1. INTRODUCTION
Advertising is a form of communication used to persuade an audience (viewers, readers or
listeners) to take some action with respect to products, ideas, or services. Most commonly, the
desired result is to drive consumer behavior with respect to a commercial offering, although
political and ideological advertising is also common. Advertising messages are usually paid for
by sponsors and viewed via various traditional media; including mass media such
as newspaper,magazines, television commercial, radio advertisement, outdoor
advertising or direct mail; or new media such as websites and text messages.
The Indian advertising industry is talking business today. It has evolved from being a small-
scale business to a full-fledged industry. It has emerged as one of the major industries and
tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or
the number of personnel involved. Indian advertising industry in very little time has carved a
niche for itself and placed itself on the global map.
Indian advertising industry with an estimated value of es13, 200-crore has made jaws drop and
set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The
creative minds that the Indian advertising industry incorporates have come up with some mind-
boggling concepts and work that can be termed as masterpieces in the field of advertising.
Advertising agencies in the country too have taken a leap. They have come a long way from
being small and medium sized industries to becoming well known brands in the business. Mudra,
Ogilvy and Mathew (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top
agencies of the country.
When the world renowned ice-cream brand Haagen Dazs announced that Indian passport holders
are not allowed to enter its outlet in one of the places in Delhi, a huge furore followed. Raised
eye-brows demanding explanations regarding this openly discriminating and insulting restriction
were met with apologetic clarifications from the company saying it was merely a strategy for
brand promotion. Whether or not it was a promotion tactic, it managed to engrave in the minds of
the media and the public what Haagen Dazs was.
This is one of the countless examples that can be cited to bring forth the changing face of the
advertising industry of India. From huge billboards and hoardings to irresistibly alluring offers –
the advertising world has fast fine-tuned itself to appeal to the representatives of the changing
face of modern India.
The newest transformation observed in the world of advertising is how it is aligning itself to
draw the attention of the youth towards the brands. The advertisements are designed such that the
youth identify with the brand and relate instantaneously to it. Blackberry- one of the leading
mobile companies has lately been trying to change its public image from being a phone for use
by office-goers to a phone for everyone’s use. The tag-line clearly states- “Not just for the office
boys”.
The Cadbury advertisements which were earlier targeting the general audience have now shifted
gaze and are keenly concentrating on the young. The most recent commercial shows an exchange

2. between a young boy and girl over the chocolate. These newcomers replaced the Indian superstar
Amitabh Bachan in these ads- and THAT goes to say a lot about what the companies are thinking
The sudden change in the target audience of brands is considered to be a conscious decision
following data expressing that majority of Indian audience is between 16-25 years of age. The
idea that India is seen to be an upcoming economy with a lot of potential is utilized by the
makers in promotion of their brand. By projecting India as an imminent super-power, the brands
give the consumers a feeling of being potent, sovereign and powerful.
Another arena tapped upon by the advertisers is the social networking sites which are the most
hyped and read about matter in these times. Facebook and Twitter are the most popular sites. On
Facebook, the brands start by creating a page, “liking” which promises “exclusive gifts and
goodies”. The suggestion that a simple click could win you things which you would have to
think about twice before shelling out money for, is both fantastic and tempting- and thus,
manages to thrive successfully.
Indian economy is on a boom and the market is on a continuous trail of expansion. With the
market gaining grounds Indian advertising has every reason to celebrate. Businesses are looking
up to advertising as a tool to cash in on lucrative business opportunities. Growth in business has
lead to a consecutive boom in the advertising industry as well.
The Indian advertising today handles both national and international projects. This is primarily
because of the reason that the industry offers a host of functions to its clients that include
everything from start to finish that include client servicing, media planning, media buying,
creative conceptualization, pre and post campaign analysis, market research, marketing,
branding, and public relation services.
Keeping in mind the current pace at which the Indian advertising industry is moving the industry
is expected to witness a major boom in the times ahead. If the experts are to be believed then the
industry in the coming times will form a major contribution to the GDP. With al this there is
definitely no looking back for the Indian advertising industry that is all set to win accolades from
the world over.
Major Players
Ogilvy and Mather:
This is one of the leading advertising companies in India. This organization believes that
devotion to the brand defines the profile of their company. This company has offices across the
globe. The objective of the company is to build brands. I t is a subsidiary of WPP Group plc. The
headquarter of the company is in New York.
J Water Thompson India:

3. One of the most popular company in the advertising industry is J Walter Thompson India. Their
objective is to make advertising a part of the life of the consumers. This is also world's best
advertising brand with about 200 offices in 90 countries. This company is the first one to
introduce pioneer careers in ad for women, sex-appeal ads and also produced the first ever
sponsored -TV program.
Mudra Communication Pvt. Ltd:
This is one of the renowned advertising company of India. This advertising organization was
founded in the year 1980 at Mumbai. Recently the Ad company declared the addition of public
relations, rural marketing, events etc. The head office of the company is in Bombay Area.
FCB-Ulka Advertising Ltd:
One of the best company in India in the advertising arena is FCB-Ulka Advertising Ltd. In US,
this advertising company ranks third and tenth in the world having about 188 offices in 102
countries. Their aim is to reflect the needs of the brand and not the personality of the brand. It
has about 500 professionals and no prima donnas.
Rediffusion-DY&R
This Advertising company of India has made a benchmark in the field of creativity. India's 5th
largest advertising company is Rediffusion. This advertising agency offers a wide array of
integrated pr services for external and internal communications. The primary strength of the
company lies in the media relations.
McCann-Erickson:
The prominent name among the best advertising companies of India is McCann-Erickson India
Ltd. They define work in relation to the impact that advertising has on the lives of masses. The
testimony of the company in which it firmly believes is the campaign of Coca -cola-'Thanda
Matlab Coca Cola'.
RK Swamy/BBDO Advertising Ltd:
It maintained the record of remaining consistently among the top ten advertising agencies in
India. Established in 1973, this advertising reached great heights. This is also India's No.1
research company in the market sector and is fully run by Indians. Brand Equity is an integral
part of the company.
Grey Worldwide (I) Pvt. Ltd:
A significant name in India in the world of advertising agencies is Grey Worldwide (I) Pvt. Ltd.
The company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore
and New Delhi. It is a subsidiary of Grey Worldwide. The company specializes in advertising
and marketing services.

4. Leo Burnett India Pvt. Ltd:
It has a significant presence in about 96 offices in 10 countries. This advertising agency was
awarded the 'Worldwide Agency of the Year' in 2004.They are proficient in explaining how a
single image is worth thousand words and can break the barriers of language but not at the cost
of the ad's emotional power.
Contact Advertising India Ltd:
This advertising company of India is one of the leading advertising agencies in India. It is one-
to-one customer lifecycle management advertising agency. It was founded in 1992 and is situated
in Mumbai. It offers a wide range of services like online marketing and strategy and many
others.
Industry Size:
• The Indian advertising industry is poised to grow at 18%
• compound annual growth rate to reach Rs.1 trillion by 2011 from its present size of Rs.437
billion, according to the 2007 annual edition of the FICCI
• Rising income levels and consumerism bred from the country’s strong economic growth are
creating a growing demand for entertainment. This coupled with technological
advancements, policy initiatives taken by the Indian Government that are encouraging the
inflow of investment and initiative by private media companies, will prove to be the key
drivers for the entertainment and media industry. The industry has been forecast to
outperform the economic growth in each year, till 2011.- a/c to Price Waterhouse Cooper
report on Indian Advertising Industry (A growth story unfolds)
Regulations:
Advertising Industry in India is on the expansion spree for the last few years and has become a
serious and big business growing at a considerable rate. However, the growth of this industry is
affected by the prevalent malpractices carried out by advertisers in order to lure the consumers
and sustaining an edge over the competitors. Advertisement is often described as commercial
speech and enjoys protection under Article 19(1)(a) of the Indian Constitution. As a facet of the
Right to Information, it facilitates the dissemination of information about the sellers and their
products. However, the manner of facilitation is subject to a number of statutory provisions.
Under the Indian legal regime, the prominent, prohibitory legal provisions that regulate
advertising are:
1. Obscene publication or advertisement of a lottery under the Indian Penal Code.

5. 2. Harmful publication under the Young Persons (Harmful Publications) Act, 1956.
3. The indecent representation of women under the Indecent Representation of Women
(Prohibition) Act, 1986.
4. Use of report of test or analysis for advertising any drug or cosmetic under the Drugs
and Cosmetics Act, 1940.
5. Inviting transplantation of organs under the Transplantation of Human Organs Act,
1994.
6. Advertisement of magical remedies of diseases and disorders under Drugs and Magical
Remedies (Objectionable Advertisements) Act, 1954.
7. Advertisements relating to prenatal determination of sex uner the Prenatal Diagnostic
Techniques (Regulation and Prevention of Misuse) Act, 1994.
8. Advertisements of cigarettes and other tobacco products under tah Cigarettes and other
Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce,
Production, Supply and Distribution) Act, 2003.
9. Any political advertisement forty hours prior to polling time under the Representation
of People Act, 1951.
Absence of a single comprehensive legislation had created a lot of confusion in the advertising
industry. In 1985, a self regulatory mechanism of ensuring ethical advertising practices was
established in the form of the Advertising Standards Council of India (ASCI), a non statutory
tribunal. ASCI entertained and disposed off complaints based on its Code of Advertising Practice
(ASCI Code). Gradually, the ASCI Code received huge recognition from the advertising
industry. In August 2006, the ASCI Code was made compulsory for TV advertisements by
amending the Cable Television Networks (Amendment) Rules, 2006: “No advertisement which
violates the Code for Self-Regulation in Advertising, as adopted by the ASCI, Mumbai fro public
exhibition in India, from time to time, shall be carried in the cable service.” This move has
provided a binding effect on the ASCI Code. Rule 7 postulates that any advertisement which
derides any race, caste and tends to incite people to crime, cause disorder or are indecent or
vulgar. Further, section 6 of the Cable Television Networks (Regulation) Act, 1955 prohibits the
transmission or retransmission of any advertisement through a cable service unless they are in
conformity with the ASCI Code. The key objectives of ASCI code is to ensure that
advertisements must –
• Make truthful and honest representations and claims which is essential to prohibit
misleading advertisements;

6. • Not be offensive to public decency or morality;
• Not promote products which are hazardous or harmful to society or to individuals,
particularly minors; and
• Observe fairness in competition keeping in mind consumer’s interests.
Under the ASCI Code, complaints against the advertisements can be made by any person who
considers them to be false, misleading, offensive, or unfair. The complaints are evaluated by an
independent Consumer Complaints Council (CCC). CCC decides on complaints from the general
public including government officials, consumer groups, etc., complaints from one advertiser
against another and even suo moto complaints from the member of the ASCI Board, CCC, or the
Secretariat. The CCC usually decides upon the complaints within a period of 4 to 6 weeks once
the party concerned is afforded an opportunity of presenting its case.

7. • Not be offensive to public decency or morality;
• Not promote products which are hazardous or harmful to society or to individuals,
particularly minors; and
• Observe fairness in competition keeping in mind consumer’s interests.
Under the ASCI Code, complaints against the advertisements can be made by any person who
considers them to be false, misleading, offensive, or unfair. The complaints are evaluated by an
independent Consumer Complaints Council (CCC). CCC decides on complaints from the general
public including government officials, consumer groups, etc., complaints from one advertiser
against another and even suo moto complaints from the member of the ASCI Board, CCC, or the
Secretariat. The CCC usually decides upon the complaints within a period of 4 to 6 weeks once
the party concerned is afforded an opportunity of presenting its case.