Introduction general introduction:- a brief overview


Innovative Advertising: Moving Picture Newspapers For Real!



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Innovative Advertising: Moving Picture Newspapers For Real!


A newspaper from the movie Harry Potter & the prisoner of Azkaban with moving pictures :


Figure 1.11 Video in Print Advertsiemnt

Never has the magazine and newspaper industry been faced with greater uncertainty and turbulence than today.  There are many that believe that the very notion of magazines and newspapers is undergoing a profound transformation, if not under threat.

While most of the print media barons are concerned about the future of their businesses, there are some that are rising to the challenge.  As usual, it is technology that is at the center of it all.  Every time a new technological wave washes over, we hear assumptions from various quarters that everything from before will be swept away.  But will that happen this time around, with the moving and talking picture magazines?

What if you were to experience something like that? Taking media innovation to a new level, where you’d least expect to find it, you will soon have a weekly that contains moving and talking pictures.

Perhaps most exciting of all, Video-in-Print (VIP) is bringing the audio-video channel to printed media. This is a small screen (90mm wide and just 3mm thick) that can be inserted in a brochure or magazine and present high-definition video and audio.
This technology not only increases the effectiveness of print advertisements but also adds content previously restricted to television or radio channels.

In the latest example of finding media innovation where you’d least expect it, CBS is embedding a video player in a print ad in Entertainment Weekly that will serve up a buffet of its fall TV lineup.

The CBS foray into a print-digital alliance plays full-motion video at a crisp resolution. The ad, dubbed by CBS and partner Pepsi Max “the first-ever VIP (video-in-print) promotion”. Opening the page activates the player, which is a quarter-inch–thick screen seen through a cutaway between two pages concealing the larger circuit board underneath.

The audio quality is equally good (extremely poor video shot by this reporter notwithstanding), but beware: There are no volume controls, and in a quiet environment, it’s quite loud. This is surely a intentional design feature, aimed at getting the attention of people nearby.

As impressive as this step is, the true marriage of print and digital multimedia still seems quite far off. Still, it is boldish, baby steps like this that bring about dramatic shifts in media. That said, the logical extreme of the current wave of tech innovation heads more toward digital reproduction of a print experience

It is obvious that the magazine is looking to earn big with this form of advertising, which could have much more potential of catching the reader’s eye than other existing forms of advertising.





Figure 1.12 Video in Print Advertsiemnt
Although, this is not the work of one of Rowling’s wizards, we do have an intriguing piece of magic on our hands.

Different reactions to this ad :

  • This idea is creative, and it cost a lot of money to execute. But in these sober economic times, is it money well spent?

  • People are interested to see new things, that’s enough for a reason. Print media is trying to rebuild it’s value.. let’s see if they fail or not

  • It was bad enough when all one had to do to be misled and lied to was to read the written word. Now, we will be able to see moving pictures as yet another Pitch Man attempts to sell us even more useless products.

  • At the dawn on the paperless era, when anyone can post any video on the internet for free, how can this wasteful technology have a reason to exist?

There are pros and cons to any kind of advertising, and it's beneficial to understand what these are before dipping into your hard-earned marketing budget.

1.2 INTRODUCTION OF CURRENT RESEARCH STUDY:-

Background of Study:-

The present research problem is A Study of Impact of Visual Innovations in Print Media Advertising.

Innovation comes from the Latin innovationem, noun of action from innovare. Innovation can therefore be seen as the process that renews something that exists and not, as is commonly assumed, the introduction of something new. For this renewal to take place it is necessary for people to change the way they make decisions, they must choose to do things differently, make choices outside of their norm. Now, as Harvard economist Michael Porter points out competitive advantage, or the productive use of any inputs, which requires continual innovation is paramount for any specialized firm to succeed.

Thinking 'outside the box' is not limited to artistic and writing professions. Innovative thinking, brainstorming, and creativity exercises are encouraged and used by forward thinking businesses and corporations to successfully plan, create, and sell products and services.



PRINT INNOVATIONS:

With the introduction of sq. cm. Measurement, print innovations have proven to be a boon for advertisers. These innovations have freed creativity of all margins, literally. Print innovations are the unique shapes and sizes of advertisements used in print advertising. These innovations never fail to grab the attention of the reader ensuring that brands get noticed .

• Innovation can therefore be seen as the process that renews something that exists and not, as is commonly assumed, the introduction of something new.
• The central meaning of innovation thus relates to renewal. For this renewal to take place it is necessary for people to change the way they make decisions, they must choose to do things differently, make choices outside of their norm

Therefore the current Research is framed on the objective to conduct the research A STUDY OF IMPACT OF VISUAL INNOVATIONS IN PRINT MEDIA ADVERTISING



Objectives of the study:-

The present study aims to achieve the following objectives by considering the main objective as A STUDY OF IMPACT OF VISUAL INNOVATIONS IN PRINT MEDIA ADVERTISING. These days when viral videos have given the brands a smarter and sustainable way to advertise through social media and internet its easier for the audience to overlook the art of print ads. It doesn’t matter how good you are what matters is how good you want to be. That’s the reason why innovation seems to be a good choice for the advertisers. The research objective of this to find out how effective is the use of innovations for these advertisers.



  • Whether the advertisements using innovations are more impactful than the normal advertisements or not.

  • To measure the level of impact of innovative display in print advertisement on its target audience created by different kinds of innovations.

  • To see how justifiable it is to use a particular innovation in printing your brand’s ad in a newspaper.

To achieve these objectives both quantitative and qualitative methods were employed to understand Impact of Innovations in advertisements



{The Research Methodology to be followed for current research study is mentioned in chapter III- Research Methodology}

1.3 ROLE & GROWTH OF ADVERTISING AGENCIES:-

Advertising agencies are deemed as the backbone of the Advertising Industry. The role of advertising agencies start from the identification of the advertising needs of the product to the actual execution of the advertising project in various available media options relevant to the characteristics of the product. For instance, it may not be very useful to advertise for children books and comics in a business magazine or financial journal. Similarly it won’t be useful to advertise for Office products in Children comics or even lifestyle magazines. This Chapter looks into the role of advertising agencies and their growth over a period of time.
Advertising agency is one of the most important components of the advertising industry. Advertising agencies have led from the front and played a significant role in the development of the modern advertising industry, as we see it today.
The American Association of Advertising Agencies (AAAA) defines advertising agency as:

"An independent business organization composed of creative and business people, who develop prepare and place advertising in advertising media for sellers seeking to find customers for their goods and services."
The origin and growth of advertising can be divided into five stages:

1. Period of space agents,

2. Period of space wholesalers,

3. Period of creative services,

4. Period of complete package of services

5. Period of mega agencies


Period of space agents:

The history of American advertising records Volney B. Palmer as its first person to have worked as a space salesman. He set up his agency office in Philadelphia in 1840. He solicited advertising business for the newspaper publishers for a commission. Others followed Palmer and soon there was competition in selling space to the prospective advertisers.


Period of wholesaling:

In about 1865 George P. Rowell started a different system of selling space. He contracted with 100 newspapers to buy space on monthly basis. He purchased space in lots at inside rates and sold - rates in small units to the individual advertisers. He not only earned his normal commission but also made good money due to, wholesaling rates offered to him by the publishers.


Period of creative Services:

In the last decade of the 19th century there was so much competition among the various advertising agencies to sell space, which resulted in cutting of rates by the various agencies. At the same time some of the publishers started their own sales departments to sell space directly to the advertisers. This resulted in loss to the agencies and some of the agencies had to close down their offices. Others in order to face difficult times, hired copywriters and artists to handle the art work and copy for the Clients and since the advertisers were offered free creative services they once again relied on the advertising agencies. N. W. Ayer was the first person to offer such services.


Period of complete package of services:

After World War 1, a lot changed in the functioning of advertising agencies. In 1917, the AAAA was born. This organisation worked for the improvement in advertising standards and advertising practices. Now-a- days, the agencies assist their clients in total marketing programme, the agency may also work on projects, not directly related to advertising, such as public relations, package design, sales literature and so on.


Period of Mega Agency:

A significant development of the 1980's is the development of mega agency. Agencies world wide merge with each other to serve their clients in a much better way. It was in 1986, Saatchi & Saatchi, a small London based agency who started the movement and at present it is the third largest agency network in the world (Saatchi & Saatchi enjoyed No.1 position in 1990).



1.3.1 Choice of an Advertising Agency

Selecting the right type of advertising agency is a very difficult choice. The advertiser should make a list of all possible agencies that can serve his purpose and the agency best qualified to provide the required and effective services is selected. Some advertisers may select more than one agency to handle separately its various product lines. Following are the factors that should be considered while selecting an advertising agency:



1.Services Offered: A very important consideration in the choice of the advertising agency is the requirement of the advertiser as per the services in respect of advertising and non-advertising. If the agency is well equipped to meet the requirements of the advertiser, then such agency can be selected. Some agencies may provide only a few services, others package of services.

2. Location: The location of the advertising agency is of prime importance, preferably the office of the agency should-be located within the same city where the head office of the client is located. Quite often the client has to consult and communicate on various advertising problems and this can be done quickly and economically, if the office of the agency is within easy reach of the advertiser.

3. Advertising Compensation: Now-a-days agencies charge for entire services. There is hardly anything free. The advertiser has to pay for the copy writing, art work and other services. The rates of various agencies are not standard and they differ from agency to agency. The advertiser must check on the rates before finalising the choice of the agency. However, it does not mean that the advertiser will select an agency whose charges are less, other factors often come into picture such as experience and quality of services offered.

4. Personnel: The creative personnel of the agency such as the copywriters, art directors and others must be looked into before contracting the agency. The success of the advertiser's campaign largely depends on the services of the creative department.

5. Size of the Agency: The size of the advertising agency must be considered. The larger the size, the more it is preferred, however, at times, small is beautiful because a small agency may give more attention to its client's work, in such cases; the small agency can be considered.

6. Records and Reputation: The past record and reputation of the advertising agency in the field of advertising must be studied. The agency-client relationship, the client turnover, the success of other clients' campaigns, the implementation of the schedule, the follow up and such other factors must be looked into.

7. Other Accounts: The advertiser should also find out the other accounts that are handled by the agency. In no case, the advertiser must select that agency which handles competitor's advertising, because there will always be suspicion of getting poor facilities and second hand treatment and it will be wise to discard the choice of such agency.

8. Media Connections: Some agencies do have better contacts with various media owners, such as the newspaper and magazine publishers, Doordarshan, Radio, etc. For instance, in a MARG survey many firms perceive that Mudra has better connections with Doordarshan than other agencies. Such agencies may be able to influence upon the media owners and can book prime time and space for their clients. Other agencies may lack far behind in such connections. Therefore, the agency with better media connections be selected. There are several other factors such as foreign collaborations of the agency concerned, its experience or age must be taken into account before selecting an advertising agency.

WHY ADVERTISERS PREFER ADVERTISING AGENCIES?

Advertisers prefer ad agencies rather than having an independent advertising department because of the following reasons:



1. Skilled Personnel: Advertising agencies employ highly skilled and experienced copywriters, art designers, media planners, market researchers, typographers and a host of other experts. They are not only highly experienced but also highly paid. Very few manufacturers could afford the luxury to buy full time services of people belonging to such caliber. Moreover, even if they could, they would miss out on the other great agency asset - accumulated experience in handling diverse accounts.

2. Better Ideas: Agencies work on a number of accounts. They know the success and failure of the various approaches used by the advertisers. They can generate new and better ideas to penetrate the target market.

3. Independent Analysis of Problems: Companies have difficulty in analyzing their own problems objectively and here an outside and independent agency can do the job much better.

4. Cost - Effective: The advertiser finds it less expensive to employ an agency rather than doing the advertising work all by himself having a separate advertising department. Although the advertiser may run ads throughout the year, but the services of the creative and advertising production people may be required only for a few days or months as the same ads are generally repeated.

5. Easy to Divorce: If the advertiser maintains a separate full fledged advertising department, it is not so easy to terminate the services of advertising department (due to trade unionism) but the advertiser may not face any difficulty in changing the advertising agency.

6. Enthusiasm of Ad Agency: The motivation and the enthusiasm with which the agency works (in order to retain the client's account) may be lacking with the advertising department.

7. Additional Services: The advertising agency may provide a number of other services such as research, sales promotion, etc. which the advertising department may not be able to do such services effectively and efficiently.

8. Media Contacts: The agencies do have better media contacts and as such they can book prime time and space for their clients, which an advertising department may not be able to do so.

1.3.2 Organisation Structure of an Ad. Agency:

The organization structure differs from agency to agency depending upon their specialized departments. Further, the structure may also differ depending on the size of the advertising agency. The following chart shows organization structure of a typical advertising agency, which is diversified and handling most of the components of the advertising industry.





FIGURE 1.13 ORGANISATION STRUCTURE OF AN AD. AGENCY

1.3.3 Functions/Services of an Ad Agency:

The functions of an ad agency depend upon its organizational structure.

The functions of a typical ad agency can be broadly classified into five areas:

1) Creative Services,

2) Account Services,

3) Marketing Services,

4) Management & Finance.

5) Other Special Functions


Creative Services:

These services include copy writing, artwork and production of finished ads.



a) Copy: Most advertising people believe that copy writing is the most important aspect of advertising. In most agencies, the copy department is one of the largest departments. It usually plans an advertising copy for all media, although some agencies prepare maintain separate sections or departments for preparing TV, radio, outdoor and press ads.

b) Art: The art department arranges for finished artwork, although in many cases, most of it is prepared by outside independent units. The main art function is to layout or arrange various elements so that the ad will attract the attention of the right audience. The copywriters and art directors work in close co-ordination and are responsible to Vice President - Creative Services.

c) Production: After the copy has been written and the layout and illustration approved, the ad is turned over to the production department. This department maintains contacts with printers, photoengravers, typographers, etc. The production department orders engraving of the illustration, arranges to have the copy set in type, and assembles them in the final ad. Before the ad is submitted to the print media, the department may offer proofs for approval of the client. In case of TV and Radio Commercials, the agency may on its own write the script and produce the entire commercial. In recent times, most agencies take the help of outside independent units to produce such commercials.

d) Traffic: Traffic is a matter of scheduling. To keep the work flowing on schedule, there is the traffic officer. His major duty is to monitor the production of finished ad so that it gets completed as per schedule.
Account Services:

The account services section is headed by Vice President - Account Services. He is responsible for the overall agency-client relationship. To assist the Vice President, there are account supervisors. As the business grows and more and more clients signs up, account executives are appointed to look after the account of one or more clients. The account executives perform the following work:



a) Advertising Plan: The account executive studies the client's product and problems and formulates advertising plan and after the client's approval of the plan, he looks after the execution of the same. He should see to it that the plan is executed effectively and efficiently. The account supervisor co- ordinates the work of account executives and reports to the Vice President of Account Services.

b) Budget preparation: The account executive may assist the media planning department in preparation of advertising budget of the client.

Marketing Services:

The Vice President in-charge of marketing services is responsible for media planning, buying time and space, for research and for sales promotion:



a) Media Planning: The media in-charge is responsible for planning and selection of the right media and also for buying time and space. He works in close co- ordination with account executives. The media man prepares media schedule, showing the various media and the dates and time/space of broadcasting or publishing the ads. He often contracts the media and finally pays the media bills.

b) Research: The Research section will help to collect new facts from the field, so that the ads can be presented according to the changing needs of the market.

c) Sales Promotion: The sales promotion section prepares promotional material such as POP material, dealer aids, etc. and work with the sales manager of the client to get it to the sales people and dealers.

Management & Finance

a) Office Management: The Vice President of this department is responsible for the office management and looks after the problems of the personnel - recruitment training, promotion, transfer, etc. This department provides all clerical services such as typing, filing, and keeping records. (Agarwal, Deepak. 1996 )



1.3.4 Types of Ad Agencies:

The following are the major types of advertising agencies that are currently serving the advertising industry: (Adarns, Anthony J. and Blair, Margaret Henderson ;1992)



1. Full-Service Agencies: A full-service ad- agency is one that provides a range of marketing services. A full - service agency provides services that are directly related to advertising such as copy writing, artwork, production of ads, media planning, etc. It also provides such services in respect of pricing, distribution, packaging, product design, etc.

2. Modular Agencies: A modular agency is a full service agency that sells its services on a piece meal basis. Thus, an advertiser may commission an agency’s creative department to develop an ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an agency’s media department to plan and execute a program for advertising that another agency has developed. Fees are charged for actual work undertaken.

3. In House Agencies: Those companies, which prefer to have closer control over advertising have their own in-house agency. This type of agency is owned completely by the advertiser. It performs almost all functions that an outside advertising agency would perform and that’s, why some people refer to it as a full-service advertising department of the advertiser. However. The main difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients, if the owner so desires, but an advertising department solely undertakes the work of its owner and not of outside clients. Secondly an advertising department may not be equipped with the personnel and facilities which an in-house agency would possess.

In-house agency not only Provides control over advertising schedule and costs, but also offers convenience for its owner, because it is just available in the same building as that of the head office of the advertiser. Such in-house agency also benefits the owner as it can bring revenue through agency commissions that, are offered by the media and by way of fees that are collected from outside parties for undertaking their advertising work. Such revenue increases the funds and profits of the company.



4. Creative Boutiques: These are shop agencies that provide only creative functions and not full-service. The specialized creative functions include copy writing, artwork and production of ads. They charge a fee or percentage of the media expenditure. Creative boutiques find it very difficult to survive in the presence of full-service agencies and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services.

5. Mega Agencies (explained earlier under evolution of agency)

6. The Specialist Agency: There are some agencies that undertake advertising work only in certain areas. There are agencies that specialize only in financial services or only in publicity or only in point-of-purchase materials, etc. For instance, Sobhagya Advertising Agency concentrates or specializes in financial advertising.



1.3.5 Agency Client Relationship

When a new client signs up with the agency, he should be treated with every respect. His advertising program must be executed effectively and efficiently. At the same time the client should maintain good relations with his agency, in order to motivate the agency to bring out their best in creating a good ad or campaign.

The agency-client relationship is always a give-and-take relationship. In order to build a good bond between the agency and the client, both the parties must keep certain points in mind: Mutual trusts and concern for each other. Misunderstanding should be cleared in the least possible time. The agency should work for the success of the client's advertising campaign. Meetings between the client and agency representatives must be held regularly to chalk out plans and to solve problems.( Aaker, David A. and Norris, Donald.(1982)

There should be a good rapport between the agency and the client representatives.

In particular the client should:

1. Treat the agency with courtesy at all times.

2. Provide all possible information about the product that is to be advertised and about the organization. This facilitates the agency to do their job much better.

3. Not unnecessarily bargain for the fees charged by the agency.

4. Motivate the agency to do a good work. Agency charges such as media bills, fees and other costs must be paid well in time. In no way the client should wait for the agency to remind of payment.

5. Not change the agency for the sake of change.

6. Approve the proposals submitted by the agency. The client should not argue for the sake of arguing.

7. Give sufficient time to the agency to develop a good advertising campaign. The client should not put the agency unnecessarily in deadline crisis.

8. Reduce disputes to a minimum

9. Finalize well in advance the charges for a particular plan or campaign.

10. Up-date the agency with any information from his side that would help the agency to serve the client better.
The agency also has certain obligations toward the client:

1. The agency should work for the success of the client's advertising campaign.

2. The agency should devise a very good advertising plan and with the client’s approval must implement efficiently and effectively.

3. It is the duty of the account executive of the agency to keep the client happy and satisfied.

4. The agency should not charge unreasonably high rates

5. The agency should not handle client's competitor's account

6. Try to make every possible effort to obtain, information from the market that would help to, create better ads for the client.

7. Discuss the compensation plan with the client well in advance to avoid disputes later on.

8. Brief the client, about the, various personnel that would handle the client’s advertising work.

9. Keep the client well informed of any proposed changes at the agency.

10. Never hurt the client’s ego.

11. The agency should always provide timely service to the clients.


1.3.6 Client Turnover:

Client turnover is a situation that arises when an existing client leaves the agency and joins another agency. At the same time new clients may contract with the agency. Generally client turnover refers to leaving of clients. The reasons for such turnover are as follows:

Inadequate Services: When the advertising requirement increases and if the present agency cannot satisfy the client with additional required services, the client will contract with some other agency that can provide the advertiser with adequate services and facilities.(Chamblee, Robert; Gilmore, Robert; Thomas, Gloria and Soldow, Gary, 1993)
Dis-satisfaction: The client may be dissatisfied with the service and treatment received from the agency. In such circumstances the client terminates the contract with the agency and joins some other agency.
Changes in personnel:

Changes in the creative personnel of the agency may cause concern to the client and he may follow the creative people to another agency. Again changes in the personnel (in-charge of advertising) of the client may also result in client turnover.


Change in location:

A change in the location of the agency's office may lead to client turnover. Again, when there is a change in the location of client's sales or head office may also lead to client turnover.


Unsuccessful advertising campaign:

When the advertising campaign fails to achieve desired objectives or response from the audience, the advertiser may feel that his campaign is not properly handled by the agency and he may switch over to another agency for his further advertising campaigns.


Higher rates:

If the advertiser feels that the present agency bills are of high rates, the client may have some reason to contract with another agency.


Reputation of a new agency:

When a new agency with highly creative people enters the advertising scene, the client may be tempted to contract with the new agency.


Difference in opinion:

When there is a difference of opinion between the agency and the client then it may block their relationship.


Change for the sake of change:

At times, some clients change the agency for the sake of change, Divorce is frequent with such clients.


Withdrawal of product from market:

Again, the advertiser may withdraw the product from the market and as such there may be no need of advertising agency for that line of product.


AGENCY AWARDS: (Chanda S: Singh, Jagjit and Malhan, 1990)

  • AWI - Festivals & Awards

  • Best Ads of the Year

  • Clio Awards

  • Effie Awards

  • International Automotive Advertising Awards

  • John Caples International Awards: These awards recognize creative

  • solution to direct response problems.

  • Loerie Awards . South Africa's most prestigious creative advertising award sponsored by Association of Marketers, now in its 21st year.

  • London International Advertising Awards. 1997 International ANDY Awards.

  • Northwest Advertising (ADDY) Awards.

  • O'Toole Awards. The only award competition of the AAAA, the O'Toole

  • Awards honors creative work of member agencies produced during a calendar year.

  • Summit Creative Awards

  • Premio Colunistas. Brazilian Columnist Awards for the best advertising.

  • Tenagra Awards for Internet Marketing Excellence. Annual awards to recognize innovative and significant successes in the Internet marketing industry.

  • Webby Awards (San Francisco, CA). The best web sites awards selected by the International Academy of Digital Arts and Sciences (IADAS) judges. Web Marketing Association, Inc. Web Awards



1.3.7 Agency Accreditation:

It refers to official recognition of the agency by various authorities such as Doordarshan, AIR, and India Newspaper Society (INS):



Purpose of accreditation: The main purpose of granting accreditation to bring out professionalism in the advertising agency's conduct of business. Only those advertising agencies, which carry on business observing the ethics of maintaining high professional standards, are granted accreditation. (Haley, Russel I, 1990)

Criteria for granting accreditation:

An ad agency shall be considered eligible for grant and/or continuation of accreditation if it satisfies the following criteria.

a) Skill and Experience: Those agencies which have sufficient training and professional experience and skill; is adequately equipped to handle advertising business and has actually carried on agency business for a minimum period (six months in case of INS).

b) Minimum Business Limits: The agency has fulfilled the minimum business limits with DD, AIR and the INS.

c) Rules and Regulations: The agency must adhere to the rules and regulations framed by DD /AIR and INS. The agency should also handle business in accordance with the Code of Ethics adopted by DD/AIR and INS.
Declaration and Application: An advertising agency wishing to obtain accreditation with DD/ AIR and INS shall make a declaration, testifying to its ability of fulfilling the conditions of eligibility (as mentioned earlier) and its resolve and intentions to abide by the Rules and Regulations in respect of accreditation of Advertising Agencies and the Code of Ethics. The agency shall submit an application to get accreditation certificate. (Haley, Russel I.,1990)

Granting of Accreditation:

If the agency satisfies the recognition criteria, then the declaration form application form is accepted and the agency is granted accreditation.


Loss of Accreditation:

An accredited agency shall lose its recognition: Upon its resignation as an accredited advertising agency.

Upon death or bankruptcy of the sole proprietor, dissolution of firm or winding up of the company, as the case may be. Upon the accredited advertising agency ceasing to do advertising business as provided for under the rules and regulations framed by DD/AIR and INS.
Power to Restore Accreditation:

The concerned authority i.e. DD, AIR, INS shall always have the power renew or restore full or provisional accreditation of any ad agency subject to conditions that may be imposed for such renewal or restoration.


Benefits to accredited agency:

1. The accredited agency gets 15% commission from the media. Non accredited agencies get upto 10% commission.

2. Credit period of about 45 days is allowed to pay media bills.

3. Advertisers have more faith in such agencies.

4. Such agencies enjoy better media connections.

1.3.8 Role Of Advertising Agencies:

The primary role of advertising agencies are planning and creating advertising campaigns for its clients and placing advertisements in various media. The process of planning consists of researching the market for a given product or service, assessing alternative methods of distribution and choosing the most effective way to reach the market. The agency then creates the advertising campaign and contracts for time and space with selected media. Some advertising agencies provide select advertising services like creative development or media placement. Others provide a full range of advertising, public relations, research, promotion, and related marketing support. Some of the different kinds of services provided by advertising agencies include:

Media planning, buying, placement, and negotiation for placement Creative development of advertising and collateral materials Production of creative materials Marketing planning
Market research

The ultimate objectives of advertising agencies include helping advertisers attain sales objectives, market share and long-term profitability


STEPS FOR SELECTING THE RIGHT AGENCY:

The steps any organization should consider in selecting an advertising or public relations firm for your association are about the same for either service:

Define exactly what you want the agency to do. Be precise in identifying the services you need. Communicate the size and scope of the budget you are willing to commit to the service. Commit the information to a written document.

Create a selection team. Keep it small and include those who may have previous marketing experience or knowledge. Including your association’s key decision-makers will help you reach a consensus when it’s time to make the final selection.

Look for firms whose qualifications and size are appropriate to your needs.

Create a target list of agencies and request information from them. Let the agencies know you are making a preliminary inquiry and that you would simply like to acquaint yourself with the agency and their particular services and strengths.

Review the responses and contact the firms that you want to interview. Provide them with background information on both your association and your scope of assignment. Clearly communicate that your interview is preliminary and that you simply want to meet the people involved to assess whether the firm can handle your work. Let each agency know when you will notify them of your "short list." After the interviews, invite two or three firms to make presentations. Provide a clear expectation of what you want to see and how you want to see it (e.g., PowerPoint, boards, slides). Let each agency know how much time they will have to make their presentation.

Give each agency the same information, including criteria and specific directions for addressing your organization. You want to see how agencies think and strategize. The actual creative solutions agencies develop will be based on input you provide them later.

Review how well they understand your assignment. Get acquainted with the agency’s range of capabilities, know where you will stand within their current client mix, and get a sense of the working chemistry between you and the agency staff.

Make your selections and notifications. Once you have fielded presentations, agree on a selection and personally notify principals of the agencies who were not selected. A personal call will reflect well on you and your association and will earn you the respect of the agencies that participated.

Your final notification should be the agency you select, which pre-empts the possibility of leaking your decision before the others are notified. Agree on a contract. The agency selected will provide you with a written contract that spells out the terms of your business relationship. Contracts will generally include the payment terms and conditions, services to be rendered, and termination clauses. The specific contract will depend on the agency and the specified needs of your association.

1.3.9 List of Major Advertising Agencies In India:

A List of major advertising agencies, along with important parameters such as their billing, major clients, offices etc is placed hereunder:

TABLE 1.3 LIST OF MAJOR ADVERTISING AGENCIES IN INDIA




Address

Contact No

Gross Income

Senior Executive

Major Clients

AD AGENCY 1- HTA

Hindustan Thompson Associates Ltd

Lakshmi Bldg, Sir Pherozeshah Mehta Rd, PO Box 541, Mumbai - 400 001


Tel: (0091 22) 266 0190 Fax: (0091 22) 266 0186, 269 2518

e- mail:mike.khanna@jwt.com




Rs 2074.3 million

M K Khanna, Chief Executive

Apollo Hospital (Apollo Hospital & healthcare); Bridgestone

Corporation (Bridgestone/tyres); Cargill India (Cargill/edible oils & ingredients); Curls & Curves (Vandana Luthra Curls & Curves/health); DSP Merrill Lynch (Investment banking); Hero Honda(CBZ/automobiles); I-Flex Solutions (Flex-cube/financial solution software); Indian Army; Indian Navy; News Television India Pvt Ltd(Star news/Media); Standard Chartered (Personal Banking & Cards); Ministry of Finance (VDIS); Ministry of Defence (Indian Army - recruitment); Pepsi Foods (7 UP, Mirinda, soft drinks); Satyam Infoway(Software); Star TV Network (Star Plus, Star Movies, Star News); Omega (watches); ESPN (Channel promo); 20th Century Fox (film releases); Madura Garments (Van Heusen, garments); Hero Motors (Hero Winner, automobile); Parle (Monaco, biscuit); Hughes Ispat (telecommunication) Mattel Co (Mattel/toys);;Timex Watches (Timex/Watches);;;National AIDS Control (National AIDS Control Org /government agency);Vistaar (Vistaar/dotcom)



AD AGENCY -2 O & M

Ogilvy & Mather Pvt Ltd


Trade Centre, Third Floor, Senapati Bapat Marg, Lower Parel, Mumbai 400 013


Tel:(0091 22) 491 3877 Fax: (0091 22) 491 3838


Rs 1258.74 million

Ranjan Kapur, Managing Director

SBI Mutual Fund(Mutual Fund); TTK Textiles (Tantex/Textile); J K Tyres(Tyres); Pantaloon Fashion India Ltd(Garments); Levers, Cadbury, Louis Philippe (coporate); UTI (MIP'97/Financial); TVS Suzuki (corporate): Tata Telservices (corporate), Tata Communications Ltd (corporate); Hindustan Lever Ltd (Brooke Bond, Lipton - tea and health); Discovery Channel Inc (Discovery Channel - television channel); ITC Ltd (corporate); MIRC Electronics Ltd (Onida - television); The Chase Manhattan Bank (corporate); Birla 3M Ltd (Scotch Brite - cleaning aid); J M Morgan Stanley (J M Morgan Stanley - investment bank); Hero Honda Motors Ltd (bikes); United Television (television media); Castrol India Ltd (Castrol - lubricants); Hutchison Max Telecom Ltd (Max Touch - cellular operator)

AD AGENCY -3

Mudra Communications Pvt Ltd

Mudra House, Sheth CG Rd, Ellisbridge, Ahmedabad 380 006



Tel:(0091 79) 656 5659 Fax: (0091 79) 642 5058

Rs 1069.6 million

A.G.Krishnamurthy,Chairman & Managing Director


Mahanagar Telephone Nigam Ltd (Corporate); Indian Express (News paper); Mid-Day (website); Global Trust bank (Banking);Indian Tourism Development Corporation (Hotels); Raj TV (TV Channel); Henkel Spic India (Detergents); Godrej Foods; Ahmedabad Electricity Co Ltd (corporate); LIC of India (Insurance - services); Honda Siel Power Products (gensets); Satyam Computer Services Ltd (Satyam - computer software); Satyam Infoway Ltd (Satyam - internet services); Cadila Healthcare Ltd (EverYuth - healthcare); Blow Plast Ltd (VIP Skybags - luggage carrier); Dabur Ayurvedic Specialities Ltd (Nature Cure - Ayurvedic products); Henkel Spic India Ltd (Fa - soap); Hindustan Motors Ltd

AD AGENCY -4 FCB-Ulka Advertising Ltd

Nirmal, 4th Floor, Nariman Point, Mumbai - 400 021


Tel: (0091 22) 202 6884, 285 2184, 283 6068(Worli) 4961427/8/9/30/1/2

Rs 864.84 million

Anil Kapoor, Managing Director & CEO

N.A

AD AGENCY -5 Rediffusion-DY&R

Young & Rubicam Ltd, 4th Floor, Sterling Centre, Dr A.B.Road, Worli, Mumbai

Tel:(0091 22) 493 7308/13, 494 0206/5750 Fax: (0091 22) 493 6557

400018



Rs 752.04 million

Arun Nanda, Chairman & Managing Director

Pioma Water Industries(soft drinks);Zee Vysya TV(channel);Tata

Life Insurance(life Tetley(tea);Tide Oil(lubricants);ING insurance);Hindustan Paper Corp(paper and pulp);Rai & sons (eatables);IFFCO Tokyo(non-life insurance);HMT(tractors)Godfrey Philips (Four square/cigarette); Haldia Petrochemicals(Petrochemicals); Evian (Mineral Water);Ericsson Mobile (Cellphones); SAIL (Corporate); CitiBank (Corporate); Cannon (printers, calculators); Bharti BT Ltd (Internet service);Exide Industries Ltd (Exide - automotive batteries); SBI Funds Management Ltd (SBI - mutual funds)




AD AGENCY -6 McCann-Erickson India Ltd

8, Balaji Estate, Guru Ravidas Marg, Kalkaji, New Delhi -110 019


Tel:(0091 11) 600 2600 Fax: (0091 11) 646 3875,


618.36 million

Sorab Mistry, Chairman & CEO

Coca Cola india(Coca-Cola/carbonated bevarages); TTK(LIG)(Kohinoor, Fiesta/condoms);Bacardi India(Breezer/ready to drink beverages);Johnson &Johnson India (Savlon,Band-Aid/woundcare);Gillette India(Duracell Plus/alkaline batteries,Fashion Razor 2001,Mach III Cool Blue /razors);Perfetti India(Happy Dent/chewing gum);TVS-Suzuki (corporate/TVS Max, TVS Scooty, TVS XL, TVS Sport, TVS Super, TVS Champ/motorcycles & mopeds); C.Krishniah Chetty (jewellery store);Thinkstream Technologies (software development)

AD AGNECY -7 RK Swamy/BBDO Advertising Ltd

Film Chamber Buildings, No 604, Anna Salai, Mount Road, Chennai - 600 006


Tel:(0091 44) 829 2300, 829 2302/04/05 Fax: (0091 44) 829 5557


441.59 million


R.K. Swamy, Chairman

Cisco System(network solution); Abbott Laboratories India Ltd(Healthcare); Mercedez Benz (Automobiles); MTNL(Telecommunication); Sony India Ltd(Sony/TV); Fujitsu 'O' general(Airconditioners); SQL Star International Ltd(Computer education); Dalmia Cement (Cement); Wrigleys India (Wrigleys Juicy Fruit chewing gum); Dena Bank (Banking);GE Countrywide Consumer Financial Services (GE/financial services);Nav Bharat Media Services (Nav Bharat/publication); Reserve Bank of India(RBI/financial services); Unit Trust Of India

AD AGENCY 8 -SSC & B Lintas

Phoenix Complex, 4th Floor ,SB Marg, Lower Parel, Mumbai 400 013, Mumbai-400013




Gross Income:112.00million


Ajay Chandwani, President

Hyundai Motors (Hyundai Santro,Hyundai Sonata /cars);Hindustan Lever (Kwality Walls Max /confectionery, Modern/bread); Zee Interactive (Zed Career Academy/computer education,Zed TV/TV Channel ,Zeelearn .com/website );Grand Hyatt (Grand Hyatt/hotels);Hyatt Regency (Hyatt Regency/hotels);Knoll Pharmaceuticals (Prothiaden, Epilex, Insulin/anti-depressant, anti-epilepsy,anti-diabetic drugs );Hero Cycles(Hero Yankee/kids cycles);Sonata Software (Sonata/corporate);Mascot Systems (Mascot/corporate);Deccan Chronicle(Deccan Chronicle/daily newspaper);Minerva Coffee Shop (Minerva/restaurant);Blue Fox (Blue Fox/restaurant);Tanning /infotech);Netplane Technology Network India Technology (Network Servicing (infotech/embedded software);Deccan Ayurvedarsham Pharmacy (DAP/ayurvedic medicine).


AD AGENCY 9- Publicis

Publicis-Zen House, Kamala City, Senapati Bapat Marg, Lower Parel, Mumbai 400 013


110.81million




Bharat Dabholkar, Managing Director

Star TV Network (Star Gold /TV Channel);Nestle India (Nestle Pure Life/bottled water);Coca-Cola India (Schweppes Soda/carbonated beverages);Hewlett-Packard(Hewlett-Packard/computers);May-fair(Zodiac Shirts/garments)

AD AGENCY 10 MODE

Mode Advertising & Marketing Pvt Ltd

C 40 & 44 ,Lajpat Nagar II, New Delhi-110 024


Tel: 6829781/7832, 6923252 Fax: 6832023


22.77 million

G.K Dhawan , Chairman

ITPO( Aahar/services); Indian Oil Corp(Servo/Oils& lubricants).


1.3.10 Regulatory Environment for Advertising Industry:

Advertising has been recognized as any other service industry like banking, insurance, transportation etc, As each industry has its own set of rules coupled with laws passed by the government governing it, so is the case for advertising industry. The advertising agencies are represented by Association of Advertising Agencies of India (AAAI). The Audit Bureau of circulation (ABC) Is responsible for correctly estimating the circulation of newspapers/magazines. The advertising industry is also governed by its own set of rules, regulations and ethics to be followed while performing their functions. Advertising Standards Council of India(ASCI), Indian Newspaper Society(INS), Doordarshan Code etc., are such self-regulatory authorities which guide the advertisers, media and advertising agencies


ASCI CODE:

The ASCI is a body setup by advertisers, advertising agencies media and others involved with advertising. The ASCI adopted a code for self-regulation advertising in 1985. The purpose of code is to control the advertisements. This code helps the advertisers to regulate the advertisements so that all the parties concerned, especially the consumer are benefited. The main objectives of the code are as follows:

1. To ensure the truthfulness and honesty of representations and claims by advertisements and to safeguard against misleading advertisements.

2. To ensure that advertisements are not offensive to generally accepted standards of public decency.

3. To safeguard against the indiscriminate use of advertising for the promotion of products, which are regarded, as hazardous to society or to individuals to a degree or of a type, which is unacceptable to society at large.

4. To ensure that advertisements observe fairness in competition so that the consumers’ need to be informed on choices in the market place and the canons of generally accepted competition behavior in business are both served?



The main features of the ASCI code are as below:

1. The code applies not just to advertisements in newspapers and magazines but also to advertisements wherever they appear on television, over the radio, in cinema, on hoardings or posters or on shops.

2. The code has been drawn up to ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertisements. It ensures that advertisements are not offensive to generally accepted sense of public decency.

3. Any media owner must view each advertisements offered to them for publication from the point of view of the code. If any ad is considered by the media owner to be in contravention of the code, the media owner should refer the matter to the ASCI. All media owners shall refuse all ads found by the ASCI to be in violation of the code.

4. The code rules and the machinery through which they are enforced are designed to complement but not to compete with legal controls.

5. No ads shall be permitted to contain any claim so exaggerated as to mislead the consumers. Ads must be truthful and claims made must be capable of substantiation. If a consumer feels any ad is misleading, false or offensive, he can bring such fact to the notice of ASCI.

6. Ads addressed to children shall not contain anything, whether in illustration or otherwise, which might result in their physical, mental or moral harm or which exploits their vulnerability.

7. Ads shall not be so similar to other ads in general layout, copy, slogans, visual presentation, music or sound effects as to be likely to mislead or confuse consumers.

8. As the advertiser originates the advertising brief and sanctions its placement, the advertiser carries full responsibility for the observance of this code. This responsibility embraces the advertising in its entire content and form.

9. Advertising agency has full responsibility to ensure the observance of this code in as much as they know the facts, to advice their clients in accordance with this code.



10. This code does not apply to advertisements in media published abroad and Indian media whose circulation is predominantly overseas.


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Swati Mishra, PhD (2014), SGVU, Jaipur Page



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