Advertising Industry of India: Problems and Prospects

 

Dr. Dharmendra Mehta¹, Dr. Naveen K Mehta²*, Dr. Shruti Jain³

¹Reader, FMS Pt JNIBM, Vikram University, Ujjain (MP)

²Associate Professor, SUBIS, Barla, Dist. Raisen (MP)

³Associated with Akshar Vishva Newspaper, Ujjain (MP)

 

ABSTRACT:

Advertising in India has achieved a level of maturity in the last two decades which is incredible and also it is one of the fastest growing markets in the world due to the size of its population and its increasing prosperity. The 21^st century has brought many dramatic changes in the field of advertising. This will have a tremendous impact on advertising issues in India. Over the years, Indian advertising industry has made unprecedented growth. Due to the liberalization and globalization, advertising was never so focused as it is today. It is getting focused to draw in people at retail points and advertisers to showcase their marketing messages. This paper makes an attempt to discuss the efficacy of innovative advertisement media which are being used in the Indian Advertising Industry and also to discuss the future prospects of advertisement industry in India.

 

 

 

INTRODUCTION:

Advertising is like a spectrum of lights, which is reflected in every field of the society. The Indian advertising industry has emerged as one of the major industries since the last decade. In a very little span of time it has carved a niche for itself and placed itself on the global map. Indian Advertising industry is increasingly attracting the attention of many foreign companies and communication agencies, by opening business avenues for the small and medium marketing agencies in India. All companies still rely upon advertising to improve their competitive positions. Indian Advertising Industry has been reshaped by regulatory and technological changes over the past times as before it did not have many opportunities. With the advent of FM radio channels, New Generation TVs, it has been able to gain much potential.

 

LITERATURE REVIEW:

According to a report of Pricewaterhouse Coopers, and FICCI (2010), the Indian Advertising industry is positioned to grow up at 19% compound yearly growth rate. This rate is expected to go on until 2012. A report published on advertising in indian.com(2009) categorically observed that the scope for advertising in India has progressed considerably although the Indian advertising spends as a percentage of the Gross Domestic Product (GDP) is still abysmally very low (0.34 %) in realtion to other developed and developing countries.

 

Uma Krishna (2011) examined on the changing strategies of the advertisers and its relative impact on consumers, over a time period and observed that different social, psychological and cultural factors are also responsible for this. According to Nielsen’s quarterly Global Ad View Pulse report (2012) internet advertising witnessed the biggest ever increase, with advertisers spending 12.1 percent more in Q1 2012 than one year prior. During that time, ad spend overall increased 3.1 percent globally.

Table No:  1   Indian Advertising Horizontal Segment

Indian advertising market over 3 years
	2015		2016		Growth %	2017		Growth %
Medium	In Rs Crore	% Share	In Rs Crore	% Share	2016/15	In Rs Crore	% Share	2017/16
TV	17261	39%	18831	38%	9.10%	21296	38%	13.10%
Print	16935	38%	18151	37%	7.20%	19869	35%	9.50%
Radio	1545	4%	1749	4%	13.20%	2008	4%	14.80%
Cinema	465	1%	523	1%	12.50%	601	1%	15.00%
Outdoor	2665	6%	2910	6%	9.20%	3234	6%	11.10%
Digital	5120	12%	7315	15%	42.90%	9144	16%	25.00%
Total	43991		49480		12.50%	56152		13.50%

 

Zenith Optimedia Worldwide Report analyzed that emerging advertising markets like- India and China will be leading the world advertising industry. India, with an approximate 10% growth, will certainly be in the top ten advertising markets by 2015. According to a Business Standard Report (2012) advertisers are increasingly turning to innovative advertising solutions to stand out in a cluttered environment. MSU Baroda research work (2012) has highlighted that the future of advertising in India is very bright, since India is one of the fastest growing markets in the world due to the size of its population and its increasing prosperity. Other industry reports available on various websites also summarize that China and India are going to be key to the future of global advertising.

 

OBJECTIVES AND RESEARCH METHODOLOGY:

The present paper aims to study the growth of advertisement industry in India and the future prospects of advertising industry. This paper is based upon review of literature and secondary data collected from various websites, journals, magazines, newspapers and reference books. Attempts to conduct informal discussions and observations with ad agencies owners, small scale newspaper advertisers, marketers and their narrated views have also been incorporated. Literature review has shown prior research work done in this area. All the available secondary data have been studied and analyzed by the researchers.

 

Emerging Horizons:

The growth of advertising in India has been parallel to the growth in industrial and economic development of the nation. Indian advertising when compared to its counterparts in the west shows that it has not yet reached its full potential growth. However, advertising is a growing profession in India and conscious efforts are being made to develop it fully.

 

Asia has led the global economic recovery, supported especially by China and India. In both the countries, exhibit tremendous growth, in advertising economy which will expand by 10% through 2016. Three of the world’s ten fastest growing media markets are within APAC, including China, India and Indonesia, and this growth compounds the region’s absolute size. For perspective on the region, all of APAC (Asia pacific countries) will represent 23% of global advertising in 2011, and rise to 27% by 2016. By contrast, Europe (excluding the Middle East and Africa) will fall from 27% to 23% during that time.

 

Print advertising revenues will be, rising over the next five years by 3.1% for magazines, and 4.6% for newspapers each year. Although the region is home to four of the largest advertising markets for newspapers and two among the ten largest for magazines, few Asian countries are among the fastest growing globally.

 

Size of the Advertising Industry:

Indian advertising industry is going with a background of an estimated value of more than Rs13crore+. Mudra, Ogilvy and Mathew (O and M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top revenue generating and business expanding advertisement agencies of India.

 

The Indian advertising industry should gear up to handle both national and international projects. Its emerging horizons include-client servicing, media planning, media buying, creative conceptualization, pre and post campaign analysis, market research, marketing, branding, and public relation services.

 

Marketing intelligence service Warc expects that Russia (14.6 per cent) and China (12.5 %) are likely to be fastest-growing ad markets in 2013, followed by Brazil (9.5 %) and India (9 per cent).

 

Prospects:

The 21^st century has bought many dramatic changes in the field of advertising. The future of advertising is of course no doubt very bright in India and advertising will be more effective if it incorporates the following parameters:

 

Creativity:

Advertising in order to be effective will have to be based on strong creative ideas.

 

 

Creativity is the unique approach and also helps in the actual execution of the advertising.

 

Core Focus on Consumers:

New generation consumers ask for better value of their money. Companies which are responsive and able to attract the consumers will reap the pay off in the long run.

 

Marketing:

Marketing a product through expensive ad is difficult, especially for small scale industries. In the coming years, rural marketing is the wave of future clients and agencies will have to invest in developing rural media at low cost of ad

 

Media:

Media will be just as dynamic, exciting and creative as advertising itself. Media planning and buying will have to assume greater importance and large sums being spent on advertising.

 

Government of India Policy:

Advertising will be one of the top growth industries in the coming years, if the government continues its policy of liberalization.

 

Advertising as a Business:

Advertising will be business that continues to give them an opportunities very difficult find elsewhere.

 

CONCLUSIONS:

Fast developing economic growth and FDI has resulted in rapid growth of Indian media industry. The industry is benefited from the favorable laws and liberation of the market. The growth of media market led to the high competition but still there is plenty of scope for new companies to begin with a bang and existing companies to expand. This is also generating various opportunities and scope for the consumers, investors and related professionals.

 

Unravelled potential, good Economic growth, increasing earnings levels, consumerism, and technological innovations and policy plans undertaken by the Indian administration which are currently encouraging inflow of investments in the country, will attest to be significant drivers for the media industry in India. The media industry has been predicted to surpass the overall economic growth in every year, till the year 2016. (PWC, 2007)

 

Advertising gurus should also explore the opportunities of forecasting growth in non-traditional media such as shopper marketing, analytics, ground activation and digital.

 

REFERENCES:

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3.        Krishna, Uma (2011),’ Changing Scenario of Indian Advertisements’. www.indianmba.com. Accessed on 10 November, 2016.

4.        Kumar Suresh, 'Hindi in Advertising' (1978) Bahari Publication, Delhi.

5.        Molly K. McGowan (2009),’ the Unexplored New Medium: Recent Trends in Podcast Advertising’.

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8.        Pathanjali Premchand, 'Aadhunik Vigyapan' (1997) Vani Prakashan, New Delhi.

9.        Vedic Vedprakash, 'Hindi patrkarita: vividh Aayam" part1 and 2, (2002) Hindi book center, New Delhi.

10.     Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha (2007): Marketing Management, Dorling Kindersley, NewDelhi, 12th edition.

11.     Dana-Nicoleta Lascu (2002), “The International Promotional Mix and Advertising Strategies” faculty.washington.edu/giambatt/mktg470/Lascu_Chapter_13.pp. Accessed on 20 July, 2012.

12.     Dr. Harendra Kumar (2008), ‘Expansion of the Media Industry in India’. The Chartered Accountant, February 2017.

13.     PWC (2007): FICCI – PricewaterhouseCoopers forecast Indian Entertainment and Media industry to grow 19% CAGR through 2010.

14.     The M. S. University of Baroda (2012), ‘Advertising in India: Future projections  and  challenges of the future’, Volume: 2, Issue: 1.

 

 

 

 

Accepted on 11.07.2017          © A&V Publications all right reserved