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INTRODUCTION
Imagine a day in the life of an average urban Indian male living inan apartment by himself. He wakes up early in the morning to the
sound of a hi tech alarm (which he has recently bought, thanksto the ad of an alarm clock he seen on TV). He jumps out of bedand switches on the radio (to hear some good music on FMpunctuated with some news headline). The TV is then switched on(to the channel on Aerobics while he woks out with those slimwomen who promise a sexy physique in just a couple of months).With a brush in his mouth (of course with Close Up toothpastefor greater confidence and so that beautiful girls may say Talk tome), he scans the news paper for a quick update while heprepares some breakfast (the fast and highly nutritious Kellogswhich once again he purchased because of the attractive ad).
After a warm bath (with Dettol soap - for greater skin protectionand Head and Shoulders Shampoo so that he is neverembarrassed because of dandruff), and a cool shave (with thevery cool Gilette Shaving foam as shaving cream is out andshaving foam is in, and the Mac3 - for the closest shave), hebathes his cheeks with an after shave (Old Spice for thatmacho feeling). He dashes off to work (whizzing past posters,billboards, hoardings all bombarding him with different
messages, schemes, offers etc.). His bus and train journey arenever boring as he always carries the latest India Today to keephim abreast of the latest happenings. He is on the field workingwhen he feels thirsty (but he cannot make up his mind whether tohave a Thums up as he is grown up, or to have a Pepsi because he wants to live young forever; any way he decides toplay safe and have a Bisleri). His mobile suddenly buzzes. Its aprogrammed call, reminding of his date. He realises he is late. Atthe shopping center close by he buys his date a card (an Archies
Im sorry Card of course, because no one can say it better thanArchies). Obviously his date reacts as she is expected to by givinghim a hug (just like the ad). After the great date they returnhome. After some TV snacking, he sets the mood with some softmusic, spruces himself (any guesses with what? yes with thesexiest, irresistible, AXE deo spray). And the lights go out. (Heywait a second, I forgot to mention the extra soft. Kurlon
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mattress he had recently purchased thanks to the special Diwalioffer). That was Media and Advertisings influence for you.The word advertisingoriginates from a Latin word advertise whichmeans to turn to. The dictionary meaning of the term is to givepublic notice or to announce publicity. Advertising as a term isused by many to cover almost any topic in the promotional areaof marketing. Advertising is a marketing vehicle that is designedfor the masses.The American Marketing Association defines advertising as anypaid form of non personal presentation and promotion of Ideas,goods or services by an identified sponsor.Advertising is paid communication through a non-personal medium in which the sponsor is
identified and the message is controlled. Advertising clients are predominantly, but not
exclusively, for-profit corporations seeking to increase demand for their products or services.
Other organizations that frequently spend large sums of money on advertising include political
campaigns, interest groups, religion-supporting organizations, and the military.
Other non-profit organizations are not typical advertising clients, and rely upon free channels,
such as public service announcements Commercial messages and political campaign displays
have been found in the ruins of ancient Arabia. Egyptians used papyrus to create sales messages
and wall posters, while lost-and-found advertising on papyrus was common in Greece and Rome.
Wall or rock painting for commercial advertising is another manifestation of an ancient media
advertising form, which is present to this day in many parts of Asia, Africa, and South America.
For instance, the tradition of wall painting can be traced back to Indian rock-art paintings that go
back to 4000 BC. As printing developed in the 15th and 16th century, advertising expanded to
include handbills. In the 17th century advertisements started to appear in weekly newspapers in
England. These early print ads were used mainly to promote books and newspapers, which
became increasingly affordable thanks to the printing press, and medicines, which were
increasingly sought after as disease ravaged Europe.
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Importance of Advertising
Back in 1950s, it was said that doing business without advertising is like winking at a girl in the
dark; you know you what you are doing, but nobody else does. The message was: 'Come on, turn
on the light, it pays to advertise'. Today, in this complex world amidst heavy rush or everything,
having a densely crowded scenario of multiple ads even winking in broad daylight goes
unnoticed. Since everyone is advertising, the idea is to do it with innovation. Advertising is of
immense utility both to large and small business. There can be no doubt that advertising efforts
would result in creation of additional sales. All forms of promotion of sale of goods is in one
way or the other, supported by extensive advertising campaign. It is not possible to imagine
survival of any business, which is in the business of "make and sell" in the absence of advertising
efforts. Advertising has extended its coverage to include non-business enterprises also e.g..
Public Water Works advertises the need to preserve precious water and to cultivate the habit of
drinking clean water free from any form of pollution. Countless illustrations can be provided
wherein non business enterprises have recognized the importance of advertising and their use it
as a tool to promote ideas and services. Advertising is an economic activity and it generates
employment. Thousands of men and women are directly or indirectly, employed in professional
advertising. Advertising is an economic proposition. People who invest their money in
advertising anticipate positive results. Hence, advertising must be result oriented. Every
newspaper or magazine survives on the advertisements that it receives. Advertisements are
definite source of revenue to the publishers. Because of the advertisements inserted in
newspapers and magazines, they are sold at lower price, which can be afforded by the public.
Advertising is of paramount importance because it creates better informed public by making
available innumerable publications at an affordable price. Considering the response that
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advertisements generate, it can be stated that "advertising does not cost too much". In older to cut
down production cost per unit there is a need to increase the total sales turnover. When overall
sales increase, production cost per unit is automatically slashed and more people buy the goods.
Apart from towering production costs, advertising also pays for entertainment and education
through use of media like radio and TV. Consumer is the king in the market. He cannot be
compelled to buy anything. At the most, he can be persuaded to patronize a certain brand. It is
here that advertising plays a prominent role. There is no standard format to be followed to make
advertising liked by every person. Advertising is a creative field. Individual likes and dislikes
determine success of advertising or its failure. Advertising scores over personal selling because it
provides freedom of choice to the consumer. Decision to make purchases is independently
arrived at by the consumers. No civilized society can record constant progress and ensure better
standard of living to its people in the absence of information and education provided by
advertising.
Types of Media
Print media is one of the oldest and basic forms of mass communication. It includes newspapers,
weeklies, magazines, monthlies and other forms of printed journals. The contribution of print
media in providing information and transfer of knowledge is remarkable. Even after the advent
of electronic media, the print media has not lost its charm or relevance. Print media has the
advantage of making a longer impact on the minds of the reader, with more in-depth reporting
and analysis. Print industry in India is one of the most well established and oldest media forms in
the country. It is more than a century old and is one of the only two growing print industries in
the whole world. The Print Industry chiefly comprises of newspaper and magazines publishing.
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Book publishing forms a small but significant part of the revenue. Even though the industry has
reached the phase of maturity, new newspapers are being launched every year and this boom is
predicted to continue till 2011 at least. Print has successfully managed to reach out to section A
and B, its penetration in C is lower compared to the other two sections. Print media is forecasted
to increase its revenue with contribution from new segments like telecom, internet, OOH, etc.
Bundling of advertisement space can happen when companies diversify into different media
areas. Print growth dropped in late 90s due to the expansion of TV. However, this trend changed
and print started picking up in the start of 2000s.
History
For about 600 years printing has been the basic tool of mass communication, storing and
dissemination of information and knowledge. From about the second half of the last century
electronic media has somewhat taken over the mass media world by a storm but the print media
has not lost its sheen and its social relevance. The modern printing in India originated in Goa in
1550 by Spanish Coadjutor, Brother John de Bustamante, also known as Indian Gutenburg. The
first language printing press with vernacular types was established in 1557 at Vaipicotta. In India
the concept of the freedom of the press can be referred back to the Mughal Era. An emperor like
Aurangzeb allowed great freedom in news reporting, but the reports sent by the news-writers
were often unreliable. The East India Companys news-writers were under greater control than
under the Moghal Emperors. The first attempt to start a newspaper in India was made in Kolkata
in 1766 by William Bolts, the well known author of consideration on Indian Affairs. On January
29, 1780 the first Indian newspaper, the Bengal Gazette, two pages, twelve inches by eight,
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popularly known as the Hickys Gazette was published. During the later half of the 19th century
Anglo- Indian press established firm foundation in India. In 1861 there were 11 Urdu
newspapers and 8 Hindi newspapers. By 1870 the press in Indian languages was growing
rapidly. There were about sixty-two Indian languages newspapers in Bombay, about sixty in
North-West Provinces, Oudh and the Central Provinces, some twenty-eight in Bengal, about
nineteen in Madras (Tamil, Telgu, Malyalam and Hindustani). There were about 100,000 readers
and the highest circulation of any one newspaper was about 3000. Today the number of
newspapers has grown to 99 million copies daily. Indian newspaper sales increased 11.2 percent
in 2007 and 35.51 percent in the five year period. Newspaper advertising revenues in India were
up 64.8 percent over the last five years. Even when the electronic media is running the roost, the
print media has actually grown in circulation and readership. Though it is found that newspapers
are facing hard times, but circulation world wide increased by 2.57 percent in 2007, taking global
daily sales to a new high of over 532 million copies. The global paid - for circulation world wide
increased 2.57 percent year on year and 9.39 percent over the last five years. However, when free
dailies were added to the paid - for daily circulation, global circulation increased by 3.65 per cent
year on year to 573 million copies. Free dailies now account for nearly 7 per cent of all global
newspapers circulation. Print media remains the worlds largest advertising medium with a 40
per cent share. Timothy Balding, chief executive officer of WAN (World Association of
Newspaper), said, Newspaper circulation has been rising or stable in three quarters of the
Worlds countries over the past five years and in nearly 80 percent of countries in the past year.
With literacy level rising to approx 551 million people in India, more people - rural and urban -
are reading newspapers and magazines. The reach of print media has increased to an estimated
316 million readers. Print media has also attracted the global investors with maximum foreign
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investment in this segment. Currently Indian government has allowed Indian editions of foreign
magazines publishing news and comments periodicals falling under the news and current
affairs category with 26 percent foreign investment. The year 2007 saw launches of many niche
magazines. The print media industry has the potential to grow, as approx. 236 million people in
India are still not tapped by any publication. A survey of Indian Media and entertainment
scenario jointly conducted by FICCI and Price Waterhouse Coopers recently assumed that in
view in increasing literacy, there was a possibility of future growth and expansion of print media
in future. From 1990s India has witnessed an explosion in electronic media, online news
services. Media has acquired such great control on the mind of the masses that it now somewhat
controls their behavior to a great extent. Today compared to the print media, electronic media
has grown faster. The Indian press is experiencing a fundamental transformation because of
changes occurring in the larger polity and the economy. Liberalization, globalization, and
competition from the electronic media are forcing the media to adopt new technologies, become
more professional and be more sensitive to the market structure. Today Indias print media
structure offers a product line that is dizzying in its diverse array of languages, ownership
structure, and topics. While Indian economy was growing at around 8 per cent, the media and the
entertainment sector had a compound growth of 17 per cent. It isestimated that by 2008-09 it
would be about Rs. 52,000/- crore. A report for the World Editors Forum points out that
newspapers must innovate, integrate or perish. Greater emphasis needs to be placed on comment
and opinion. While newspapers survived the competition from television, the challenge is more
serious now in the digital age. The report indicates that the most communication form of news
consumption will be through the digital media. The challenges ahead call for new thinking. The
newspapers today face twin challenges: how to adapt to and monetize digital distribution and
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advertising revenue; and how to meet the fourth estates obligation of feeding them spinach
with the ice-cream in the interest of the civil society. Print media is changing rapidly. The
changes in technology and marketplace are responsible for the development. In societies where
these technology driven changes are more advanced, as in the West, there is a trend decline in
newspaper readership and circulation. In other parts of the world, print media has maintained its
place particularly in India and China. In India almost all newspapers are completely accessible
through the Internet and provide up to-date news and information. Major changes that can be
expected are in the field of technology used in the printing and the number of units per each
organization. Newspapers are by no means obsolete. The traditional benefits to the reader are
obvious, but todays customers expect more. Newspaper organizations now-a-days identify
themselves as a commercial enterprise and the newspaper as a commodity, rather an institution
to serve the society. In over two hundred years of its existence, the newspaper media has
survived many challenges - from radio, television and now online, as also from time to time
setbacks due to the shortages of essential inputs like paper and import restrictions etc. It has done
this essentially by staying in step with the whirl of technology - seeing it not as an impediment
but an impetus to growth. Today, as we all are aware that media industry like any other industry
is facing the recession. In a complete change of mood from a year ago newsprint prices are
falling from the sharp high they reached in the middle of the year. They are still higher than they
were a year ago. Advertising is dropping fairly sharply. Group M, the media arm of the worlds
leading communications agency WPP, has projected for 2009 that the average growth rate across
media will drop by 50 per cent which is half the growth rate of 16 per cent in 2008. The press in
modern times has become a powerful social institution known as Fourth Estate. It facilitates
the exchange of thoughts and helps to solve many complex processes on a large scale in the
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shortest time. The press becomes an indispensable weapon to stir the conscience of the people, to
enlighten them with new ideas. The press is also an instrument to develop modern culture
ushered in the science and arts. Newspaper reading is a habit. The importance of print media has
not diminished with the advent of electronic media. The fact remains that the print media still
holds its own position which can never be threatened by the onslaught of new media. In fact print
media can benefit from the new technology. If the print media is to survive the onslaught of the
electronic media and retain its glory as the thinking media, it has to look inward and do a serious
introspection. At no time in the history of the Indian press, the need for self evaluation has been
greater than now.
TYPES OF PRINT MEDIA
The two most common print media are newspapers and magazines, but print media also include
outdoor billboards, transit posters, the yellow pages, and direct mail. Print media is important
because it can reach such a large audience, and the great numbers of specialized publications
enable businesses to focus in on a target audience with a specific set of characteristics. Print
media are allowed to advertise most anything, such as cigarettes, liquor, and contraceptives;
however, many publications will not accept controversial ads.
NEWSPAPERS When deciding upon a newspaper in which to advertise, there are three
physical criteria to consider: distribution, size, and audience. Newspapers are either daily or
weekly, come in a standard or tabloid size, and reach nearly all of the reading public, which is
estimated to be around 85-90 percent of the population. Because of the broad demographic reach
of most newspapers it is difficult to target a specific audience; however, newspapers are effective
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in increasing awareness of a business' products and services in a specific geographical area.
Types of ads placed in newspapers include: display ads, classified ads, public notes, and
preprinted inserts. Newspaper ads have some flexibility in their size. For instance, some are
small boxes that take up only a small portion of a page, while others might span one or two full
pages (the latter, however, are typically only bought by larger corporations). Regardless of this
flexibility, newspaper ads can only use limited special effects, such as font size and color. These
limitations lead to advertising "clutter" in newspapers because all the ads look very similar.
Therefore, advertisers must use original copy and headings to differentiate their ads from their
competitors. The quick turnover of newspapers also allows the advertiser to adjust ads to meet
new market conditions; however, this turnover means that the same ad may need to be inserted
over a significant period of time in order to reach its target audience.
MAGAZINES With magazines an advertiser can focus in on a specific target audience. As the
Small Business Administration pointed out in "Advertising Your Business": "Audiences can be
reached by placing ads in magazines which have [a] well-defined geographic, demographic, or
lifestyle focus." An attractive option for many small businesses may be placing an ad in the
localized edition of a national magazine. But magazine advertisements often have a lag time of a
couple months between the purchase of ad space and the publication of the issue in question.
Magazines, then, are sometimes not the optimum option for businesses seeking to target fast-
changing market trends. In addition to the above factors, it is also important to consider the
nature of the magazine ad copy. Magazines allow elaborate graphics and colors, which give
advertisers more creative options than do newspapers. Also, recent surveys have indicated that
informative ads are the most persuasive. Therefore, it is important to include copy and art work
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that is direct and presents important product information to the consumer, such as how the
product works, how it benefits the consumer, and where it can be purchased.
DIRECTMAIL Many consultants feel that direct mail is the best way for a small businesses to
begin developing awareness in their target consumers. Mailing lists can be generated (even
though they are often difficult to maintain) with the names of those people most likely to
purchase the advertiser's products or services. However, direct mail is not always cost effective.
According to James W. Taylor, author ofMarketing Planning: A Step by Step Guide, a direct
mailing campaign can cost as much as $1,000 to reach 1,000 people, whereas television can
reach a similar number of potential customers at a fraction of that cost. But business experts
indicate that direct mail does tend to generate more purchasing responses than does television,
and they observe that the products of many small businesses are often more suited to a direct
mailing campaign than to indirect, image advertising.
YELLOW PAGES The Small Business Administration stated in "Advertising Your Business"
that a yellow page ad is often used to "complement or extend the effects of advertising placed in
other media." Such an ad has permanence and can be used to target a specific geographic area or
community. Essentially, a yellow page ad gives the consumer information needed to make a
purchase. Therefore the key information to include in such an ad includes: the products and
services available; location; phone number; business hours; special features, such as the
acceptable kinds of payment (i.e. credit cards, checks); parking availability; discounts; and
delivery policies and emergency services. The best way to arrange this information is in a list, so
that the consumer will be able to scan the ad for the desired information.
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A major consideration with a yellow page ad is where to place it, which primarily depends on the
directory (or category) under which businesses choose to locate their ads. Central to this choice
are the products or services that the company wishes to emphasize. The ad copy should
compliment the directory, indicating the main products and services for sale, so that the ad will
emerge from the similar looking ads that surround it.
OUTDOOR ADVERTISING Outdoor advertising usually comes in two forms: billboards and
transit posters. Like yellow page ads, outdoor advertising is usually used to support
advertisements placed in other media. As Alf Nucifora noted in the LI Business News, perhaps
the greatest strength of outdoor advertising is as a directional marker to point customers toward
your business. Since the prospective consumer often has only fleeting exposure to billboards and
transit posters, the advertising copy written for these media needs to be brief with the ability to
communicate ideas at a glance; this, of course, requires efficient use of graphics and headings.
Foreign Investment in Print Media
The process of economic liberalization in India, which began more than a decade ago, has taken
another significant step, namely opening up a very sensitive sector . the print media.
Government of India in June 2002 had decided to allow 26 per cent foreign direct investment
(FDI) in news and current affairs print media. Technical and medical publications have been
allowed a higher FDI of74 per cent. The decision, taken by the Union Cabinet, reverses the
1955 Cabinet resolution prohibiting any foreign investment in print media. A detailed policy
statement on FDI in print would be issued shortly. Foreign investments in news agencies,
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however, remain barred. The government has attempted to address the concerns of political
parties that fear FDI in print might lead to foreigners controlling the Indian media.
The pre-conditions to FDI in print media would be:
At least three-fourth of the board of a print media company with FDI must be Indians.
All key editorial posts must also lie with resident Indians.
Any print media company wishing to change its share-holding pattern must get prior
government approval.
The Opportunity
The desire for foreign help is palpable. India has 49,000 publications, but annual revenues total
just $1.1 billion. While they can be vibrant and gutsy, most are starved for technology,
marketing, and capital to expand. So, a handful of publications dominate. Chief among them is
the Times of India Group, which long used its political clout to block foreign entrants by
claiming news media are a "strategic" industry. Its seven newspapers (total circulation: 2.2
million) use strong marketing and distribution to overpower rivals. The group earned $40 million
in 2001, more than the rest of Indias print media combined. One affiliate, The Economic Times,
has 467,000 subscribers. Theres little doubt about Indias market potential. According to a
national survey, 248 million literate adults still dont read any publication. But readership of
newspapers and magazines is up 15% since 1998, to 180 million. Its a reflection of a younger,
more educated population, especially in small-town India, feel experts.
The Initial Euphoria
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Now that the doors to foreign investors in print media have been thrown open, one can expect
some action in the sector. Already, some publications have taken the leap. Among the first to do
so was Business Standard. Companies such as Pearson, Haymarket, Time India, News Corp.,
and Dow Jones have eyed Indias big, English-reading market. So the day the new policy was
announced, stocks of five newspaper companies shot up 10%. Bankers in Bombay began asking
other media concerns if they want to go public. ICICI Ventures, which holds stakes in three
media companies, is quite bullish about the industrys prospects. Trade books offer the best
openings, since as much as 74% FDI has been permitted in them. Britains Haymarket
Publishing Group already has ties to Auto carI
ndia, with 80,000 subscribers. Haymarket
doesnt own a stake, but helps with research and management. Now, it can invest, provide funds
to print more copies, market more strongly and use Auto caras a platform to bring its other
brands. Bombays Tata Info media, a $30 million publisher of yellow pages and trade magazines,
also has already started to solicit business with foreigners, sources say. The Tata Group is
selling the Indian edition ofReader's Digestmagazine, making it the first publishing property
offered for sale since the government last month scrapped the ban on foreign investment in the
print media. A reason to invest now is to snag the best partners. Indian media moguls will
push for more liberalization. And the experience of TV broadcasting, where foreigners can buy
49% stakes, suggests takeover fears are overblown. Rupert Murdochs Star TV has the top
entertainment channel, but its news station trails all-Hindi channel Aaj Tak. Three similar
channels are on the way. In print media as well, India ids likely to find that opening up the sector
to foreigners will strengthen local players as it breeds healthy competition.
The Flip Side
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As expected, there have been various anti-FDI lobbies, which are strongly voicing protests
regarding foreign investment in Indian Print Media. Their major contention is that foreign forces
might begin dominating the content of Indian publications, which is detrimental to national
interests. An extreme view given by a former Indian PM is that powered by their immense
finances and goaded by an ambition to control the emerging Indian market, the foreign
monopolies will impose their own agenda of ultimately controlling Indian politics. But there is
more than meets the eye. The English-language media, fearing competition from players with
deeper pockets, has been resisting this move by the Government. A survey commissioned by a
group of large New Delhi newspapers, showed that 34 out of 50 newspapers across the country
were opposed to foreign investment. Only 16 newspapers with a circulation share of 23.7 per
cent favored the proposal. In India while there is wide readership of daily newspapers in Indian
languages, the English press is taken more seriously by the government. And from a marketing
point of view, the English press reaches the most lucrative segment of society - the 300-million-
strong middle class. Foreign players are seen as a threat to market share. One of the few local
media houses in favour of foreign investment has been the India Today Group, publishers of
Indias largest circulating news magazine.
Concluding Remarks
The opening up of the print media sector to foreign investment is a bold decision
by the Government, considering the unwillingness of so many past Governments to do the same.
It is a policy decision that could have a very positive impact on the sector, provided the Indian
publications generate enough interest and exhibit their true potential to the overseas investors.
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It could enrich the quality of our morning dailies and other publications, and probably add just
that extra touch to make them more complete. However this is speculation and what actually
transpires depends on the intent of the Government to ensure that like so many other half-baked
measures in promising sectors, this one too doesnt get lost in the jungles of bureaucracy and
red-tape. Right now, the policy details are fuzzy and need crystallization. Once that happens, it
would be a matter of time before foreign media houses make their foray into the Indian print
media sector. Till then everyone here will wait, watch and wonder .
Advantages and Disadvantages of Print Media:
The print media is considered to be one of the most flourishing industries today. This medium is also
particularly very popular to reach the target audience for advertisers. The different types of print media give
a plethora of options for people to reach a varied bracket of users. So, be it newspapers or magazines,
every medium has its particular advantages, a thing which should be considered to be of utmost
importance by all advertisers and clients. However, print media also has its own disadvantages. Here, we
shall take a quick look at the advantages and disadvantages of print media.
Advantages of Print Media:
y Different types of print media (newspapers and magazines) have a loyal readership. This can be
very useful for advertisers as compared to advertising on the Internet.
y If you are targeting a particular geographical area, you can do so with ease through print media.
For example, a local newspaper would be a best medium to advertise about a new shopping
complex.
y You can choose the size of the advertisement space. This will help you to plan the budget of the
expenses to be incurred while advertising.
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y Certain forms of print media have a very loyal fans following in terms of readers. This would
guarantee you added readership.
y Magazines and newspapers are always in the eye amongst public. Magazines are read for a
period of a month, which brings more attention to an advertisement.
y You can even advertise through brochures or leaflets depending upon your target audience. If the
information is in detail, a brochure can prove to be an apt option. A leaflet in that case, would be
useful for a brief message.
Disadvantages of Print Media:
y The cost incurred can sometimes be expensive considering the medium you choose.
y The shelf life of any particular print medium is limited. Newspapers for example, are amongst the
public eye only for a day.
y This medium may not always give you a wide reach. Internet, on the other hand, can target a
global audience.
y There is a limitation in terms of the kind of people who may actually read your message. The
particular newspaper may not actually be accessible every time to your target group, which
means, your message may be missed! The Internet on the other hand, can be accessed from
anywhere.
y You may have to plan months in advance to advertise in print media. It does not offer you
flexibility when you are faced with a tight deadline.
y Advertisements may get lost in all the clutter of editorial and ads by competitors.
Electronic Media
Electronic media is increasingly widespread, electronic media is advancing very quickly into an era of
globalization. Each type of electronic media has roles that influence many societies and communities
which have contributed to the changes in popular American culture to this day. There have been
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improvements in technique in electronic media in advertising and propagation which demonstrates the
powerful influence that effect cultural values. These influences bestowed upon many communities and
societies all over the world lead to many different kinds of trends. Some trends spread throughout the
globe causing a global impact that contributes to cultural values.
Mass media is divided into print media and electronic media. In general, everyone has knowledge of
what media is and how media enables people to understand what is going on in the world. The
nineteenth century was coming to an end while film had just begun. Film show business as it was
referred to was a popular form of advertising at the time it was introduced. Film became the perfect
way for propaganda for popularity and societal purposes.
Types of Electronic Media:
Television: A television advertisement or television commercialoften just commercial or TV ad
(US), or advert or ad (UK/US), or ad-film (India)is a span of television programming produced
and paid for by an organization that conveys a message. Advertisement revenue provides a
significant portion of the funding for most privately owned television networks. The vast
majority of television advertisements today consist of brief advertising spots, ranging in length
from a few seconds to several minutes (as well as program-length infomercials). Advertisements
of this sort have been used to sell every product imaginable over the years, from goods and
services to political campaigns. The effect of commercial advertisements upon the viewing
public has been so successful and so pervasive that in some countries, the United States in
particular, it is considered impossible for a politician to wage a successful election campaign
without the purchase of television advertising. In other countries, such as France, political
advertising in television is strictly restricted, and some, like Norway, even completely ban it.
Many television advertisements feature catchy jingles (songs or melodies) or catch-phrases
(slogan) that generate sustained appeal, which may remain in the minds of television viewers
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one, with the Energizer battery. Years later, a revised version of this seminal advertisement had
the Energizer bunny escaping the stage and moving on (according to the announcer, he "keeps
going and going and going..."). This was followed by what appeared to be another
advertisement: viewers were oblivious to the fact that the following "advertisement" was actually
a parody of other well-known advertisements until the Energizer bunny suddenly intrudes on the
situation, with the announcer saying "Still going..." (the Energizer Battery Company's way of
emphasizing that their battery lasts longer than other leading batteries).\
Future of TV advertisements:
Though advertisements for cigarettes are banned in many countries, advertisements can still
occur by the broadcast of race events.The introduction ofdigital video recorders (also known as
digital television recorders or DTRs), such as TiVo, and services like Sky+, Dish Network and
Astro MAX, which allow the recording of television programs onto a hard drive, also enable
viewers to fast-forward or automatically skip through advertisements of recorded programs.
There is speculation that television advertisements are threatened by digital video recorders as
viewers choose not to watch them. However evidence from the UK shows that this is so far not
the case. At the end of 2008 22 per cent of UK households had a DTR. The majority of these
households had Sky+ and data from these homes (collected via the SkyView panel of more than
33,000) shows that, once a household gets a DTR, they watch 17 per cent more television. 82 per
cent of their viewing is to normal, linear, broadcast TV without fast-forwarding the ads. In the 18
per cent of TV viewing that is time-shifted (i.e. not watched as live broadcast), viewers still
watch 30 per cent of the ads at normal speed. Overall, the extra viewing encouraged by owning a
DTR results in viewers watching 2 per cent more ads at normal speed than they did before the
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DTR was installed.The SkyView evidence is reinforced by studies on actual DTR behaviour by
the Broadcasters' Audience Research Board (BARB) and the London Business School. Other
forms of TV advertising include Product placement advertising in the TV shows themselves. For
example, Extreme Makeover: Home Edition advertises Sears, Kenmore, and Home Depot by
specifically using products from these companies, and some sports events like the Sprint Cup of
NASCAR are named after sponsors, and of course, race cars are frequently covered in
advertisements. Incidentally, many major sporting venues, in North America at least, are named
for commercial companies, dating back as far as Wrigley Field. Television programs delivered
through new mediums such as streaming online video also bring different possibilities to the
traditional methods of generating revenue from television advertising. Another type of
advertisement shown more and more, mostly for advertising TV shows on the same channel, is
an ad overlay at the bottom of the TV screen, which blocks out some of the picture. "Banners",
or "Logo Bugs", as they are called, are referred to by media companies as Secondary Events
(2E). This is done in much the same way as a severe weather warning is done, only these happen
more frequently. they may sometimes take up only 5 to 10 percent of the screen, but in the
extreme, they can take up as much as 25 percent of the viewing area. Subtitles that are part of the
program content can be completely obscured by banners. Some even make noise or move across
the screen. One example is the 2E ads for Three Moons Over Milford, which was broadcast in
the months before the TV show's premiere. A video taking up approximately 25 percent of the
bottom-left portion of the screen would show a comet impacting into the moon with an
accompanying explosion, during another television program. Google's Eric Schmidt has
announced plans to enter the television ad delivery and optimization business. This is despite the
fact that Google lacks an immediate video production and network placement foothold. There are
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few details in place about how this may occur, but some have speculated that they will use a
similar model to that of their business strategy directed at radio broadcast, which included the
acquisition of operations system support provider. Online video directories are an emerging form
of interactive advertising, which help in recalling and responding to advertising produced
primarily for television. These directories also have the potential to offer other value-added
services, such as response sheets and click-to-call, which greatly enhance the scope of the
interaction with the brand. During the 2008-09 TV season, Fox experimented with a new
strategy, which the network dubbed "Remote-Free TV". Episodes of Fringe and Dollhouse
contained approximately ten minutes of advertisements, four to six minutes fewer than other
hour-long programs. Fox stated that shorter commercial breaks keep viewers more engaged and
improve brand recall for advertisers, as well as reducing channel surfing and fast-forwarding past
the ads. However, the strategy was not as successful as the network had hoped and it is unclear
whether it will be continued into the next season.
Radio:Old media dont die! They just bounce back in new avatars. Not so long ago radio had
been written off as fuddy-duddy, down market and not so cool. Television and later new media
were touted to being the media of the future. But thanks to technology radio is making a
comeback. In fact, in its new avatar-fm-radio is all set too become the hippest, coolest and most
with -it medium. FM radio is a new entity altogether and has to deal with new market dynamics.
Media owners dealing with new markets will virtually have to draw up their strategies as they go
along, create programming that is new, innovative and grab away eyeballs from TV sets and
make them tune into their radio sets. Its a whole new challenge and competition is never far
away. Ad revenues will also not be easy to come by, as advertisers will expect media players to
put their money where their speakers are before they commit large sums of money towards radio
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not forgot that radio continues to be a medium that has tremendous reach among the poor and
marginalized sections of society. With the coming of more channels, and the emergence of
lifestyle advertising, radio will become a push and pull medium. As said earlier, is not just
making a comeback but is being reincarnated into a new avatar.
Online Advertisement:
Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed
purpose of delivering marketing messages to attract customers. Examples of online advertising include
contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising,
interstitial ads, online classified advertising, advertising networks and e-mail marketing, including e-mail
spam.
Competitive advantage over traditional advertising
One major benefit of online advertising is the immediate publishing of information and content
that is not limited by geography or time. To that end, the emerging area of interactive advertising
presents fresh challenges for advertisers who have hitherto adopted an interruptive strategy.
Another benefit is the efficiency of advertiser's investment. Online advertising allows for the
customization of advertisements, including content and posted websites. For example, AdWords,
Yahoo! Search Marketing and AdSense enable ads shown on relevant webpages or aside of
search results of pre-chosen keywords. Another is the payment method. Whatever purchasing
variation is selected, the payment is usually relative with audiences' response.
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Ethics
Online advertising encompasses a range of types of advertising, some of which are deployed
ethically and some are not. Some websites use large numbers of advertisements, including
flashing banners that distract the user, and some have misleading images designed to look like
error messages from the operating system, rather than advertisements. Websites that unethically
use online advertising for revenue frequently do not monitor what advertisements on their
website link to, allowing advertisements to lead to sites with malicious software or adult
material. Website operators that ethically use online advertising typically use a small number of
advertisements that are not intended to distract or irritate the user, and do not detract from the
design and layout of their websites. Many website owners deal directly with companies that
want to place ads, meaning that the website linked to by the advertisement is legitimate. The
overuse of technologies like Adobe flash in online advertising has led to some users disabling it
in their browsers, or using browser plug-ins like adblock or noscript. Legitimate advertising
often is opt-in, or has a clear opt-out option, which differentiates it from spam.
Malware
There is also class of advertising methods which are considered unethical and may even be
illegal. These include external applications which alter system settings (such as a browser's home
page), spawn pop-ups, and insert advertisements into non-affiliated webpages. Such applications
are usually labelled as spyware or adware. They may mask their questionable activities by
performing a simple service, such as displaying the weather or providing a search bar. These
programs are designed to dupe the user, acting effectively as Trojan horses. These applications
are commonly designed so as to be difficult to remove or uninstall. The ever-increasing audience
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of online users, many of whom are not computer-savvy, frequently lack the knowledge and
technical ability to protect themselves from these programs.
Privacy
The use of online advertising has implications on the privacy and anonymity of users. If an
advertising company has placed banners in two Web sites. Hosting the banner images on its
servers and using third-party cookies, the advertising company is able to track the browsing of
users across these two sites. Third-party cookies can be blocked by most browsers to increase
privacy and reduce tracking by advertising and tracking companies without negatively affecting
the user's Web experience. Many advertising operators have an opt-out option to behavioral
advertising, with a generic cookie in the browser stopping behavioral advertising.
Indian Entertainment and Media Industry
The Indian entertainment and media (E&M) industry has out-performed the Indian economy
and is one of the fastest growing sectors in India. The E&M industry generally tends to grow
faster when the economy is expanding. The Indian economy has been growing at a fast clip over
the last few years, and the income levels too have been experiencing a high growth rate. Above
that, consumer spending is also on the rise, due to a sustained increase in disposable incomes,
brought about by reduction in personal income tax over the last decade. All these factors have
given an impetus to the E&M industry and are likely to contribute to the growth of this industry
in the future. Besides these economic and personal income-linked factors, there are a host of
other factors that are contributing to this high growth rate. Some of these are enumerated below:
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A. Low media penetration in lower socio-economic classes (SEC) Media penetration varies
across socio-economic classes. Though media penetration is poor in lower socio-economic
classes, the absolute numbers are much higher for these classes. Hence, efforts to increase the
penetration even slightly in these lower socio-economic classes are likely to deliver much higher
results, simply due to the higher base.
B. Low ad spends Indian advertising spends as a percentage of gross domestic product (GDP)
at 0.34 percent is abysmally low, as opposed to other developed and developing countries.
Advertising revenues are vital for the growth of this industry. While today the low ad spends
may seem like a challenge before the E&M industry, it also throws open immense potential for
growth. This potential can be estimated by the fact that even if India was to reach the global
average, the advertising revenues would at least double the current advertising revenues,
estimated at about INR 132 billion, for 2005. Source:
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C. Liberalising foreign investment regime
Today, India has probably one of the most liberal investment regimes amongst the emerging
economies with a conducive foreign direct investment (FDI) environment. The E&M industry
has significantly benefited from this liberal regime and most segments of the E&M industry
today allow foreign investment. Recently FDI was permitted in the two important sectors print
media and radio. Films, television and other segments are already open to foreign investment.
In the print media segment, 100 percent FDI is now allowed for non-news publications and 26
percent FDI is allowed for news publications. Printing of facsimile editions of foreign journals
are now also allowed in India. This policy is helping foreign journals save on the cost of
distribution while servicing the Indian market audiences more effectively. The FM radio sector
too was opened for foreign investment recently with 20 percent FDI being allowed. The FM
radio sector itself has expanded by opening 338 licenses for private investment, which currently
is underway. As a result, the radio sector is expanding rapidly with forecasted growth rates of 32
percent per annum.
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Summary of guidelines for FDI in the Indian E&M industry is given below:
Advertising FDI is permitted up to 100% through the automatic route
FM radio Total foreign investment including FDI by OCB/NRI/PIO etc., portfolio
investments by FIIs (within limits prescribed by RBI)
and borrowings, if these carry conversion options, is permitted to the extent of not
more than 20% of the paid
up equity in the entity holding a permission for a radio
channel subject to the following conditions:
One Indian individual or company owns more than 50% of the paid-up equity
excluding the equity held by banks and other lending institutions The majority
shareholder exercises management control over the applicant company
Has only resident Indians as directors on the board All key executive officers
of the applicant entity are resident Indians
Print FDI up to 100% is permitted in publishing/printing scientific and technical
magazines, periodicals and journals. In the news and current affairs category, such
as newspapers, FDI has been allowed up to 26% subject to certain conditions
including:
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The largest shareholder must hold at least 51% equity Three-fourths of
directors and all executive and editorial staff have to be resident Indians
Foreign investment
Owing to the strong impetus for growth from the economic and demographic factors coupled
with some regulatory corrections, the sector also recently witnessed increasing foreign
investment inflows in most segments of the E&M industry, especially the print media. Recent
examples include foreign investment in English dailies such as Hindustan Times and Business
Standard by Henderson Global and Financial Times respectively. Vernacular media too saw its
share of foreign investment with a strategic equity investment by Independent News & Media in
Dainik Jagran, a leading Hindi Daily. In the broadcasting space, most channels beaming into
India (such as Walt Disney, ESPN-Star Sports, Star, Discovery, BBC etc.) have established
foreign investment subsidiary companies for content development and advertisement airtime
sales. In the television distribution space arena, foreign investment is being drawn by the larger
cable operators referred to as multi-system operators (MSO) such as Hathway and Hindujas. In
the television content space, the recent investment in Nimbus Communications by a foreign
private equity player is seen as the start of a significant trend of foreign investment inflows.
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Current status of the industry and its growth potential
The Indian economy continues to perform strongly and one of the key sectors that benefits from
this fast economic growth is the E&M industry. This is because the E&M industry is a cyclical
industry that grows faster when the economy is expanding. It also grows faster than the nominal
GDP during all phases of economic activity due to its income elasticity wherein when incomes
rise, more resources get spent on leisure and entertainment and less on necessities. Further,
consumption spending itself is increasing due to rising disposable incomes on account of
sustained growth in income levels, and this also builds the case for a strong bullish growth in the
sector. The size of E&M in India is currently estimated at INR 353 billion and is expected to
grow at a compounded annual growth rate of 19 percent over the next five years. The television
industry continues to dominate the E&M industry by garnering a share of over 42 percent, which
is expected to increase by a further 9 percent to reach about 51 percent. The share of the film
industry, which currently stands at 19 percent, is not expected to change materially over the next
five years. Print media, which stands at over 31 percent, is projected to lose some of its share in
favour of the emerging segments.
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Key growth drivers
Television
Subscription revenues are projected to be the key growth driver for the Indian television industry
over the next five years. Subscription revenues will increase both from the number of pay TV
homes as well as increased subscription rates. The buoyancy of the Indian economy will drive
the homes, both in rural and urban (second TV set homes) areas to buy televisions and subscribe
for the pay services. New distribution platforms like DTH and IPTV will only increase the
subscriber base and push up the subscription revenues.
Print media
A booming Indian economy, growing need for content and government initiatives that have
opened up the sector to foreign investment are driving growth in the print media. With the
literate population on the rise, more people in rural and urban areas are reading newspapers and
magazines today. Also, there is more interest in India amongst the global investor community.
This leads to demand for more Indian content from India. Foreign media too is evincing interest
in investing in Indian publications. And the internet today offers a new avenue to generate more
advertising revenues.
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Radio
The cheapest and oldest form of entertainment in the country, which was hitherto dominated by
the AIR, is going to witness a sea-change very shortly. In 2005, the government opened up the
sector to foreign investment and this is the key factor that will drive growth in this sector. As
many as 338 licences are being given out by the Indian government for FM radio channels in 91
big and small towns and cities. This deluge of radio stations will result in rising need for content
and professionals. New concepts like satellite, internet and community radio have also begun to
hit the market. Increasingly, radio is making a comeback in the lifestyles of Indians.