Marketing Advertising Services in India – A study of JWT
Table of Contents
PART 1: STUDY OF ASSIGNED SERVICE BUSINESS
With the growing economy, there has been a constant increase in the consumerist desires of the Indians
. The advertising industry in India acts as a catalyst of these desires as the advertising in India was primarily confined to media like newspapers, television etc. The industry has evolved from small businesses to a whopping 300 billion worth industry. It is currently one of the major industries in the tertiary sector. Various businesses look up to advertising as a tool to cash on lucrative business opportunities. The industry has been experiencing a sea of change from use of billboards and hoardings to luring offers, exclusive gifts etc and advertising on social networking sites. The Indian advertising industry has various factors to its growth advantage: Huge pool of trained and creative personnel in the branding and media industry Multiple cultural society which helps in understanding diversity of cultures Growth of the animation software industry and better production standards in TV and print media Increasing IT capabilities which enhance the web based communication with global clients Key trends for growth
Digitization of film and TV distribution infrastructure
Digitization of distribution has brought more sustainable and profitable business models across media sectors. The digital technology is expected to drive the advertising sector’s growth by spurring on end user spending and transparency.
Growth in new media
The rapid increase in the mobile and wireless connections continues to drive the growth of internet penetration in India. With better access, through cheaper and smarter devices, audiences are consuming more content and are getting increasingly engaged. Key beneficiaries are emerging new media segments which include internet advertising, online classifieds which are on a rapid growth path.
With traditional media still going strong
India is a growth market for traditional media such as TV viewership, radio listenership and the print market however new media platforms are coming up.
Greater sophistication and segmentation in content
TV digitization enables greater diversity and niche television programming which would improve broadcast economics which in turn would help in increasing the investments in production quality, niche and targeted genres of content in the medium term. Internet and mobile platforms are a cost effective enabler to reach diverse audience segments with customized content.
Regional markets remain key centres for growth
Consumption from key regional markets continues to have a high growth. Key media players are focusing on acquisitions and expansion opportunities in regional markets based on higher rates of advertising revenue growth and better insulation from the slowdown than in metros.
Revenue models still advertising dependent
The revenue models are still advertising dependent therefore, it remains sensitive to the impact of the economic slowdown.
Regulatory and policy support
There is a dire need for measures to aid curtailment of piracy and encourage investments to support growth. Regulatory interventions have been a key enabler of growth.
Gaps in availability of skilled media and entertainment professionals With potential growth of TV and radio broadcast channels, skill intensive film sectors, animation etc, the need of skilled personnel would increase. In a talent driven media sector, companies could potentially differentiate based on ability to attract and retain the right people Size and Growth of the Market
The total advertising annual spending is estimated to USD 5 billion, primarily on television and radio alone. The advertising industry grew from 728 billion in 2011 to 820 billion in 2012. Despite the economic turmoil, advertising revenues saw a growth of 9 % in 2012, 13% in 2011 and 17% in...
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