0601011 advertising & trends in on line advertising

A Project Report
On “Advertising & Trends in On-Line advertising”
For “Mona Advertising”
By
Ms Ashvini Shah
Under the Guidance of
Prof.
Sunil Doke
Submitted To
Pune University
In partial fulfillment of the requirement for the award of the degree of
Masters in Business Administration
Through
Vishwakarma Institute of Management
Pune-48
1

Chapter 3
Objective of the study
4

Chapter 4
Research
Methodology
5

Chapter 8
Suggestions &
conclusions
9

Acknowledgement
I express great pleasure in introducing my project report titled “Advertising and Trends in
Online Advertising”.
I take this opportunity to express my most sincere and heartfelt gratitude to Mr. Rahul
Shiledar (President) and Mrs. Shubhangi Sapre (Senior Marketing Executive), Mona
Advertising, Pune, for providing me with a wonderful opportunity to execute this project
in their esteemed organization and for patiently monitoring and guiding me throughout
the project.
This project would not have been successful without the precious guidance of our
director Prof. Sharad Joshi and my project guide Prof. Sunil Doke, to whom I express
my sincere gratitude and all those who have helped me directly and indirectly in the
successful completion of my project.
I would also like to thank my parents and friends for their support.
Ashvini Shah
11

List of Abbreviations
Cdr file:- coral draw file format
Pdf file:- acrobat reader file format
Ads: - advertisements
12

List of technical terms
1. Brief: - the idea of the ad in short
2. Creatives:-the artwork or the ad prepared by the artist
3. Calligraphy: - a form of handwriting that is very attractive
4. Coral draw: - it is a computer software used by the artists to make the ads
5. Release order: - it is a document that is sent to the publisher that contains
the details of the ads such as the dates on which the ad is to appear, its size,
its position and if it is color or black & white and also the rate and amount.
13

Index
SR.NO. TITLE PAGE NO.
01 Executive Summary 1-3
02 Company Profile 4-9
03 Objectives of the Study 10-12
04 Research Methodology 13-34
05 Data Analysis 35-41
06 Findings 42
07 Suggestions & Conclusions 43-44
08 Limitations 45
09 Bibliography 46
14

Advertising is a form of mass communication, a powerful marketing tool which
can make firms and brands, leaders in the market provided they have just the
product or services that are required in the market. It is an important element of
the marketing mix. It is a paid form of mass communication that can be traced to
an identified sponsor.
Advertising is not as same as publicity although the latter is also a tool of mass
communication. Publicity is an unpaid form of mass communication and its
sponsor is not easily identified. Over the years advertising has grown from being
just another marketing mix to a key strategic input in brand building and image
creation.
Definition:-
“Advertising is any form of non personal presentation of goods, services or ideas
for action, openly paid for by an identified sponsor.”
Today we are exposed to a larger number of commercial messages than any time
in the past. Newspapers and magazines are full of advertisements. Not only has the
quantity increased but the quality also has improved considerably over the past
decade.
Today we not only have print advertisements but also ads on the radio, the
television, hoardings, and now on the internet.
15

A new trend has taken the advertising scenario by storm and that is on line
advertising. The percentage of people accessing the net today in India has reached
100 million and the number is growing by the minute.
On line transactions have doubled and more and more people are using the net to
access information regarding various products and services.
We shall have a brief introduction on internet and the statistics for Internet usage
in India and its future prospects. We will also examine the scenario today where
on line advertising is concerned. We shall see the types of ads that are seen on
line.
This project was carried out in Mona Advertising Agency which is one of the
oldest and the finest advertising agency in Pune. This project tries to give an
overall view of how the work is carried out in an advertising agency today.
Through this project report we will try to understand what goes on in the agency
and how does the process of ad making occur. We shall also see the various types
of ads and a brief introduction to them. Through this project I have tried to give an
idea of what an advertising agency really does. Today the role of the agency is not
only to make ads and publish them but at times it also has to carry out the market
surveys and at times advise the client on the kind of media plan that they should
follow to get maximum results. They also at times have to collect the feedback
16

analyze it and make further recommendations to the client regarding the next step
that they should take.
During this project I have found that the major problem that the agencies face
today is that of collections. The clients are not regular in terms of making
payments but at the same time are very particular when it comes to the ad that the
agency is making for them.
Based on this I have made a few recommendations which if put in action should
help the agency to overcome the collection problem.
This project work will also shed light on the current trends in on-line advertising
and try to examine the future prospects in the same.
17

For 3 decades Mona advertising has survived in a business which gives sleepless
nights, hyper tension & ulcers. To exist in such environs it is a feat. To do it
successfully calls for rare tenacity and a constant need to reinvent you. From
humble beginnings of local shop promotions to corporate success stories on a
national level, Mona ads has always strived to keep the clients interests at the
foremost. Creating campaigns not only recognized for creative, but affording the
client that elusive element which every marketing person desires, The Turnover.
18

Established in 1973
A Powerhouse of Creative Ideas
360° Communication Solutions
Establishing Brands across India
Re-Defining Creativity
Creativity – it is the most frequently used word in the advertising world. Many
appreciate its value, a few understand it & fewer still practice it. Awards,
accolades & laurels do add to its luster but the best reward for creativity is an
appreciative client. The experience of Mona in the field of successful advertising
has motivated it to set definite parameters for the creative process such as:
 A studied analysis of the clients needs.
 The efficacy of the creative solution.
 Time bound delivery of the solution.
These three maxims have proven to be the perfect guidelines to keep on creating
higher standards of efficient advertising that works in the interest of the client
19

Re-Organizing the Work Place
The work place has totally redefined the office of yester years. It has become
synonymous with a place where a person thinks and creates. It provides the ideal
environment where people can nurture ideas and enhance their own productivity.
It is this creation of the inner space that fuels the dynamism and efficiency at
which the agency approaches their subject. Centrally located work place, which
houses the creative studio, media department, client servicing, production,
accounts and administration.
State of the art infrastructural facility, total computerization, telecom linkages,
email, faxes lends the work place of Mona the technological edge needed in
today’s fast paced environment.
Re-Engineering People:
The team- the nucleus of any organization. You can have a bunch of brilliant
people, each treading his own path; or you can have individual talents that work in
tandem and achieve. Team Mona is people who think different and yet think alike.
Individual talents who complement each other with a shared knowledge base and
are fired with the aim to better themselves, with out any room for complacency.
20

Generating novel ways of saying things mundane, aided with a work culture that
suits their creative expression.
At Mona Ads they have professionals dedicated to their respective fields of
expertise guided by the dynamic core management. Because in advertising, change
is the only constant.
Re- Affirming Trust:
Every relationship is based on mutual respect. Respect earned over understanding
each others strength, abilities and short comings. Over the years Mona has
nurtured these relationships with their clients, with the media, and with all of their
associates with care and concern.
Professional ethics along with the human touch has seen them through many
triumphs and tribulations. For Mona no client is small or big. Each one is valued
and respected as the other because they believe that companies do not make a
difference, people do.
21

WHAT DOES MONA DO . . . ? ? ?
Creative Designing
Corporate Identity Programs
Advertising Campaigns
Marketing Consultancy
Market Research
Surveys
Test Marketing
Product Launches
Press Releases
Outdoor Advertising
In shop displays
Point of Purchase
Printing
Packaging
Publishing
Brochures
Sales Literature
Product Catalogues
Radio Jingles
Corporate & Industrial Films
22

Ad Films
T.V. Spots
Sales Promotion
Exhibitions
Electronic & Interactive Media
Event Management & Promos
Etc. . . .
23

Every research study needs certain objectives which gives the study is parameters
and a defined framework. Lack of this framework results in the project becoming
vague and it then becomes very difficult for the reader to find out what the
researcher actually wants to highlight.
Need for the study
The world of advertising has changed significantly during the past decade. Now
there are various media available other than the traditional print media and hence
the client has a variety to choose from.
Thus it has become necessary to know what an ad agency is all about and what
goes on behind the making of an ad, the choice of the media and the message
behind the ad. Also we live in the age of the internet. Today internet has become
an inseparable part of the human life. The use of the net is growing and at a
tremendous pace. Thus it is imperative for any company who wishes to make its
presence felt over a larger area to think about online advertising.
To do this one needs facts and figures to make a sound decision.
Background
Advertising is a communication link between the seller and the buyer or the
consumer. It does not simply provide information about products and services but
is an active attempt at influencing people to action by an overt appeal to reason or
emotion. Advertising as a part of the total marketing mix influences the sale of the
product. Together with the product or brand, price, channel of distribution and
24

personal selling, advertising attempts to reach the marketing objectives. Right
advertising is as essential as the right product, the right distribution channel and
personal selling.
Primary Objectives
The primary objective of this study is as follows:
1) To study the working of the advertising agency
2) To find out various functions of the various departments
3) To study the different types of ads
4) To study the trends in online advertising
Secondary Objectives
The secondary objectives of this study are as follows:
1) To study about the various other Medias of advertising
2) To study the execution of these various other Medias
25

Sources of data collection
The primary source of data is based on my observation during the project study.
The secondary source of the data is from various books and web sites.
Significance of the project
This project offers insight into the working of a modern day Ad agency. It also
sheds light on the process that is carried out during the making of an Ad and the
execution of the media plan. Also this project offers a look at online advertising.
26

The research design is descriptive. I have described the observations that I have
made during the project study. The data has mainly been collected by asking
questions to the concerned people and from various magazines, books, and web
sites.
The organization structure at Mona Advertising:
The working of the Art Department
The art department of Mona ads consists of 11 artists and 2 copywriters and they
boast to be (and I have found rightfully so) one of the best creative teams in Pune
city. This department is the most favored and pampered. This team is responsible
for the creatives*. The work of the artists begins after the marketing executive
President
Art
Department
Media
Department Marketing
Department
Accounts
Department
27

visits the client and brings a brief* about what the client wants to project in his ad.
The marketing executive then relays this information to the artist and accordingly
the artist gets to work. The artist uses images that are downloaded from the net. At
times they create the ad using calligraphy*. All the advertisements are created in
coral draw*. Then the artist gives the printout of the creative to the marketing
executive. On receiving approval from the client the artist then converts the cdr*
file into a pdf* file and loads it on the computer of the media department so that it
can be sent to the respected publication. Their work does not end here. They have
to maintain backup* files for every creative they make even though the ad has
appeared one year ago.
The working of the media department
The department of media is perhaps the department that has the most difficult task.
This department draws up the schedule for the ads to be released in the papers and
other media. This department also co ordinates the dead lines for the creatives to
be submitted by the artists for particular ads. This department has to maintain
relationship with all the publishing companies such as the Times of India, Indian
Express, Sakal, Lokmat, etc. The media people maintain the rates of the ads, the
day of release and the size and the position of the ad.
They also suggest the client regarding the media to be used to allow maximum
exposure and response. The media department on receiving the approval from the
client regarding the schedule and rates send a release order* to the publishers.
28

Theirs is a very complicated job as they have to handle the confusing task of
releasing the right ads of the right client on the right day and in the right
publication. There have been times when a client has refused to pay for the ad as it
was not in the position which he had asked for. The media people also have to
negotiate with the publishers so as to get the best deal for the client. In addition
they have to maintain records on daily basis.
The working of the Marketing Department
The marketing department is a very lively department. At the moment the strength
of Mona’s Marketing department is 5. The job of the marketing people is very
interesting as they are the ones who act as a link between the client and the
agency. The marketing executive visits the client and discusses with him regarding
the product or the service that the client wants to advertise. He also suggests the
client, the media that the client can employ to get maximum results. At times he
also discusses the strategies that can be put into action to ensure that the objective
of the client is fulfilled. It is the marketing people who bring this brief from the
client and relay it to the artists so that they can work on the creatives. It is these
people who communicate to the media department about the media chosen by the
client, date of release of the ad and the duration during which the client wants the
ad to appear. They also communicate to artists and the media department the size
of the ad and incase of print ads if it is color or black and white and the language
in which the ad is to be published. After the artists have created their work, the
29

executive takes this work to the client and gets the approval or else if there are
some changes communicates them back to the artists. It is also the job of this
department to deliver the bills and recover the money for the same from the client.
The working of the Accounts Department
The accounts department generates bills according to the release of the ads of the
particular clients. This department consists of five accountants. They maintain a
record of the dues and the payments that the agency has to make to their
publishers and associates. They also do revising of the bills incase of any
discrepancy*. This department also takes care of the salaries of all the employees
at Mona and all the other financial factors like income tax, sales tax, etc. for Mona.
An Introduction to Different Types of Ads (Print Media)
30

A] PRESS ADS
 These are known as the press ads
 These are released not only in the news papers but also in various
magazines
 The color scheme is four colors CYMK*
B] HOARDINGS
31

 Hoardings are those ads that are the part of outdoor advertising
 Their objective is to catch the attention of the person passing by the
hoarding and to pique the interest of that person
 A hoarding is a great way of advertising for brand recognition & brand
recall
C] BROCHURES
32

 A brochure is a booklet that gives information regarding the product or the
service
 It is usually used by businesses like real estate, institutes, banks, etc.
 A brochure is more of use when the client is introducing new products
 For example; if a builder is launching a new project a brochure of that
project would carry all the details regarding the project, the amenities
provided by the builder, etc.
34

 A logo is an emblem of an organization
 It creates the identity of the firm
 It makes recalling of the company quicker
 It is used by the firm on all its material beginning from the visiting cards to
office stationery to ads
36

A FEW FACTS ABOUT PRINT ADS & OTHER MEDIA
1) The size of a print ad is measured in square centimeters
2) The width is measured in columns where one column is equal four
centimeters
3) Only the width of the classified ads is always fixed at three
centimeters
4) The height is measured in centimeters also and is flexible
5) The ads are divided in different categories like
 Display ads
 Appointment ads
 Classified ads
 Pointers
 Ear banners
37

6) Display ads are just for the display of the goods or services that the
client has to offer
7) Appointment ads are those ads which communicate the requirement
of a client to the masses
8) Classified ads are small ads which can be used for both display or to
communicate requirement
9) Pointers are small ads usually at the left hand side corner of the front
page on a newspaper which points at the ad in the inside regions
10) Ear banners are those ads which are on the top corners on the
newspapers` front page
11) Other medium of ads used popularly today is radio jingles
12) A jingle is measured in seconds and the standard is of a ten second
spot
13) The client can order for any number of spots to be played per day for
the duration that he wishes
38

TRENDS IN ONLINE ADVERTISING
Before we get any further with the details in online advertising lets learn some
basic facts about the internet & the usage pattern in India . . .
What Is Internet??
 Internet is network of computer networks spread across the globe.
 The scale and speed @ which the interconnected form of electronic
communication known as the NET, “ THE INTERNET” has entered
ordinary life in almost all its aspects
 One of the greatest things about the Internet is that nobody really owns it. It
is a global collection of networks, both big and small
 These networks connect together in many different ways to form the single
entity that we know as the Internet
39

 The Internet can powerfully leverage your ability to find, manage, and
share information
 Never before in human history has such a valuable resource been available
to so many people at such little cost
India-Key Facts
 India currently has around 50 million Internet users with a growth rate of
40-50% YOY
 The number of Leased Line Connections in India is 16,589. Number of
Broadband connectivity (>=256Kbps) subscribers is 399,253. Minutes of
usage per subscribers reported by 34 ISPs is approximately 300 minutes
per Month.
 Ecommerce in India expected to touch Rs. 1,180 crores for year 2005-
2006. Projected growth for year 2006-2007 is Rs. 2,300 crores
 Top Ecommerce sites in India are Indiatimes Shopping, Irctc.co.in,
ebay.co.in, Fabmall.com in that order
40

 Intended Use of Source in 07 - Internet=39% Cable TV=24%
 Newspaper=8% National Network News=5%
Relevance to Today’s World
 It has provided an extremely reliable reach across the globe
 A reliable and Affordable infrastructure to conduct business
 Easy information access across segments has made the medium extremely
popular
 PC penetration has increased phenomenally resulting in increase in the
number of online users
 Popular with advertisers due to cost effectiveness & measurability
41

 Compared to other mediums, internet provides an actionable and instant
response and fulfillment. It therefore becomes a formidable branding and
fulfillment tool
How does online advertising compare to offline advertising?
 Online advertising betters offline advertising in many respects from cost to
demographics to targeting.
 Few benefits of internet medium:
 Transparency and accuracy
 Cost
 Targeting
 Control
 Speed
 Midstream tweaks
42

Key Takeouts
 Internet medium is poised on the brink of a takeoff
 With a sizeable audience from affluent background, the online medium is
going to be the next big thing to seriously vie for advertising budgets of big
brands
 Compared to other mediums, internet provides an actionable and instant
response and fulfillment. It therefore becomes a formidable branding and
fulfillment tool
43

 With average internet usage of over 300 minutes per month per person, its
taking some quality time away from other offline mediums like print &
television
NOW LETS TAKE A LOOK AT THE TRENDS IN ONLINE ADVERTISING IN
INDIA
While most advertisers are still focusing on the traditional advertising media,
the target audience is rapidly moving to a more dynamic and interactive medium
- the Internet.
About 93% of the 28 million online Indians today belong to the age group of 18-
45 years, which has the maximum buying power - your prime TA.
What's more, the Indian online population is estimated to be 100 million by 2007-
08
44

Advertising market 2003-04 2004-05 2005-06 2006-07
Online Ad Market
(Rs. Crore)
42 107 162 218
% share of Online Ad Revenue across Categories
Categories 2004-05 2005-06
Financial Services 27% 24%
Tech 13% 11%
Travel 14% 12%
Automobile 9% 11%
Consumer Durables 8% 9%
FMCG 7% 9%
Online Serives (P) 12% 11%
Entertainment 4% 7%
45

Telecom 2% 6%
Financial Services includes: Credit Cards, Loans-Personal, Home, Car, Banking
Services, Utility Payments, Insurance, Investments)
Online Services (Personal) (Matrimonial, Job Placement, Personalized Travel
Verticals- advertising are predominantly pure-play net ventures)
SOME INTERESTING FACTS
44% of Internet users believe that a film's online participation influences their
judgment in watching a movie reinforcing the need for movie houses to be present
online.
73% of Internet users spend less than Rs 500 on a visit to the cinema indicating an
affluent demographic. The 18-35 age groups are the biggest spenders.
33% of Internet users have a penchant to buy movie merchandise online & this
frequency is likely to grow as we are reaching to households owning DVD Players
& Recorders (35%), VCD Players (56%)
46

94% of users are susceptible to mobile marketing. Moreover, there is high
propensity to talk, share amongst friends.
47% of Internet users would pay for mobile content like alerts, ring tones,
wallpaper etc.
ONLINE AD UNITS
Till now we have seen the trends in online advertising. We have also seen the
benefits of the same. The units of ad that is online are different from the units of
off-line ads. As we have already seen the various components that are required in
order to publish your ad whether a hoarding or a brochure or a pointer or a
classified, etc. Similarly it is important to know where and when and how will
your ad be displayed on a specific web site. To know these details it is important
to have the core knowledge about the internet or online advertising units.
47

Let’s have a look at the online Ad units,
 Top Text Link
 Content Text Link
 Ear Panel Slug
 Left Navigational Banner
 Top Banner
 Tower Banner
 Leader Board Banner
 Section banner
 Inbox Banner
 Login Logout
 Monster Banner
 Hot Links
 Bottom Leader board
 Bottom Slug
 Shoshkele
 Frame spots
 Interstitial
48

We have already seen the trends in on line advertising. On the basis of that I have
collected some facts and figures that I have presented below.
Due to online advertising there is an increase in the online shopping.
Below given are a few most popular items that are bought online and their trends.
The items that I have taken are as follows:
1. Apparels
2. Home Appliances
3. Computers & Peripherals
4. Railway Tickets
49

5. Magazines
6. Electronic gadgets
1] Apparels
Online Apparel sales, just like its offline counterpart, is supported by Multi
Branded outlets (MBOs) online, with their value offering and details catering to a
customer who is keen on ‘information’ before a purchase.
The 18-35 age groups are the highest purchasers of Apparel online, accounting for
79% of purchases with the lion’s share of 50% falling in the 26-35 age groups.
Apparel Demographics
50

2] Home Appliances
The 26-35 age groups are the highest purchasers of Home Appliances online
accounting for 53% of purchases.
52

3] Computers & Peripherals
The 18-35 age groups are the highest purchasers of Computer and Peripherals
online accounting for 73% of purchases with a greater share of 48% falling in the
26-35 age groups.
By Age
54

4] Railway Tickets
Railway Ticketing is a perfect example of self-service e-economy with the Internet
being the domain of information, options, bookings, and capacity-allocation. A
perfect opportunity capitalized by IRCTC, a public sector company. The major
group that buys tickets on line is 18-35 with 26-35 contributing a lions share of
47%
55

By Age
5] Magazines
The 18-35 years age group is the highest purchaser of Magazines online
accounting for 68%% of purchases with a lion's share of 47% falling in the 26-35
years age group
56

By Age
6] Electronic gadget
74% of Electronic Gadgets are being bought by 18-35 year age group, with the e-
commerce-savvy 26-35 years having the lion’s share of 49%.
By Age
57

During this project study I have found many interesting facts that I have listed
below. These findings are based on the observations made during the project study
and the information gained from the websites.
1. The scope for advertising is growing huge.
2. The competition in this field is huge
3. There are various other media available to the client for advertising other
than the traditional print media
4. The major problem that the agency faces today is that of collections.
58

5. The clients do not pay money in time despite the 30 day credit limit
6. There is a shortage of manpower in the media as well as the marketing
department
7. The major spending group today is the 18-35 age group
8. The number of online population has grown to 100 million and is growing
by the minute
9. This age group is net savvy
10.On line transactions have doubled and are expected to keep growing.
Though the on line advertising is catching rage the publishing medium does
not have to worry too much. The publishing medium remains by far the most
favorite medium of advertising.
During this project study I have observed that a few things that need to be
changed. The agency is facing two major problems viz manpower and collections.
Also I have seen the rising trend of on line advertising.
Thus I have made a few suggestions which could help to solve the agency’s
problems to a considerable extent.
Suggestions
59

 The agency is facing the problem of manpower in the media and the
marketing dept. to rectify this problem it is necessary hire adequate number
of people so that the work can be carried out more efficiently and quickly
 Also the additional benefit would be that the work would be properly
delegated and wont fall on the shoulder of a single employee causing
confusion and stress.
 To solve the collection problem of the agency one thing that can be done is
to take post dated cheques from the client
 Or yet another idea that can be implemented is that the agency could take
half the amount before the release of the ad and the remaining amount after
the release of the ad so that at least not all the money is blocked by the
client
 Also looking at the on line advertising trends I feel that this is the right
time for the agency to get into this field.
 It should start offering their clients this medium of advertising along with
the other Medias of advertising.
Conclusion
It was very interesting to be able to see the behind the scenes action and drama
that is the part and parcel of an ad agency. One always sees the ads in the papers or
listens to the jingles on the radio yet very few of us realize the amount of work
60

that is put behind every individual ad. I am glad that I got this golden opportunity
to be able to get a chance to learn how an ad agency functions.
There is still a lot left to learn and a vast area to be explored. I feel as if I have just
touched the tip of the iceberg and I am sure that such is indeed the case.
Every project work has a few limitations and this project is no an exception.
The limitations are as follows
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 The findings and suggestions have been based on the observations made
during the two months.
 A more detailed study could not be carried out due to the time constraint of
two months
 The facts figures are not completely accurate as they are updated regularly.
Yet I have tried my best to collect as updated data as possible.
Books:-
1] Foundations of Advertising
(Chunawalla& Sethia)
2] Marketing Management
(Rajan Saxena)
62

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