Indian Advertising Industry in the Global Market

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    INDIAN ADVERTISINGINDUSTRY

    Tussling in the

    global market

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    INTRODUCTION The Indian advertising industry is

    talking business today havingemerged as one of the majorindustries and tertiary sectors.

    Indian advertising industry todayhas an estimated value of 13, 200-crore with some astonishing piecesof work and creative minds.

    Advertising agencies in the country

    too have taken a leap from beingsmall and medium sized industries towell known brands in the business.

    Indian economy is on a boom andthe market is on a continuous trailof expansion.

    The Indian advertising todayhandles both national and

    international projects, functionsincluding client servicing, mediaplanning, media buying, etc.

    The industry is expected to witnessa major boom in the times ahead.

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    INDIAN ADVERTISINGINDUSTRY: The Trend

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    The key factors that have contributed to the growthof the Indian advertising industry include:

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    Segmentation of advertising spends

    Year Print TV Radio Cinema Outdoor Internet

    2000 49.0% 39.3% 2.5% 0.5% 8.4% 0.3%

    2001 48.4% 40.6% 2.7% 0.4% 7.5% 0.4%

    2002 47.2% 41.9% 2.9% 0.7% 7.0% 0.4%

    2003 46.6% 43.0% 2.9% 0.7% 6.5% 0.4%

    2004 46.3% 43.7% 2.9% 0.6% 6.0% 0.3%

    Media Spends as % of Total Ad Spend

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    The Indian televisionindustry has grown rapidly,especially since 1991

    Growth of the satellitetelevision audience

    The television broadcastingbusiness, now has over 300channels covering the Indian

    footprint, key reasons beingproliferation of privateplayers and reforms

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    Analyzing the globaladvertising industry

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    Definite signs of a recovery, afterone of the worst-ever slumps inadvertising.

    Print advertising looks more promising

    and several US magazines saw adpages increase quite dramatically.

    Firms are looking toward technology

    as the point of departure for hugereturns.

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    Indian ad industry attractingoverseas attention

    The Indian advertisingindustry is increasinglyattracting the attention ofmany American companies andcommunication agencies

    Worldwide Partners Inc. tiedup with Indian PressmanAdvertising & Marketing Ltd

    following repeated enquiriesabout India.

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    Most of the enquiries were in thenature of harnessing online solutionslike logo designs, computer science

    graphics. Before Pressman came on board as a

    full partner in December 2007,Worldwide partnered Image Ads forsome years, thus now having 2

    partners in India. Worldwide is focusing on

    strengthening its position in Indiaand Korea specifically and AsiaPacific largely.

    Good opportunity for pressman toconnect with agencies from acrossthe world in Worldwides network.

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    Type PrivateFounded 2004

    Headquarters Mumbai, Maharashtra,

    India

    Key people Mahesh Murthy, Founder &

    CEO

    Ansoo Gupta, Global Head,

    Business

    Industry Advertising

    Services Internet Marketing, Search

    Engine Optimization, Search

    Engine Marketing

    Employees 130

    Website www.pinstorm.com

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    Pinstorm is a pay-for-performancedigital marketing firm. Pinstorm isbased out of offices in Bombay, alongwith offices in Singapore, Malaysia,Europe and the United States.

    Pinstorm has been selected by RedHerring (magazine) to their list ofAsias 100 hottest companies for 2008

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    LINTAS AND PINSTORM TIE-UP

    Linta's Media Group is among the largestmedia agencies in India, managing a spendof over Rs1,300 crores on broadcast, print,outdoor and other media for clients likeIdea, Bajaj Auto, Maruti Suzuki, ITC, etc.

    Pinstorm and Lintas Media Group haveannounced a significant non-equitypartnership, designed to push clients toperformance-driven media choices

    The tie-up was resulted from Pinstormspure adherence to pay-for-performance

    which was expected to go a long way inbringing accountability and transparency toinvestments in advertising.

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    FACTS AND FIGURES

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    CONCLUSION

    Indian advertising Industry set to rise -no signs of vertical ad networks:

    The Indian advertising industry is expectedto grow 61% by 2010 (with advertising

    spend climbing to Rs. 36,731 crores) advertising expenditure in India to increase

    from 0.50% of the gross domestic product(GDP) to 0.53% over the next three years.

    For every hundred rupees spent by

    advertisers, Rs 91 is spent on television andthe print media while the outdoor mediaaccounts for Rs 5. The rest is dividedbetween cinema, radio and the Internet.