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• • The Indian advertising industry is talking business today having emerged as one of the major industries and tertiary sectors. Indian advertising industry today has an estimated value of 13, 200crore with some astonishing pieces of work and creative minds. Advertising agencies in the country too have taken a leap from being small and medium sized industries to well known brands in the business. Indian economy is on a boom and the market is on a continuous trail of expansion. The Indian advertising today handles both national and international projects, functions including client servicing, media planning, media buying, etc. The industry is expected to witness a major boom in the times ahead.
INDIAN ADVERTISING INDUSTRY: The Trend
The key factors that have contributed to the growth of the Indian advertising industry include:
Segmentation of advertising spends
Media Spends as % of Total Ad Spend Year
2000 2001 2002 2003 2004
49.0% 48.4% 47.2% 46.6% 46.3%
39.3% 40.6% 41.9% 43.0% 43.7%
2.5% 2.7% 2.9% 2.9% 2.9%
Cinema Outdoor Internet
0.5% 0.4% 0.7% 0.7% 0.6% 8.4% 7.5% 7.0% 6.5% 6.0% 0.3% 0.4% 0.4% 0.4% 0.3%
• The Indian television industry has grown rapidly, especially since 1991 • Growth of the satellite television audience • The television broadcasting business, now has over 300 channels covering the Indian footprint, key reasons being proliferation of private players and reforms
Analyzing the global advertising industry
• Definite signs of a recovery, after one of the worst-ever slumps in advertising. • Print advertising looks more promising and several US magazines saw ad pages increase quite dramatically. • Firms are looking toward technology as the point of departure for huge returns.
Indian ad industry attracting overseas attention
• The Indian advertising industry is increasingly attracting the attention of many American companies and communication agencies • Worldwide Partners Inc. tied up with Indian Pressman Advertising & Marketing Ltd following repeated enquiries about India.
• Most of the enquiries were in the nature of harnessing online solutions like logo designs, computer science graphics. • Before Pressman came on board as a full partner in December 2007, Worldwide partnered Image Ads for some years, thus now having 2 partners in India. • Worldwide is focusing on strengthening its position in India and Korea specifically and Asia Pacific largely. • Good opportunity for pressman to connect with agencies from across the world in Worldwide’s network.
Type Founded Headquarters Key people
Private 2004 Mumbai, Maharashtra, India Mahesh Murthy, Founder & CEO Ansoo Gupta, Global Head, Business Advertising Internet Marketing, Search Engine Optimization, Search Engine Marketing
• Pinstorm is a pay-for-performance digital marketing firm. Pinstorm is based out of offices in Bombay, along with offices in Singapore, Malaysia, Europe and the United States. • Pinstorm has been selected by Red Herring (magazine) to their list of Asia’s 100 hottest companies for 2008
LINTAS AND PINSTORM TIE-UP
• Linta's Media Group is among the largest media agencies in India, managing a spend of over Rs1,300 crores on broadcast, print, outdoor and other media for clients like Idea, Bajaj Auto, Maruti Suzuki, ITC, etc. Pinstorm and Linta’s Media Group have announced a significant non-equity partnership, designed to push clients to performance-driven media choices The tie-up was resulted from Pinstorm’s pure adherence to pay-for-performance which was expected to go a long way in bringing accountability and transparency to investments in advertising.
• The pay-for-performance model was pioneered by Google and Yahoo, and has been pushed further by Pinstorm. • The alliance of Pinstorm with Linta's comes from their goal to bring pay-for-performance advertising into the mainstream of advertiser choices by working together. • The alliance estimates that they will be able to drive an incremental Rs100 crores of advertising to move over from traditional models to a performance-driven model in the next 12 months.
FACTS AND FIGURES
Indian advertising Industry set to rise no signs of vertical ad networks: • The Indian advertising industry is expected to grow 61% by 2010 (with advertising spend climbing to Rs. 36,731 crores) • advertising expenditure in India to increase from 0.50% of the gross domestic product (GDP) to 0.53% over the next three years. • For every hundred rupees spent by advertisers, Rs 91 is spent on television and the print media while the outdoor media accounts for Rs 5. The rest is divided between cinema, radio and the Internet.