Structure of Advertising Industry

Topics: Advertising, Advertising agency, Student-run advertising agency Pages: 9 (2486 words) Published: September 21, 2012


Advertising is a social and business process responsible for the mass communication of the information. Today, advertising is the fastest growing industry that has come to stay so long as the forces of competition are at constant work deciding the destinies of the firms. The size of the industry of advertising can be measured in terms of amount spent on this creative activity of education and entertainment. Advertising industry is a social institution born specially to fulfill the human needs to acquire and send the information about the availability of products, services and ideas. It is the industry with a network of variety of divergent forces and elements. The structure of this industry gives us the picture of the active participants in the widest range of advertising activities.

The major components of the advertising industry are:



3)Advertising Agencies


5)Governments 1) Advertisers

The advertising industry owes its existence to the advertisers , who are the individuals and the organizations who send the advertising message to the intended and interested parties. There are two types of advertisers ,business advertisers and non business advertisers.

Business advertisers-business advertisers are the manufacturers and dealers who are interested in disseminating the information related to a product, idea or service in order to popularize their points of sale and offers. The business advertisers want to advertise information like the availability of products in a particular store or stores, the specialty of products, and also the terms and conditions related to a product. So when an advertiser is into this type of advertising he can be called as a business advertiser. Non-business advertisers-the other type of advertisers are non-business advertisers. These type of advertisers are interested in passing on information to an individual or a group of individuals. In the case of a non-business advertiser the information disseminated may not relate to a product, service or an idea of commercial nature. Here the information relates to things like births and deaths, functions, ceremonies, celebrations, rules regulations, arrival and departures. Both business and non-business advertisers are a very important component of the industry .Both these advertisers are ready to foot the costs involved as sponsors to pay for highly specialized services of media owners and agencies directly and also indirectly bear the costs of the government.

2) Media owners

The main function of media owner is to transfer the message from the sender to the audience. Therefore we can say that the media owners are a medium through which the advertising message is carried or conveyed. Classification of media-

* Television: reaches large number of people .But the costs involved in tis type of media are high. * Cable TV: Better equipped to target a specific audience both psychographically and geographically. It is more cost efficient than television, but it doesn’t reach as many people as television does. * Radio: it reaches specific target audiences.

* Newspaper: Communicates details about arts organization's events; can geographically target a city/communities; lots of ad clutter, especially in the entertainment section; expensive for a "page-dominant" advertisements. * Magazines: Reach upscale audiences; higher quality graphics and environment; based on a weekly or monthly publishing cycle, it is difficult to develop an adequate frequency level; costly, especially since a color ad is necessary for impact. * Outdoor Billboards and Transit: Good image or reminder medium; can't communicate many details. * Internet: Good support medium;...
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