Submitted To:-

Submitted By:-

ACKNOWLEDGEMENT
First and foremost, we would like to express our
sinceregratitude to our project guide,
................................. We were privileged to experience
a sustained enthusiastic and involved interest from his
1
side. This fueled our enthusiasm even further and
encouraged us to boldly step into what was a totally
dark and unexplored expanse before us. We would also
like to thank our seniors who were ready with a positive
comment all the time, whether it was an off-hand
comment to encourage us or a constructive piece of
criticism and a special thanks to Google and Wikipedia,
from where we captured many points to take them in
use. Last but not least, we would like to thank
Mrs. .............................. and the institute, in general,
for extending a helping hand at every juncture of need.

SUMMARY
The Indian advertising industry is in a phase of transition.
Rapid advances in technology and an ever growing base
of empowered customers have redefined how
advertising is created, sold, consumed and evaluated. At
2
this juncture advertisers are experimenting with a
number of emerging platforms including Internet which
has been globally acknowledged as an interactive
medium with a lot of advertising potential.
While the developed markets such as US and Europe
have already embraced this medium, online advertising
industry is still in its nascent stage in India. This juncture
in the Indian advertising industry calls for an in-depth
analysis of the market and reflection on challenges to be
addressed. The scope of this report is to estimate the
market size of online banneradvertisements in India and
identify share of different verticals in this market. The
report alsoaddresses some of the topical issues faced by
the industry.
Our understanding of the market shows that there are a
number of factors that are advancingthe online
advertisement market. Growing Internet user base,
increasing time spent on theInternet, broadband
penetration into households and fragmented media
consumption habits ofconsumers are driving advertisers
towards the online medium. Our estimates show that
theonline banner advertisement markets stood at INR
2350 Million in 2007-08. With an expectedgrowth rate of
40%, the market is poised to reach INR 3500 Million in
2008-09.

3
Even though the domestic online advertisement market
is currently very small as compared tothe colossal figures
for Europe and US our discussion with marketers
revealed a wave ofoptimism in the market. Thus in
conclusion it would not be wrong to say that a lot more
is tohappen in the online advertising space. We are still
at the start of a climb!

CONTENTS

1. Introduction
2. History
3. Advertising Theory
4
4. Types of Advertisement
5. Features of Advertising
6. Merits of Advertising
7. Limitations of Advertising
8. Role of Advertising
 Importance to Manufacturers
 Importance to Society
 Importance to Customers
9. Objections to Advertisement
10.Objections to Advertisement Assailed
11.Conclusion
12.Reference

INTRODUCTION
5
Advertisement means providing adequate knowledge
about some product/service/idea to potential
consumers so that they are stimulated to buy it.
Adequate knowledge about the product means to let
people know the name of the product, its function, size,
price and place of its availability.
Advertisement is medium to send product related
message to customer regarding product along with
variousfeatures. Advertisement is one of the important
forces which serve the public interest.It is a form of open
communication betweenthose who sell and those who
buy. It is a form of communication intended
to persuade an audience (viewers, readers or listeners)
to purchase or take some action upon products, ideas, or
services.
It includes the name of a product or service and how
that product or service could benefit the consumer, to
persuade a target market to purchase or to consume
that particular brand. These messages are usually paid
for by sponsors and viewed via various media.
Advertising can also serve to communicate an idea to a
large number of people in an attempt to convince them
to take a certain action.
Commercial advertisers often seek to increased
consumption of their products or services through
6
branding, which involves the repetition of an image or
product name in an effort to associate related qualities
with the brand in the minds of consumers. Non-
commercial advertisers who spend money to advertise
items other than a consumer product or service include
political parties, interest groups, religious organizations
and governmental agencies. Non profitable
organisations may rely on free modes of persuasion,
such as a public service announcement. Modern
advertising developed with the rise of mass
production in the late 19th and early 20th centuries. 
Mass media can be defined as any media meant to reach
a mass amount of people. Different types of media can
be used to deliver these messages, or new media such as
websites and text messages. In 2010, spending on
advertising was estimated at more than $300 billion in
the United States and $500 billion worldwide.
Advertisement has been defined by different marketing
experts as under:
In the words of Wheeler, “Advertising is any form of paid
non-personal presentation of ideas, goods and services
for the purpose of including people to buy.”

HISTORY
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Egyptians used papyrus to make sales messages and wall
posters. 
Commercial messages and political campaign displays
have been found in the ruins of Pompeii and
ancient Arabia. Lost and found advertising on papyrus
was common in Ancient Greece and Ancient Rome. Wall
or rock painting for commercial advertising is another
manifestation of an ancient advertising form, which is
present to this day in many parts of Asia, Africa, and
South America. The tradition of wall painting can be
traced back to Indian rock art paintings that date back to
4000 BC. History tells us that Out-of-home
advertising and billboards are the oldest forms of
advertising.
As the towns and cities of the Middle Ages began to
grow, and the general populace was unable to read,
signs that today would say cobbler, miller, tailor or
blacksmith would use an image associated with their
trade such as a boot, a suit, a hat, a clock, a diamond, a
horse shoe, a candle or even a bag of flour.
Fruits and vegetables were sold in the city square from
the backs of carts and wagons andtheir proprietors used
street callers (town criers) to announce their
whereabouts for the convenience of the customers.

8
As education became an apparent need and reading, as
well as printing, developed advertising expanded to
include handbills. In the 17th century advertisements
started to appear in weekly newspapers in England.
These early print advertisements were used mainly to
promote books and newspapers, which became
increasingly affordable with advances in the printing
press; and medicines, which were increasingly sought
after as disease ravaged Europe. However, false
advertising and so-called "quack" advertisements
became a problem, which ushered in the regulation of
advertising content.
As the economy expanded during the 19th century,
advertising grew alongside. In the United States, the
success of this advertising format eventually led to the
growth of mail-order advertising.
In June 1836, French newspaper La Presse was the first
to include paid advertising in its pages, allowing it to
lower its price, extend its readership and increase
its profitability and the formula was soon copied by all
titles.
Around 1840, Volney B. Palmer established a
predecessor to advertising agencies in Boston.Around
the same time, in France, Charles-Louis Havas extended
the services of his news agency, Havas to include
9
advertisement brokerage, making it the first French
group to organize.
At first, agencies were brokers for advertisement space
in newspapers. N. W. Ayer & Son was the first full-
service agency to assume responsibility for advertising
content. N.W. Ayer opened in 1869, and was located in
Philadelphia.

An 1895 advertisement for a weight gain product.

At the turn of the century, there were few career

choices for women in business; however, advertising
was one of the few. Since women were responsible for
most of the purchasing done in their household,
advertisers and agencies recognized the value of
women's insight during the creative process.

10
In fact, the first American advertising to use a sexual
sell was created by a woman – for a soap product.
Although tame by today's standards, the advertisement
featured a couple with the message "The skin you love
to touch".

Advertisements of hotels Pichilemu, Chile from 1935.

In the early 1920s, the first radio stations were

established by radio equipment manufacturers and
retailers who offered programs in order to sell more
radios to consumers. As time passed, many non-profit
organizations followed suit in setting up their own radio
stations, and included: schools, clubs and civic groups.
When the practice of sponsoring programs was
popularised, each individual radio program was usually
sponsored by a single business in exchange for a brief
mention of the business' name at the beginning and end
11
of the sponsored shows. However, radio station owners
soon realised they could earn more money by selling
sponsorship rights in small time allocations to multiple
businesses throughout their radio station's broadcasts,
rather than selling the sponsorship rights to single
businesses per show.

This practice was carried over to television in the late

1940s and early 1950s. A fierce battle was fought
between those seeking to commercialise the radio and
people who argued that the radio spectrum should be
considered a part of the commons – to be used only
non-commercially and for the public good. The United
Kingdom pursued a public funding model for the BBC,
originally a private company, the British Broadcasting
Company, but incorporated as a public body by Royal
Charter in 1927. In Canada, advocates like Graham
12
Spry were likewise able to persuade the federal
government to adopt a public funding model, creating
the Canadian Broadcasting Corporation. However, in the
United States, the capitalist model prevailed with the
passage of the Communications which created
the Federal Communications Commission. However, the
U.S. Congress did require commercial broadcasters to
operate in the "public interest, convenience, and
necessity". Public broadcasting now exists in the United
States due to the 1967 Public Broadcasting Act which led
to the Public Broadcasting Service and National Public
Radio.
In the early 1950s, the Dumont Television
Network began the modern practice of selling
advertisement time to multiple sponsors. Previously,
Dumont had trouble finding sponsors for many of their
programs and compensated by selling smaller blocks of
advertising time to several businesses. This eventually
became the standard for the commercial television
industry in the United States. However, it was still a
common practice to have single sponsor shows, such
as The United States Steel Hour. In some instances the
sponsors exercised great control over the content of the
show—up to and including having one's advertising
agency actually writing the show. The single sponsor

13
model is much less prevalent now, a notable exception
being the Hallmark Hall of Fame.
The 1960s saw advertising transform into a modern
approach in which creativity was allowed to shine,
producing unexpected messages that made
advertisements more tempting to consumers' eyes.
The Volkswagen ad campaign—featuring such headlines
as "Think Small" and "Lemon" (which were used to
describe the appearance of the car)—ushered in the era
of modern advertising by promoting a "position" or
"unique selling proposition" designed to associate each
brand with a specific idea in the reader or viewer's mind.
This period of American advertising is called the Creative
Revolution and its archetype was William Bernbach who
helped create the revolutionary Volkswagen ads among
others. Some of the most creative and long-standing
American advertising dates to this period.
The late 1980s and early 1990s saw the introduction
of cable television and particularly MTV. Pioneering the
concept of the music video, MTV ushered in a new type
of advertising: the consumer tunes in for the advertising
message, rather than it being a by-product or
afterthought. As cable and satellite television became
increasingly prevalent, specialty channels emerged,
including channels entirely devoted to advertising, such
as QVC, Home Shopping Network, and Shop TV Canada.
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Marketing through the Internet opened new frontiers
for advertisers and contributed to the "dot-com" boom
of the 1990s. Entire corporations operated solely on
advertising revenue, offering everything from coupons
to free internet access. At the turn of the 21st century, a
number of websites including the search engine Google,
started a change in online advertising by emphasizing
contextually relevant, unobtrusive ads intended to help,
rather than inundate, users. This has led to a plethora of
similar efforts and an increasing trend of interactive
advertising.

Advertisement for a live radio broadcast, sponsored by a milk company and

published in the Los Angeles Times on May 6, 1930

The share of advertising spending relative to GDP has

changed little across large changes in media. For
example, in the US in 1925, the main advertising media
15
were newspapers, magazines, signs on streetcars, and
outdoor posters. Advertising spending as a share of GDP
was about 2.9 per cent. By 1998, television and radio
had become major advertising media. Nonetheless,
advertising spending as a share of GDP was slightly lower
—about 2.4 per cent.
A recent advertising innovation is "guerrilla marketing",
which involves unusual approaches such as staged
encounters in public places, give always of products such
as cars that are covered with brand messages, and
interactive advertising where the viewer can respond to
become part of the advertising message. Guerrilla
advertising is becoming increasing more popular with a
lot of companies.
This type of advertising is unpredictable and innovative,
which causes consumers to buy the product or idea. This
reflects an increasing trend of interactive and
"embedded" ads, such as via product placement, having
consumers vote through text messages, and various
innovations utilizing social network services such
as Facebook.

ADVERTISING THEORY
Hierarchy of effects model:

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It clarifies the objectives of an advertising campaign and
for each individual advertisement. The model suggests
that there are six steps a consumer or a business buyer
moves through when making a purchase. The steps are:
 Awareness
 Knowledge
 Liking
 Preference
 Conviction
 The actual purchase
 Means-End Theory
 Verbal and visual images
This approach suggests that an advertisement should
contain a message or means that leads the consumer to
a desired end state.
Leverage Points
It is designed to move the consumer from understanding
a product's benefits to linking those benefits with
personal values.

TYPES OF ADVERTISING
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Print Advertising – Newspapers, Magazines, Brochures,
Fliers
 The print media have always been a popular
advertising medium. Advertising products via
newspapers or magazines is a common practice. In
addition to this, the print media also offers options
like promotional brochures and fliers for advertising
purposes. Often the newspapers and the magazines
sell the advertising space according to the area
occupied by the advertisement, the position of the
advertisement (front page/middle page), as well as
the readership of the publications. For instance an
advertisement in a relatively new and less popular
newspaper would cost far less than placing an
advertisement in a popular newspaper with a high
readership. The price of print ads also depend on the
supplement in which they appear, for example an
advertisement in the glossy supplement costs way
higher than that in the newspaper supplement which
uses a mediocre quality paper.
Outdoor Advertising – Billboards, Kiosks, Tradeshows
and Events
 Outdoor advertising is also a very popular form of
advertising, which makes use of several tools and
techniques to attract the customers outdoors. The
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 most common examples of outdoor advertising are
billboards, kiosks, and also several events and
tradeshows organized by the company. The billboard
advertising is very popular however has to be really
terse and catchy in order to grab the attention of the
passers-by. The kiosks not only provide an easy outlet
for the company products but also make for an
effective advertising tool to promote the company’s
products. Organizing several events or sponsoring
them makes for an excellent advertising opportunity.
The company can organize trade fairs, or even
exhibitions for advertising their products. If not this,
the company can organize several events that are
closely associated with their field. For instance a
company that manufactures sports utilities can
sponsor a sports tournament to advertise its products.
Broadcast advertising – Television, Radio and the
Internet
 Broadcast advertising is a very popular advertising
medium that constitutes of several branches like
television, radio or the Internet. Television
advertisements have been very popular ever since
they have been introduced. The cost of television
advertising often depends on the duration of the
advertisement, the time of broadcast (prime
time/peak time), and of course the popularity of the
19
 television channel on which the advertisement is
going to be broadcasted. The radio might have lost its
charm owing to the new age media however the radio
remains to be the choice of small-scale advertisers.
The radio jingles have been very popular advertising
media and have a large impact on the audience, which
is evident in the fact that many people still remember
and enjoy the popular radio jingles.
Covert Advertising – Advertising in Movies
 Covert advertising is a unique kind of advertising in
which a product or a particular brand is incorporated
in some entertainment and media channels like
movies, television shows or even sports. There is no
commercial in the entertainment but the brand or the
product is subtly( or sometimes evidently) showcased
in the entertainment show. Some of the famous
examples for this sort of advertising have to be the
appearance of brand Nokia which is displayed on Tom
Cruise’s phone in the movie Minority Report, or the
use of Cadillac cars in the movie Matrix Reloaded.
Surrogate Advertising – Advertising Indirectly
 Surrogate advertising is prominently seen in cases
where advertising a particular product is banned by
law. Advertisement for products like cigarettes or

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 alcohol which are injurious to heath are prohibited by
law in several countries and hence these companies
have to come up with several other products that
might have the same brand name and indirectly
remind people of the cigarettes or beer bottles of the
same brand. Common examples include Fosters and
Kingfisher beer brands, which are often seen to
promote their brand with the help of surrogate
advertising.
Public Service Advertising – Advertising for Social Causes
 Public service advertising is a technique that makes
use of advertising as an effective communication
medium to convey socially relevant messaged about
important matters and social welfare causes like AIDS,
energy conservation, political integrity, deforestation,
illiteracy, poverty and so on. David Oglivy who is
considered to be one of the pioneers of advertising
and marketing concepts had reportedly encouraged
the use of advertising field for a social cause. Oglivy
once said, "Advertising justifies its existence when
used in the public interest - it is much too powerful a
tool to use solely for commercial purposes.". Today
public service advertising has been increasingly used
in a non-commercial fashion in several countries
across the world in order to promote various social
causes. In USA, the radio and television stations are
21
 granted on the basis of a fixed amount of Public
service advertisements aired by the channel.
Celebrity Advertising
Although the audience is getting smarter and smarter
and the modern day consumer getting immune to the
exaggerated claims made in a majority of
advertisements, there exist a section of advertisers that
still bank upon celebrities and their popularity for
advertising their products. Using celebrities for
advertising involves signing up celebrities for advertising
campaigns, which consist of all sorts of advertising
including, television ads or even print advertisements.

Paying people to hold signs is one of the oldest forms of advertising, as with
this Human

22
 A bus with an advertisement for GAP in Singapore. Buses and other vehicles
are popular mediums for advertisers

Virtually any medium can be used for advertising.

Commercial advertising media can include wall
paintings, billboards, furniture components, printed
flyers and rack cards, radio, cinema and television
adverts, web banners, mobile telephone screens,
shopping carts, web popups, skywriting, bus stop
benches, human billboards, magazines, newspapers,
town criers, sides of buses, banners attached to or sides
of airplanes (“logo jets”),in-flight advertisements on seat
back tray tables or overhead storage bins, taxicab doors,
roof mounts and passenger screens, musical stage
shows, subway platforms and trains, elastic bands on
disposable diapers, doors of bathroom stalls, stickers on
apples in supermarkets, shopping cart
handles (grabertising), the opening section
of streaming audio and video, posters, and the backs of
event tickets and supermarket receipts. Any place an
23
"identified" sponsor pays to deliver their message
through a medium is advertising.

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

Digital Advertising
The TV commercial is generally considered the most
effective mass-market advertising format, as is reflected
by the high prices TV networks charge for
commercial airtime during popular TV events. The
annual Super Bowl football game in the United States is
known as the most prominent advertising event on
television. The average cost of a single thirty-second TV
spot during this game has reached US$3 million (as of
2009). The majority of television commercials feature a
song or jingle that listeners soon relate to the product.
Virtual advertisements may be inserted into regular
television programming through computer graphics. It is
typically inserted into otherwise blank backdrops or
used to replace local billboards that are not relevant to
the remote broadcast audience. More controversially;
24
virtual billboards may be inserted into the
background where none exist in real-life. This technique
is especially used in televised sporting events. Virtual
product placement is also possible. Infomercials:
An infomercial is a long-format television commercial,
typically five minutes or longer. The word "infomercial"
combining the words "information" & "commercial". The
main objective in an infomercial is to create an impulse
purchase, so that the consumer sees the presentation
and then immediately buys the product through the
advertised toll-free telephone number or website.
Infomercials describe, display, and often demonstrate
products and their features, and commonly have
testimonials from consumers and industry professionals.
Radio Advertising
Radio advertising is a form of advertising via the medium
of radio. Radio advertisements are broadcast as radio
waves to the air from a transmitter to an antenna and a
thus to a receiving device. Airtime is purchased from
a station or network in exchange for airing the
commercials. While radio has the obvious limitation of
being restricted to sound, proponents of radio
advertising often cite this as an advantage.

Online Advertising
25
Online advertising is a form of promotion that uses the
Internet and World Wide Web for the expressed
purpose of delivering marketing messages to attract
customers. Examples of online advertising include
contextual ads that appear on search engine results
pages, banner ads, in text ads, Rich Media Ads, Social
network advertising, online classified advertising,
advertising networks and e-mail marketing, including e-
mail spam.
Product placements
Covert advertising, also known as guerrilla advertising, is
when a product or brand is embedded in entertainment
and media. For example, in a film, the main character
can use an item or other of a definite brand, as in the
movie Minority Report, where Tom Cruise's character
John Anderton owns a phone with the Nokia logo clearly
written in the top corner, or his watch engraved with
the Bulgari logo. Another example of advertising in film
is in I, Robot, where main character played by Will
Smith mentions his Converse shoes several times, calling
them "classics," because the film is set far in the future.
Cadillac chose to advertise in the movie The Matrix
Reloaded, which as a result contained many scenes in
which Cadillac cars were used. In "Fantastic Four: Rise of
the Silver Surfer", the main transport vehicle shows a
large Dodge logo on the front. Blade Runner includes
26
some of the most obvious product placement; the whole
film stops to show a Coca-Cola billboard.
Billboard Advertising
Billboards are large structures located in public places
which display advertisements to passing pedestrians and
motorists. Most often, they are located on main roads
with a large amount of passing motor and pedestrian
traffic; however, they can be placed in any location with
large amounts of viewers, such as on mass transit
vehicles and in stations, in shopping malls or office
buildings, and in stadiums.

The Redeye newspaper advertised to its target market at North Avenue

Beach with a sailboat billboard on Lake Michigan

27
 Mobile billboard advertising: Mobile billboards are
generally vehicle mounted billboards or digital
screens. These can be on dedicated vehicles built
solely for carrying advertisements along routes
preselected by clients, they can also be specially
equipped cargo trucks or, in some cases, large
banners strewn from planes.
The billboards are often lighted; some being backlit,
and others employing spotlights. Some billboard
displays are static, while others change; for example,
continuously or periodically rotating among a set of
advertisements. Mobile displays are used for various
situations in metropolitan areas throughout the world,
including:
Target advertising, One-day, and long-term
campaigns, Conventions, Sporting events, Store
openings, similar promotional events, and Big
advertisements from smaller companies.
In-Store Advertising
In-store advertising is any advertisement placed in a
retail store. It includes placement of a product in visible
locations in a store, such as at eye level, at the ends of
aisles and near checkout counters, eye-catching displays
promoting a specific product, advertisements in such
places as shopping carts and in-store video displays.
28
Coffee Cup Advertising
Coffee cup advertising is any advertisement placed upon
a coffee cup that is distributed out of an office, café, or
drive-through coffee shop. This form of advertising was
first popularized in Australia, and has begun growing in
popularity in the United States, India, and parts of the
Middle East.
Street Advertising
This type of advertising first came to prominence in the
UK by Street Advertising Services to create outdoor
advertising on street furniture and pavements. Working
with products such as Reverse Graffiti and 3d pavement
advertising, the media became an affordable and
effective tool for getting brand messages out into public
spaces.

FEATURES OF ADVERTISING
Main features of advertising are as under:
29
Paid Form:
Only that attempt of the seller on which he has spent
some money to communicate information to the
consumer is called advertising. If without incurring any
expenditure some information relating to some product
or service is published, it will not be called advertising.
For example, if an editor of some magazine, publishes
news about a particular product, it will convey to the
consumers necessary information regarding that product
but no expenditure has been incurred by the seller for
this publication. As such, it cannot be called advertising.
It cannot be called propaganda or publicity.
Impersonal Presentation:
Advertising is non-personal presentation of information.
In other words, advertiser and consumer do not come
into personal contact. Despite being non-personal,
advertising is important medium to attract consumers.
Speedy and Mass Communication:
Advertising is a speedy medium of communication.
Besides being speedy, its operational area is very vast. In
other words, it reaches millions of people
simultaneously.
Identified Sponsor:

30
Another feature of advertising is that its sponsor can be
identified. Whenever we come across an advertisement
its sponsor is easily recognized. Obviously, its sponsor
can be either the seller or the produce of that product or
service. If due to some reason in its difficult to identify
the sponsor, then that information cannot be called
advertising. It will be called propaganda or publicity.

MERITS OF ADVERTISING
The chief merits of advertising are the following:
Mass Reach:
31
An important objective of advertisement is to spread
information about the products to distant places, e.g.,
the advertisement on T.V. or radio spreads information
about various products to various corners of the
country. So much so it takes this information to those
purchasers who cannot be approaches by salesman.
Enhancing Customers’ satisfaction and confidence:
Advertisement enhances the knowledge of the people.
They come to know about the products of various
manufactures, their type, their uses, their price and
some other qualities. The net result is that they can buy
products of their choice.
Expressiveness:
Through the medium of advertisement things can be
presented in a clear and attractive way. The reason is the
use of ‘art’ and ‘computer’ in advertisement. These days
both are at their peak. Through their medium even an
ordinary product can be presented in an attractive
manner.

LIMITATIONS OF
ADVERTISING
Less Forceful:
32
Advertisement happens to be impersonal because no
direct contact between the seller and the customer can
be established. That is why it is not necessary that a
customer should pay attention to it. Therefore, it is a less
forceful medium of promotion.
Lack of Feedback:
Under advertisement, there is no immediate feedback
from the customers. Therefore, it is difficult to find out
the effectiveness of the advertisement.
Inflexibility:
The subject-matter of advertisement is pre-determined.
Whatever subject-matter has been planned or thought
about is presented as such. If during advertisement a
need to change it is felt, it is simply not possible.
Personal selling has got this advantage. It has both the
parties of advertisement face to face. A salesman can
change things according to the need.

ROLE OF ADVERTISING
These days there are numerous manufacturers of a
single product. All the manufacturers want to capture
33
the attention of the people towards their product and
achieve maximum sales. In such a situation,
advertisement is the only medium which can help in
facing this competition. Advertisement does not help
only the manufacturers but it benefits the entire society.
Therefore, it can be said that it pays to advertise. The
role of advertisement becomes clear through the
following facts:
(A) Importance to Manufacturers:
The importance of advertisement for manufacturers is
cleared from the following discussion:
Enhancing customer’s satisfaction and confidence:
Through the medium of advertisement the
manufacturers spread information about their product
to the consumers. Only after having information about
the new products, people decide to buy them. In this
way, there is an increase in customer’s confidence and
satisfaction.

Helpful to increase the demand of existing products:

The manufacturers regularly give information about
their existing products through the medium of
advertisement. As a result of it, people get acquainted
34
with those products and their manufacturers and they
purchase those products time and again. When the old
customer does repeatedly buy the same product, it also
has a positive effect on the new customers. In this way,
advertisement helps in increasing the demand for the
old products.
Helpful in facing competition:
Through the medium of advertisement, a manufacturer
can try to establish the superiority of his product in
comparison to his competing manufacturers. In this way
advertisement helps the manufacturers in competition.
Helpful in increasing the market area:
With the help of advertisement a manufacturer can
spread information about his product to distant places.
Places which cannot be easily reached for personal
contacts can be reached with the help of advertisement.
In this way, advertisement helps increasing the market
area which in turn makes it possible to increase sales.

Helpful in creating brand preference:

Normally through the medium of advertisement the
manufacturers concentrate on the specialities of their
product. Every manufacturer makes efforts to make his
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brand look more attractive so that the people easily
remember it. When a particular brand appeals to the
people, they give priority to purchase it.
(B) Importance to society:
Main benefits accruing to society on account of
advertising are as follows:
Helpful to generate more employment:
Advertising is instrumental in generating more
employment opportunities and creating diverse kinds of
jobs. It provides jobs to artists, screen printers, block-
makers, script-writers, painter, etc. Today, advertising
has become a profession. Some companies do only
advertising job.
Helpful to improve the standard of living:
Through the medium of advertising people gets
information regarding new products. As people use
these new and latest goods, their standard of living gets
a boost. Advertising is helpful in providing employment
and increasing income of the people. Both have a
positive effect on their standard of living.
Helpful in survival of communication media:

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Main communication media are newspapers, magazines,
T.V., radio, etc. Major source of their income is
advertising. If these media of communication do not get
support of revenue from advertising, they cannot service
for long. There media of communication keep the
society well informed. Their existence is of utmost
important and they can survive only by advertising.
Helpful to create healthy competition:
When a company gets its product advertised, it seeks to
improve its quality and lower its price. It is their
endeavour to improve their own product rather than
finding fault with the product of their rivals. In this way
healthy competition prevails in the market and the
entire society stands to gain from it.
Helpful in economic development of the country:
Today the effect of advertising is no longer confined to
the four walls of the country; rather it has crossed the
national boundaries. Through the medium of satellite,
domestic advertising messages can be transmitted to
rest of the world. As a result, export-potentials of the
country get a big boost. Foreign exchange capacity of the
country increases and new industries develop.
Advertising proves helpful in the economic development
of the country.

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Helpful in Communication:
The organization has to attract the customer and create
a market for its products. For this purpose, advertising is
the most powerful and widely used tool for
communicating message regarding products/services to
a large target audience.
Helpful to raise the standard of living:
In our developing economy, adverting with its micro and
macro level influences, exerts vast and varied influences
that have played key role in raising the standards of
physical and material well-being of the Indian society.
Helpful to make market competitive:
In India, one finds many innovations being introduced
which has changed the market structure from seller's
market, the result more competitive market conditions.
(C) Importance to customers:
Main advantages of advertising to the customers are as
under:
Reduction in prices:
Advertising stimulates demand, production is on large
scale and cost of production per unit falls. Due to fall in
production cost, price of the commodity is reduced.
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Knowledge of various products:
People come to know about different products by means
of advertising. Thus, the customer has a large variety of
goods to choose from. He picks up the best from among
them.
Improved quality product:
When a producer or sellers advertise his product his
objective is to win the confidence of the customers. It is
absolutely essential to improve the quality of the
product if the confidence of the customers id to be won.
Hence, goods which are advertised are of good quality.
No fear of exploitation:
Advertising educates the people. They come to know all
the characteristics of the product before it reach the
seller. Thus, the seller cannot exploit the customer
Helpful for product differentiation:
It is a fact that advertising brings about products variety
through real and psychological product differentiation.

OBJECTIONS TO
ADVERTISEMENT
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While on the one hand, advertising is regarded as the
life-blood of modern business; on the other some
scholars are of the view that money spent on advertising
is a waste. Those who hold this opinion arethe critics of
advertising and they hints at its evils.
According to the critics, advertising has the following
disadvantages:
Add to costs:
An organisation has to spend large amount on
advertising. It increases the cost of the products. To
meet this expenditure, price of the product is raised. No
manufacturer pays for the advertising expenses out of
his pocket. Advertising, therefore, leads to unnecessary
rise in prices. In this reference it is said that advertising
costs are passed on to the customer in the form of high
prices.
Undermines social values:
Advertisement is a sort of day-dreaming for the people.
These days it is taking the people away from the reality
and into the realm of artificiality. Through its medium
people get information about new products. Only very
few products are of any use for them. The brilliance of
new products really gets on their nerves. They want to
buy them but they have no resources at their command.
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Consequently, they start feeling upset with their present
status. Taking its social evil, it can be said that
advertisement undermines social values.
Confuses the buyers:
Many a time distorted version of the reality is shown in
the advertising. Believing in advertising, consumers buy
the product. On its use, he feels cheated. He comes to
realise later that the information given in the
advertisement was something else whereas the actual
product was quite different from it. Thus, people lose
confidence in advertising because of wrong
presentation. In this reference it is said that advertising
confuses rather than it helps.
Encourages sale of inferior products:
Every manufacturer projects his product as superior one
in the advertisement. Therefore, the buyer is unable to
decide as to which product is really good. Consequently,
it is difficult to get good quality product even after
paying handsome price for it. If a seller gets good price
for some inferior product, it becomes a habit with him. It
affects other sellers also. Therefore, it is said that
advertisement encourages the sale of inferior products.
Unethical advertising:

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Advertisement is considered unethical in the following
situations:
 When it has degraded or underestimated the
substitute or rival's product.
 When it gives false or misleading information on the
value of the product.
 When it fails to give useful information on the possible
reaction or side effects of the product.
 When it is immoral.
Ways of misleading the consumers
 Many a time, traders entice the customers into their
stores by advertising goods at a very low price, but
they stock only a handful of such sale items in the
store. When the advertised goods are sold out,
consumers are steered towards the higher-priced
stock or lower quality goods.
 Retailers must ensure that reasonable supply of
products is available during the sales, and retailers
should not purposely avoid it. Retailers should make it
clear in the advertisement that how many items on
sale are available or when the sale ends.

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 Sale offer should be for a limited period.
Advertisement should declare that sale offer is for a
limited time period. The period of the offer should be
made clear in the advertisement only when the
advertised goods are available for a limited period or
stocks are limited.
 Traders often offer insignificant price reduction. To
illustrate, a trader may advertise that the price of
product is reduced to Rs.99.95, when the normal
selling price is Rs.100.. The trader must include the
normal selling price and discounted price in his offer
.The trader sale offer is misleading if the trader claims
the product is below cost , when the price is not
below cost after discounts, rebates and other
allowances it is misleading if the trader simply shows a
fictitious higher price as normal selling price in the
advertisement.
 Advertisement must clearly indicate the total price of
goods or services. All price comparison must be
truthful and must not intentionally or unintentionally
mislead the consumers. Under the Fair Trade Practices
Act, retailers have an obligation to ensure that they do
not mislead or make false representations to
customers with respect to price of the goods. The
consumers who shop around and compare the prices
of various products are less likely to be deceived by
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 misleading claims consumers should also be aware of
what is a reasonable price of goods and not take any
advertised discounts at face value.
 While many sales are legitimate or genuine, the
consumers should not get attracted to such sales
offers i.e., "Hurry...very few days remain for sale''. The
consumers should be aware of what to expect when
retailers place items on sale and how to avoid being
misled by discount advertisements. A marketer should
take care to ensure that when goods or services are
advertised to be available at a discount or as being on
sale, it is a genuine discount or sale.
Some advertisements are in bad taste:
Many times, foul language and objectionable pictures
are used in advertising in order to attract a particular
class. They may be insulting to a particular class. It
causes decay of social values. Such kind of advertising
generally opposed as it hurts the feelings of the people.
In this reference it is said that some advertisement are in
bad tastes.

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 OBJECTIONS TO
ADVERTISEMENT ASSAILED
Although many people have vehemently opposed it, yet
it cannot be concluded that it is really not needed. The
following arguments can be put forward to counter the
arguments of various critics of advertisement:
It does not increase costs:
It is said that advertisement causes unnecessary increase
in costs. However, the reality is that advertisement
increases the demand for a product which in turn raises
the scale of production. A lot of saving is affected in case
of large production. Therefore, it can be said that
advertisement is helpful in making available good quality
products and services at cheap rates.
It does not undermine social values:
It is absolutely wrong to say that advertisement
undermines social values. Instead of undermining social
values advertisement helps in raising the social values. It
provides people with the information about modern and
better products. It, therefore, widens the area of
people’s choice. So far as the question of day-dreaming
for the customers is concerned, it only provides
information about products.
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It does not confuse the buyers:
It is true that sometimes the reality is distorted in the
advertisement, but the buyers happen to be rational
beings and, therefore, they decide to purchase a product
only after evaluating every aspect of it. However, if they
haveno information about any aspect, they can get it
from the seller. Hence it is wrong to say that
advertisement confuses the buyers.
It does not encourage sale of inferior products:
It is true that all the sellers point out the superiority of
their advertisement. However, it is the duty of a buyer to
know about the comparative quality of a product before
buying it. If he does so, legal action can be taken against
him. Those sellers are doomed quickly.
It does not create bad taste:
It is wrong to say that advertisement creates a bad taste.
Every seller makes efforts, in his own way to attract
customers. In making such an effort, he sometimes
exaggerates things and presents some exiting image of
the product. Some people consider it modernity while
other calls it ungentle manly behaviour.

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 REMEDIES TO OVERCOME
DECEPTIVE
ADVERTISEMENTS
Cease-and- Desist Orders:
The cease-and-desist orders, which prohibit the
respondent from engaging any more in deceptive
practice, are actually the only formal procedure
established by the Federal Trade Commission Act for
enforcing the prohibition of “deceptive acts and
practices.”
Restitution:
Restitution means the consumer is compensated for any
damage caused to him by the product that had
advertised claims not adequately substantiated.
Restitution is rarely considered because of its severity.
Affirmative Disclosures:
If an advertisement has provided insufficient information
to the consumers, an affirmative disclosure might be
issued Affirmative disclosure require 'clear and
conspicuous disclosure' of omitted information. Often
the involved information relates to the deficiency or

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limitations of the product or service possibly relating to
matters of health or safety.
Corrective Advertising:
Corrective Advertising requires the advertisers to verify
past deception by making suitable amendment in any of
its future commercial.
Self-Regulation in Advertising:
Self-regulation is not a quick-fix solution; it will be
completely ineffective without commitment from and
the integrity of one and all.
Self-Regulation may require the following:
 The development of a self-regulatory code of conduct
covering all forms of media that is sensitive to ethics,
legalities, decency and truthfulness in advertising.
 The inclusion of non-industry players in the process
 Consumer awareness of the self-regulation system.
 Simplification of the complaint process against ads.
 Transparency throughout the entire system.
These reforms will achieve three goals:

48
 They will make the industry accountable for its
actions.
 They will make regulators and critics think twice
before attacking the industry.
 They will lead the public to trust ads, advertisers and
agencies.

CONCLUSION
It is clear from the above account that if advertising has
several benefits, it has some disadvantages as well.
However, on the basis of its shortcomings, it will be
wrong to say that it is a social waste. So far as its evils
are concerned, the same can be removed by taking
following concerted measures by all the three concerned
parties, namely, manufactures, consumers and
government:
Manufacturers should not incur necessary expenditure
on advertising and avoid indecent advertising which is
likely to cause decay of social value.
Consumers should not be misguided by advertising nor
should they discard consumer goods before the expiry of
their utility period. They should also ignore such
advertising as is likely to give birth to give birth to bad

49
habits. Besides, they should not encourage monopolistic
tendencies by purchasing a particular brand repeatedly.
Reputable companies and advertising agencies avoid
telling lies. They realize the cost of being caught. A dent
in trust can prove to be much costlier than the failure of
an ad campaign or for that matter, even a brand. The
challenge before advertisers and agencies is to ensure
that ads reflect our values. We must endeavour to see
that "advertising" does not remain a dirty word.
Government should take stern action against those who
indulge in false propaganda by using advertising media.
In this way, a joint effort can easily remove the evil of
advertising. In conclusion, it can be said, “The money
spent on advertising is not wasteful but to a profitable
investment.”

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 REFERENCES
 Links:
 http://ezinearticles.com/?Ethics-in-
Advertising&id=1134642
 http://ezinearticles.com/?Ethics-in-
Advertising&id=1134642
 http://en.wikipedia.org/wiki/Advertising
 http://en.wikipedia.org/wiki/Advertising#Physical_a
dvertising
 The Advertising Story-By Franklin
 Notes – Made by Kuldeep Sharma

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