Trends affecting the advertising industry

2. Six Important trends

Consolidation and globalization
The advertising industry has entered a
period of extreme consolidation
Full service agencies are acquiring and
merging with other full service agencies

3. 
Budget fragmentation
The high degree of integration across all
brands advertising and promotional
efforts is being sought by advertisers

4. 
Interactivity
It is the communication between the
advertisers and consumers .
E-mail and tracking of internet surfing
are two examples.
The device like PVR reduces the viewership by 30% in 2005

5. 
Media evolution
This is the greatest trend because of the
emergence of broadband
Broadband is a high speed network
provide the capability f transmitting
video as well as voice transmission over
the internet

6. 
Media clutter
Though it is Cluttered media
Advertisers giving advertisement in a
single media is going to be diminished

7. 
Communication or distribution channels
New communication or distribution
channel are emerging such as
catalogues TV shopping networks Online shopping
consumer needs commercial experience
rather than communication experience

8. Structure of the Advertising Industry

9. Advertisers

Manufacturers and service firms
Large national manufacturers of
consumer products and services are the
most prominent users of promotion .
(Procter & Gamble, Unilever, general
foods,)

10. 
Trade resellers
It is simply a general description for all
organizations in the marketing channel
of distribution that buy products to resell
to customers

11. 
Government and social organizations
Government bodies invest millions of
dollars In advertising annually for their
recruitment and social issues

12. 
Advertising Agencies
It is an organization of professionals
who provide creative and business
services to clients in planning, preparing
and placing advertisements.

13. 
Full service agency
It is typically includes an array of
Advertising professionals to meet all the
promotional needs of clients.

14. 
Creative Boutique
Typically emphasizes creative concept
development, copywriting, and artistic
services to clients.

15. Interactive agencies
Interactive agencies help advertisers
prepare communication for new media
such as the internet, CD ROMs and
interactive television.
RED SKY INTERACTIVE is the one of the
best interactive agency in the world


16. 
In House Agencies
It is a advertising department in a firm
and takes responsibility for the planning
and preparation of advertising materials

17. Promotion Agencies

Direct Marketing and database agencies
These firms maintain and manage large
databases of mailing lists as one of their
services. These firms can design direct
marketing campaigns either through the
mail or telemarketing or direct response
campaigns.

18. 
E-commerce Agencies
This agency handle a variety of planning
and execution activities related to
promotion using electronic commerce

19. 
Sales promotion Agencies
These agencies are experts in designing
incentive program, trade shows, sales
force contests, in store merchandising.

20. 
Event planning agencies
Organizers are experts in finding
locations, securing dates and caterers,
security experts, entertainers, celebrity
participants, or who ever is necessary to
make the event come about.

21. - Design firms
Design firms
Help a firm create Logo- the
graphic mark that identifies a company
and other visual representations that
promote an identity for a firm

22. 
Public relation firms
This firms manage an organizations
relationship with the media, the local
community, competitors, industry
associations, and government
organizations

23. Agency services

Account services
Account services entail identifying the
benefits a brand offers, its target
audience, and the best competitive
positioning, and then developing a
complete promotion plan.

24. 
Marketing Research services
Agencies can assemble consumers from
the target audience to evaluate different
versions of proposed advertising and
determine whether the messages are
being communicated affectively

25. 
Creative and production services
This agency comes up with the concepts
that express the value of a company’s
brand in interesting and memorable
way. This group will develop message
that will be delivered through
advertising.

26. Agency compensation

1: Commission
It is a traditional method, which is based
on the amount of money the advertiser
spends on media.
2: Mark up charge
Add a percentage markup charge to a
variety of services the agency
purchases from outside suppliers

27. 
3: Fee system
in fee system the advertiser and the
agency agree on an hourly rate for
different services provided
4:Pay for Results
Pay for results that base the agency’s
fee on the achievement of agreed upon
the results

28. External Facilitators

External facilitators are organizations or
individuals that provide specialized
services to advertisers and agencies

29. External facilitators




Marketing and Advertising Research
firms
Consultants
Production facilitators
Information intermediators

30. Media Organizations


1: Broadcast
Television
Radio
2: Interactive Media : Online computer
services, Home shopping broadcasts,
Interactive Broadcast, CD-ROMs,
internet

31. 


Media conglomerates : Mixed Media
Combinations
Print : Magazines, Direct Mail,
Newspapers,
Support Media: Out door, Directories,
Premiums, Film and program brand
placement, Event Sponsorship

32. Article discussion

33. Article discussion

34. 


Potential factor in Indian culture and
tradition.
ART:- is the quality, production,
expression, or realam, according to
aesthetic principles, of what is beautiful,
appealing, or of more than ordinary
significance.
Most of the Indian art forms were plat
formed on religion and on stories
associated with mythology.

35. Art in recent advt.






Kalarippayattu in DABUR SONA
CHANDi,
Yakshagana on SIPCE TELICOM,
Kathakali on SONY BRAVIA LCD TV.
STILT DANCERS for pramotion of
apparels/ new retail outlets.
Telugu desham party campaign of 1999.
CHETTINAD & HYDREABADI
restaurants/DABAS of Tamil Nadu

36. Context for TV advt.



The treditional programs get massive
advt support from major FMCG
companies.
They use mythology to capture the
attention of viewers.
Akshaya thritiya promotion of jeweler
groups.

37. Culture & Traditions in Indians


Though Indians are having a western
lifestyle, they are highly influenced by
the Indian Culture & Traditions.
THE RECENT TRENDS IN SOCITEY
GIVE STRONG FACT THAT WE ARE
DEFINITLY GETTING BACK TO OUR
PAST.

38. Article discussion

39. Advertising industry scenario



Life insurance industry had boomed in
India on 21st century.
35% Market share owned by private
companies.
The private life insurers used persuasive
advertising techniques to woo the Indian
customers to increase their
acceptability.

40. Advertising techniques.



B4 the year 2000 print media is the
popular medium.
Concept of safety & security.
Celebrity endorsements.

41. Other alternatives

Chintamani advt of ICICI.