The document provides an overview of integrated marketing communication and the advertising industry in India. It discusses the structure of the global and Indian advertising world, including major players, trends, and functions within advertising agencies. The size of the Indian advertising market is estimated at Rs. 30,000 crore annually. Major trends include the rise of digital media and mobile advertising. Compensation for agencies includes commissions, markups, fees, and pay-for-results plans. The document also lists major Indian advertisers and awards in the industry.

1. INTEGRATED MARKETING
COMMUNICATION
• Structure of the Advertising and Promotions World
• Study the Global and Indian Advertising Industry
• Size of the Indian market, structure of the Industry, major players, trends in the
industry, functions in an agency, compensation structures to agencies, major
advertisers (corporates) awards in the Industry.
Submitted By:
Chintan Shah Hershita Singh Rahul Gupta Samik Sarkar S. Kartik
Aditya Mittal
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2. 1
STRUCTURE OF THE
ADVERTISING
AND PROMOTIONS WORLD

3. STRUCTURE OF ADVERTISING WORLD
Advertiser
s
Advertising
World
Agency or
Freelancer
Media
Third
Parties
Regulator
y
Bodies
Audience

4. STRUCTURE OF ADVERTISING WORLD
Advertiser
s
Multination
al vs.
National
vs.
Regional
Big vs.
Medium
vs. Small
Niche
Agencies
Govt.
&
Private
Product
vs.
Service
Multination
al
vs.
National
Agency or
Freelancer

5. STRUCTURE OF ADVERTISING WORLD
Secondary
Demographi
c
or
Psychograph
ics
Primary
Audience
Regulator
y
Bodies
Socio
Economic
Indian
Broadcasti
ng
Federation
The
Government
Indian
Newspaper
Society
Advertising
Standard
Council of
India

6. STRUCTURE OF ADVERTISING WORLD
Electron
ic Media
Media
Print
Media
Social
Media
Publish
Media

7. STRUCTURE OF AN ADVERTISING
COMPANY
Account
Service
Advertising
Company
Account
Planning
Creative
Finance
&
Accounts
Producti
on
Media
Buying

8. STRUCTURE OF AN ADVERTISING
COMPANY
Account
Service
Account
Executiv
es
Account
Manager
s
Account
Directors
• Responsible for liaising with
the agency's many clients
• Link between the many
departments within the
agency and the clients
Account
Planning
Researc
h
Strategic
Thinking
• Provides consumer insights
• Strategic direction
• Research
• Focus groups
• Assists in keeping advertising
campaigns on target and on brand

9. STRUCTURE OF AN ADVERTISING
COMPANY
Copywrit
ers
Creati
ve
Art
Director
s
Designe
rs
Productio
n Artists
Creative
Director
Web
Designe
rs
Associat
e
Creative
Director
s
s
• Lifeblood of the business
• Responsible for the product
• Copywriters and art directors
are paired up, working as
teams.
• Sometimes, traffic is handled
by a position within the
creative department
• Everyone within creative
services reports to the
Creative Director
• It is Creative Director’s role
to steer the creative product,
making sure it is on brand, on
brief and on time.

10. STRUCTURE OF AN ADVERTISING
COMPANY
Finance
&
Account
s
Media
Buying
• Handling payment of salaries,
benefits, vendor costs, travel, day-to-
day business costs and
everything else you'd expect from
doing business.
• Approximately 70% of an ad
agency's income pays salary and
benefits to employees.
• To procure the advertising time and/or
space required for a successful advertising
campaign
• This includes TV and radio time, outdoor
(billboards, posters, guerrilla), magazine
and newspaper insertions, internet banners
and takeovers, and, well, anywhere else an
ad can be placed for a fee.
• Involves close collaboration with the
creative department who came up with the
initial ideas, as well as the client and the
kind of exposure they want.

11. STRUCTURE OF AN ADVERTISING
COMPANY
Producti
on
• During the creative process, the production department will be
consulted to talk about the feasibility of executing certain ideas.
• Once the ad is sold to the client, the creative and account teams
will collaborate with production to get the campaign produced
on budget.
• Production also works closely with the media department, who
will supply the specs and deadlines for the jobs.
• In small to mid-sized agencies, traffic is also a part of the
production department. It is the job of traffic to get each and
every job through the various stages of
• Account management
• Creative development
• Media buying
• Production in a set timeframe
• Work flows through the agency smoothly, preventing jams that
may overwhelm creative teams and lead to very long hours,
missed deadlines and problematic client relationships.

12. 2
STUDY THE GLOBAL AND
INDIAN
ADVERTISING INDUSTRY

13. GLOBAL TRENDS IN ADVERTISING
• ‡Global Ad Spend Increased 3.1% in Q1 2012
• Overall global ad spend in Q1 2012 grew to $128 billion
USD
• Middle East, Africa and Latin America Leading Growth
• In North America and Europe, the ad market did not
experience the same level of increase
• North American ad spend grew 2.1 percent
• BRIC leads for online video consumption
• Ad spend in Europe declined slightly (1.4%), with
countries most impacted by the recession (Greece and
Spain) the hardest hit

14. GLOBAL TRENDS IN ADVERTISING
• ‡The world is looking beyond 30 Second commercial
• 84% of the global internet users have shopped online
• ‡Simplicity in communication is returning
• ‡The average teen sends & receives 3339 text messages
every month
• 70 % of global internet users watch online video
• ‡Single message across Markets and countries is the way
forward. One world. One campaign.
• Despite the Internet, we’re watching more TV and not less

15. GLOBAL TRENDS IN ADVERTISING
• ‡The number of people watching television is up nearly
20% from last year
• Sports attract more HD Viewers than any other TV genre
• 74% of US households believe store brands are a good
alternative to name brands.
• More than $ 1 trillion a year is spent on marketing and it’s
estimated that 15-30% is wasted each year
• Sports and Film personalities continue to dominate as
Brand endorsers

16. SPECIALIZED SERVICES OF ADVERTISING
AGENCY
• Direct Response Agencies
• Sales Promotion Agencies
• Public Relation Firms
• Interactive Agencies
• Event Marketing Agencies
• Market Research Agencies

17. 3
SIZE OF THE INDIAN MARKET
MAJOR PLAYERS
TRENDS IN THE INDUSTRY
FUNCTIONS IN AN AGENCY
COMPENSATION STRUCTURES TO
AGENCIES
MAJOR ADVERTISERS AWARDS IN THE
INDUSTRY

18. SIZE OF THE INDIAN MARKET
• Advertising in India today, says Gerson Dacunha in an essay in Ad
Katha, is a Rs 30,000 crore (US$ 6bn) industry which makes it 3
times the size of its sibling, Bollywood.
• It finances India’s newspapers, magazines, TV channels and internet
sites and allows our noisy, quarrelsome and democratic system to
function in defiance of powerful governments and even more
powerful private vested interests
• CAGR (2003-11) – 15%
• Expected Growth 2012: 8-9%
• Industry Margins – 1-2%
http://www.rediff.com/money/report/column-utterly-butterly-indian-ads/20120503.htm

19. MAJOR PLAYERS
 Ogilvy & Mather
 J Walter Thompson
 Mudra Communication
 FCB Ulka Advertising Ltd
 Rediffusion DY & R
 McCann Erickson India Ltd.
 RK Swamy BBDO Advertising Ltd.
 Grey Worldwide (I) Pvt. Ltd.
 Leo Burnett India Pvt. Ltd.
 Contract Advertising India Ltd.

20. MAJOR PLAYERS
Piyush Pandey, Ogilvy Prasoon Joshi, McCann EricksonAgnello Dias, Taproot
Bobby Pawar, JWT R Balakrishnan, Lowe LinMtaasdhukar Kamath, Mudra India

21. MAJOR PLAYERS
Abhijit Avasthi, Ogilvy Colvyn Harris, JWT Sam Balsara, Madison World
Rajiv Rao, Ogilvy Josy Paul, BBDO Vikram Sakhuja, GroupM

22. TRENDS IN THE
INDUSTRY

23. GLOBAL ADVERTISING TRENDS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Print TV Radio Cinema OOH Internet

24. GLOBAL ADVERTISING GROWTH BY MEDIA
CATEGORY

25. TOP 10 COUNTRIES - ADVERTISING
SPENDS (2012)
Rank Country USD Percentag
e
1 US 152,887 34.0%
2 China 33,258 7.4%
3 Japan 32,113 7.2%
4 Germany 24,769 5.5%
5 UK 19,619 4.4%
6 France 14,582 3.2%
7 Brazil 13,134 2.9%
8 Canada 12,384 2.8%
9 Australia 12,167 2.7%
10 Italy 11,337 2.5%
Top Ten 326,250 72.7%
Grand Total (63 Countries) 449,019 100.0%

26. TRENDS IN THE ASIAN MARKETS

27. TRENDS IN THE ASIAN MARKETS

28. TOTAL ADVERTISING EXPENDITURE - INDIA
74,595
92,700
124,000
210,600
- 50,000 100,000 150,000 200,000 250,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
62,900
80,620
104,300
151,000
176,950
203,100
226,200
Rs Millions

29. ADVERTISING TRENDS - PRINT INDUSTRY
43,020
40,200
38,000
102,400
98,500
- 20,000 40,000 60,000 80,000 100,000 120,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
35,500
49,380
59,800
71,000
84,600
97,200
Rs Millions

30. ADVERTISING TRENDS – TELEVISION
INDUSTRY
31,600
41,350
85,000
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
19,800
28,500
37,330
48,200
60,400
70,400
81,100
93,600
Rs Millions

31. ADVERTISING TRENDS – RADIO INDUSTRY
1,500
1,350
2,750
5,800
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1,300
2,550
4,100
5,600
6,750
7,900
8,700
Rs Millions

32. ADVERTISING TRENDS – CINEMA
INDUSTRY
945
1,600
- 200 400 600 800 1,000 1,200 1,400 1,600
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
900
1,020
1,200
1,450
1,600
1,100
1,250
1,100
1,200
Rs Millions

33. ADVERTISING TRENDS – OOH INDUSTRY
6,300
5,800
8,420
9,800
13,400
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
5,400
7,700
8,900
12,000
13,300
14,500
Rs Millions

34. ADVERTISING TRENDS – INTERNET
INDUSTRY
-
-
- 1,000 2,000 3,000 4,000 5,000 6,000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
-
300
950
1,400
2,600
3,050
3,500
4,900
5,800
Rs Millions

35. MOBILE MARKET - INDIA BY THE NUMBERS
• There are more mobile phones in India than in any other country,
except China.
• There's still room for growth. Mobile penetration is 76%, slightly
below the global average of nearly 80% .
• Four of five Indian mobile users owns a phone that can surf the web
• Indian mobile users, are predominantly male (85%) and in their 20s
(63%). Three channels of content dominate their time online:
• Glamour & Dating
• Mobile Content
• Entertainment & Lifestyle.
• Mobile Advertising revenues were pegged at $ 56.5 million in 2011
and are forecasted to reach $ 247 million by 2015.
• Mobile Advertising is set to grow 10 fold in coming 5 years

36. INTERNET MARKET - INDIA BY THE
NUMBERS
• Even today India has one of the lowest Internet penetration in
world, pegged at about 10% of total population.
• Still India is the 3rd largest country when it comes to number of
internet users (accounting for 10.8% of all users), which crossed 100
million mark late last year.
• Online advertising market in India is pegged at $ 410 million
• Spends are expected to quadruple to $ 1.6 billion by 2015
• Online channel currently represents 7% of total advertising spends
and is expected to reach 15% in next 3 years.

37. MORE INTERESTING STATS ON ONLINE &
MOBILE ADVERTISING
• Google and Facebook account for over 60% of India’s online
advertising Market.
• Currently the online classifies business in India is valued at $ 225
million and is expected to reach $ 510 million by 2015.
• Almost 50% of entire classifieds business currently takes place over
the Internet
• The Mobile Classified Business is Valued at $ 45 Million
• Search and Display ads alone were pegged at $ 250 million by the end
of Q3’ 2011. The same is expected to triple to $ 750 million by 2014.
• Google and Yahoo are most popular portals with over 84% of online
Indians using their sites for searches and information.
** Published in Digital Marketing Yearbook for 2012.

38. MORE INTERESTING STATS ON ONLINE &
MOBILE ADVERTISING

39. FUNCTIONS IN AN AGENCY
• Complete a market analysis
• Develop an advertising plan
• Prepare a creative strategy
• Create advertising execution
• Develop & Implement a media plan
• Handling billing and payment
• Integrate other marketing communications

40. COMPENSATION STRUCTURES TO
AGENCIES
1. Commissions: For many years, standard agency compensation was 15 %
of the total amount spent by client on mass media such as television,
radio, magazines & newspapers
2. Mark-ups
a) Agencies routinely contract with outside vendors such as
photographers, printers, researchers and film directors
b) Mark-up ranges from 17.65 percent to 20 percent
3. Fee System
a) Hourly rate
b) Fixed rate
4. Pay-for-Results Plans
a) Agency's compensation on the effectiveness of its work

41. MAJOR ADVERTISERS (CORPORATES)
AWARDS IN THE INDUSTRY
• Cannes Lions International Advertising Festival awards
• Caples Direct Marketing Awards
• Clio Awards
• D&AD Awards
• Effie Awards
• International ANDY Awards
• Summit International Awards
• Creative ABBY Awards

42. THANK
YOU!!!!!