worldwide ended $400 billion is consumed on advertising. Approximately half of that
quantity is expended in the US and the other half outside the US. Info on advertising
expenditure can be gotten from Advertising Age's net site and from McCann-Erickson's net
site (www.mccann.com). The bulk of outflow outside the US takes place in Europe and
Japan, though Brazil, Canada, Mexico, and Australia are also imperative advertising
markets. Outside of these markets, China is the next biggest advertising market and is also
growing fast.
The Table below shows publicity outlay in the top ten global ad markets. The US and Japan
account for 65 percent of the total publicity expenditure in these markets and the top four
European markets an additional 25 percent. Apart from Brazil, no other market accounts for
more than two percent of the total expenditure. The attentiveness of expenditure in the US in

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 part explains the supremacy of US-based advertising organization. Not only do they
consequence for US-based clients that continue to enlarge outside the US, but also they
accrue knowledge and experience in the repetition of advertising that can be practical
elsewhere.

Country 1997Advertising Percent

Expenditures (billions)
U.S. 117.0 50
Japan 35.7 15
U.K. 20.8 9
Germany 20.3 9
France 9.7 4
Brazil 8.8 4
Italy 7.2 3
Australia 5.5 2
Canada 5.4 2
S. Korea 5.3 2
Total: 235.7 100
Source: 1997 advertising Expenditures in different countries
Brazil, China and India combined will account for 23% of growing in global total TV
advertising income. Brazil and China’s explosive growing will consolidate their position as
the third- and fourth-largest markets for total TV advertising income, respectively, while
India will jump from 12th-largest to seventh-largest market from 2014 to 2019.Brazil, India
and China will be powerhouses of growing. Percentage of global total TV advertising
income growing accounted for by Brazil, India and China (%), 2014– 2019

9.3%

7.0%
6.3%
Brazil

India

China

77.4%
Rest of the world
Source: Global entertainment and mass media outlook 2015 –2019, PwC, Ovum

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Source: Bloomberg Intelligence Report of Global Ad Income

2.2 Indian Scenario

The Indian marketing & advertising segment have shown a tremendous growing since the
early 90’s with several progressive plans implemented by the Indian government. The
government then decided to open the Indian market for foreign investors and allowed
foreign equity. That paved the way for the opening the floodgates of the boom in these
segments which is still shining high.

Marketing & advertising (M&A) are the tools which can be used by an organization to relate
itself to its target audience at a large scale. The 'Grand Old Man' of Indian advertising’,
R.K.Swamy, was instrumental in bringing advertising to the Indian map at the age of 50.
Several big names such as Ogilvy & Mather, Enil and Mass media turf have established
large business houses and have made a name for them in this large growing M&A market.
From a modest beginning of a few lines spoken on the radio to the flashy world of internet-
the advertising world has come a long way. Initially, when the deodorant brand Rexona
stepped into the Indian economy, it was faced with a mind-boggling problem of not being
able to reach the youth through newspaper and TVC advertisements. This problem was
extensively thought over and after amount a surveys the conclusion reached was to advertise
about deodorants on sites which encounter heavy traffic. It was suggested that the target
customers were more likely to be internet surfers than TVC viewers. The idea, earlier
thought to be ridiculous, consequences wonders for the company and was one of the most
instrumental steps in helping the company create a buyer base in India.

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Source: Indian TV Industry Size 2008-2019P

The newest transformation observed in the world of advertising is how it is aligning itself to
draw the attention of the youth towards the brands. The advertisements are designed such
that the youth identify with the brand and relate instantaneously to it. Blackberry- one of the
leading mobile corporations has lately been trying to alteration its public image from being a
phone for use by office-goers to a phone for everyone’s use. The tag-line clearly states- “Not
just for the office boys”.

The Cadbury advertisements which were earlier targeting the general audience have now
shifted gaze and are keenly concentrating on the young. The most current commercials show
exaltation between a young boy and girl over the chocolate. These newcomers replaced the
Indian superstar Amitabh Bachan in these ads- and THAT goes to say a lot about what the
corporations are thinking.

The sudden alteration in the target audience of brands is considered to be a conscious

decision following data expressing that majority of Indian audience is between 16-25 years
of age. The idea that India is seen to be an upcoming economy with a lot of potential is
utilized by the kindrs in promotion of their brand. By projecting India as an imminent super-
power, the brands give the buyers a feeling of being potent, sovereign and powerful.

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 Another arena tapped upon by the advertisers is the social Net consequenceing sites which
are the most hyped and read about matter in these times. Face book and Twitter are the most
popular sites. On Face book, the brands start by creating a page, “liking” which promises
“exclusive gifts and goodies”. The suggestion that a simple click could win you things
which you would have to think about twice before shelling out money for, is both fantastic
and tempting- and thus, manages to thrive successfully.

The big boss of the net world, Google, launched a ground-breaking idea for advertising- the
Google Ad words. These are Pay-Per-Click advertisements. The advertiser pays only when a
user clicks on the advertisement to visit the site. This adds to the incentive that an advertiser
gets to endorse their produces on Google- besides the fact that Google is the most popular
search engine and sites registered with Google have nearly double the amount of traffic than
others. In order to kind the offer more charming, Google has obtainable to give detailed
information regarding how many clicks an ‘ad’ received and how many of these got
converted to actual auctions. This path-breaking step by Google is all set to alteration the
advertising world in more ways than one.

Advertising has been anvastly crucial aspect of business- for what the society doesn’t see, it
doesn’t buy. The advertising world has always been very dynamic and ever-evolving, but
with the re-vamping of advertisements as per the commercials situation of the country
guarantees it to be more vibrant and vivacious than ever before.

Source: IRS 2012

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 TVC has been the single main issue in opening up a huge market for buyer produces and
creating a higher level of aspirations among the huge Indian middle class estimated at over
150 billion people. Advertisements of low priced buyer produces formed 20 percent of print
average advertisements. This segment is fast shifting to TV.

TVC is an advertising average used to consider as the best mass media as compared to print
and radio to persuade the customers. There are several reasons for preference of TV mass
media as likened to radio and print. TVC was introduced in India on September 15, 1996 as
a pilot project in Delhi. It was under the munificence of Philips that TV infrastructure was
developed in India. Two one-hour telecasts from a kind –shift studio in Akashvani Bhavan
were communicated. The equipments had been gifted by UNESCO. But four years, no one
was really aware that TVC even was in India.

The current growing of 18-20 per cent in M&A is among one of the highest among various
industries in India. Nowadays famed global organization is getting attracted towards the
growing Indian market and the Indian budget is slowly but steadily opening its doors to
World market capitalism. The 10000-crore M&A industry accounts for about 33 percent of
the total industry profits in the Asia-Pacific belt. The current NASSCOM-McKinsey report
indicated that India is believed to build a $17-billion net-based Industry by the end of 2008.

Source: Indian Industry Segment in Percentage 2010

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Source: Indian Mass media Exposure, 15 Jan, 2000

The $600 billion advertising industry, which is growing at 5% rate annually, is undergoing a
rapid transition. While TV ads continue to rule the roost with over 40% share, digital ads
that include online desktop and mobile ads have taken the center stage and are growing at a
rapid pace. According to E-Marketer, Mobile advertising is the key driver of growing
around the world and advertisers will expend $64.25 billion worldwide on mobile
advertising in 2015, anrise of nearly 60% over 2014. So while social mass media platforms,
search engines, programmatic ad platforms and other Internet properties stand to gain from
this trend, the clear losers are the TV net consequences and print mass media that rely on
advertising.

Indian Advertising Industry size

Source: FICCI -Indian Mass media, 2008 angle Research

20
A true sea alteration in the way that TVC is watched and cast-off is occurring as buyer’s
acquisition Internet-enabled TVC sets. A direct link from the screen to a set-top box or
other controller (such as a mass media center PC, or a Raku interacting between Wi-Fi and
the TV) to the Internet means that interactive viewing will be brought to new levels. It also
means that the download and local storage of content will be more convenient than ever.
Inner circle represents shares in 2004 and outer circle represents projected shares in 20
Indian Mass media and Entertainment Industry Size

Source: FICCI -Indian Mass media, 2008 Angle Research

Over the last several years, Indian Mass media& Entertainment (M&E) Industry has
consistently outperformed most other segments in terms of growing. Standing tall at an
estimated size of Rs. 513bn in CY2007, it is expected to continue to grow at a steady pace of
18.3% CAGR during CY2007-11.While traditional segments like TVC and Print continue to
account for the largest shares of the overall pie, it is emerging segments like Internet
advertising, Radio and Animation and Gaming, which are expected to register higher
growing. In terms of size, we believe that the Indian M&E industry has just touched the tip
of the iceberg. In CY2007, the Indian M&E Industry accounted for a mere 0.9% of the
Global M&E Industry, which stood at US $1,432bn and is expected to grow at a CAGR of
6.6% over CY2007-2011.

21
3.0Market Players and Market Share
Digital mass media marketing has burst upon the business scene with a big bang, making
entrepreneurs to sit up and take notice. While certain consider it as temporary or passing
fantasy, there are others like me who see it as a definite advantage to over many businesses.
In reality, digital mass media marketing has a tremendous potential to raise auctions but has
not been utilized fully due to the lack of inherent knowledge among businesses about the
right way to implement marketing strategy.
A business can benefit with the services offered by a digital mass media company by many
ways. One key benefit is rise brand recognition, which is vital for making your product or
service easily accessible to your customers, both current and potential customers.
Better brand loyalty is also part of a strategic and active digital mass media plan. Better
conversion rates through interaction in social mass media and anise in brand authority is
enhanced via digital mass media marketing. In my opinion, the more people talk about you
in the digital mass media net consequences the more authoritative and valuable your brand
developed s.
Reduced rates, boost in inbound traffic, and better rankings in search engines are advantages
that an active digital mass media marketing movement can give. With so many powerful
advantages, I would suggest that embracing digital mass media marketing is pertinent and a
‘must do’ activity for businesses in 2015.
While global businesses have woken up to this fact, there are several Indian corporations,
which are yet to add social mass media marketing to their action. Here is a list of 100 best
digital marketing corporations that have made strong strides in the Indian and global
marketing trends and ready to repeat the show in 2015.

3.1 Types of Advertising Organization

 Full service Organization

A full service organization is one that includes the four major staff function-
account management, creative service, mass media planning and buying and
accounting planning, which is also known as research. A full service advertising
organization will also have its own accounting department, a traffic department
to handle internal tracking on completions of project, a department for broadcast
and print production (frequently organized between creative departments) and a
human resource department.

 Specify d Organization
Many organizations do not follow the traditional full service approach. They
either specify in definite function (writing copy, producing art, or mass media
buying) audiences (minority, youth) or industries (health care, computers,
agriculture and business to business message. In addition there are specify d
organization in all marketing messages areas, such as direct marketing, auctions

22
 promotion, public relations, events and sports marketing and packaging and point
of auction.

 Industry Emphasized Organization

Numerous organizations concentrated on definite fields or industries such as
agriculture, medicine and pharmaceuticals, health care and computers. These
organization handle a variety of client from within that field, so they are able to
apply their particular expertise in those areas, making them essential full service.

 Minority Organization
Organization that emphasizes on ethic group or minority organization is minority
organization. This organization are organized in much the same way as full
service organization, but they as specify in reaching and communicating with
their particular market.

 Creative Boutiques
Creative boutiques are advertising organization, frequently small (2 or 3 people
to a dozen or more) that concentrate entirely on preparing the creative execution
of client marking messages. The emphasis on the organization is entirely on idea,
the creative product. A creative boutique will have one or more writer for artist
in staff. There is no staff for mass media, research, or strategy planning. typically
this organization can prepare advertising to run in print mass media outdoors and
on radio and T.V. creative boutique frequently serves corporations, but it
certainties retain by advertising organization when they are overloaded with
consequence.

 Mass media-buying Service

Mass media-buying Service specifies s in the acquisition of mass media for
clients. They are in high claim for any reasons but three reasons stand out. First,
mass media has developed more complex. As the no. of choices grows-think of
the proliferation of new cable net consequences, periodicals and radio stations.
Second, the rate of the maintaining of rivals mass media department has
escalated. Third, mass media buying services offer by mass media at a low rate
because they can group several client acquisition s to gather to develop
substantial buying power.

 Virtual Organization
Virtual organization is organization that functions as group of freelancers and is
paid accordingly. This type of organization does not use conventional office
space.
The advertising organization is a representative between mass media and advertiser. A
major roll of the advertising organization is the acquisition of mass media time and space.

23
 Advertiser Agency Media

Research Suppliers

(Figure 2- Advertising Organization Role Between mass media and advertiser)

From global presence to a long list of impressive services and portfolio, the list will give you an
idea on the digital mass media marketing corporations dominating the Indian market.

Sr. Compan Description Client List Organization

No. y Name Located
1 Pin Pinstor memphasises on Café Coffee Day, ICICI US, Europe,
storm integrated digital marketing and Bank, Share khan, HSBC, Malaysia,
provides services like Search ET Now, GQ, Open, Singapore,
marketing, Social Mass media NIIT, Jet Airways, Idea, Bangalore,
marketing, Search engine Hindustan Times, Taj, Gurgaon, and
marketing, action, bids, ads, Sony, Tanishq, Lee, Mumbai.
prospects. Greenpeace, Yahoo,
Canon, etc.
2 Techshu This social mass media Hewlett – Packard, Aditya Kolkata in
marketing company has a team Birla Nuvo LTD, ABP India, USA,
of over 60 members including (Ananda Bazar Patrika UK, Australia.
skilled leaders and Google Group), Nasscom, Turtle,
Certified Team individuals who mJunction (JV of TATA
take care of all the aspects of Steel & SAIL), SREI,
Digital Marketing for the Rupa (Macroman),
corporations that are targeting BharatiyaJanta Party (BJP
the US, UK, Australia, Canada, West Bengal), Greenply
New Zealand market or the Industries Ltd, SRMB
entire globe. PPC, SEO, SMO, Steel, GKB Optical and
affiliate marketing, and many more
conversion optimization are
certain of its vital services.
3 Reprise Founded in 2003, Reprise Mass Verizon, American Mumbai and
Mass media is an excellent digital Airlines, Hyundai, Honda, New Delhi in
media advertising organization Cathay Pacific, Raymour India, US, UK,
emphasised on connecting & Flanigan, Sharp, United Europe, Latin
brands with customers that seek States Postal Service, America, and
them out online. The services Metro PCS, Sharp, and Asia Pacific

24
 offered include paid search more. region.
marketing, social mass media
marketing, and SEO.
4 Ogilvy Ogilvy Public Relations American Express, Bangalore,
PR Worldwide has a strong presence NIDDK, XEROX, Chennai,
in the Asia-Pacific region for DuPont, BP, Ford, Hyderabad,
over two periods. It provides LG Electronics as well as Kolkata,
services like, buyer marketing, local corporations in 85 Mumbai, and
public affairs, mass media offices around the world New Delhi in
relations, product marketing, and India,
mass media relations. The America,
Europe, Africa
& Middle East,
Belgium,
France,
Germany,
Spain,
United
Kingdom,
Asia Pacific.
5 iStrat Strat is a member of National Maruti Suzuki, Nestle, Gurgaon, New
Association of Software and Alpha Corp, Pepsico, Delhi,
Services Corporations Redtape, DSCL, Max Australia, and
(NASSCOM) that deals with India Limited, Ericsson USA.
brand management and India, Pfizer India,
marketing. Founded in 2003, the Apesma India, CII, Hero
company has a wide range of Honda, Ranbaxy, Google,
services including digital MSN, Yahoo, Ask,
messages services, search engine Moneycontrol.com,
optimization, social mass media, NDTV, Wikipedia, and
ecommerce services, net more.
solutions, online marketing,
relationship marketing,
interactive kiosks and digital
films.

Certain of the famous advertising organization in India are as bellow.

 Ogilvy & Marther Pvt. Ltd. ( O&M)

 J.Walter Thompson Association Ltd. (JWT)
 Mudra Messages
 FCB-Ulka Advertising Ltd.
 Rediffusion – DY&R
 Mccann Erickson (India) Ltd.
 R K Swamy/BBDO Advertising Pvt. Ltd.

25
  Grey World Wide
 Leo Burnett India Pvt.Ltd.
 Contract Advertising (India)Ltd.

Source: Indian Top ads Organization Market share

26
4.0 Major Produces in the Industry
The Code sets out the rules with which TVC broadcasters licensed by (‘broadcasters’)
must comply when carrying advertising. These rules give consequence to relevant
provisions of the Audio Visual Mass media Services (AVMS) Directive and those
policies determined by ofcom following consultation. In accordance with Article 20 of
the Directive, Ofcom may display certain or all of the relevant rules to net consequences
that are not receivable outside the United Kingdom.
In this Code

 ‘TVC advertising’ means any procedure of announcement broadcast whether in

return for payment or for similar consideration or broadcast for self-promotional
purposes by a public or private undertaking or natural person in connection with
a trade, business, craft or profession in order to sponsor the supply of goods and
services, including immovable property, rights and obligations, in return for
payment
 The ‘broadcasting day’ for the purposes of this Code is deemed to start at 6am
and run for the following 24 hours;
 ‘Parliamentary proceedings’ includes proceedings on the floor of either House
and Parliamentary Committees;
 ‘Public service net consequences’ means those TVC services designated in
accordance with section 310 of the Messages Act 2003 other than the BBC
services
 A ‘formal Royal ceremony’ means a formal ceremony or occasion of which the
Sovereign or members of the British Royal Family enjoying the prefix ‘Royal
Highness’ are the center. It applies to occasions such as the State Opening of
Parliament and Trooping the Color; ;
 ‘Films’ means cinematographic consequences and films made for TVC
(including single dramas), but excludes series, serials and documentaries
 On public service net consequences time devoted to TVC advertising and
teleshopping spots must not exceed:
 An average of 7 minutes per hour for every hour of transmission time across the
broadcasting day; and
 Subject to (i) above, an average of 8 minutes an hour between 6pm and 11pm;
With the exceptions, the amount of internal breaks permitted in programmers on public
service net consequences is set out on below table. For every additional 20-minute
period beyond that set out in the tables, a further break is permitted.

Scheduled duration of programmed Amount of breaks

21 – 44 minutes One
45 – 54 minutes Two
55 – 65 minutes Three
66 – 85 minutes Four
86 – 105 minutes Five
106 – 125 minutes Six

27
(Table 1: Amount of internal breaks permitted in programmers on public service net
consequences)
The ‘time limit’ rules for advertising on commercials TVC are contained in Section 5 of
the Commercials TVC Industry Code of Practice, developed by the industry and
registered by the ACMA in accordance with section 123 of the Broadcasting Services
Act 1992. Certain of the key rules are summarized below.
On their main net consequencescommercials TVC licensees may schedule an average of:

 13 minutes per hour of non-program matter between 6pm and 12night; and
 15 minutes per hour on non-program matter at other times.
Because these limits are ‘averages’, more can be scheduled in any particular hour.
However, the maximum that can be scheduled in any given hour is:

 15 minutes from 6pm to midnight - with no more than 14 minutes scheduled in

any four of those hours; and 16 Minutes at other times.
So, we can say that

TVC Ads- Description Required Timing

For new product, new brand, vital new 60 Second-to-120 Second
concepts for the brand ads
For reminding buyers about the brand 15 Second-to-30 Second
Certaintimes company go for fast 15 Second-to-20 Second
recall or back-to-back ads
(Table 2- Ads description with its required timing)

28
5.0 Claim Determinants (Global and Indian)
5.1 Price

Today, in India the top Indian TV Net consequences claim a price tag of Rs. 3, 50,000
for a 10 second spot during primetime. The ad rates are even higher during highly
viewed Indian cricket matches.

In fact, the net consequence broadcasters are growing the ad rates even further by 25%,
much to the disappointment of major advertisers.

The Indian advertising market has been growing at extremely fast pace since last 5 to 7
years, thanks to consistent commercials growing of around 9% and huge rise in the
amount of

Multinationals entering India in last few years. What better average for these
multinationals to reach out to growing Indian middle class buyers.

One advertisement during the telecast of India Pakistan cricket match ensures that your
product / brand are seen by at least 200 billion TV viewers (approx.).

However, it is not all rosy for broadcaster in coming years. The amount of TV net
consequences is growing by hundreds. In this year alone more than 100 TV net
consequences are going to get launched and many more in pipeline. With so many net
consequences in fray the rivalry to acquire ads from advertisers is going to be fierce,
thereby pulling down the ad prices.

DAVP provides 15% discount (equivalent to organization commission) to

Ministries/Departments /other client organizations for AV/Radio Spots released through
DAVP.

Final approved Rates of C&S net consequences for the year 2009-10

Sr Net Rate/10 Sr.No Net Rate/10

.No consequence sec consequence sec
(Rs.) (Rs.)
1 Star Plus 2 Sony
Entertainment
India
7-9 am 1950 7-9 am 624
9-12 noon 7956 9-12 noon 4494
12-7 pm 15319 12-7 pm 5493
7-8 pm 21019 7-8 pm 6742
8-11 pm 54390 8-11 pm 16730

29
3 Sun TV 4 Star Gold
7-9 am 7-9 am 1997
9-12 noon 10800 9-12 noon 2652
12-7 pm 17400 12-7 pm 6003
7-8 pm 24600 7-8 pm 6887
8-11 pm 27600 8-11 pm 6887
5 Zee TV 6 Sahara One
7-9 am 831 7-9 am 499
9-12 noon 5581 9-12 noon 1997
12-7 pm 9856 12-7 pm 3000
7-8 pm 28976 7-8 pm 3495
8-11 pm 36814 8-11 pm 6000
7 MAX 8 Enadu TV
7-9 am 7362 7-9 am 1623
9-12 noon 7500 9-12 noon 5368
12-7 pm 10000 12-7 pm 3495
7-8 pm 11519 7-8 pm 6367
8-11 pm 19001 8-11 pm 7616
9 Gemini TV 10 Zee Marathi
7-9 am 2018 7-9 am 1498
9-12 noon 4037 9-12 noon 1997
12-7 pm 10094 12-7 pm 4120
7-8 pm 18407 7-8 pm 16480
8-11 pm 16507 8-11 pm 15232
11 Zee Cinema 12 ETV Bangla
7-9 am 2612 7-9 am 998
9-12 noon 6000 9-12 noon 499
12-7 pm 9975 12-7 pm 4369
7-8 pm 15675 7-8 pm 7616
8-11 pm 20901 8-11 pm 6242
13 Colors 14 AajTak
7-9 am 2000 7-9 am 3350
9-12 noon 7600 9-12 noon 2996
12-7 pm 10569 12-7 pm 2746
7-8 pm 20069 7-8 pm 4744
8-11 pm 10487 8-11 pm 10362
15 ETV 16 Zee Bangla
Marathi
7-9 am 1248 7-9 am 249
9-12 noon 749 9-12 noon 499
12-7 pm 2247 12-7 pm 2746
7-8 pm 5368 7-8 pm 10113
8-11 pm 10487 8-11 pm 10362

30
17 9X 18 Star One
7-9 am 877 7-9 am 873
9-12 noon 1755 9-12 noon 2497
12-7 pm 2535 12-7 pm 4494
7-8 pm 3608 7-8 pm 5243
8-11 pm 4096 8-11 pm 12235
19 9 XM 20 Teja TV
7-9 am 1657 7-9 am 2500
9-12 noon 2730 9-12 noon 2500
12-7 pm 2048 12-7 pm 2500
7-8 pm 3023 7-8 pm 5000
8-11 pm 2048 8-11 pm 5000
21 Zee Café 22 Cartoon Net
consequence
7-9 am 100 7-9 am 1997
9-12 noon 100 9-12 noon 2996
12-7 pm 100 12-7 pm 3745
7-8 pm 495 7-8 pm 6866
8-11 pm 495 8-11 pm 3121
23 Discovery 24 Zee Telugu
7-9 am 780 7-9 am 2372
9-12 noon 877 9-12 noon 1747
12-7 pm 1267 12-7 pm 2996
7-8 pm 2438 7-8 pm 4245
8-11 pm 2243 8-11 pm 8989
25 ETV 26 KTV
Kannada
7-9 am 780 7-9 am 3000
9-12 noon 780 9-12 noon 3000
12-7 pm 1852 12-7 pm 3500
7-8 pm 3510 7-8 pm 6600
8-11 pm 4096 8-11 pm 6600
27 Filmy 28 NDTV
Imagine
7-9 am 675 7-9 am 1747
9-12 noon 875 9-12 noon 3371
12-7 pm 1250 12-7 pm 3745
7-8 pm 1267 7-8 pm 5493
8-11 pm 2250 8-11 pm 13733
29 IBN 7 30 TV 9 Telugu
News
7-9 am 1072 7-9 am 1560
9-12 noon 975 9-12 noon 1365

31
 12-7 pm 975 12-7 pm 1072
7-8 pm 1657 7-8 pm 1560
8-11 pm 2145 8-11 pm 1755
31 India TV 32 Star Vijay
7-9 am 2340 7-9 am 390
9-12 noon 1657 9-12 noon 682
12-7 pm 1755 12-7 pm 1560
7-8 pm 3023 7-8 pm 2145
8-11 pm 3705 8-11 pm 4193
Source- Copyright © 2010, DAVP, Government of India

5.2 Income
“In most developed TVC markets, roughly 70 per cent of earnings come from
subscriptions and about 30 per cent from advertising.”

Source-Income of TV Industry in India with Advertising and Subscription

Content Income - There are two key ways TV broadcasters earn income from content;
subscription fees and pay per view fees. In general, content rates from net consequences
have been going up. What is more challenging is that viewers can get content through
many new mass media net consequences reducing the value of your TV net
consequences. To keep and grow their viewership, TV broadcasters must get content that
is more valuable to their viewers.
Advertising Income - Each year the amount of money that corporations expend on
advertising rises with the gross national product (GNP). Unfortunately for TV
broadcasters, advertisers are shifting their ad expend to the Internet. Today,
approximately 1/3rd the amount of TV ad expend ($47B per year in the United States) is
now being used for Internet Marketing ($17B per year). The growing in TV ad

32
expenditure since 2005 has been approximately 0% while the growing’s in Internet ad
expended is well over 10%.
TVC continued to contribute the lion's share of income (including both subscription and
advertising) with Rs 47,500 crores.
While digitations of cable continued to progress, greater transparency and higher ARPUs
(average income per user) remained a challenge. Implementation challenges delayed
tiered packaging and billing. However, DTH operators continued to improve realizations
by growing penetration of HD and premium net consequences and value added services.
Big e-commerce expenders and election advertising made the TVC industry the second-
largest contributor to the overall ad pie with Rs 15,500 crores, second only to print. By
2018, TV ad income is estimated to surpass print.
"Advertising will continue to show robust growing over the next five years as
commercials growing come back and categories like e-commerce and telecom rise
expenditure," says JehilThakkar, head of mass media and entertainment, KPMG, India.

Source- Estimated Source from KPMG India Analysis

5.3 Penetration level

The coming of age of Indian advertising. For not only has the industry quadrupled in a
periods, to an estimated Rs 420 crores last year, it has also grown in professionalism,
skills, variety and sophistication.
For not only has the industry quadrupled in a periods, to an estimated Rs 420 crores last
year, it has also grown in professionalism, skills, variety and sophistication.
At one level, buyers across the country are growingly bombarded with high-velocity
mass media hype - from the village hatti in Punjab with its familiar Brooke Bond
posters, to the Andhra tea-shop filled with radio jingles touting Vicco turmeric cream.

33
At another level, the advertising organization are growingly switching to sophisticated
market research, "psychographic ally" charting buyer aspirations, computerizing the
market into finely defined segments for active use of mass media, and reaching new
heights of creativity that almost kind advertising into an art form.
At yet a third level, a mass media explosion, particularly in the form of new periodicals ,
and the opening of new avenues of advertising - commercials TVC, for instance, which
started six years ago - have presented the profession with new challenges and new
opportunities for practicing their growingly pervasive hard sell.
Even governments have succumbed to the wave: "Image ads" by the state governments
are now a fact of life; the Congress(I) swept the 1980 polls with an advertising slogan
that cannily caught the public mood; and staid public segment outfits now see
advertising and market research as essential inputs: Hindustan Machine Tools (HMT)
currently profiled machine tool users in an consequence to understand its market, and
Maruti Udyog carried out a detailed market survey before deciding on the kind of car
that would sell.
Over the last periods, the alteration of scenario has been little short of revolutionary.
Corporate advertising modest have soared, as success in the market-place is growingly
linked to active advertising.
Promise toothpaste, Nirma washing powder, Liril soap, Reliance textiles, Weston TVC -
all these were new produces launched in established fields with the help of large
advertising modest, and all of them succeeded.
Even current and flourishing entities have had to join the bandwagon. As the economy
has opened up and protected semi-monopoly markets developed sharply competitive,
advertising has developed an essential means of plain survival. More than a dozen TV
manufacturers have spawned a blaze of advertising, while the computer war was
launched with a hot advertising blizzard by International Computers, Delhi Cloth Mills
(DCM), Hindustan Computers and a string of software suppliers.
Certain of the period’s successful action:-
Paint corporations, chemical manufacturers and even industries like ball-bearings have
responded to the end of a suppliers' market by flocking to the ad organization for major
action. Mass media expert N. Bhaskara Rao estimates that in an amount of buyer
produces, advertising modest now range between 5 and 15 per cent of auctions income,
with certain premium brands of soap going up to 20 per cent.
Through its sustained growing, advertising has developed arguably the country's most
persuasive message form, bridging the gap between 14 major linguistic groups and
daunting cultural diversities. Over 150 billion listeners are fed daily doses of radio
jingles.
1.7 billion TV sets offer families in the major cities and surrounding towns an enticing
range of growingly slick commercials shorts and a nation-wide readership approaching

34
100 billion is exposed to a regular blitz of high pressure auctionsmanship: pushing
produces, suggesting life-styles, tapping aspirations, catalyzing the pursuit of happiness.
Advertising organization have mushroomed: even ignoring the freelance agents who put
together quickie publicity action for small advertisers, there are now 390 organizations
in regular operation.
In conclusion, it believes it is time that took cognizance of the fundamentally alteration
consumption culture of urban India. This consequence to the old formulae of advertising
and brands at our peril. This would now need to kind ads for a sophisticated viewing
audience who are also smart shoppers. This will need to meet buyers’ needs for credible
information about produces as well as intelligent entertainment. The time has come for
greater realism – both in advertising and in brand promises.

5.4 Availability of Product/Service/Finance

Selection of the mass media outlet through which an ad will be presented has vital
implications for the success of a promotion. Each outlet possesses unique characteristics
though not all outlets are equally active for all advertisers. Thus, choosing the right
mass media can be a time consuming course requiring the marketer to balance the pros
and cons of each option.
While just a few years ago marketers needed to be aware of only a few mass media
outlets, today’s marketers must be well-versed in a wide range of mass media options.
The reason for the growing amount of mass media outlets lays with advances in message
technology, in particular, the Internet. In this tutorial we provide an overview of the
following advertising mass media:

 TVC
 Radio
 Print Publications
 Internet
 Direct Mail
 Signage
 Product Placement
 Mobile Devices
 Sponsorships
 Other Mass media Outlets

5.5 Promotion Schemes

There are certain particular obligations that apply when businesses use an amount of
different advertising or promotional ‘techniques’ to sponsor their products or services.
The Advertising techniques are given below:-

35
 Bait advertising and special offers
Bait advertising is the practice of offering items for auction at low prices to
attract buyers to a business.
Bait advertising can be a legitimate form of advertising. However, it is illegal to
engage in this conduct where goods or services are advertised for auction at a
discounted price, and they are not available in evenhanded quantities and for
evenhanded period at that price.
You must state clearly if the good is in short supply or on auction for a limited
time. For example, if your advertisement kinds it very clear that goods are
available at the discount price for ‘today only’, this will limit your obligations to
that day.
If there is not evenhanded chance the offer will be available at the advertised
price, you may be in breach of the ACL unless you promptly offer a 'rain check',
an acceptable substitute product or take other corrective action.

 Offering rebates, gifts or redemptions

When supplying or promoting goods or services, it is unlawful to offer rebates,
gifts, prizes or other free items without intending to provide them. It is also
unlawful to fail to provide them as promised. A rebate or gift must be provided
within the specified time or, if no time was specified, within evenhanded time.
If you use this promotional method, you should pay special attention to the detail
of the offer to ensure your buyers are not misled.

 Cash back offers

Cash back offers are a form of discounting. Instead of marking down product
prices, manufacturers and retailers maintain the price but offer to return certain
of the buyer’s money after acquisition. There are no problems with this
marketing approach, but care should be taken in using it. Any situation s,
limitations or restrictions should be made clear to the buyer before the
acquisition.

 Comparative advertising
Businesses may use comparative advertising to directly sponsor the superiority of
their produces over another. The comparison may relate to factors such as price,
quality, range or volume.
Comparative advertising is a direct challenge to competitors and before using
comparative advertising, you should consider:
 Is the comparison accurate?
 Are the produces or services being compared reasonably similar?
 Will the comparison be valid for the life of the promotion?

36
One key distinction to kind when studying advertising is between general advertising
and direct response advertising (i.e., direct marketing). General advertising does not
attempt to achieve an in mass mediate measurable response. The ad might be for a soft
drink, say, Coca Cola and show people enjoying a can of the soft drink while having fun
on the beach. The person seeing the ad does not have to do anything. Of course, the
ultimate goal of the ad is to get you to buy Coca Cola when you shop for a soft drink.
However, an in mass mediate response on the part of the person seeing the ad is not
expected. With a direct response advertisement, the goal of the ad is to elicit a direct
response.
This is the reason the ad must have a device (frequently a phone amount to call) so that
the prospect can do certain thing after viewing the advertisement. For example, a person
seeing an ad for Bow flex exercise equipment is, hopefully, going to call the toll-free
telephone amount within 60 minutes after seeing the commercials. The advantage of
direct marketing is that there is a way of knowing how active the ad (and the advertising
average) was by simply counting how many people called after seeing it. This is what is
referred to as measurable response. We can use the measurable responses to compare
different ads for the product or different advertising mass media (radio vs. TVC) or even
different vehicles within the same average (e.g., two different TVC programs or two
radio shows). Also, once people call in, we can capture their names and addresses and
use them to build a database of customers or prospective customers.
Certain types of advertising:
 Product advertising – Attempts to sell a product.
 Institutional (corporate) advertising – Attempts to enhance an
organization’s image and reputation.
 Advocacy advertising – Attempts to alteration public opinion in an area
where there is controversy.

 Product Placements and TVC Programming --

Product placements, where a TVC character is openly using a sponsor's product
(and certaintimes even praises it), is becoming more common on TVC. More
and more TVC programs are doing product placements within TVC shows
(Snapple, Coke, Vitamin Water, etc.). Product placements have been around a
long time in films.

 New Trends in Film Advertising:

There is a new trend in advertising films In the past, film critics were very vital
in spreading the word about a film. Film producers spent a huge amount on
newspaper advertising for films and held special screenings for the film critics.
Thus, the press and the film critics consequenceing for the newspapers had a
great deal of power. There appears to be a shift away from newspapers towards
the Internet. Many films do not have special screenings for the film critics; little
money is being spent on newspaper advertising for the films. Instead, the films
have net sites and net promotion and advertising is used extensively. Fox

37
 Atomic, a division of Fox Film Entertainment, wants to kind films aimed at
teenagers with no money spent on print. They will rely exclusively on the Net.
Needless to say, the newspaper industry is concerned about losing a great deal of
advertising income.

 Trends: Newspapers, TVC, Online:

There is no question that newspapers are in trouble: the amount of subscribers
continues to decline. The same is true of books--the amount of people reading
books continues to go down. Surpgrowingly, TVC is holding its own. In fact,
advertisers see TVC as a complement to online mass media According to
Nielsen Mass media Research, for the quarter ending 9/30/2008, the average
household has 2.7 people and 2.9 TVC sets; the average American expends 142
hours per month watching TVC and 27 hours a month on the Internet.
Advertisers like TVC because it offers what they refer to as an "immersive
experience." Audiences immerse themselves in a TVC program because people
like "video on a screen" more than text. Advertisers talk of three screens -- TVC,
Internet, and mobile devices -- all have developed very vital to them to reach
buyers. YouTube is another way audiences demonstrate interest in the video
mode. In December 2008, according to comscore's latest research,
approximately 100 billion American viewers watched 5.9 billion YouTube
videos. YouTube has not had an adverse effect on TVC; it is simply seen as
another way to enjoy video on a screen.

5.6 Current Trends

People know a great ad when they see one, but getting that ad to right people at the right
time is an art unto itself. As innovation in advertising technology renders old tactics
obsolete, it also opens new opportunities to reach your audience.
The central questions in digital advertising today are: Where will people listen? What
content will they engage with? How do we reach them? The answers are key to
understanding four trends that are shaping the industry.

 Mobile video advertising.

Mobile video consumption is growing rapidly and providing advertisers with a way
to reach buyers when they are paying attention. Between Q3 2012 and Q3 2014,
Smartphone and tablet video consumption grew 400 percent and now accounts for
30 percent of all online videos played, according to Ooyala’s Global Video Index.
This trend has been helped along by the expansion of fast 4G/LTE coverage. The
bigger iPhone 6 screen and the popularity of other ‘phablets’ (large-screen
smartphones) also reflect the growing importance of mobile video. As phablets
saturate the market, they will in turn feed the growing of mobile video.
Mobile video viewers are what you might call a "captive" audience. When TV
commercials begin, people look down at their phones. On the bus or subway,

38
 people emphasis on their digital screens instead of the ads passing by in the
cityscape. When radio ads begin, people alteration the station. However, when
people are already looking at their smartphone, nothing is going to distract them.
Use mobile video ads to take advantage of this undivided attention.

 Native advertising.
When net sites feature advertisements that emulate the content and style of their
own site, we consider it native advertising. Native ad expenditure will climb from
$3.2 billion in 2014 to $8.8 billion by 2018, largely because advertisers are seeing
above average engagement with this format, according to an E-Marketer forecast.
Native ads are typically long-form blog posts, info graphics or videos that aim to
inform, entertain and inspire people without directly promoting a product. For
example, a banner ad from a clothing retailer might sponsor a winter clothing
auction, but a native ad from the same retailer might discuss winter fashion tips
instead. Typically, native ads are tagged with a disclaimer such as “sponsored
content”, “paid post” or “sponsored by”.
If you’re targeting millennial, who tend to be put off by "auctions" ad content,
consider native advertising. Now that publishers are partnering with advertisers in
the production course (i.e. helping them write and edit), it’s easy to get expert help.

 Viewable impressions.
Until currently, digital advertisers were very susceptible to fraud. Many were also a
huge risk. Essentially, certain people realized they could run up their competitors’
advertising bills by creating computer programs (“bots”) that automatically click
ads. This practice became so rampant that fraudulent boot traffic may have rate the
advertising industry as much as $11.6 billion in 2014. Thankfully, new view ability
technology and an advertising model called “viewable impressions” are eradicating
both of these problems.
With viewable impressions, advertisers are only charged if the ad appears on a
user’s screen for a minimum duration. According to the industry standard, for a
display ad to count as a viewable impression, 50 percent of the pixels have to
appear on the screen for a minimum of one second. For video, 50 percent of pixels
have to appear for a minimum of two seconds. Bots can’t create fraudulent
viewable impressions because they can’t complete the actions that distinguish a
genuine user view from a false one.
However, in many cases, one or two seconds isn’t nearly enough time to engage a
viewer. When you acquisition viewable impressions, kind sure you have the option
to buy guaranteed time slots (e.g. five, 10 or 20 seconds), particularly if you plan to
run video ads. If you acquisition d a 10 second slot, you’d only be charged if your
ad was continuously viewable for ten seconds or longer. The rate you pay reflects
the total amount of time your audience expends with the advertisement.

39
 Behavioral data.
New net consequences, tactics and payments models will only serve your
marketing consequences if ads reach the right people. Rather than expenditure your
modest on a large set of buyers, you can more efficiently use behavioral data to
target people who fit your customer persona.
While advertisers commonly target individual net sites where they expect their
customer to hang out, behavioral data improves upon this approach by allowing
you to target groups of people across multiple advertising properties. Behavioral
targeting providers can profile a group (e.g. mothers with young kids) based on an
analysis of online searches, Internet browsing habits, purchasing history and much
more. If you’re targeting exact types of buyers, behavioral data can mean the
difference between a bungled movement and a huge victory.
Mobile video ads, native advertising, viewable impressions and behavioral
targeting are the defining trends in digital advertising. The strategies that
consequences for advertisers for the past five years won’t consequence indefinitely.
As these trends illustrate, the net consequences are continually changing, and the
audience on the other end has new habits and preferences. Get the most out of your
advertising expend by testing these new four strategies and discovering what
consequences for you.

 Subscription-based/Cloud-based production software models

While Adobe’s decision to jump to a subscription model with its Creative Cloud
produces was controversial to begin with, many in the advertising production
industry have since embraced this.

Overall, the feedback has been that it is now cheaper to access production tools
under the new model, and the monthly charge is much easier to modest for, as
opposed to having to stump up a few thousand dollars every few years.

With frequent patches and updates, the subscription model also gives the user the
edge by ensuring they always have the latest tools at their disposal. In terms of
software-based features, it’s the equivalent of always being on the cutting edge.

 Rivalry from the bottom

Easier access to high quality cameras and production-grade software means certain
clients and newer players in the industry may undervalue the services you provide.
what added value do you bring to the table with your experience, technical
expertise, connections, efficiency and creative vision.

40
  Shift to HD

Yes, there are HD broadcasters out there taking HD material. But many
broadcasters still air in SD, and require material delivered in SD. This has led to
the current situation where there is a mixture of SD and HD requirements.

However, growing concerns by stations over issues like frame blending,

particularly in the case of analog or SD material shot in a different region being
converted to higher frame rates, may at last prompt many broadcasters to move
over to HD.

Along with the natural progression of technology, this may prompt a shift in
delivery requirements to HD in the next few years. Be sure your consequence
flows, bandwidth and production tools are in place to allow you to deliver HD
material.

 Shift to asset-based thinking

Growingly, advertisers and organization are thinking of advertising material as

content.

Instead of TVCs, net-based pre-roll video ads, print ads, and banner ads being
separate productions, they are thought of as a continuous spectrum of content that
has to be delivered to buyers over the course of unified action.

This means you should have robust content and asset repurposing capabilities in
place, and be ready to consequence with other stakeholders, like the digital team in
an organization, in order to deliver outcomes expected by clients.
Broadcast advertising has always been a pretty fast-moving industry. New technologies
emerge every few years that promise to kind consequence faster and more efficient. At
the same time, we have to deal with a fast-changing mass media landscape. It's
vitalcertain times to stop and consider the wider strategy and your next move.

6.0 Industry Analysis

6.1 PESTEL Analysis
PESTLE is one of a well known series of acronyms used in business and marketing
planning which summarizes how to review the broader forces certainties known as
'macro-environment' which shape a business:

41
 (Figure 3- PESTEL Model)
PEST analysis is used when conducting an environment scan; to review competitors,
markets and the situation in which an organization finds itself.

6.1.1 Political/Legal factors

 Service tax on development and supply of content for use in advertising purpose
(advertising rate rises).
Auction of space or time for advertisement, other than in print mass media
Auction of space or time for advertisement, other than in print mass media is
chargeable to service tax under sub-clause of clause (105) of section 65. The
scope of this service has been expanded by substituting the explanation 2 to
the clause which defines print mass media. The new explanation states that
print mass media does not include business directories, yellow pages and
trade catalogues which are primarily meant for commercials purposes.
Consequently, auction of space for advertisement in such publications will
also be livable to service tax under this service.
 Auctions of space for advertisement in print mass media left out of the
ambit of service tax.

42
Service tax rose from 10% to 12%.Auction of space or time for
advertisement service, excluding that in print mass media and that by
broadcasting organization, brought under the service tax net.
 The pre-situation s of FDI in print.

 At least three-fourth of the board of a print mass media company with

FDI must be an Indians.
 All key editorial posts must also lie with resident Indians.
 Any print mass media company wishing to alteration its share-holding
pattern must get as prior government approval.

 Foreign Investment in Print Mass media

Only 26% FDI is allowed: the government allows 26% F.D.I limit for the
investment in print mass media in that 100% F.D.I is allowed in non news
segment which includes periodicals like scientific periodicals but in news
segment only 26% F.D.I is allowed due that foreign players are restricted.
And in the company ¾ of the board member should be Indian only and
should be having control in their hands. Modest 2002-2003
The course of commercials liberalization in India, which began more than
periods ago, has taken another vital step, namely opening up a very sensitive
segment. The print mass media Government of India in June 2002 had
decided to allow 26% foreign direct investment (FDI) in news and current
affairs print mass media. Technical and medical publications have been
allowed a higher FDI of 74%. The decision, taken by the Union Cabinet,
reverses the 1955 Cabinet resolution prohibiting any foreign investment in
print mass media. A detailed policy statement on FDI in print would be
issued shortly. Foreign investments in news organization, however, remain
barred. The government has attempted to address the concerns of political
parties that fear FDI in print might lead to foreigners controlling the Indian
mass media
 IPC (Indian Penal Code):
The Indian Penal Code kind’s criminal defamation a non cognisable offence.
Thus, criminal proceedings can be initiated against a newspaper, TV or radio
Net consequence if the complainant is able to satisfy a magistrate that a
statement made about him/her was on the face of it defamatory. Civil suits
for defamation are also likely under Indian law. Two vital aspects of the
defamation law impact on the press. First, once a case of defamation is taken
to trial, the matter is deemed to sub-judicial and cannot be commented upon.
Second, where the person claiming to be defamed is the Prime Minister or the
chief minister of a state, the prosecution can be launched by the public
prosecutor; in other words, at the state’s expense and without the person
claiming to be defamed having to appear in court. This enactment has been
used by the chief ministers of certain states to launch vexatious litigation

43
against the press, with a view to causing harassment and cowing newspapers
and other members of the mass media deemed to be ‘unfriendly’. While there
are no apparent restrictions on the free coverage of groups or issues, there are
certain restrictive enactments in place to deal with contempt of the judiciary,
and breach of legislatures’ and Parliament’s privileges. Criminal contempt,
the offence chiefly concerning the press, is defined as any publication that
interferes with or undermines the administration of justice or has a tendency
to do so. In 1997, A.K. Singh filed a criminal case under Sections 500 and
501 of the Indian Penal Code against Raman Kirpal; A.K. Bhattacharya, the
then editor of The Pioneer, Lucknow and Delhi; GhanshyamPankaj, editor of
the Hindi daily Swatantra Bharat; and SanjivKanwar and Deepak Mukherjee,
printer\publisher of The Pioneer and Swatantra Bharat, respectively.
After a 10-year-long trial, Chief Judicial Magistrate Suresh Chandra
pronounced his judgment on September 3, 2007, holding the reporter and the
other accused guilty. The Judge said in his order that it had been established
that the interview published by the accused was concocted and defamatory.
He also said that the accused persons had failed to prove that the reporter had
actually taken the interview.
 MRTP act on news:
While general legislation exists to regulate monopolies and cartels – the
Monopolies and Restrictive Trade Practices Act – this has been ineffectual in
curbing the formation of monopolies and cartels of private mass media
corporations. In the absence of restrictions on cross-mass media ownership,
such monopolies in fact straddle various units of the mass media. Thus,
private monopolies and cartels of the mass media do exist. Such monopolies
and cartels are found largely in the press, but certain mass media barons have
overlapping interests in TVC and FM radio. Mass media monopolists are
generally proestablishment and support the governments of the day to ensure
that their monopoly positions are not threatened. These monopolies exist
mainly to enrich the owner of the mass media company. State authorities
have in the current past not taken any action against private mass media
monopolies. This is largely because such monopolists support ruling
dispensations, are adept at gauging the popular mood about political parties
and see no difficulty in swearing or switching allegiance to those in power.
 Act for surrogate advertisement, 2004
This Act may be called the Prohibition of Publication or Telecast of Vulgar,
obscene and Surrogate Advertisements and Re-mix Songs by Print and
Electronic Mass media Act, 2004.
 Custom duty on import of newsprint.
The total requirement of newsprint in the country today is around 10 lakh
tones. The domestic production of newsprint by the current manufacturers

44
can fully meet the country's claim, as the installed capacity is around 12 lakh
tones. Currently, approximately five lakh tones of newsprint are being
imported at the rate of around Rs 1,000 crores to the country's exchequer.
Currently on import of newsprint, there is five per cent. "Due to negligible
duty on import of newsprint, large quantities of the same are being dumped
from South-East Asian countries, Russia and America and the indigenous
industry is suffering badly. The above duty is even less than the duty on raw
material i.e., wastes paper whereon the duty incidence is 9.2 per cent (basic
duty five per cent plus SAD four per cent). WTO bound rate for newsprint is
25 per cent," FICCI said.
But duty was bound to be reduced because of the rise in the price of news
print globally and due to that government reduce the duty from 5 percent to 3
percent and due to that import can be done at easy rate
But import on newsprint for newspaper is exempted from the import duty.
The present newsprint policy of the Government of India is as follows:
 Not less than one-third of the annual production of indigenous
newsprint will be reserved for small and average newspapers.
 Import of newsprint is allowed to actual users.

 Coping with Regulations:

Marketers can cope with advertising regulation in various ways:
 Monitor regulations and pending legislation: Monitoring legislation and
gathering intelligence on likely alterations in advertising regulations is
crucial since advertising regulations alteration from time to time. In many
countries, the prevailing mood is in favor of liberalization with the vital
exception of tobacco and alcohol advertising.

 Lobbying: Local governments or international legislative bodies can be

lobbied frequently jointly by advertisers, advertising organization and the
mass media. But too much lobbying carries the risk of generating bad
publicity, particularly when the issues at hand are highly controversial.

 Legal remedies: Advertisers may also consider fighting advertising

legislation in court. In Chile, outdoor board corporations, advertisers and
sign painters filed suits in civil court when the government asked
advertisers to place outdoor boards several blocks from the road. In the
European Union, advertisers appealed to European commission or the
European court of justice to overturn local laws.

45
  Modify marketing-mix: Tobacco marketers have been extremely creative
in handling advertising regulations. A widely popular mechanism to cope
with tobacco ad bans is brand extension or surrogate advertising. For
instance, the Swedish Tobacco Co. whose brands have captured more
than 80% of the Swedish cigarette market started promoting sunglasses
and cigarette lighters under the blend name, its best-selling cigarette
brand, to cope with a complete tobacco ad ban in Sweden. In the United
Kingdom, Hamlet, the leading cigar brand, shifted to other mass media
vehicles following the ban on all TV tobacco advertising in the United
Kingdom in octomber1992. Hamlet started using outdoor boards for the
first time, installing them at 2,258 sites. It ran auctions promotion
movement at a horse race where losing bettors got a free Hamlet cigar. It
also started selling a video cassette with about 20 of its celebrated
commercials s. In South Korea, Virginia slims pitched itself as a man’s
cigarette because the Korean law banned advertising that targeted women
and young adults.

6.1.2 Commercials factors

 Attracting foreign investment

Most Indian print players continued to dominate the local regions and did not
enter new territories, mainly due to lack of funds. However, foreign investment
regulations were relaxed in 2002. Currently, up to 26% foreign direct investment
(FDI) is permitted in newspapers and periodicals dealing with news and current
affairs. In non-news publications, 100% foreign investment is permitted. Since
the alterations in the regulation many foreign investors have taken strategic
stakes in the domestic print mass media corporations.

Domestic Investor Amount Invested

Company (Rs. ban)
JagranPrakashan Independent News 1.7
& Mass media
HT Mass media Public (IPO) 3.7
JagranPrakashan Public (IPO) 3.3
Deccan Chronicle Public (IPO) 1.5
HT Mass media Henderson 1
Henderson
DainikBhaskar Warburg Pincus 1.5
Amar Ujala DE Shaw 1.2
Ushodaya Blackstone 12
Enterprises

Source: FICCI PWC, Corporations

46
 Global crises:

Due to global crises in the whole world the corporate has control their expenditures
and due that they had restricted the their advertising expenses which directly affect
the earning of different mass medias and this also affect the print mass media
earnings because advertising income contributes 75% of their total earnings and due
to these reduction their earnings are negatively affected.

 GDP v/s Growing of Print Mass media:

GDP has no relation with Print mass media’s growing, as the given graph reveals
that in 2004 GDP was 8.5% and growing rate of print mass media was 15.29%. In
2005 GDP decreased by 1% and growing of print mass media also decreased by
0.39%. Effect of GDP growing:

Source: CII Presentation July 2008

In 2006 GDP raised by 1.9% and growing of print mass media also raised by
7.3% and in year 2007 GDP raised by 0.2% and growing rate of print mass
media also decreased by 1.6%. As the entire picture reveals the situation that
whatever alteration in GDP incurs same happened to the growing of print mass
media.

As per 11th five year plan the GDP growing was forecasted round about 8.40 to
8.90 which shows the decline rate, so as per Angel broking survey 2008 the
estimated growing of print mass media will also be decreased.

Contribution in GDP:

47
 Another favorable thing is that the contribution in GDP of print mass media is
growing at growing rate, in year 2006 the contribution as 0.29%, in year 2007 it
raised by 0.04% to 0.33% and the estimated contribution in year 2008 is 0.38%
which is 0.05% raised compare to year 2007. (As per NRS)

 Effect of inflation:

Inflation rate has positive relation with the growing of print mass media
advertising because when inflation rate raises the acquisition of an individual
also get rises and that lead corporate to advertise more. Thus, this raised
advertisement of corporate lead the print mass media to grow more. On the other
hand when inflation rate decreases acquisition of an individual also get decreases
and at that time generally corporate do not prefer to raise the frequency of the
advertisement.

Inflation vs Growth of print ad

8 7.4 25
22.81
7 21
5.8 20
6
percentage

percentage
5 15.29 4.5
14.9 15
Infaltion
4 3.2
Print ad growth
3 10

2
5
1
0 0
2004 2005 2006 2007
year

Source: CII Presentation on July 2008

As in given chart when inflation rate decreases to 4.5% in year 2005 from 7.4%
of year 2004, the growing of print mass media advertising also decreased to
14.9% in year 2005 from 15.29% of year 2004. While in year 2006, inflation rate
raised to 5.8% from 4.5% of year 2005 and the growing rate also show the same
picture, it raised to 22.81% from 14.9% of year 2005. Story remains same in year
2007 also.

 Slowdown in the economy:

Historically, the advertising industry has had a strong correlation with the
growing in the economy. Between 1996 and 2006, the advertising industry grew
at a CAGR of 11%, while the economy grew at an average 6%. While,

48
 circulation incomes for newspaper corporations are recession-resistant, 61% of
their incomes come from advertising, which is very sensitive to the overall trends
in the economy. Any slowdown in the Indian economy and the consequent
impact on disposable income could adversely affect advertising income. Further,
ad expend is influenced by a amount of factors including the Indian economy, the
performance of particular industry segments, shifts in buyer expenditure patterns
and alterations in buyer sentiments and tastes. For e.g. in 2QFY08, the print
corporations faced pressure on the ad incomes as a slowdown was witnessed in
the retail and real estate segments.

Source: Equity Master November 30, 2007

 Growing disposable income:

In India, the disposable income of people is growing year by year, acquisition

power also get raised. People are expenditure more money day by day that lead
advertiser to raise their frequency of advertisement. Even the 7th pay commission
also raises the purchasing power of individual.

 Rise in price of newsprint:

The rate of production of a newspaper is directly linked to the rate of newsprint,

which varies with the market price of newsprint, availability and location of
printing services and the amount of pages used. Newsprint rates generally
account for almost 50-70% of total expenses for a publishing business. Below we
have enumerated newsprint rates for our Print Mass media universe vis-à-vis
their total expenditure and income. Newsprint prices vary according to quality.
Newsprint is a freely traded commodity on the international markets and exhibits
price volatility.

 Geographical expansion:

49
 The national players are penetrating regionally because the regional and
particularly rural market is also showing more potential. The amounts of readers
are growing in rural area, reasons for that are,
 Growing literacy level
 Growing awareness level of stock market
 Regional newspaper is also providing news of Business, Classified etc.

 Low rate of production (small players can easily survive):

Less technological alterations in every business kind small players to grow faster
or help to survive up to certain extend. Same is the situation in print mass media
industry where the technological alterations are very nominal and that give a
chance to small player to survive. The alterations in industry are only in
Production capacity and the rate related to production like rise in paper rate
which is nominal in nature.

 Higher literacy levels:

In 2006, the literacy levels raised to 71.1% as compared to 69.9% in 2005. While
rural literacy is at 64.8%, urban literacy touched 85.3%. Currently Indian print
mass media is estimated to reach over 220 m people, and has immense growing
potential since close to 370 m literate Indians are believed to not be served by
any publication. Also, the reach of newspapers is only 27%, as compared to the
global average of 50%.

 Lower cover prices:

Earlier, due to strong hold over a region, the newspaper had higher cover
charges. However, with growing rivalry and venture into newer regions the
corporations have reduced the cover prices to augment more auctions. Many
English dailies are sold for as low as Re 1 or Rs 2. The initial subscription offers
of ‘DNA’ and ‘Hindustan Times’ (HT) in Mumbai, during their launch period,
further reduced the rate of the newspaper to around 50 paisa for an average issue.

 Higher ad expends:

Print mass media accounts for 48% of the total Rs 137.5 ban advertising expend
in the country. However, the ad expend in India is just 0.4% of GDP as against
0.5% in China, 1.3% in the US and a world average of nearly 1.0%. With
growing buyerism and growing interest from domestic and global brands in
Indian market, the growing in ad segment is expected to be strong.

As per the registrar of newspapers, there were approximately 6,529 daily

newspapers as of March 2005. No single newspaper had a national circulation. In

50
 2006, India had the second largest circulation of newspapers with 88.9 m copies
per day; second only to China with 98.7 m copies a day.

Urban &
Base Rural Urban Rural
Population (m) % (m) % (m) %
Any
Publication 184 24 100 42 84 16
Any Daily 170 22 94 40 77 14
Any Hindi
Daily 63 8.1 36 15 27 5.1
Any
English
Daily 17 2.2 16 6.7 1.6 0.3
Any
Magazine 59 7.6 34 14 25 4.6

Source: NRS 2006

6.1.3 Sociocultural factors

In current years the quantity of false, misleading and offensive advertising has
resulted in buyers having a growing disbelief in advertising, and a growing
resentment of it. Misleading, false advertising also constitutes unfair rivalry. It could
lead to market-place disaster or even litigation. If this kind of advertising continues,
it won’t be long before statutory regulations and procedures are imposed which kind
even fair, truthful, decent advertising cumber certain if not unlikely. This definitely
will affect your ability to compete and grow.
The Advertising Standards Council of India (ASCI) (1985) has adopted a Code for
Self-Regulation in Advertising. It is a commitment to honest advertising and to fair
rivalry in the market-place. It stands for the protection of the legitimate interests of
buyers and all concerned with advertising - advertisers, mass media, advertising
organization and others who help in the creation or placement of advertisements. As
the Code developed s growingly accepted and observed pro-actively, three things
will begin to happen.
 Fewer false, misleading claims
 Fewer unfair advertisements
 Growing respectability
Which only means more freedom for you to practice your craft or carry on your
business actively? As a member of ASCI, you can mould the course of Self-
Regulation and participate in the protection of healthy, active advertising. You can
have a say, through the Board of Governors, in the further development of the Code
and future appointments to the Buyer Complaints Council (CCC). Membership of
the ASCI (open only to Firms) entitles you to appoint your nominee to discharge

51
your function as a member, including standing for election to the Board of
Governors and voting at general meetings.
In India, as in several advanced economies, there is only ONE BODY for Self-
Regulation in Advertising – the ASCI, which is concerned with safeguarding the
interests of buyers whilst monitoring/guiding the commercials messages of
Practitioners in Advertising on behalf of advertisers, for advertisements carried by
the Mass media, in their endeavors to influence buying decisions of the Consuming
Public.

 Bad effect on children:

Parents have a different opinion according to them the excessive information
and produces thrown at them via the mass media, print and visual, spoiled the
children. Most marketers were targeting kids even for produces that had
nothing to do with children. Since most middle class families have both parents
consequence the marketer tries to consequence through the children on the guilt
of the parents and thus encourages children to kind very unevenhandedclaims.

 Language barriers:
Language is one of the most alarming barriers in international advertising.
Numerous promotional consequences have misfired because of language-
related issues. Given the bewildering variety of language, advertising copy
translation mistakes are easily made. In general, there are three different types
of translation errors: simple carelessness, words with multiple meanings and
idioms.

 Religious barriers:
Many of the trickiest promotional issues occur in the area of religion. In Saudi
Arabia, for example, only veiled women can be shown in TV commercials s.
Such restrictions create problems for hair care advertisers. P&G overcame that
constraint by creating a spot for pert plus shampoo that showed the face of a
veiled woman and the hair of another woman from the back. In Brazil, Pirelli,
the Italian tire kind, ran into problems when it used an ad with a Christ-like
depiction of Ronaldo, the Brazilian soccer star. The ad showed Ronaldo with
his arms spread and a tire tread on the sole of his foot, standing in place of the
“Christ the Redeemer” statue. The ad drew heavy criticism from the Brazilian
church authorities and the Vatican. In France, after protests from local bishops,
Volkswagen withdrew a billboard movement involving an ad the relaunch of
Golf with a modern version of the Last supper.

 Culture barriers:
Advertisers must escape cultural traps by getting inputs from local staff,
distributors or ad organization people. The Hosted cultural grid is useful in
understanding the influence of culture on global advertising. The grid classifies

52
 national cultures on various dimensions: power distance, indefinitely
avoidance, individualism, masculinity, and long terms.
Power distance refers to the degree of inequality that is seen as acceptable
within the country. Ads that position produces or services as status symbols
may be active in countries with large power distance (e.g., the Arab countries,
Indonesia, Mexico).

 Deceptive Advertising:
Certaintimes, advertisers give untrue and misleading information. It can take
quite a amount of forms like making a claim which it cannot fulfill, publicizing
false benefits, use of ambiguous phrases, etc.; for example, the advertisement
of fairness cream for men. Advertisers often take the help of puffery (praising
the item to be sold with vague claims, without exact facts) to achieve their
goals. One of the major areas of concern for the regulatory authorities is
whether advertisers can substantiate the claims which they are making.

 Comparative Advertising:
In the mad rush to outweigh the competitor, advertisers are using comparative
advertising, which has always been there in the advertising world; it appears
when owner of brand X claims that his product is better than brand Y of the
competitors; for example, the advertisements of Mountain Dew of PepsiCo and
Sprite of Coca-Cola. This has been extensively criticized by various
researchers, because of the wrong perceptions in the minds of the buyers. More
and more corporations are resorting to “masked” comparative advertising. By
this, the name of the competitor is not directly mentioned. But the question
remains whether it is advisable or not? Another question that comes to mind is
“how active comparative advertising is?”

 Ads to Kids:
As per a study conducted by Business Today, ever year, kids between the age
group of 8 and 12 in India expend a whopping sum of around Rs.20, 000 cr,
starting from the clothes to food and recreation. This figure is enticing the
marketers to target the children with exact advertising, and is also another
cause for concern to the advertisers. They are targeted through TV and print
mass media. According to experts, the problem is not in using children in
advertising, but with the context in which they are used. Let us take the
example of baby shampoo (name of the company withheld). The problem here
is that there is no adult who is shown supervising the child near the swimming
pool. The Children’s Advertising Review Unit (CARU) of the better business
bureau (BBB) keeps a close eye on kid’s advertisings and advocates that adults
are shown supervising children if the product and service are supposed to be
risky.

53
 Tobacco and Alcohol Commercials s:
Advertising related to tobacco (in any from) is under the scanner of the
government of many nations including India. It has an adverse effect on the,
population, particularly the young. Tobacco corporations have a tough
challenge ahead of them in using advertising to target potential customers.
Similarly, the advertisements of alcohol brand are restricted in many from mass
media, but the advertisers are smart enough to use the name of their brands for
other produces. For example, McDowell’s No.1 is advertised through the
product “mineral water” this known as surrogate advertising.

 Condom Ads:
There is a heated argument going on about the use of advertising to sponsor
condoms. Definite sections of the society feel prickly when these
advertisements are shown in front of their children. Certain people might call
this hypocrisy, but one has to keep in mind the Indian values and ethics when
advertising any product related to this category. Most of the time, an
advertisement for condoms shows a couple in their wedding attire, i.e., the
emphasis is mostly on the nuptial bed, but the biggest market for condoms lies
outside this context. This is another aspect to be looked into.

 The ‘X’ Factor:

A debate had been initiated a few years ago regarding the portrayal of women
in advertising. On close examination of the ads featuring women, it is observed
that, mostly, mo0dels having perfect bodies are preferred. For example, the
cover page of a fashion magazine features photographs which are not
conducive to Indian culture. According to Scott A Lukas (teacher at Lake
Tahoe Community College), “Women’s bodies are objectified in common
ways. In the case of many popular ads, the objection comes through
stereotyping.” Women are used extensively by different advertisers to sponsor
their produces.

 RTI Act:
The landmark Right to Information Act of 2005 with several implications to
news mass media and good governance would have remained dormant had
newspapers not given the coverage in 2006 and 2007. The coverage of
contentious issues and the ones which would not have got into public domain
started making headlines in 2007. Newspapers started taking RTI route as a
source for news and for “investigative journalism”. In the course the news mass
media got a new opportunity to reinstate their credibility and unleash an era of
transparency in public affairs of the country.

54
 6.1.4 Technological factors
Technological issues include digital as it is now one of the most popular platforms
for buyers and advertisers and this is the only platform where corporations can
actually track engagement. This affects many brands as they can now see who is
seeing their ads and who is clicking on them. As the industry frequently pays on the
opportunity to see or hear they can now pay for engagement. Also mobile is
becoming more popular with many people using smart phones and downloading
apps. Technologies have developed part of people’s lives to the younger generations
and are tech savvy and completely literate on these devices. Brands are now utilizing
this opportunity to advertise to their target buyers. The industry has currently been
subjected to legal issues such as new regulations on cookies and how company net
sites store their data. Regulation 6 covers the use of electronic messages net
consequences to store information, egg using cookies, or gain access to information
stored in the terminal equipment of a subscriber or user.

6.2 Poter’s Five Forces Analysis

Porter’s model will help analysis the industry and understand where the power lies in the
business. Here we use the porter’s model to understand the digital advertising industry in
India. Generally, in the Indian advertising industry, contracts are long term, and customers
are likely to keep going back to the same advertiser so long as results were obtained the
first time.

Substitute
Products

Rivalry
Bargaining Bargaining
among
power of power of
competing
buyer supplier
sellers

Threats
from new
entrants

(Figure 4- Porter’s Five Force Model)

55
6.2.1 Rivalry among Competitor
At present competitors are low, but it can be rise in future. Because lot new players are
coming to the industry.
 Current competitors have high profile clients and clients loyal toward them.
 Most of the traditional organization is now concentrating in digital also.
 Current firms in the Industry are creating variety and unique movement for
clients.
 Most of the firms have efficient backend support in technology.
 Current firms have the expertise manpower and firms giving good
remunerations to employees. So employees are loyal towards employers.
 Certain firms are popular due to execution of innovative action.
 Few of the brands have in-house organization, it will reduce business but not
in a high level.
Due to a large amount of advertising organization and limited ad spaces, rivalry among
advertising firms and advertising venue providers is rather high.
However, corporations are interested targeted advertising rather than mass advertising.
People are getting desensitized by the multitude of advertisements thrown at them each
day and only impactful advertisements are likely to succeed. Our plan to use restrooms
as an advertising avenue ensures that these advertisements are seen by people. In the
short period of time where people are heeding nature’s call, there is no way for them to
avoid looking at the advertisements placed, and so long as it is creative, it will leave a
lasting impression on the audience .This would give us a likely edge over other forms of
advertising used by other advertising organization.

6.2.2 Threats from New Entries

Generally, in the advertising industry, contracts are long termed, and customers are
likely to keep going back to the same advertiser so long as results were obtained the first
time. Further coupled with the lack of talents and ad space that can actively reach out to
the audience, the entry barriers are vital, yet SME’s are have low switching rates due to
their small sizes and limited modest so we conclude that the threat of new entrants is
average.
Being a new entrant into this industry itself, we plan to get around the above problems
by firstly going for the small and often overlooked market of small businesses. Our plan
to use restroom spaces as an advertising platform also provides a unique and fresh
advertising location which we believe allows much room for creativity and reach to
audiences. As such, our team finds that this is the gap needed for us to be able to gain an
entry into the advertising industry.
Full service organization have high claim in the market.
 Penetration in internet is the very high in India, comScore reports showing
average Indian will expend 12.7 hour internet.
 Lack of getting efficient consequence force is a threat in digital advertising.

56
  Rate of setting up a digital organization is low. But organization needs to invest a
huge amount in backend function like technology.
 Getting clients in the initial stage is a bit difficult, because clients will frequently
look the past experience of organization.
 Government regulations in the digital advertising are low. While compared with
M&E industry.

6.2.3 Threats from Substitute Product

There is little that can substitute an advertising movement, but there are indeed
numerous substitutes for advertising mass media. Considering our main mass media of
advertising, which is through the use of restroom advertising, likely substitutes include
traditional form of mass media such as newspaper, radio, TVC ads, and newer forms
such as social mass media, net marketing etc.
However, in this industry where every form of mass media is vital so long as it can
actively reach out to the audience, it is likely that we will still be able to get a share of
the pie. Moreover restroom advertising by its very nature allows a level of gender and
socio-commercials class targeting which very few conventional advertising averages
can offer.
 No. of substitutes is high, substitutes include Print mass media, OOH and Radio.
 Substitutes are too popular among buyers. They had high claim in past years.
 Main competitor for Digital advertising is TVC, but trends are now changing
FICCI-KPMG report of 2014 showing growing of digital is very high while
comparing with others mass media.
 But mass media consumption through radio is growing now.

6.2.4 Bargaining Power of Suppliers

Being in the advertising industry, suppliers are the ones who provide the avenue for
advertisements. Due to the congested business environment with multiple firms all
looking to market their products, there is high claim for such advertising spaces, with
many willing to pay a premium for quality spaces, resulting in the high bargaining
power of suppliers.
Toiletries will not be competing with these corporations for pre-current premium ad
space. Instead, we are looking towards capturing an unconventional largely uncontested
set of ad spaces, those in public restrooms. Here we hope to place impactful
advertisements through traditional forms of mass media and avoid any direct conflict
with the established firms for the premium ad spaces. Since these advertising spaces are
largely unused we hope to be able to obtain them despite the high bargaining power of
suppliers in the industry.
 Lot of suppliers is there, but certain suppliers who have high reach and affinity
will charge high price for placing ads in their portals.
 Real time bidding will lead to raise the claim of certain portals.
 Bargaining power of suppliers, who provide data and information are very high.
 Seasonal action put pressure on supply side to charge high.

57
  Employee or consequence force with proper knowledge is limited.

6.2.5 Bargaining Power of Buyers

Our buyers are the corporations who approach advertising firms to advertise their
produces. The amount of such buyers is huge in the advertising industry; in order to
evaluate their bargaining power we believe it’s vital to segment them into large
corporations and SME’s.
In this industry, particularly when it comes to large corporations, relationships are
symbiotic. The advertising organization provides services to the clients and at the same
time the reputation of the client company can be very beneficial to the advertising firm.
This coupled with the large amount of alternate advertising that they have access to,
gives large corporations high bargaining power.
SME’s on the other hand have a low advertising modest and hence do not have access to
as much advertising mass media, nor do such corporations have as great a reputation to
contribute much to the advertising organization. Small businesses like blog shops etc.
have only leaflets and flyers to rely on in the name of physical advertisements. As such
the bargaining power of SME’s is fairly low.
Approaching small businesses and startups that need rate active advertising we would
provide them with an alternative advertising platform which we believe will be active.
Fulfilling enough of such assignments would give us an opportunity to build our
reputation and portfolio, and achieve profitability.
 Buyer are the clients of organization, basically buyers are high idea seekers.
 Clients will choose organization which has good experience in industry.
 Clients like long term relationships with organization, so they also try to
adjust with organization.
 Clients can ask organization to alteration pattern of action at any time.
 Clients like MNC’s have high power over organization, but SME’s will
satisfy with performance of organization.
 Backward integration by buyers is not likely,

Conclusion of Porter’s Five Force Analysis

 Low threats for new entry.
 High bargaining power of suppliers.
 Bargaining power of buyer is average, but in the coming year there is a
chance to rise. Due to a lot of players are coming to the industry.
 Threats of the substitutes are high, but it wills alteration in coming years.
 Rivalry by current competitors is high, but likely to break it by doing certain
unique movement for a client.
 The Indian market is a potential market for digital advertising due to high
internet and mobile penetration.

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6.3 SWOT/C Analysis
6.3.1 SW (Internal)

 Strengths
The strengths in this lay with the coming up with ideas aspect of the advert. As
we had at least 6 different concepts before we decided to finalize with one of
them. I came up with at least %80 of the concepts, yes certain of them where
completely terrible but it’s a learning curve.
As small and average small-scale TVC advertising, there is no excess baggage
may be in low-wage, low-expenditure state operation, with large advertising
corporations do not have the rate advantage; and foreign advertising
corporations, compared with a familiar local market, and cultural similarities of
the advantages, while the regional small and average advertising organization on
local buyer preferences, social environment, commercials relations,
commercials policy, interpersonal relations and other large advertising
corporations to understand than the more convenient, more in-depth; due to small
scale, can be random and alteration according to market, flexible response , more
sensitive to capture a rare opportunity, 'Shiyibuque', the occupation
opportunities; can be according to market needs, flexible and creative to attract
advertising and other professionals to form a special advertising team, but with
definite aspects of the unique advantages of a good idea with advertising is
entirely likely for small-scale TVC advertising company was born; In the
absence of excessive investment in precipitation, the flexibility to adjust its
business direction and deal with rapidly changing market, give full play to the
advantages of specialization.

 Weaknesses
Compared with large advertising corporations, small TVC advertising company
in financial strength, market share, talent pool and so on are vital differences
between the strength, while various mass media such as TVC stations are self-
exclusive advertising, making these large advertising organization, became
apparent after the integration trend, The TV ad businesses are often small 'dot'
decentralization, therefore, small advertising business and the bargaining power
of suppliers it difficult to raise; due to lack of visibility, so that small and average
enterprises in the ad when dealing with customers, there is no large-scale
advertising organization brand; Advertising lags behind internal management of
enterprises, mostly family-style management and business model is easier to

59
 developed an obstacle to future growing businesses; small and average business
employees in the quality of ads varies greatly, an rise of resistance to its
development. 2001 The amount of employees of China's TVC advertising 95617
people, by 2005 the amount developed s 107,708, anise of up to 12.6%. This is
107,708 people, are a lot of people lack expertise, but also by the overall low
level of education, secondary education or even junior high school education
have entered the industry engaged in consequence; China's advertising regulation
mechanism is still not complete, making the advertising market was mixed, the
real strength and potential of the enterprises need to pay more consequences to
seek new development.

6.3.2 OT/C (External)

 Opportunities (Opportunity)
As China's reform and opening up step by step in-depth at home and abroad
advertisers rise in claim for TV advertising are becoming growingly
diversified, which TVC advertising for small and average has provided a broad
space for development. Today's TV ads have been broadcast not only in the
column space of 5 seconds to 10-second TVC ad films, and has developed
short films based on TV commercials s, corporate image films, corporate
videos, product videos, placement-style TV ads the form of diverse,
comprehensive enterprise, product video services, advertising and promotional
action. Claim for corporate advertising, particularly the large amount of small
and average enterprises for their own development is gradually began to favor
TVC commercials s. Joining the WTO, foreign advertising corporations in the
advanced management and operation mode under the impact of advertising
corporations continue to sponsor domestic innovation to accelerate the
internationalization course, improve the quality of management, as well as
practitioners. Rise in TVC advertising production technology is also a small
TV advertising in current years, booming, one of the motives, such as HDTV
broadcasting in the field of wide range of applications, video effects to perfect
the technology, not only improve the visual impact of TVC advertising, but
also easier for professionals are well versed.

 Threats (Threats)
China's TV advertising market is an obvious monopoly - rivalry in the market
lead in the CCTV, the sudden emergence of a small amount of provincial-level
TV, while the small and average size advertising organization is small, fewer
personnel and insufficient funds, a serious lack of competitiveness.
Professional advertising company in China in 1995, a total of 22691 to 2005
reached 84272, anrise of 371.4 percent a periods. These TVC advertising was
mixed, a considerable part of the company are in a small, small amount of
personnel, equipment, less a small business 'a primary three little' situation
where you were. The 'Company Law' provisions of such advertising company's
registered capital of only 3 billionyuan, created a TVC advertising industry
with low barriers to entry, low investment situation , and thus contributed to the

60
 current TVC advertising of small consequence shops of the situation . A small
consequence shop-style TV advertising is a serious lack of competitiveness,
and in certain areas lead to vicious rivalry. From the turnover point of view,
since 1996, foreign advertising corporations virtually monopolize the top five
of China's total amount of advertising. Cross-mass media buying group has
started the initial development of new ideas into the Chinese advertising
market, which could lead to the development of China's advertising market,
loss of balance, the development of the entire advertising industry cause
immense harm.

6.4 BCG Matrix

(Figure 5- BCG Matrix Model)

BCG analysis is mainly used for Multi Category / Multi Product corporations.
All categories and produces together are said to be Business portfolio. Thus,
the various entities of your business portfolio may move forward by a different
pace and with a different strategy. The BCG analysis actually helps you in
deciding which entities in your business portfolio are actually commercials,
which are duds, which you should concentrate on and which gives you a
competitive advantage over others.

6.4.1 Stars- High market share and high growing rate (high rivalry)
A star is an exciting product; the coming billion-dollar idea for your business.
This product is both high growing and high market share. Basically, you are

61
 blowing up! With the right management and marketing, this Star's mature stage
could be your next Cash Cow.
Advertising Importance: Like your Cash Cow, a Star will require a dedicated
advertising modest. However, the difference between a Cash Cow and a Star is
the advertising message. With a Cash Cow, the product and brand is already
proven, unlike the Star. Advertising the Star will emphasis on awareness,
education, and getting buyers to try and use the product. Instead of worrying
about competitors, Stars try to create ways to reduce the switching rates for
buyers. Stars are exciting, and the advertising action should match.

6.4.2 Question Marks- Low market share and high growing rate (indefinitely)
In this product has a lot of opportunity to grow, but it has low market share, or
a low image that is attributed to its low market share. A perfect example is
Google Glass; wearable tech is such a hot topic, but for certain reason Glass is
not catching the fire Google imagined.
Advertising Importance: Questions Marks are tough to predict, so for a
marketing and advertising strategist, it is worth talking your decision over with
the product manager or leadership board to determine if they are truly worth the
risk. If they are, go for it; these Question Marks could be the next Stars. If not,
they could turn into Dogs, which isn't necessarily a bad thing, depending on the
size of your operations and the amount of money already invested.
6.4.3 Cash Cows- High market share but low growing rate (most
commercials).
In this product offering is known to have high market share, but low growing.
This product isn't going anywhere, and it's making your business a lot of
income with not much consequence.
Advertising Importance: You want a war chest of advertising dollars dedicated
to your Cash Cow. Your brand already has the market captured, and now all
you are doing is preventing competitors from gobbling up market share and
making sure your audience doesn't forget about you. Your Cash Cow is the
friend that doesn't have the best stories, but always has your back. Therefore,
you keep that friend happy.
6.4.4 Dogs- Low market share and low growing rate (less commercials or may
even be Negative profitability)

In this product is known to have both low market share and low growing. Truth
be told, you're not too worried or impressed with this product. It may break
even, but mostly it is used to create jobs, keep your buyers who hate alteration
happy, and the like. If you look to scrap a product, a Dog would be one of the
first considerations.

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 Advertising Importance: Opposite of a Cash Cow, Dogs requires very few
advertising dollars. Don't completely forget them, but a dedicated movement
with a large team may not be top priority.

6.5 Value Chain Analysis

This section explores the overall advertising value chain in greater detail to
understand the alterations between traditional and digital advertising. The advertising
value chain consists of the following players. The elements shaded blue represent
new players in the digital value chain. The alteration which has arguably had the
greatest single impact on the advertising value chain is the growing power of the
buyer. The advertising course is no longer solely emphasized on delivering content
for passive consumption. To a greater degree than ever before, the buyer is now
empowered to pick and choose the content that they wish to receive, and interact
with that content in ways that were previously unlikely.
In order to reach buyers in this new environment and enter their mental consideration
space, advertisers must growingly engage with buyers. The key issue here is buyer
choice. Buyers now have the ability to consume large amounts of content, at their
own convenience: where, when, and how they want it. As a result, buyers are
bombarded with hundreds, if not thousands, of messages on a daily basis. The
diagram above depicts a frame consequence that highlights the differences in
message elements for a digital approach versus a mass-market approach.
As advertising modest shift to new formats and shape the future advertising market,
control of marketing incomes and power will hinge on four key market drivers:
attention, creativity, measures and advertising inventories. This section will explore
these alterations and their commercials impacts through 2012. We expect overall ad
expend to grow in line with the general health of the economy, but the composition
of that expenditure will alteration. We have used an amalgamation of industry
forecasts for our consensus view in Figure 1. While this expenditure breakdown is
helpful for highlighting the direction of alteration, the speed and magnitude of this
kind of disruptive alteration tends to be underestimated by traditional forecasting
methods.
Consider the "traditional" mass media and entertainment value chain:
 Content creators: the creative force behind content (i.e. actors, directors,
screenwriters)
 Content owners: studios
 Production and aggregation: TV or film production corporations
 Distribution: broadcasters
 Consumption: audiences access content via cable or satellite providers
And on the advertising front:

63
  Advertiser (brand)
 Creative organization
 Mass media planning and buying
 Publishing (through broadcasters)

Technology
creates the
change and
the audience
is calling the
tune

Lower barrier
to entry

Volume vs.
value

(Figure 6 - Value Chain in TVC Advertising)

 Technology creates the situation s for alteration...and the audience is calling the
tune:-

Technology and consumption habits have turned this course completely on its
head. For instance, viewers are moving the industry and shifting priorities by
consuming content from a plethora of devices, net consequences and sources.
Buyers are taking advantage of a litany of mass media consumption options:
streaming via PC; online video on a mobile device or tablet; over-the-top
(OTT) and video apps. At the same time, they have taken control of the end
game by selecting when to skip advertising, serialize programming and more.
One thing is clear: audiences are no longer sitting at the end of an aggregate
chain waiting to be communicated to. Instead, audiences are an active
participant in the content they are consuming. Audiences have forced
alteration. And now, dependent upon where players previously sat in
the traditional value chain, they are now faced with either tremendous
opportunity or fear-inducing threats.

 Lower barrier to entry

While broadcasters have traditionally held tremendous influence in the broader

mass media chain, their influence has begun to waver. And this is because the
barrier to entry to the content distribution sphere is lower now than it has ever
been. Over many years, FOX acquired a cadre of independent local TVC

64
 stations, until it had amassed enough to be viewed as a true broadcast Net
consequence. And then, FOX bought the big programmers to gain access to the
studios. Once it had enough content in its arsenal, the company launched and
has evolved into the FOX we know today. Conceivably, in the past the barrier
to entry to develop a player the broadcast industry was an exorbitant amount of
money.
Such careful, meticulous planning--and capital output--isn't required in the
current climate. Now, for roughly $1 billion or less, including the rate of
technology and resources to build apps and/or power distribution, I would
argue that anybody can create their own content engine. Basically, with
appropriate strategy and technical support, direct-to-buyer engagement is
achievable--and quickly. It's as easy as: building an app, gaining approval from
the App Store or Google Play and strategizing for both net, mobile and OTT
delivery.
 Volume vs. value

Concurrently, advertisers and content publishers know more about their

audience than ever before. And that's because the content flow operates in a
different way. If you own the app, or you're monitoring the Twitter dialogue,
you can emerge with a highly developed idea of just who the viewer is,
ensuring that you can derive far more value out of a very selective mass media
placement. While $50 CPM was traditionally considered a great ad placement,
$5 per person could now ensure that you're directly reaching your target
audience--undeniably a high-yield return. Essentially, participation opens
a value opportunity because the death of volume is truly based on
fragmentation, yet the rise of value is predicated on quality over quantity. It
used to be necessary to get everybody in front of the TVC to watch a weekly
program in order to enjoy meaningful incomes. Now, that's just unlikely--and
measuring a single audience is not realistic. Instead, because there are so many
new content choices, the real opportunity lies in creating a highly targeted,
high-value audience.

Digital content will account for

Of the growing in expenditure
% Digital expend

in the entertainment and mass media $269,250

87 Industry between 2013 and 2017.

Digital expend
2015
2016
2017

Non-digital
$172,947 2014 expend

$362,844
2013

65
 2012
2011
2008
2010
2009 Non-digital expend
$349,018

Source: PWC Analysis

The traditional E&M value chain is changing, particularly in distribution and at

the points where the traditional sub-segments meet. For example, the $430
billion overall IT expend in

E&M includes a $37 billion mass media technology market. In the next few
years, that market is expected to grow at a compound rate of 9% per year,
reaching close to $60 billion in 2017— with the growing driven mainly by
changing consequence flows in distribution and the impact in post-production.

Traditionally, the E&M value chain flowed in a linear, predictable pattern.

Content Programmers/ Distribution Consumer

creators Aggregators systems Device

Source-The traditional E&M value chain

66
 Today linear doesn’t consequence. The value chain needs to be fluid and more
adaptable to alteration.

Content
creators

Programmers/ Consumer
Aggregators Device

Distribution
systems

Source-The evolving E&M value chain

Pre- Post Mass media lifecycle Multiplatform Experience
production Production Production Management Distribution Integration Consumption

Consequenc
e flow Collaboration Rich Metadata Distribution Customization/ Measurement
planning Enablement Indexing Analytics Orchestration Personalization and interaction

Information flow

Source: PWC Analysis

67
6.6 McKinsey 7s Model
The McKinsey 7S model is a useful frame consequence for reviewing an
organization’ marketing capabilities from different viewpoints. The power of
the McKinsey 7S model is that it covers the key organization capabilities
needed to implement strategy successfully, whether you're reviewing a
business, marketing or digital strategy.
It also consequences well in different types of business of all segments and
sizes, although it consequences best in average and large businesses. The
beauty of this frame consequence is that the elements are self-explanatory,
although I have outlined certain guidance for applying it later in the post.

(Figure 6- McKinsey 7s Model)

The 7S model can be used to:

 Review the activeness of an organization in its marketing operations.

 Determine how to best realign an organization to support a new strategic
direction.
 Assess the alterations needed to support Digital Transformation of an
organization.

In summary, the 7S stand for:

 Strategy: The definition of key approaches for an organization to achieve

its goals.

68
  Structure: The organization of resources within a company into different
business groups and teams.
 Style: The culture of the organization in terms of leadership and
interactions between staff and other stakeholders.
 Staff: The type of employees, remuneration packages and how they
are attracted and retained.
 Skills: Capabilities to complete different activities.
 Systems: Business courses and the technical platforms used to support
operations.
 Shared Values: Summarized in a vision and or mission, this is how
the organization defines its raison d’être.

6.6.1 Strategy

The contribution of TV advertising business in influencing and supporting

organizations’ strategy. The key issues are:

 Gaining appropriate modests and demonstrating, delivering value and

ROI from modest.
 Annual planning approach.
 Techniques for using digital business to impact organization strategy.
 Techniques for aligning digital business strategy with organizational and
marketing strategy.

6.6.2 Structure
The modification of organizational structure to support TV advertising business.
The key issues are:

 Integration of digital marketing or e-commerce teams with other

management, marketing (corporate messages, brand marketing, direct
marketing) and IT staff.
 Use of cross-functional teams and steering groups.
 In sourcing vs. outsourcing.

6.6.3 Systems
The development of exact courses, procedures or information systems to support
digital business. The key issues are:

 Movement planning approach-integration.

 Managing or sharing customer information.
 Managing customer experience, service and content quality.
 Unified reporting of digital marketing activeness and
 In-house vs. external best-of-breed vs. external integrated technology
solutions.

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6.6.4 Shared Values
The guiding concepts of the digital business or e-commerce organization which
are also part of shared values and culture. The key issues are: improving the
perception of the importance and activeness of digital business amongst senior
managers and staff it consequences with (marketing generalists and IT).
6.6.5 Skills
Distinctive capabilities of key staff, but can be interpreted as exact skill-sets of
team members. The key issues are: staff skills in exact areas such as supplier
selection, project management, content management and exact e-marketing mass
media net consequences.
6.6.6 Style
Includes both the way in which key managers behave in achieving the
organizations’ goals and the cultural style of the organization as a whole. The
key issues are:

 Defining a long-term vision for transformation.

 Relates to role of the digital marketing or e-commerce teams in
influencing strategy – is it dynamic and influential or a service which is
conservative and looking for a voice?

6.6.7 Staff
The breakdown of staff in terms of their background, age and sex and
characteristics such as IT vs. marketing, use of contractors/ consultants. The key
issues are:

 In sourcing vs outsourcing.
 Achieving senior management buy-in/involvement with digital
marketing.
 Staff recruitment and retention, and virtual consequence.
 Staff development and training.

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7.0Key Issues and Trends

7.1.1 Industry Prospects

Advertising on TVC allows you to show and tell a wide audience your business,
product, or service. It allows you to actually demonstrate the benefits of
ownership. You can show how your product or service consequences and how
it’s packaged so prospective customers will know what to look for at the point of
auction. In advertising, it often takes multiple touch points to actively influence
buyers’ purchasing behavior.

TVC advertising has been a popular average for large retailers ever since the TV
first began to appear in living rooms. With the arrival of cable TVC came
lowered production rates and the opportunity to reach smaller, more targeted
markets, making it a viable option for small to average-size businesses as well.

But the key issues of TV advertising are barring late night spots on your local
cable TVC Net consequence, no other advertising average is as likely to eat up
your modest as quickly as TV will. Producing the ad, which can include hiring
script writers, actors, film editors, or an advertising organization, is only the first
step. You must also pay for air time, and because studies have shown that TV ads
are most active with repetition, you’ll almost definitely want to run your piece an
amount of times. Because of this, most TVC stations structure their pricing to
kind it more attractive for you to acquisition advertising in chunks.
There are several trends causing both excitement and consternation in the
industry. A current review of selected trade publications offers a wide array of
concerns. Despite different terminologies for related concepts, these can be
loosely categorized into three major areas, the first and foremost of which are
technological innovation and its implications. Of particular concern are the
consequences of deep penetration of personal video recorders (PVRs) and video-
on-claim (VOD). These devices allow viewers to avoid ads within and between
recorded noncommercial programs with remarkable ease, and much of the
concern in the industry pertains to how to deal with this presumably inevitable
loss of ad viewership.

At the same time, advertisers are excited about the prospect of interactive TVC,
which should allow for customized and direct contact with the viewer.

The second issue is in many ways a response to these technologies: the trend
toward product placement, or, more broadly, product integration. Product
integration involves weaving the product into the ‘fabric’ of the program,
frequently through a combination of such techniques as product placement and
immersion, blurring the lines between entertainment and promotion (Shrum
2004). Given that many industry analysts believe that technology that allows

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viewers to avoid ads surely means that viewers will do so, these alternative
tactics are an outcome of strategies to reach
Viewers through the programs themselves.

The third area of concern revolves around the issue of ad clutter. Over the years,
two trends have clearly emerged, particularly in the USA:

(a) More TVC time devoted to ads and

(b) Shorter ads.

These two trends translate into a huge leap in the amount of ads shown in any
given
Time period. Industry professionals worry about two consequences of clutter:
less ad activeness due to cognitive overload and loss of viewers due to their
annoyance with the barrage of ads.

7.1.2 Challenges faced by Industry

Factor that affect the TV Industry are:-

 Truth in Advertising

The Federal Trade Commission Act set forth requirements for truth in
advertising and created the FTC to enforce the provisions of the act. The
Bureau of Buyer Protection's Business Bureau notes that advertisements
in the U.S. must be truthful, not deceptive and not unfair. Advertisers
must also have evidence available to back up claims them kind. The FTC
defines deceitful statements as those that are likely to mislead buyers who
act reasonably under normal circumstances and that are likely to affect
buyers' acquisition decisions. The FTC defines unfair advertisements as
those that are likely to cause substantial, unavoidable injury when using a
product, unless the injury is outweighed by the provable benefits.

 Advertising to Children

Although the FTC places special emphasis on truth-in-advertising laws

when applied to children, the law allows for a great deal of unethical
behavior here. Former FTC commissioner Roscoe B. Starek states that
children are not likely to understand exaggerated statements or images,
citing the example that children may believe a toy helicopter to come
fully assembled when in fact assembly is required. This interpretation of
the law completely ignores the unethical ramifications of purely legal
advertising, such as building brand loyalty in children before they even
understand what a brand is, encouraging children to develop negative self
images or getting children hooked on produces that can impede social

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 development. The best way to act ethically in this area is to advertise to
parents, not children.

 Advertising Harmful Produces

Different countries look differently on the advertising of vice produces

and services, striking a balance between placing personal responsibility
on citizens and regulating what citizens are allowed to indulge in. The
United States highly regulates certain forms of vice, prohibits others and
gives still others a free hand. For example, cigarette advertising is only
permitted on exact mass media, excluding TVC and radio, while alcohol
advertising is allowed on all mass media. Corporations have to take a
good look at the true nature of their product lines when deciding whether
they are acting ethically as advertisers. TVC ads for fast food hamburgers
are completely legal and active at building claim, for example, but
doctors in the 21st century are beginning to find links between fast food
and a national obesity epidemic. Pharmaceutical ads with lists of side
effects, as another example, are often followed 10 years later by
attorneys' ads for class-action lawsuits against the corporations for
wrongful injury.

 Advertising Tactics

Advertising tactics present additional ethical challenges. Advertisers have

a range of less-than-ethical yet legal tools at their disposal, including
subliminal advertising, emotional appeals, taking advantage of less
educated individuals, spreading propaganda for political action, and other
tactics ethical advertisers consistently refrain from using. At the end of
the day, buyers will be more attracted to corporations that do not use
underhanded, psychologically manipulative tactics to gain their business.

 Rivalry from the bottom

Easier access to high quality cameras and production-grade software

means certain clients and newer players in the industry may undervalue
the services you provide. Be prepared to defend your position: what
added value do you bring to the table with your experience, technical
expertise, connections, efficiency and creative vision? What new
capabilities can you add to separate yourself from the rivalry? If you want
to learn more about certain of the things you can do to differentiate
yourself from the rivalry

 Shift to HD

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 Yes, there are HD broadcasters out there taking HD material. But many
broadcasters still air in SD, and require material delivered in SD. This has
led to the current situation where there is a mixture of SD and HD
requirements.

However, growing concerns by stations over issues like frame blending,

particularly in the case of analog or SD material shot in a different region
being converted to higher frame rates, may at last prompt many
broadcasters to move over to HD.

Along with the natural progression of technology, this may prompt a shift
in delivery requirements to HD in the next few years. Be sure your
consequence flows, bandwidth and production tools are in place to allow
you to deliver HD material.

 Shift to asset-based thinking

Growingly, advertisers and organization are thinking of advertising

material as content. Instead of TVCs, net-based pre-roll video ads, print
ads, and banner ads being separate productions, they are thought of as a
continuous spectrum of content that has to be delivered to buyers over the
course of unified action.

This means it should have robust content and asset repurposing

capabilities in place, and be ready to consequence with other
stakeholders, like the digital team in an organization, in order to deliver
outcomes expected by clients.

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8.0 Future Outlook

Four Ways TV Advertising Will Alteration during This Periods

1. Net consequences Will Go Away

While we do not postulate that all distribution will be through on-claim uncast
technologies, in the future, buyers will not think about “net consequences ” as the means
of accessing programming. Adoption of VOD , IPG, and PVRs will shift viewing from
linear broadcasts on a TV screen to a multiscreen, multi device, multimodal, on-my-
schedule, user-controlled experience. Brands and net consequences will no longer be
able to ensure that ads placed in exact episodes will have sufficient audience reach. This
behavioral shift will force advertisers to emphasis on new forms of addressable
advertising:

 Since ads will have to be delivered to on-claim viewers in real time or

prepositioned on their PVRs at various time intervals, this will drive the need for
addressable ads. Buying will growingly include acquisition s of exact audience
segments across shows, requiring new capabilities for ad delivery and insertion,
as well as yield management through analytics.

 Measures and reporting will need to growingly reflect actual viewing of the
ads, as well as brand engagement and impact.

 As product placement continues to play a greater role, movement design and

development activities will need to develop even more closely integrated with
show development. Branded entertainment will flourish and the lines between
entertainment and infomercials will further blur (as evidenced by certain of
today’s reality shows). This will drive the need for higher-quality branded
stories.

2. Ads Will Get Personal

“Addressability” not only will developed common, but will evolve from targeting an
entire segment with one piece of advertising creative to further segmenting the audience
and serving differentiated pieces of advertising creative based on the audience’s
characteristics. This personalization will manifest itself in different advertising spots
appearing for different users, and in tailored product placement. Not only will one
viewer see a different car, in a different color, driven by the show hero — he or she will
also hear a different dialogue and possibly see a different scene. To avoid huge
additional rates for advertising creative, detailed metadata and new rendering approaches
will allow partial automated dynamic modifications of video based on the viewer’s
segment.

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3. Don’t Just Watch, Get Involved

Ad personalization will take many different forms, leading to greater user involvement.
Brands will growingly integrate with new types of apps associated with popular TV and
movie characters. We will see new forms of marketing where apps currently positioned
as extensions to the storyline will provide in-context advice by the show’s characters.
For example, through augmented-reality technology on a mobile phone, an app-based
representation of a judge from “America’s Next Top Model” will be able to assist in
dress selection at a store.

4. Is It Real or Is It TVC?

Brands will explore many senses in addition to audio and visual. Hap tics, smell, and
even taste will be used in advertising. With the proliferation of 3D printers, we will be
able to print a model of a new car while hap tic feedback will allow us to experience
driving it on a mountain road. Cosmetic manufacturers will replace those scratch-and-
smell inserts with smell-generating technologies.

The dominant players in online video advertising today are YouTube and other short-
form content providers. But that won’t last much longer.

YouTube and its ilk will lose their lead to corporations distributing TVC programming
through “over-the-top” (OTT) connected devices, according to a new report from mass
media research firm The Diffusion Group. That OTT programming is mostly the same
long-form content people watch on a traditional TV broadcast — from AMC’s “The
Walking Dead” to ESPN’s “Sports Center” — but served through connected devices
such as Rook, Apple TV and Chrome cast that enable digital measurement and ad-
serving.

The Diffusion Group report forecasts legacy TV advertising income will drop to $47.5
billion in 2018, while OTT TV ad income will rise to $31.5 billion during the same
period. Jointly, that spells growing for the TV advertising market, even as traditional TV
advertising modest decline.

Right now, “OTT advertising is still lumped in with YouTube videos and ads on sites
that have video,” said Alan Wolk, senior analyst at The Diffusion Group and author of
the “Future of OTT TV Advertising” report. “By 2020, give or take, there will be no
distinction between OTT and TV buying. If I’m Kraft, I will buy women 18 to 25 who
are watching [ABC TVC series] ‘Scandal,’ and that ad will show up through OTT or set-
top boxes. They’ll be bought and sold together.”

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Source: Legacy TV ad income forecast by Diffusion Group

That current conception of OTT ads as online advertising leads to undervalued

inventory, but the biggest element holding the segment back is lack of a unified
measurement standard. While an amount of corporations are offering OTT measurement
products, including Rentrak and Kantar, many in the industry are waiting on Nielsen’s
solution, which it has been consequence on since 2013. It expects it to finally arrive later
this year, which is likely to prompt a major upswing in the value of OTT inventory.

Source: OTT Ad Income Forecast by Diffusion Group

The dollars will eventually follow the viewers, who are expenditure and growingly large
amount of time consuming video programming through connected devices. Last year,
the average U.S. buyer watched 3.6 hours of OTT content per week. The report forecasts
that figure will nearly double to 6.9 hours this year, with steady rises each subsequent
year through 2020.

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Source: Average Weekly OTT TV viewing by Diffusion Group

Not all video content accessible through connected devices is 20 minutes or longer —
watching a two-minute YouTube clip through a game console is still considered OTT
viewership — but people gravitate toward lengthier content when they’re sitting on their
couch, watching on an actual TV screen. Freewheel’s current video monetization
report shows that 91 percent of OTT ad views occur on content longer than 20 minutes
(or on live content, which tends to run longer than 20 minutes).

Source: Freewheel Video Monetization Report Q4 2014

Across OTT platforms and net consequences, the average video ad load for a
standard 30-minute show will rise from 3.2 minutes last year to 5.2 minutes by

78
2020. Alongside raised viewership as well as advances in OTT ad measurement
and targeting, that will help drive substantial growing in OTT ad income over the
coming years. That growing will be fastest in the next two years, as both
multiplatform video providers (Comcast, Time Warner, etc.) and net
consequences push their “TV Everywhere” applications on buyers.

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9.0Industry Attractiveness
Factors Making the TV Advertising Attractive are it:-

MESSAGE:

Message proves a vital relationship with the activeness of TVC advertisements towards
the buying intention. Buda and Zhang (2000) revealed that vital Message should come
first to hold buyers’ interest and to convince them about the product advertised.
Furthermore, buyers will be better influenced to buy a product if the Message is highly
trusted (Tanner et al, 1991; Tesser, 1978). Indeed, according to Petty et al (1983)
Message persuasiveness will be greater when a communicator has high accountability.
Evidence by Rothman et al (1993), Maheswaran& Meyers Levy (1990) and Buda &
Zhang (2000) suggests that positive Message framing should be used in an advertising
movement because it may be more persuasive than negative messages.

CELEBRITY:

Celebrity proposed that an advertising endorser’s popularity, expertise, and

attractiveness can appeal buyers’ eyesight in a short time and rise acquisition intention.
Good Celebrity image is perceived to impose prestige, good reputation and excellent
image. Boyd and Shank (2004) showed that when there is a fit between the celebrity and
buyer in terms of gender, buyers perceive the celebrity as more trustworthy, regardless
of the product type endorsed by the celebrity. Indian advertisement has been placing a
vital amount of importance on both recall and persuasion as brand differentiating
messages. (Dixit, 2005).Laroche, et al. (1996) also testified that advertising endorser’s
exposure rate cans alteration buyer preference and attitude and sponsor acquisition
intention. Furthermore, Demetrio’s and Tim (1999) argued that buyers’ attention will
still be kept with the presence of Celebrity in an advertisement rather than trying to
retrieve the advertisement information itself.

INVOLVEMENT:

Involvement has been frequently associated with a more active consideration of the
information provided or a sensitive interest towards a product. Conversely, low
involvement has been associated with a low relevance of the message or interest toward
a product. Previous studies proves the importance of involvement as a mass mediating
variable in buyer context, it is evenhanded to suppose that involvement also plays a role
in the response to a mass mediated persuasive encounter of the type described by
Friestad and Wright (1994), and by researchers have also explored that buyers are
considered an vital and inevitable factors towards the advertising .Similarly for the high
involvement product advertisement the buyer may expend a considerable amount of time
reading the copy; the argument in that copy strong or weak plays an vital role (Kahle&
Homer, 1985). Social psychologists have examined involvement in the context of
persuasive message addressing its ‘attitude object’, as a social issue.

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GENDER IDENTITY

TVC advertisements influence gender differences between male and females. For
example, the frequent use of male voices in voice-overs conveys the notion that males
are more credible and authoritative than females. TVC advertising influences the
impression role-appropriate behaviors for genders, affecting the popular perception of
what kinds a successful male or female. For instance, commercials s about cosmetics
furthers the notion that women’s responsibility is to remain attractive forever.

CHILDREN

TVC nurtures in children a desire to have freedom of choice, which is vital in making
acquisition decisions independently of their parents. Advertisers find them easy to
influence into expenditure money on the advertised product. Certain children developed
so obsessed with produces they see on TV ads that they pester their parents to get the
produces for them. TVC commercials further expose the young ones to a dollar’s power
and teach them that they can acquire anything with the right price.

VOTER DECISIONS

Political ads on TV can influence voter decisions. Using TV to sponsor a political

movement helps to avoid selective exposure and gains the attention of 70 percent of
voters. People who have little information about a political candidate or are not
interested in a political movement often alteration their attitude toward candidates after
viewing their advertisements. Political commercials s also influence the way voters
evaluate a candidate.(Ex. ModiSarkar- BJP Movement)

SOCIAL INFLUENCE

TVC advertising sponsors the notion that buying produces equals happiness. It nurtures
a buyer culture that encourages people to buy new produces as a way to conform to the
society’s goals, values and pleasures. Advertisements also create public awareness about
vital issues such as diseases, charitable causes or environmental degradation. For
example, health organization can use TV for health advertisements emphasizing on
Alzheimer’s disease. NGOs or social organizations use commercials s to attract
volunteers for a charitable activity to better the welfare of others in the society.

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