Category Archives: Advertising Agency in India

Digital advertising

Digital advertising to grow to the tune of CAGR 27.7% by 2018

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One of the fastest growing sectors in the country is the media and entertainment arena. It comprises of television, film, and print media advertising, digital and musical among others. Over the past few years, there has been tremendous growth in this segment. Print media advertising and television is reaching a saturation point, although it is far from exhaustion.

The digital media segment is actually one of the rapidly growing segments and it is slowly gaining more ground. The Indian entertainment and media industry has grown by a double digit figure of 11.8 percent overall in 2013. However, gaming and digital advertising has recorded astounding growth rates which are near about 40 percent. A research by KPMG in the past year has stated that digital advertising and media has grown to cover a wider base compared to the previous year. In 2013, digital media advertising notched up 8 percent of the advertising sector, compared to 5 percent in 2012. According to a KPMG-FICCI report, the media and entertainment industry of India enjoys an outreach of 161 million via television and 94,000+ via newspapers. There is however 214 million users of internet in India, of which 130 million people use their cell phones to access the internet. Given these figures, a creative advertising agency has a lot of scope to reach out to a wider audience by tweaking campaigns uniquely to suit the sensibilities of this growing audience.

India’s television advertising pie has been valued at Rs 41,720 crores almost in 2013 and is expect to growth at CAGR (compounded annual growth rate) of 16.2 percent between 2013 and 2018, to amount to Rs 88,500 crores by the end of the period. The estimated size of the Indian advertising market is around USD 5 million, which makes it the 14th largest one in the world, according to the latest issue of Gunn Report. The CAGR of digital advertising is also expected to be around 27.7 percent by the year 2018.

The media and entertainment industry of India shall continue its reliance on digital media. The expanding user base of the internet has the potential to generate vast revenues for the industry. A creative advertising agency must make use of these forecasts for the industry to plan its growth trajectory. From 2013 onwards, telecommunication companies began focusing on data as means of revenue generation. A print media advertising agency and others would have to compete against each other for acquiring digital and social media domains. This certainly spells a bright future for this industry.

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Indian advertising is going global with elan

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India’s advertising industry is in the throes of dominant change in recent times and nowhere is it more visible than television and marketing campaigns themselves. Indian brands are now tapping into international markets and audiences for their products and services. The Micromax advertisement was one of the first campaigns that made use of an international ambassador in the form of global Hollywood celebrity Hugh Jackman and this helped the brand create its own presence and niche in the global market courtesy its tie-up with Jackman and its strategies like free X Men movie content provisions on its smartphones and the release of television commercials and promos for the same.

Other brands like Timex have also roped in ambassadors like fast bowler Brett Lee earlier. Reaching out to international markets is a strategy that has been employed before but only catered to limited markets and Indian consumer sentiment was always kept at the forefront. However, campaigns are now choosing to focus on global perspectives. This is witnessed through concepts like the sharing of happiness promulgated by Coca Cola to the need for every kind of friend which promoted Bharti Telecom.

All successful Indian advertisements have always tapped into unlimited reservoirs of emotion, something that has always worked with the domestic consumer. However, the global shift is visible with the advent of international brand ambassadors or creative and funky ways to get the message across. Brand strategies are changing in accordance with global tastes and consumer behaviour. The changing face of India as a global superpower has a lot to do with this shift in advertising messages and strategies.

Multiple Indian celebrities endorse famed global brands and the trend is being reversed here now. There are advertisements which have hit bulls-eye in a global context as well and this is opening up the floodgates for this new international flavour and feel in Indian advertising. Google Search had huge success with its story of two reunited friends across the Indo-Pak border and Indians lapped it up in spite of Google not being an Indian brand at all. The same strategy is being employed in reverse by Indian brands to create more audiences and newer markets for their products.

In line with this changing trend, advertising agencies are now focusing on getting the message across in innovative ways without turning to emotional triggers as was the call to action theme before!

Media Solution Agency in India

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Digital advertising markets are slated to be the next big thing

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Digital advertising is growing at a staggering pace in recent times. The entire industry has been abuzz with the new found relevance and convenience offered by digital platforms. This has caused a steady change in the advertising industry and key players are following suit to jump onto this lucrative bandwagon. As per industry estimates, the market for online advertising in India will cross INR 3, 575 crores and counting by March 2015 and advertising expenditure on mobile and digital platforms is increasing by a whopping 43%! This has set the cat amongst the pigeons in the industry and is supremely indicative of evolved consumer behaviour and preferences.

The overall growth rate of digital advertising is being pegged at 30 percent annually which is staggering by all means. As per industry estimates, the sector was worth around INR 2, 750 crores by March 2014 and this has been seconded by industry reports and statistics published by leading advertising associations and organizations. The biggest contributors to the entire digital advertisement spending pie are display and search which constitute 29 and 38 percent respectively as per reports. This has caused a rethink on strategies usually employed by top advertising and media agencies. Advertising trends are forever in a state of flux, something that is both chaotic and disruptive if not handled right.

Alongside, Search spends came down to about 30 percent soon after for total digital advertising expenditure. Search still provides a whopping INR 825 crores of overall revenue for the market. Alongside, it is being predicted that digital advertising spend will increase on videos, email and mobile advertisements which will eat into Search shares in turn. Social media accounts for about 13% of overall advertising spend digitally and this is growing rapidly to about INR 440 crores in March 2014.

Expenditure on video advertising has grown by a decent 51 percent to touch INR 303 crores while email advertising has now become an INR 88 crore market. This should be growing to the tune of 56% soon and will hold a decent 12% of all digital advertisements put out by brands. The biggest verticals driving the digital advertising boom are e-commerce, FMCG & consumer durables and telecom and this trend is set to continue in the near future.

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Indian advertising and the changing consumer

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Consumer behaviour has changed radically as a reactionary aspect to the entire concept of selling and consumerism at large. Advertising trends have changed and evolved quite naturally as a result. Word of mouth was the oldest followed and social media only takes the concept forward in a more efficient manner. Social media is largely representative of the changing consumer where interactive sessions are now routine for both companies and customers. Customers are increasingly being empowered with regard to their choices instead of being made to gulp down some of the choicest advertisements.

This increasing power of choice and consumer freedom augurs well for advertising agencies but also leaves them with little option but to keep reinventing themselves in the wake of certain radical changes in mindsets and consumer behaviour. The internet is fast becoming an advertising mecca, being cost effective and easily accessible. Target marketing is now coming in at the expense of large scale mass based promotional campaigns. Spending habits of customers can now be tracked and analyzed to come up with suitable campaigns along with analyzing their interests and purchase triggers.

The changing customer has come to be mapped with opinion polls, surveys, segmentation and other ratings. These marketing activities work on accuracy and precision alone and largely influence all advertising activity in any particular segment. Customer feedback is now of immense importance and is actually used by brands to come up with interactive advertising campaigns geared at merging the same with the brand message in question. The changing customer is no longer into spending extra time on advertisements whenever there is a choice or opportunity. Channel surfing or radio channel switching is a routine affair. Unwanted emails are discarded instantly while blocking telemarketers is an option many choose to take these days.

Yet, advertisements still have their own distinct flavour in the consumer mind space in spite of changing habits and the freedom of choice. Spending power has increased and the huge number of options available in every sector puts the onus on the advertising industry to favourably position particular products over their competitors in the minds of customers. Customer sensibilities are constantly evolving and agencies have to be on their toes continually with regard to meeting the same fruitfully. An example would be embedded advertisements neatly integrated into stories themselves which are considerably smaller and more attractive as compared to their lengthy and superfluous counterparts.

Advertising trends in India

Recent trends in the Indian advertising industry and their impact

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Recent trends in the Indian advertising industry and their impact
21st century India has witnessed a gigantic customer revolution. The economy has scaled up to a staggering $2 trillion from a mere $422 billion back in 2001. Per capita incomes are on the rise along with the Gross Domestic Product or GDP. Some consumption segments have managed to hold on to their high billing including mobile phones, subscriptions and also cars. Indian advertising has naturally transformed itself to match the changing needs and demands of the newly emancipated population.

According to advertising experts, the landscape has shifted considerably as compared to the earlier decade and even the last few years. Service oriented sectors have grown as opposed to the slump in the manufacturing and production sector. This has impacted advertising immensely. Services now dominate both the print and television advertising categories and this is one of the biggest trends in the sector in recent times. Television has heralded its dominance over all other media platforms when it comes to advertising. According to industry statistics, television holds the lion’s share of advertising expenditure which is more than 40% while digital media is also rapidly expanding its footprints and will soon move into double digits.

Print media expenditure has gone down considerably and stands at less than the coveted 40% mark as per recent reports and statistics. Television is increasingly being used as a prime advertising platform by nationally acclaimed companies and organizations while print is the marketing weapon of choice for local and regional players. Alongside, advertising has witnessed the interdependence of media platforms where they often work complementary to each other to get the message across. This is another new development which is being tapped by agencies for their campaigns and marketing blueprints.

Soft drink companies still advertise hugely in their bid to outdo each other and this translates into fantastic advertising. Alongside, other duels have emerged between telecommunication companies and mobile phone companies as well. The Samsung and Nokia or Vodafone and Airtel battles are the stuff of modern day advertising legend. The telecom industry has taken up a huge space as far as advertising is concerned. Alongside, FMCG sectors are having a field day when it comes to occupying advertising space and consumer mind spaces. FMCG players are investing heavily in television advertising in recent times while consumer durables sectors are witnessing a quiet exit from the advertising space.

Digital media is slated to be the next big thing in advertising and may soon overtake print as reinforcement to television advertising.

Recent trends in the Indian advertising industry and their impact