ADVERTISING AGENCY IN INDIA

The First World War created conditions for the growth of some of the
Indian consumer industries. After the war, new British investment
followed. The need arose for specialized advertising services. The British
India Corporation, a British firm in Kanpur, with a relatively wide range
of consumer goods, set up Alliance Advertising Associates Limited. This
was probably the first advertising agency in India to provide a wide
variety of services. In 1922, Mr. L.A. Stronach, a senior artist of Alliance
Advertising, left to start his own agency in Bombay. Thus was born a new
type of business enterprise in the service sector in India.

The Indian advertising industry had a slow start and got its first boost
during the Second World War. With the British personnel having to join
the armed forces, opportunities opened up for Indians in this new talent-
intensive business. Then followed a brief interlude of uncertainty in the
years immediately following Independence. The launching of the First
Five-Year Plan and more so the Second Five Year Plan, with the accent
on rapid industrialization, gave an impetus to the growth of advertising
agency business in India. By 1952 there were 109 advertising agencies in
India with a total turnover of Rs 3.5 corer. By 1967, the number of
advertising agencies had increased to 279 with a total turnover of Rs 35
corer. The Indian advertising industry has really come' into its own with
the growing liberalization of the economy since the mid-eighties.
According to the fourth agency report of the journal Advertising and
Marketing, the Indian advertising industry grew by 36.5 per cent in 1992
-93, far outpacing the growth of Indian industry. What is significant,
however, is that three of the top four advertising agencies in India
continue to be subsidiaries of international advertising agencies-
Hindustan Thompson Associates and Lintas India being the first two, and
Ogilvy & Mather being the fourth. What is more with the new interest of
many national corporations in the Indian market, a large number of
international advertising agencies have entered the Indian advertising
industry in collaboration with leading Indian advertising agencies. This is
the process of globalization of Indian advertising agency business. This is
opening up new opportunities for Indian advertising to assume greater
responsibility and serve everywhere in the world and gather experience of
global marketing and advertising.

Types of advertising agencies;

Following are major types of advertising agencies that are currently

serving the advertising industry

Full Service Agencies

A full service ad agency is one that provides a range of marketing

services. A full services agency provides services that are directly related
to advertising such as copywriting, artwork, production of ads, media
planning etc. It also provides such services in respect of pricing,
distribution, packaging, product design etc

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 agencys
creative department to develop an ad campaign while obtaining other
agency services elsewhere. Or, an advertiser may hire an agencies media
department to plan and execute a program for advertising that another
agency has developed. Fees are charged for actual work undertaken.

In House agencies

Those companies, which prefer to have closer control over

advertising, have their own in-house agency. This type is owned
completely by the advertiser. It performs almost all functions that an
outside advertising agency would perform and thats why some people
refer to it as full-service advertising department of the advertiser.
However, the 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 that work of its owner and not of outside clients. Secondly an
advertising department may not be equipped the personnel and facilities,
which an in-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 advertiser.

Such in-house agency also benefits the owner as it can bring revenue
through agency commission 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. There is another version of in-house agency whereby advertiser
handles the total agency functions by buying service unit to buy time,
space and place the ads. Such an In-house agency is an administrative
center (under the direction of an advertising director) that gathers and
directs varying outside for its operation use agency would posses. In-
house agency not only provides control over
Creative Boutiques

These are shop agencies that provides 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 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.

Mega agencies

A significant of 1980s is the development of mega agency.

Agencies worldwide merge with each other serve their clients in much
better way. It was in 1986, Saachi & Saachi, a London based agency who
started the movement and at present it is the third largest agency network
in the world.

The Specialists Agency

There are some agencies who 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 material etc. for instance
Soubhagya advertising agency concentrate on specialized in financial
advertising.

The Benefits of Using an Advertising Agency

Added Expertise
Media Knowledge and Unbiased Advice
 Easier Administration
Media Buying
Quality Control
Information
Fending off the media
And when things go wrong
Cost Saving
Time Saving

DISADVANTAGES OF USING THE ADVERTISING AGENCIES

A main disadvantage of using an advertising agency would be the

communication factor. If an agency does not communicate or relay it's
clients goals and creative wishes properly problems can occur within a
contract and lawyers may have to become involved. Depending on the
communicative skill of the agency, you may be prone to being
blindfolded during much of the processes of your campaign leading to a
lot of guessing and speculation.

Another disadvantage would be the media buying discounts you may not
be able to take full advantage of due to commission barriers within an
agency, however an agency may have better negotiating powers than your
company and save you more money in the long run anyways. There are
far more advantages to having the right advertising agency than not.

The functions of an advertising agency:

To accelerate economic growth and create public awareness

To provide a total, professional, experienced service which is very
personal in its nature
 To take the advertiser's message and convert it into an effective and
memorable communication

The Working of Ad Agencies

To begin with, the agencies started as one-man agents who booked space
in the

Media. Even today, in our country, there are so many one-man agents
who book space in the media. Soon the space booking was handed over to
the contact-man, and creative wordsmiths adept at sloganising undertook
the actual construction of the ad. In the course of years, the ad agency
became service-oriented, and was able to offer every possible service
including marketing, market research (MR), and public relations (PR).

Ad agencies have evolved over a period of time. These days we have

mostly studio-based agencies, some industrial and specialized agencies,
and hot-shops who only plan creative campaign by engaging the services
of freelancers.

At Madison Avenue, most of these large agencies of the world fiercely

compete for new accounts, resulting in a shift of millions of dollars of
billing from one agency to another. Advertising Age is an official
publication of the American Association of Advertising Agencies
(AAAA).

In India, advertising business is worth Rs. 8,000 corers. There were only
62 advertising agencies in 1958, which increased to 168 in 1978, more
than 2.5 times the numbers in 1958. There are more than 500 ad agencies
today. The oldest and largest advertisement agency in India is Hindustan
Thompson Associates Ltd. The second largest advertisement agency is
Lintas.

Mumbai is considered to be the Mecca of Indian advertising. These days

agencies are also being set up at Bangalore, Madras, Hyderabad,
Ahmedabad and Delhi. In India the ad agencies are sole proprietary
concern, partnership or private limited companies.

It is better to operate agencies on professional lines, rather than as a

family. It is good to install MBO (Management By Objectives). An
agency must necessarily plough back at least 75 % of its profits into
business.

The advertising agencies are shifting from the creative mode to the
marketing mode. Today the onus is on the agency to supply the client
with data on his industry; the days of the clients briefing the industry are
almost over. The agencies are expected to maintain database. There is a
leaning towards software for optimizing media usage, and
computerization of studio functions.

In India, the legal structure of ad agencies is that of a small proprietary

concern or a big partnership. Sometimes, they are private limited
companies, either big or small. Indian advertising is a fragmented
business. There are over 733 agencies accredited to INS. The top 25
account for 50% of all billings. In addition, there are many accredited
agencies.
It is the top 25 agencies, most of which are headquartered in Mumbai,
that set the pace and define the shape of the industry. Agencies like HTA,
Lintas, Clarion and O & M have shaped the entire advertising industry in
the country. Many Indians firms are coming up, by importing Western ad
techniques.

Many agencies die a premature death. Most people do not appreciate that
an agency like any other business - must be properly managed. It is
simply not enough just to have great idea. In recent years, there has been
a healthy trend towards sound management practices, especially financial
planning and control.

This is a highly paid profession. It is a conspicuous high wage island.

People operate on high profile. Their life-styles are opulent because of
high expense accounts 'of entertaining clients. They got their elitist brand
due to this reason. But high salaries and freedom are necessary to attract
talents.

PEOPLE WORKING IN AN AGENCY:

Accounts Executive: It is a key career option in advertising agency. He is

called an Account Director when he is a member of the Board. He is a
link between a client and his staff. The marketing or advertising
department of the client briefs him. He communicates this to the agency
people.
He reaches out to different clients for seeking new business. Even clients
who want an agency' to work for them contact the accounts executive.
This business development work makes it virtually a marketing manager
of the agency.

Do right-brained people make better account directors?

The faculties of logic and reason are supposed to reside in the left-brained
people. While intuition and creativity are believed to be in the right. So
far, accounts director was considered suitable if logical and systematic,
i.e., left-brained. But if he has to motivate a team, he should be inspiring
and creative too, i.e., right-brained.

Copywriters: They are the wordsmiths who do the wording of an

advertisement. They are bright and talented. They have a flair for
language. They contribute to the theme of an advertisement. Creation of
successful copies for different clients establishes them in this field.

Visualizers: These are artists who put on paper what has been thought
out by the copywriter. They in fact design the ad.

Creative Director: He co-ordinates the copywriting and designing. He is

a senior professional who is seasoned in an existing advertising agency
set-up to take on this mantle.

Production Department: Persons of diverse talents like printing

technology, DTP, photography, typography etc. are involved here.

Media Planner: He has to allocate the advertising budget amongst

media. He has to select the appropriate media. He decides about the
frequency, size and position of an advertisement. He decides about its
publication date. He receives the tear-off copies from the media when the
ad is published. He is guided by the media research, which he undertakes,
or by research undertaken by an outside agency. Media is the most
professionalized department of advertising agencies.

Marketing Research: Modern agencies are integrated set-ups. They

provide a range of marketing services. Research data become very useful
as input to the creative process.

The Media : Most of the media today sustain on advertising revenue.

They sell space or time. While selling space or time, they have to
convince the client about the reach of their media vehicle, the
composition break-up of their readers and the pricing of their space/time
selling. They monitor the market, survey their readers, and highlight their
readers' demographic and geographic characteristics. They also maintain
relationship with the media department of advertising agencies who buy
space/time on behalf of clients.

Ancillary Services : These are needed to produce/create advertisement.

A whole range of services like studio service, photographic service,
printing service, gift item producers etc. fall into this category.

Freelancers : These are professionals who work independently and have

a successful track record. They are copywriters, jingle singers, radio
announcers, artists, visualizers, technical writers etc.
Advertising Agency's Role

Suppose you are a company with a product. It may be a totally

new product. As a company with a product or service to sell, designing

and making that item is only part of the battle. People are not going to

beat a path to your door. You have to seek a channel of

communication.

Ad agency need to consider, for example:

For whom is the product or service designed?

Who would use it?

Who is the "target group"?

What's special about the product? In what way is it distinct?

Unique? Different?

What's its "position" in relation to other similar products?

What do you want to convey to the public about your product?

How should your company contact the public?

What medium should it use? Radio? TV? Newspapers?

Magazines? Billboards? Bus/subway ads? Direct mail? etc.

How extensive a region should your company try to cover?

How often?

Communication and marketing decisions involve specialized

expertise. Many companies that design and produce products or offer

services lack these specific capabilities. This is where advertising

agencies fit in. Advertising agencies exist to help companies to

communicate with the public, Market the company's product.

Company with Ad Media Public

a product or Agency
service
The process of advertising involves considerable specialized knowledge

and expertise

About people - Their interests, preferences, needs, wants,

lifestyles, expectations

About media - Their reach, their effectiveness, their specific

appeal

About the company and its product And about competing

companies and their products

Services offered by ad agency ;--

Total Advertising Services :Strategic planning, creative development

and media services for advertising, particularly in television,

newspapers, magazines and radio; providing the best creative

designed to capture the imagination of consumers

Marketing Services: Provision of a number of advertising related

services, including sales promotion, market research, PR and event

marketing.

E-Solution Services : e-solution services, including system

integration services, e-business consulting and customer relationship

management (CRM), Search Engine Marketing (SEM) and Search

Engine Optimization (SEO) and e-promotions using the Internet and

mobile.

Content Business: Sales of sponsorship, broadcasting and other

rights, and the production and marketing of such media / content as

sporting events, films, TV programs, animated content, music and

other forms of entertainment.

Integrated Media Services : Bringing value to both clients and

media-related companies by offering a wide range of media solution

services

Sales Promotion : Providing comprehensive sales promotion planning

designed to complement mass media and other activities

Event Marketing : Assisting clients by providing dynamic vehicles for

their messages in the form of on-the-spot interactive communications

Integrated Branding Services : Assuring clients the highest quality

of branding services for their communication needs

1. Euro RSCG Advertising Private Limited:

Euro RSCG started the year with a development on the global level, when
the agency found itself on the Unilever digital roster. It was in the news
for campaigns for HDFC Banks My Favourite offering, Geojit BNP
Paribas, Max New York Life Shiksha Plus, Bharat Petroleum corporate
campaign, MAK lubricants, and INQ Mobile

Top Executives:
Suman Srivastava CEO
Satbir Singh, CCO
Sandeep Gupta, CFO
Sanjoy Gupta, directors
Narayan Devanathan, skill leaders

Clients: (1) Reckitt Benckiser, (2) IBM, (3) Unilever, (4) HSBC, (5)
Airtel

2. Pressman Advertising and Marketing Limited:

One of Indias leading independent full-service advertising agencies, with

all round capabilities and a strong reputation built over more than four
decades. Providing advertising, design, media planning and buying,
market research, digital solutions and public relations services to
hundreds of clients.
Executive Board: Navin Suchanti (Director)

Clients: (1) Adani Enterprises Limited, (2) Axis Bank Ltd, (3)
IRCTC Ltd, (4) Mother Dairy, (5) Swaraj Mazda
3. Madison Communications Advertising Limited:

Madison World is a 22 - year - old diversified communication group, with

20 units across 9 specialized functions in Advertising, Media, Out-Of-
Home, PR, Rural, Retail, Entertainment, Mobile and Sports; employing
over 800 communication professional across cities in India, Sri Lanka
and Thailand. The gross billing of Madison World is Rs. 25 billion.

Executive Board: Sam Balsara (Chairman & MD)

Prabha Prabhu ( CEO)
R Seshadri (MD, Anugrah Madison)

Clients: (1) Airtel, (2) Asian Paints, (3) Blue Star, (4) Britannia, (5)
Cadbury

4. Oberoi Multimedia Limited:

Oberoi Multimedia Limited is a renowned multimedia company with its

operations spread all across the country.

Clients:

(1) All India and International: Priyagold Biscuits,

Freshgold Juice
(2) All India: Kayamchurna
(3) Central, Northern & Western India: Yellow Diamond Tea
(4) All India & International: Lal Qila Basmati Rice
(5) Kapila Pashu Aahar: Northern & Western India

Executive Board: Anand Swarup (Managing Director)

5. Percept Advertising Limited:

In 2010, Percept/H managed to win major accounts like Gitanjali Groups
Asmi and Shuddhi brands, along with Carlsberg and the Unique
Identification Authority of India (Aadhar). The agency continued its work
for Toyota and launched the campaigns for Fortuner and other MUVs
from their stable. However, the agency also lost some key businesses like
MTNL and Beetel.

Clients: (1) Ford, (2) Mercedes Benz, (3) ROCOCO, (4) Countryside
Properties, (5) ROYALS SHOPPING.

Executive Board: Prabhakar Mundukar (CEO)

Harindra Singh (Vice-Chairman and Managing
Director) Shailendra Singh ( Joint Managing Director) Ajay
Upadhyay ( Director) R.K. Chaturvedi ( Non- Executive Director)

6. Ambience Darcy Private Limited:

The company now commonly known as Ambience Publicis

Advertising Limited occupies a dominant position among the league of
other advertising agencies. Publicis Ambience Private Limited has won
the creative duties for V-Guard. The win has come after a multi-agency
pitch where Mudra and Contract Advertising were other participants.
Clients: (1) Times of India Group(Planet M Music Store)

(2) Emami Group of Companies

(3) Proctor and Gamble (Whisper, Vicks)

(4) TVS Suzuki (Suzuki Shaolin Motorcycle)

(5) Philips India Limited (Domestic Appliances)

Executive Board: Ashok Kurien (Chairman)

7. Bates India Limited:

Bates India Private, Ltd. provides services in advertising, media

investment management, information, insight and consultancy, public
relations and public affairs, branding and identity, healthcare, and media
and event management. Bates India Private, Ltd. was formerly known as
Bates Clarion. The company is based in Mumbai, India with additional
offices in New Delhi and Kolkata, India. Bates India Private, Ltd.
operates as a subsidiary of WPP Group plc.

Clients: (1) MTV, (2) Monte Carlo, (3) Fortune India, (4) TVS
Motors,
(5) Colgate Palmolive
Executive Board: Sandeep Pathak (CEO), Ujjal Gupta ( COO and CFO)

Rana Barua (Vice- President), Sonal Darbal

(Chairman)

8. Triton Communications Limited:

Triton Communications, which was started in 1991 by two advertising
professionals Munawar Syed and Ali Merchant today manages a
whole host of big clients. Perhaps it is just one of the few truly Indian
agencies which is successfully making its mark globally. Founded in
2007, Triton Communications is a new breed of outsourced consulting
designed to support their clients at all levels with reliable and
professional design, development and administrative staff. The message
was We deliver results to see you win.

Clients: (1) BPL Sanyo

(2) Venkys

(3) Kumar Builders

(4) Wagh Bakri

(5) Air Freight

Executive Board: Munawar Syed (Director)

9. Lowe Lintas Advertising Limited:

Founded in 1939 as a part of Hindustan Unilever, Lowe Lintas is one of

Indias largest and most storied communication groups. Headed by
Chairman and Chief Creative Officer R. Balakrishnan (Balki) and CEO
Joseph George, Lowe Lintas employs over 650 people across eight
divisions and nine cities all over India. Lowe Lintas India leads global
and regional communication for several Unilever and Johnsons Baby
brands. We are a guiding light for Lowe offices in South Asia.

Clients: (1) Clinic Plus, (2) Closeup, (3) Fair & Lovely, (4) Fastrack,
(5) Expedia
Executive Board: 1.R. Balki ( Chairman & Chief Creative Officer)

2.Joseph George (Chief Executive Officer)

3.Fali Vakeel (Chief Operating Officer)

4.Sashroonk Munsiff (Finance Director)

10. TBWA Anthem Private Limited: TBWA is an independent,

privately-owned advertising agency with offices in 16 cities around the
world. The company was started in Europe and made a mark in the
United States by promoting European products, such as Absolut vodka
and Evian water. With a reputation for creativity and emphasis on
international scope, TBWA is poised for a greater role in the global
advertising market.

Clients: (1) Yamaha Motor India (Yamaha Crux, Yamaha YBZ)

(2) Sundaram Mutual Fund, (3) Fosters India,

(4) NIIT, (5) Sanjivani Remedies ( Sanjivani Healthcare)

Executive Board: KGeorge John ( Chairman & Managing Director)

REFERENCES
(i) Campaign India Agency Report: 2010

(ii) Official website of the Advertising Agencies

(iii) www.rediff.com (Article on Most Popular advertisements since Oct, 2010)

(iv) www.chillibreeze.com ( Indias Top 20 advertising firms)