Question

Give a brief summary of your understanding within 300 words.

Promotion Goes the 360° Way The advertising, or marketing communications industry in India has of age. From a bare R.S .2000 crore in 1995, by the beginning of 2005 industry has grown into a Rs. 12000 crore business (500 percent) and its future forecasts excellent growth. For the year 2005, the industry growth is estimated at 12 percent. About 80 percent of revenue is coming in from traditional sources and 20 percent from non-conventional (non- advertising) sources. An entertainment boom has resulted in many agencies registering over 40 percent growth in that segment. Mobile communication (SMS and MMS) has emerged as a significant revenue stream for agencies. Direct marketing and Interactive are the buzzwords, reflected in the 21 percent growth of OgilvyOne,0 and M's fastest growing division. Yet, advertising agencies are under pressure like never before. Clients are demanding more accountability and calling for Integrated Marketing communication (IMC). Consumer research and understanding should now be more effective, as consumer tastes and preferences are changing and becoming more unpredictable, as choices in the market abound. The Opportunity In New Segments Rs/crores Sports marketing' 300 - 350 Entertainment marketing 100 - 150 Retail 200 - 250 Interactive 150 Outdoors 800 - 900 Market activation 2500 - 3000 • Note: Sports marketing excludes broadcast opportunities. The total commercial airtime on Indian television went up from 51 million seconds five years ago to 214 million seconds in 2004. But the average duration of ads came down from 20 seconds to 10-12 seconds, contributing to an increasing clutter on TV. Alongside, the TRPs (television rating points) of commercials also plunged 18.20 percent, because fewer people are watching the increasing number of ads. So now clients and agencies are looking for better alternatives like IMC. Direct marketing, customer relationship management (CRM), event management, the Internet, mobile (SMS) and rural initiatives have become key areas of business. That is really what the multimedia 360° approach is all about and the idea is to get as close to the consumer as possible. The key to effective promotion today is to engage consumers at multiple touch points like in a retail outlet, ATMs, a multiplex, a mall, a mobile phone or the Internet. And advertising agencies are repositioning themselves in the changed scenario as full-fledged marketing and communication providers.

Answer 1

There has been a lot of development and growth in the advertising, or marketing communications industry in the recent past and the industry has seen a whopping growth of almost 6 times in a span of 10 years and it is expected to follow the same path.

The projected growth rate for 2005 is 12% and the majority of its revenue will be collected from the conventional areas while the share of non-conventional sources can range up to 20% Due to a revolution in mobile communication in India, the industry has experienced a surge in the revenue generation of this segment.

The most popular words at present are Direct marketing and Interactive which represents the 21% growth making OgilvyOne,0 and M's fastest growing division. But this does not mean that advertising agencies are having a comfortable business. The increased expectations of the clients are demanding the implementation of Integrated Marketing communication (IMC). There is a need for Consumer research and understanding to know the taste and preferences of the common client. Sports marketing' 300 - 350 Entertainment marketing 100 - 150 Retail 200 - 250 Interactive 150 Outdoors 800 - 900 Market activation 2500 – 3000 are the new fields to explore. There has been an increase of 4 times in the total commercial airtime on Indian television. But there is a reduction in the average duration of an ad. Due to less viewership of ads, the TRPs (television rating points) of commercials has reduced to 18.20%. This is encountered by using Direct marketing, customer relationship management (CRM), event management, the Internet, mobile (SMS) and rural initiatives. This is the true reflection of multimedia 360° approach. Engaging the customers in different touch points is the key to success. The attest are made by the ad-agencies to reposition themselves.

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