Recent Trends in Adverting

Recent Trends in Advertising 2012

Introduction

Advertising

Advertising is a form of communication used to encourage or persuade an
audience (viewers, readers or listeners) to continue or take some new action.
Most commonly, the desired result is to drive consumer behavior with respect
to a commercial offering, although political and ideological advertising is also
common. The purpose of advertising may also be to reassure employees or
shareholders that a company is viable or successful. Advertising messages are
usually paid for by sponsors and viewed via various traditional media;
including mass media such as newspaper, magazines, television commercial,
radio advertisement, outdoor advertising or direct mail; or new media such as
websites and text messages.

Commercial advertisers often seek to generate increased consumption of their
products or services through "Branding," which involves the repetition of an
image or product name in an effort to associate certain qualities with the brand
in the minds of consumers. Non-commercial advertisers who spend money to
advertise items other than a consumer product or service include political
parties, interest groups, religious organizations and governmental agencies.

Advertisement is an encapsulated communication about a product
(good/services), a clearly designed, concise, aesthetically appealing and
content-wise accurate communiqué intended to effectively persuade the target
audience(viewers/listeners/readers) to arrive at a decision as desired by the
advertiser often concerning the product (goods/service). Usually the aim of an
advertisement is to increase the sales of a product introduced into the market.
The advertisement will speak about the salient features of the product on offer
and the benefit the customer/consumer can derive out of the product. It can also
educate the target audience about the various other details such as the products

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cost, availability, usage modalities, problems that may arise whiles using it and
the probable solutions to those problems etc.

Advertisement also is used to inform a mass of audience about various socially
relevant factors such as employment, upcoming events, contests or elections or
a host of other such events. Now newer media of advertisements are emerging
and growing. Internet based media like social networks, web portals, trade
portals etc. are some of those.

Normally the advertisements are prepared in such a way that it attracts the
attention of the intended parties easily. Thoughtfully constructed copy
(words/diction of an advertisement), interesting visual or pictures, attractive
colors and designs, and a uniquely arrived at theme, the central steam of
thought, etc. arouse interest of the customers, and help to retain the interest.
Persuasive elements of the advertisement drive the customers towards a strong
desire to possess the product. This finally leads them toward buying or
possessing the product. Professional managers don‘t construe this as the final
point in advertising. They proceed for an extra mile to ensure the initial trial
becomes a success and ensures repeated clientele.

In June 1836, French newspaper La Presse was the first to include paid
advertising in its pages, allowing it to lower its price, extend its readership and
increase its profitability and the formula was soon copied by all titles. Around
1840, Volney B. Palmer established the roots of the modern day advertising
agency in Philadelphia. In 1842 Palmer bought large amounts of space in
various newspapers at a discounted rate then resold the space at higher rates to
advertisers. The actual ad - the copy, layout, and artwork - was still prepared by
the company wishing to advertise; in effect, Palmer was a space broker. The
situation changed in the late 19th century when the advertising agency of N.W.
Ayer & Son was founded. Ayer and Son offered to plan, create, and execute
complete advertising campaigns for its customers. By 1900 the advertising

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agency had become the focal point of creative planning, and advertising was
firmly established as a profession. Around the same time, in France, Charles-
Louis Havas extended the services of his news agency, Havas to include
advertisement brokerage, making it the first French group to organize. At first,
agencies were brokers for advertisement space in newspapers. N. W. Ayer &
Son was the first full-service agency to assume responsibility for advertising
content. N.W. Ayer opened in 1869, and was located in Philadelphia.

In the early 1920s, the first radio stations were established by radio equipment
manufacturers and retailers who offered programs in order to sell more radios
to consumers. As time passed, many non-profit organizations followed suit in
setting up their own radio stations, and included: schools, clubs and civic
groups. When the practice of sponsoring programs was popularized, each
individual radio program was usually sponsored by a single business in
exchange for a brief mention of the business' name at the beginning and end of
the sponsored shows. However, radio station owners soon realised they could
earn more money by selling sponsorship rights in small time allocations to
multiple businesses throughout their radio station's broadcasts, rather than
selling the sponsorship rights to single businesses per show. This practice was
carried over to commercial television in the late 1940s and early 1950s. A
fierce battle was fought between those seeking to commercialize the radio and
people who argued that the radio spectrum should be considered a part of the
commons – to be used only non-commercially and for the public good. The
United Kingdom pursued a public funding model for the BBC, originally a
private company, the British Broadcasting Company, but incorporated as a
public body by Royal Charter in 1927. In Canada, advocates like Graham Spry
were likewise able to persuade the federal government to adopt a public
funding model, creating the Canadian Broadcasting Corporation. However, in
the United States, the capitalist model prevailed with the passage of the
Communications Act of 1934 which created the Federal Communications
Commission (FCC). However, the U.S. Congress did require commercial

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broadcasting companies to operate in the "public interest, convenience, and
necessity". Public broadcasting now exists in the United States due to the 1967
Public Broadcasting Act which led to the Public Broadcasting Service (PBS)
and National Public Radio (NPR)

In the early 1950s, the DuMont Television Network began the modern practice
of selling advertisement time to multiple sponsors. Previously, DuMont had
trouble finding sponsors for many of their programs and compensated by
selling smaller blocks of advertising time to several businesses. This eventually
became the standard for the commercial television industry in the United
States. However, it was still a common practice to have single sponsor shows,
such as The United States Steel Hour. In some instances the sponsors exercised
great control over the content of the show—up to and including having one's
advertising agency actually writing the show. The single sponsor model is
much less prevalent now, a notable exception being the Hallmark Hall of Fame.
In the 1960s, campaigns featuring heavy spending in different mass media
channels became more prominent. For example, the Esso gasoline company
spent hundreds of millions of dollars on a brand awareness campaign built
around the simple and alliterative theme Put a Tiger in Your Tank.
Psychologist Ernest Dichter and DDB Worldwide copywriter Sandy Sulcer
learned that motorists desired both power and play while driving, and chose the
tiger as an easy–to–remember symbol to communicate those feelings. The
North American and later European campaign featured extensive television and
radio and magazine ads, including photos with tiger tails supposedly emerging
from car gas tanks, promotional events featuring real tigers, billboards, and in
Europe station pump hoses "wrapped in tiger stripes" as well as pop music
songs. Tiger imagery can still be seen on the pumps of successor firm
ExxonMobil. The late 1980s and early 1990s saw the introduction of cable
television and particularly MTV. Pioneering the concept of the music video,
MTV ushered in a new type of advertising: the consumer tunes in for the
advertising message, rather than it being a by-product or afterthought. As cable

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and satellite television became increasingly prevalent, specialty channels
emerged, including channels entirely devoted to advertising, such as QVC,
Home Shopping Network, and Shop TV Canada.
With the advent of the ad server, marketing through the Internet opened new
frontiers for advertisers and contributed to the "dot-com" boom of the 1990s.
Entire corporations operated solely on advertising revenue, offering everything
from coupons to free Internet access. At the turn of the 21st century, a number
of websites including the search engine Google, started a change in online
advertising by emphasizing contextually relevant, unobtrusive ads intended to
help, rather than inundate, users. This has led to a plethora of similar efforts
and an increasing trend of interactive advertising.
A recent advertising innovation is "guerrilla marketing", which involve unusual
approaches such as staged encounters in public places, giveaways of products
such as cars that are covered with brand messages, and interactive advertising
where the viewer can respond to become part of the advertising message.
Guerrilla advertising is becoming increasing more popular with a lot of
companies. This type of advertising is unpredictable and innovative, which
causes consumers to buy the product or idea. This reflects an increasing trend
of interactive and "embedded" ads, such as via product placement, having
consumers vote through text messages, and various innovations utilizing social
network services such as Facebook.

Modern advertising developed with the rise of mass production in the late 19th
and early 20th centuries. In 2010, spending on advertising was estimated at
more than $300 billion in the United States and $500 billion worldwide.
Internationally, the largest ("big four") advertising conglomerates are
Interpublic, Omnicom, Publicis, and WPP.

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Advertising theory
Hierarchy of effects model

It clarifies the objectives of an advertising campaign and for each individual
advertisement. The model suggests that there are six steps a consumer or a
business buyer moves through when making a purchase. The steps are:
1. Awareness
2. Knowledge
3. Liking
4. Preference
5. Conviction
6. Purchase

Means-End Theory

This approach suggests that an advertisement should contain a message or
means that leads the consumer to a desired end state.

Leverage Points

It is designed to move the consumer from understanding a product's benefits to
linking those benefits with personal values.

Verbal and Visual Images

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Conceptual Framework
The American Marketing Association, Chicago, defines advertising as "any
paid form of non-personal presentation of ideas, goods and services by an
identified sponsor."

A form is a presentation or a sign, a symbol, an illustration, an ad message in a
magazine or newspaper, a commercial on the radio or on television, a circular
dispatched through the mail or a pamphlet handed out at a street corner; a
sketch or message on a billboard or a poster or a banner on the Net.

Non-personal means that it is not on a person-to-person basis.

Goods, services, ideas for action means making a consumer's work easy, as far
as knowing about the product of a firm. It could be a television or a banking
service or filing tax returns, which the firm or the marketer wants the consumer
to know about. An idea could also refer to political parties letting the people
know about their party and why they should vote for the party. Adult
education, AIDS awareness campaign and eye donation campaign are a few
examples of ideas.

Paid for by an identified sponsor implies that the sponsor has control over the
form, content and scheduling of the advertisements. The sponsor could be
identified by the company name or the brand of the particular product.

Some important terms usually used in the advertising fields are as follows:

AD:

The name used to indicate an advertising message in the print media.

ADVERTISING AGENCY:

An organization that provides a variety of advertising related services to clients
seeking assistance in their adverting activities.

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ADVERTISED BRAND:

A brand is owned by an organization (usually a manufacturer) that uses a
marketing strategy usually involving substantial advertising.

ADVERTISING MEDIA:

The various mass media that can be employed to carry advertising message to
potential audience or target markets for products, services, organizations, or
ideas.

BANNER AD:

A graphical Internet Advertising tool.

CLIENT:

The term used to indicate an advertiser who has been served by an advertising
agency.

OTC:

Opportunity to See

POP:

Point of Purchase

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POS:

Point of Sale

Share:

The percentage of households or target audience members using television or
radio that are tuned to a particular program.

TG:

Target Audience

ZAPPING:

The act of using a remote control to change television channels when an
advertisement begins.

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Types of advertising

Virtually any medium can be used for advertising. Commercial advertising
media can include wall paintings, billboards, street furniture components,
printed flyers and rack cards, radio, cinema and
television adverts, web banners, mobile telephone screens, shopping carts, web
pop ups, skywriting, bus stop benches, human billboards, magazines,
newspapers, town criers, sides of buses, banners attached to or sides of
airplanes ("logo jets"), in-flight advertisements on seatback tray tables or
overhead storage bins, taxicab doors, roof mounts and passenger screens,
musical stage shows, subway platforms and trains, elastic bands on disposable
diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping
cart handles (grabertising), the opening section of streaming audio and video,
posters, and the backs of event tickets and supermarket receipts. Any place an
"identified" sponsor pays to deliver their message through a medium is
advertising.

Television advertising / Music in advertising
The TV commercial is generally considered the most effective mass-market
advertising format, as is reflected by the high prices TV networks charge for
commercial airtime during popular TV events. The annual Super Bowl football
game in the United States is known as the most prominent advertising event on
television. The average cost of a single thirty-second TV spot during this game
has reached US$3 million (as of 2009). The majority of television commercials
features a song or jingle that listeners soon relate to the product. Virtual
advertisements may be inserted into regular television programming through
computer graphics. It is typically inserted into otherwise blank backdrops or
used to replace local billboards that are not relevant to the remote broadcast
audience. More controversially, virtual billboards may be inserted into the

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background where none exist in real-life. This technique is especially used in
televised sporting events. Virtual product placement is also possible.

A still from Vodafone T V Ad

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Infomercials
An infomercial is a long-format television commercial, typically five minutes
or longer. The word "infomercial" combining the words "information" &
"commercial". The main objective in an infomercial is to create an impulse
purchase, so that the consumer sees the presentation and then immediately buys
the product through the advertised toll-free telephone number or website.
Infomercials describe, display, and often demonstrate products and their
features, and commonly have testimonials from consumers and industry
professionals.

A still from T V infomercial Home Shop 18

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Radio advertising
Radio advertising is a form of advertising via the medium of radio. Radio
advertisements are broadcast as radio waves to the air from a transmitter to an
antenna and a thus to a receiving device. Airtime is purchased from a station or
network in exchange for airing the commercials. While radio has the limitation
of being restricted to sound, proponents of radio advertising often cite this as an
advantage. Radio is an expanding medium that can be found not only on air,
but also online. According to Arbitron, radio has approximately 241.6 million
weekly listeners, or more than 93 percent of the U.S. population.
Online advertising
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. Online ads are delivered by an ad server. Examples of online
advertising include contextual ads that appear on search engine results pages,
banner ads, in text ads, Rich Media Ads, Social network advertising, online
classified advertising, advertising networks and e-mail marketing, including e-
mail spam.

A still from ESPN website advertising King James Vitamin Capsules

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Product placements
Covert advertising, also known as guerrilla advertising, is when a product or
brand is embedded in entertainment and media. For example, in a film, the
main character can use an item or other of a definite brand, as in the movie
Minority Report, where Tom Cruise's character John Anderton owns a phone
with the Nokia logo clearly written in the top corner, or his watch engraved
with the Bulgari logo. Another example of advertising in film is in I, Robot,
where main character played by Will Smith mentions his Converse shoes
several times, calling them "classics," because the film is set far in the future. I,
Robot and Spaceballs also showcase futuristic cars with the Audi and
Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac
chose to advertise in the movie The Matrix Reloaded, which as a result
contained many scenes in which Cadillac cars were used. Similarly, product
placement for Omega Watches, Ford, VAIO, BMW and Aston Martin cars are
featured in recent James Bond films, most notably Casino Royale. In "Fantastic
Four: Rise of the Silver Surfer", the main transport vehicle shows a large
Dodge logo on the front. Blade Runner includes some of the most obvious
product placement; the whole film stops to show a Coca-Cola billboard.

A still from the movie Bodyguard with Audi product placement

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Press advertising
Press advertising describes advertising in a printed medium such as a
newspaper, magazine, or trade journal. This encompasses everything from
media with a very broad readership base, such as a major national newspaper or
magazine, to more narrowly targeted media such as local newspapers and trade
journals on very specialized topics. A form of press advertising is classified
advertising, which allows private individuals or companies to purchase a small,
narrowly targeted ad for a low fee advertising a product or service. Another
form of press advertising is the Display Ad, which is a larger ad (can include
art) that typically run in an article section of a newspaper.

Volkswagen ad in Times of India newspaper

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Billboard advertising
Billboards are large structures located in public places which display
advertisements to passing pedestrians and motorists. Most often, they are
located on main roads with a large amount of passing motor and pedestrian
traffic; however, they can be placed in any location with large amounts of
viewers, such as on mass transit vehicles and in stations, in shopping malls or
office buildings, and in stadiums.

Mobile billboard advertising
Mobile billboards are generally vehicle mounted billboards or digital screens.
These can be on dedicated vehicles built solely for carrying advertisements

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along routes preselected by clients, they can also be specially equipped cargo
trucks or, in some cases, large banners strewn from planes. The billboards are
often lighted; some being backlit, and others employing spotlights. Some
billboard displays are static, while others change; for example, continuously or
periodically rotating among a set of advertisements. Mobile displays are used
for various situations in metropolitan areas throughout the world, including:
Target advertising, one-day, and long-term campaigns, Conventions, Sporting
events, Store openings and similar promotional events, and big advertisements
from smaller companies.

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In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes
placement of a product in visible locations in a store, such as at eye level, at the
ends of aisles and near checkout counters (aka POP—Point Of Purchase
display), eye-catching displays promoting a specific product, and
advertisements in such places as shopping carts and in-store video displays.

A still from big bazaar Mathura featuring in store advertising

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Celebrity branding
This type of advertising focuses upon using celebrity power, fame, money,
popularity to gain recognition for their products and promote specific stores or
products. Advertisers often advertise their products, for example, when
celebrities share their favorite products or wear clothes by specific brands or
designers. Celebrities are often involved in advertising campaigns such as
television or print adverts to advertise specific or general products. The use of
celebrities to endorse a brand can have its downsides, however. One mistake by
a celebrity can be detrimental to the public relations of a brand. For example,
following his performance of eight gold medals at the 2008 Olympic Games in
Beijing, China, swimmer Michael Phelps' contract with Kellogg's was
terminated, as Kellogg's did not want to associate with him after he was
photographed smoking marijuana.

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Present Scenario of Advertising In India
The Indian context offers unique challenges to marketers. Cultural and
economic diversity, a blend of Western lifestyles, strong cultural anchoring,
and the rural/urban divide, with islands of prosperity in rural areas, are some of
the critical factors that need specific treatment in terms of formulation of
marketing strategies.

In India, the advertising business is growing at the rate of 30% to 35%
annually. It is a 1600 crore industry. It accounts for 90% of India's GDP.

In 2005, advertising was nearly a $300 billion industry in the U.S. It is
irrevocably linked to media, whether traditional media like the 13,599 radio
stations in America (about $20 billion in annual revenues), the 1,749 broadcast
TV stations plus myriad cable and satellite TV outlets (totaling about $68
billion in advertising revenues), the 2,250 daily and Sunday newspapers (about
$49 billion in annual advertising revenues) or new media like the tens of
thousands of Internet sites that now accept advertising.

The advertising sector also includes direct mail, at about $45 yearly in the U.S.;
magazines, at about $21 billion; and outdoor advertising, at about $6 billion. In
addition, there is significant activity in specialty and alternative advertising,
from ball point pens printed with a message to T-shirts to small airplanes
towing advertising banners.

By one count, Americans are subjected to 3,000 commercial messages daily,
most of which occur randomly such as billboards. A study by Yankelovich
Partners found that two-thirds of the Americans feel "constantly bombarded"
by ads and nearly as many respondents felt that these ads have little or no
relevance to them.

Advertisers are faced with daunting new realities, when considering the various
media that they might use to get their messages across. Traditional media are
losing control over their audiences. It means that advertisers can no longer feel

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secure that their ads on TV, on the radio or in print are going to receive
mindshare. Gone are the days when television and radio programmers enjoyed
captive audiences who happily sat through ad after ad, or planned their
schedules around favorite shows.

Consumers, especially consumers in younger demographics, now demand more
and more control over what they watch, read and listen to and thus more
control over the advertising that they might be exposed to. Issues related to
control include: pricing for content (including free, illegal downloads versus
authorized, paid downloads or pay-per-view); portability (including the ability
for a consumer to download once, and then use a file on multiple platforms and
devices including iPods and cell phones); and delayed viewing or listening
(such as viewing TV programming at the consumer's convenience via TiVo and
similar personal video recorders).

Over the last three decades, advertising and the context within which it occurs
have changed beyond recognition. As the communications universe expanded
and society became fragmented, advertising lost its traditional place within the
communications system. It has been left with a variety of challenges that it
currently seems unable to meet. Marketers should learn a lesson from politics
that a new communications structure based on flexibility rather than traditional
divisions in terms of media is required to generate effective knowledge,
strategies and messages.

Advertising and marketing are undergoing a seismic shift, as new technology
engenders social change and transforms the way consumers view commercial
interaction. 'Brand' advertising is sometimes not adequate in meeting the need
of the customers. Marketers are to make the most of the new opportunities,
presented by technological progress.

Advertising and advertising research are going through an exciting period of
change, as technology and social changes enable marketers to focus
increasingly on individual consumers rather than mass-market.

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In a world that is increasingly dominated by technology, marketing and
advertising are also evolving. Markets, according to postmodern thought, are
beginning to fragment, yet they are creating greater challenges for the
advertisers. Individuals are both isolated and interconnected with the whole
world virtually via computers. Advertising has, for a long time, been based on a
one-to-many communications model; yet new technology offers the possibility
of a computer-mediated environment, in effect, a virtual world.

In this new millennium, the attempt is to make use of the Internet and
contemporary thought for developing advertising effectiveness.

We are constantly hearing how the Internet, clutter, own-label brands and other
hot topics are about to turn the advertising world upside down. But, important
though some of these issues are, will their impact on advertising really be that
great?

We foresee an exciting future for advertising, as marketers develop
multicultural strategies, find new uses for new media and explore e-commerce
and on-line information technologies.

Below are given some statistics of 10 years that describes a steady growth in
advertising expenditure in India.

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Example in the Form of Cases

Indians might as well be very emotional. The ever so marketable histrionics in
Bollywood movies only prove this point. There may also be a lot of demand for
the ―K serials‖. But do we need a forced dosage of emotions in the ads too? On
TV the viewers (much to the advantage of the advertisers) do not have much
choice. One might just not be in the same mood, as being expressed by the
advertisement, worse still, nowhere close. Imagine if you are watching Monday
night laughs & then I see the Airtel advertisement. Your brain might just urge
you to make the same reaction as a boy enjoying his birthday party until he
comes to know that the biggest gift given to him by his worst enemy has
broken. The tear would be sitting right on the edge of your eyes, wondering if it
is worth taking the plunge!

The advertising campaigns of things like life insurance, beauty products, baby
products, retirement solutions, healthcare products, tour operators & social
messages can never separate themselves from the emotional content. A viewer
even expects an emotional connect. What, however, is not easily conceivable is
why some companies practice emotional advertising even though there is no
need for it? In particular, advertisements of products like electrical switches,
salt, telecom companies, Hawaii Chappals, newspaper & paint to name a few.

Let me start not by decimating the whole concept of emotional advertising, but
cite examples which I appreciate. Those which I think are path breaking,
surpassing the barriers of the kind of product, or the target audience.

The latest frooti advertisement is the first which comes to my mind. The VO
plays, ―ladke se ladki tak,‖ and we see a guy with Frooti resting his head on a
girl‘s shoulder. Hanging out with her friends in the college canteen, a girl
whistles on seeing a guy. VO: ―Canteen se seeti tak.‖ A teacher enters his class
to find one of his students gulping down a Frooti. Approaching him he grabs it
for a sip. VO: ―Student se teacher tak.‖ Clad in a spacesuit, a little girl descends

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from a spaceship sipping a Frooti. VO: ―Fancy dress mein chhipe armaanon
tak.‖ A guy notices a crumpled piece of paper thrown on the road by
somebody. He picks it up to throw it in the bin. VO: ―India badal gaya hai…
…lekin India ka favourite froot drink wahi.‖ Super: Frooti. India‘s most trusted
fruit beverage brand.

Striking a balance amongst creating melodrama & sending the message across
is what the ad has brilliantly achieved. It is neither too moving nor does it
rubbish the idea of an emotional connect. It is also not a product with whom
one would appreciate an emotional connect. Hats off to the creative team, of
Creative land Asia for making the ad flawlessly.

One cannot forget surf‘s ―daag ache hain‖ campaign. It not only connected to
the mother‘s desires & their plight of keeping the clothes white, but also with
those of the kids, who despite all efforts not to dirty their clothes, just do it!
The ―chintamani‖ campaign for ICICI bank was a good break from the boring
ads of the banks. It was an innovative way to convey the emotional connect &
with ―short term chintamani‖ coming in the second leg of the ad, they assured a
special mention for their efforts.

Going into the recent past, I seem to recollect a few advertisements from the
automobile sector. The ―Make your own road‖ campaign with the racy music,
the rustic & adventurous imagery captures the inherent desire for an SUV
amongst men. ―The josh machine‖ campaign did very well to sell the ford ikon.
With the sport variant coming into the market the tag line fit perfectly with the
youth connect. Last, but surely not the least is the Enfield advertisement. A
train is running on the tracks, the next scene shows an enfield approaching the
tracks & the legendry thud of the engine, train is given a red signal & it stops,
the enfield on the other hand is shown a green flag by a buy & it passes the
track while the train remains at a halt, the VO says-‖make way for the bullet
Electra‖. I might be biased here, being a diehard Enfield enthusiast, but the
sound of the engine brought out all the emotions it was meant to. Not to

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mention I could clearly see the jump in sales, looking at the number of Enfield
on road. This wasn‘t the first time that Enfield had used an emotional brand
connect. Watching an old Enfield ad, it became perfectly clear. A rider on an
enfield is going through the streets of a city, the very recognizable bullet engine
& then a jingle starts playing-‖yeh bullet meri jaan, manzilon ka nishan‖ the 20
odd second ad finishes with some more imagery of meeting fellow bullet
riders. It is the kind of camaraderie amongst the bullet owners, the ad exploited.

In another category, thinking about ads for milk products like chocolates,
butter, condensed milk, two brands occupy most mind space-Amul &
Cadbury‘s. Both ―shamelessly‖ attempt to make us indulge in ―sinful
pleasures‖. (I speak strictly from the weight conscious‘ point of view,
excluding myself.) The splashing milk, melting butter on parathas, condensed
milk on sweets, I am already drooling. The low cholesterol oils survive on an
emotional connect. Unarguably condom ads also feature in the ―acceptable‖
category of ads with an emotional connect; after all, it is all about the feeling,
pun intended.

The next in the line of fire, if I may, is the ads of Airtel. The ad starts with a
young girl calling up her father who is out on duty. Apparently an engineer, he
helps his daughter who is awake well beyond her bed time & bored, to draw a
whale by joining the stars in the night sky. What benefit can an emotional
connect have for a telecom company? What first needs to be answered is why,
rather how can a father leave his young daughter alone in a huge house?
Advertisers should not distort reality only to accommodate the emotional
context of the story. It is not only misleading, but never lets the viewer
understand the message. I still wonder why Airtel had created the previous ad
with a football being kicked across what seemed to be a border protected by
barbed wires. The emotional content was still unwanted. The saving grace was
however that the ad makers didn‘t contort reality to fit in the approved story
line.

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Further a question rises, why do the advertisers not capture any other
emotions? Why not use the emotions of disapproval & disgust? The new
beauty product campaigners are increasingly using this very trick. Trying to
project an image that the brand actually sympathizes with their target audience,
they are increasingly rubbishing promotion of all so perfect models on screen.
More ―realistic‖ beauties are being used at an increasing level.

Maybe use an emotion of betrayal, or anguish, or ecstasy, or fear? Is it too
much of a gamble then, with an increasing number of companies unable to get
their message across, I think they have nothing to lose to go ahead & try this.

Bajaj Pulsar - Pulsarmania

Quite often I think to myself that ad making
is like cooking – a dash of this and a dash of
that a little magic of the chef‘s hands and lo
behold the perfect dish is there to be dunked
down your belly, but whenever you try to
copy the Chef‘s original recipe you discover
that in fact it was not that original and the
end product is different from what you
anticipated. Similarly in ad making the ad gurus copy the perfect formula
complete with a celebrity roped in despite this the commercial falls flat (read
the last post). But at times you see something which is as close to being perfect
as you thought it could be.

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It‘s very rare that you see a commercial
that makes you crave for some action
without even asking you to do so, and
that‘s precisely what the new Pulsar
commercial titled Pulsar Mania does to
you. It makes you want to jump out of the
bed, don your helmet pick up the keys and
listen to the rumble of your bike‘s engine
before you hit the road.

6 guys burning rubber in such a well choreographed manner that it would make
John Woo sit up and take notice, the guys
go through formations that are amazing
and the effect is heightened by some
excellent cinematography. The ad is
perhaps the best bike commercial ever to
have hit the TV screens in India – The
commercial is one of the most captivating
commercials I have seen in the recent
times, it‘s visually breathtaking and the effect is tremendous. I bet even the ad
makers hadn‘t thought that the final product would be so good.

The USP of the ad is that it focuses on the product through out without ever
losing focus or stressing too much, it‘s un-conventional to say the least – No
voiceover, No tagline. Yes they could have done with some good music since it
would have increased the overall effect manifolds and moreover it would have
given Pulsar its own tune which is still missing.

Feels good to see such amazing work – it‘s a spark which has come out after a
long time.

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Coca Cola Coke

A bunch of teenagers late in the night, hungry looking for food in an open air
car, sounds familiar?

But that‘s where the familiarity ends because these youngsters meet Hrithik
Roshan and at the right moment you see the Coke bottle opening with a fizz
(Off course Hrithik opens it). The Season opener from Coke features Hrithik
Roshan and a bunch of teenagers, the kids are out driving late in the night are
feeling ravenous and thus on the lookout for food. They enter a street full of
fast food shops but all are closed and they feel disappointed, one of them finds
a man sprawled on the hood of a car and shouts at him ―hey brother‖ – the man
looks pulls up the cap on his face and passes a smile – its Hrithik. He has a
Coke bottle in his hand and a bottle opener too, before opening the bottle
Hrithik slides the opener on the side of the Coke Bottle and you hear the sound
so familiar to the pre multiplex days when the hawkers would enter the cinema
hall sliding the openers against soft drink bottles during the interval. The

33


moment Hrithik opens the bottle you see food being made everywhere the
whole surrounding is lit up and we have a lot of Samosas, Jalebis and the
Indian version of Chowmein being savored by the teenagers, all this disappears
with the last drop of Coke in Hrithik‘s bottle.

All the while there is a jingle playing in the background ― Gajab ki shaam hai
yaron jage hain hum matwale aaj naa yeh rukna hai aaj tu jashn manale‖ – ―It‘s
a wonderful evening we all yuppies are together this moment won‘t last forever
– so party now‖- Forgive my translation from Hindi to English. Well this
jingle is the second best thing in the ad and the best is the sound of the bottle
opener sliding against the bottle. A very short ad with no idea behind it, the ad
survives only on the jingle, David Ogilvy had once said ―When you don‘t know
how to sell a product – Sing‖, that‘s what the ad makers did in this commercial.

Since it is the first Coca Cola Coke Ad for the season it‘s a big letdown, we
expect the season opener to be high on the entertainment value even if we
ignore the creative aspect.

The Coca Cola commercial makes the new Pepsi ad featuring Shahrukh Khan,
Deepika and Ranbeer look like a work of art and a master stroke.
Coca Cola Coke needs to pull up their socks.

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Pepsi’s – Featuring Shahrukh Khan, Ranbeer Kapoor and
Deepika Padukone.

Summer‘s are around the corner and the soft drink
giants are vying for your attention, Pepsi had launched
its latest commercial featuring Shahrukh Khan, Ranbeer
Kapoor and Deepika Padukone. It‘s an explosive
combination sure to make viewers sit up and take notice
of the unveiling of the new Pepsi Slogan for 2008.

The ad had Shahrukh as Deepika‘s geeky elder brother
and Ranbeer as the guy after Deepika.

The season opener from Pepsi has Ranbeer trying to woo Deepika while
donning a biking jacket and hanging from her balcony, suddenly he falls down
and in the process he pulls down a dish antenna with him. Hearing this sound
Shahrukh opens the door with a book in his hand (titled antariksha yatri -
come-on guys you could have done better than that) to check and finds Ranbeer
dressed like a superhero with a dish antenna in one hand. Shahrukh asks him
who is he and where does he come from. Flabbergasted Ranbeer looks at
Shahrukh and points upwards towards the balcony, Shahrukh thinks he is from

35


another planet and asks him where is he coming from?, Ranbeer meanwhile has
turned around facing two hoardings with neon signs (one is
Hindustan something and the other is Young India Underwear) and he blurts
out in an alien like tone ―Youngistan se aya hoon - i have come from
Youngistan‖ to which Shahrukh replies - Why have you come here? and pat
gets the answer from Ranbeer in the same alien tone - ―To be your sister‘s
bodyguard (tumhari behan ka body guard banane)‖. Shahrukh takes him to
meet Deepika and tells her that he has come from Youngistan and would stay
with them from now on and leaves the love birds alone (while Ranbeer and
Deepika give each other the know it all smile), Deepika asks Ranbeer ―How
did you do this?‖ and Ranbeer replies holding a bottle of Pepsi ―Chaho to sab
possible hai - Everything is possible if you want it‖ at this moment the new
slogan for 2008 is unveiled ―Yeh hai Youngistan meri jaan - Pepsi‖.

The ad has tremendous entertainment value which fizzles out in the end when
Shahrukh leaves the two alone and one more critical thing - SRK has been
wasted in this ad, the ad holds good promise as it begins but loses steam as it
progresses. The ad is in line with Pepsi‘s efforts to establish itself as a youth
brand and the only thing that comes to my mind is David Ogilvy‘s famous
quote ―Every advertisement should be thought of as a contribution to the
complex symbol which is the brand image‖. Full marks to the ad on supporting
the overall brand image but otherwise a poorly executed ad which lacks the
punch and banks only on the celebrity‘s appeal; let‘s hope Pepsi does better
sequels to this one.

The ad has just been splashed on all the major channels but how all these
pieces fit in the mind of the consumer is yet to be seen, however since Pepsi
has decided not to renew the contracts of Saurav Ganguly and Rahul Dravid
we believe that Pepsi would be pushing this campaign quite aggressively.

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Airtel comes of age - joins Idea, Reliance and Vodafone

Finally Airtel comes of age – in line with the new trend.

Well what to say, I seem to have developed a fixation for Airtel though not an
Airtel user I have been quite impressed with the way Airtel always manages to
waste money in some ad or the other. I mean they have a knack for it off late
they have been pouring money in like anything into their ads but ―uffff ads‖ is
all that they have managed.

But finally someone seems to have woken up at Airtel and they seem to be
coming of age. The kids are amazing, the setting is great and the result is a well
executed ad with a message in it. By picking up soccer instead of cricket and
not showing the Indo Pak border the ad company certainly seems to be trying
to give it an international feel, or maybe they thought cricket in no man‘s land
would not have been a very good idea (We at Adidiot are big cricket fans so we
are being biased).The Airtel ―No man‘s land soccer ad‖ scores heavily in terms

37


of being in line with the current trend in Indian Advertising ―Social Messages
or just messages‖.

Vodafone did it with ―ek pal main kitna kuch campaign‖ and Idea had their
very own idea in ―What an idea sirji campaign‖.

Even Reliance kicked in with an ad which was not exactly a social message we
are talking about the ―Yeh India ka Cricket hai Bedu ad‖. In my opinion the
winner is Idea because they were the first ones to come out with the brilliant
campaign starring Abhishek Bachhan. It‘s a very good ad with a very human
message but I have only one question ―Is Abhishek Bachhan required in this
ad‖, he doesn‘t add anything to the otherwise brilliant advertisement. I am sure
Abhishek would have charged a bomb to endorse Idea; well it‘s a different
debate altogether ―Do we need celeb endorsements?‖

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Research Methodology

Research Methodology is a way to systematically solve the research problem, it
not only takes the research methods but also consider the logic behind the
methods. The study of Research Methodology for developing the project gives
us the necessary training in gathering materials and arranging them,
participation in the field work when required, and also provides training in
techniques for the collection of data appropriate to particular problems.

Main objectives:

To understand the advertising industry
To analyze the recent trends in advertising

Research Design

Research Design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose and
constitutes the blue print for the collection, measurement and analysis of data.

Research Design used in the project The descriptive as well as exploratory
studies is used in this project due to the fact that these studies attempt to obtain
a complete and accurate description and exploration of a situation, that is it
covers the all phases required and provides the ways to collect the data from
various sources of information, ensure minimum bias in the collection of data,
hold costs to a minimum, and reduces the errors in interpreting the data
collected.

Sources of data collection

Sources of data collection state the various sources of data from where we
collect the information‘s for the comparative analysis.

39


Secondary Data

Secondary data are those that have been collected by other organizations, such
as government agencies, newspapers and magazines, etc.

Methods of Data Collection

Methods of data collection are the way through which the data is collected for
the research purposes. While deciding about the method of data collection to be
used for the study, the researcher should keep in mind two types of data viz.,
primary and secondary. The researcher would have to decide sort of data he
would to select for his study and accordingly he will have to select one or the
other method of data collection. The methods of collecting primary and
secondary data differ since primary data are to be originally collected, while in
case of secondary data the nature of data collection work is merely that of
compilation.

For this type of research I will collect the secondary data as it is more relevant
for the study.

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Recent trends in Advertising in India
Besides the above given trends in marketing in India the advertising industry
has been shifting to an entirely new way of promotion. The use of women in
advertising was discovered in the early stage of the development of the industry
but in the present scenario the use of children, celebrities and other
inspirational people is a common practice. This may be a costly practice yet a
powerful tool for advertisers to achieve sales success.

On the contrary advertisers are seeking for other cheap way of promoting the
products in the market which will help decrease cost of sales and will help
achieve breakeven point earlier. Thus advertising on internet is gaining huge
importance and companies find it as a cheap and easer way to reach people.
Some of the ways discussed above are described in details below.

Use of children in Advertising

The print and electronic media today consist of slickly choreographed, visually
appealing and professionally managed programming that has transformed the
current generation of urban youth into a bunch of mindless consumers. It is
therefore important to bring into consideration the types of programming and
its impact on emotional and intellectual growth. The advertising world claim
that it provides every individual with the right to choose and that therefore it is
impossible to imagine a world run away from an important issue. When cynical
TV programming meets unscrupulous advertising, life is grossly simplified,
depriving the rebelliousness that characterizes youth - the time set apart in all
civilized cultures for the young to trouble and question the established order of
substance. The issue is therefore not only the impact but also the cause of the
impact itself and that is the content of the advertisement and to whom this
content is directed. TV surveys in 1990 revealed that the ad agencies estimate
on the worth of the youth market was 2000 - 2500 cores. Advertisers therefore
discovered an untapped market among the youth and the persuasive power it
yielded over the decision makers in the family. Children could therefore be

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used to reach the target segment - the Parents. Advertising is based on the
suggestibility of the human mind and tends to exploit this trait, which is
especially heightened in children who do not possess without advertising tends
to the power to discriminate and hence believe in everything they see and hear.
Exploiting the ignorance of the masses in this case children and more
specifically upper middle class children, advertising tends to firstly stimulate
materialistic desires creating wrong value where children begin to respect only
people with materialistic possessions and destroy the ability for original
thinking where they blindly ape western attitudes - teeny bopper look-alikes.
Secondly, focusing on parental worries especially those of working parents
who face the guilt of not spending enough time with their children, advertising
has rise to demanding attitudes among children. Parents look for ways to
appease children and advertising suggests a basket of goodies to cure the ' you
don't love me' syndrome, which is simply emotional blackmail underlined by
parental guilt.

Also, children something that their friends have or something better ranging
from toys to the family vehicle. Apart from creating mindless consumers,
advertising also runs the risk of influencing values (gender values, male -
female relationships, family ties and their quality, reinforcing stereotypes),
buying patterns and lifestyles.

Children, teenagers and youth constitute a very important consumer segment
for the market. Their consumption habits are unique and their purchase
decisions are based on popular trends, brand image, use of new technology,
flavor of food products, and style. The market also realizes that young
consumers have a propensity to consumer junk food and prefer them over
traditional forms of food. This characteristic is exploited by the market by
associating convenience and a brand image with junk food like colas, pizzas,
and fast-food joints. There are three major brands of toothpaste in India, viz.
Colgate, Pepsodent and Close Up. All three of them compete with each other to
capture maximum market share. In order to achieve this, they not only target

42


children as consumers but also feature them in their advertisements to attract
other young consumers. Colgate, for e.g., targets young children in the age
group of 5 to 12 and offers free cartoon booklets along with toothpastes.
Pepsodent vies for the same consumer segment and depicts some children
relishing snacks, confectionery and sweets, while others are scolded by their
mothers for having done the same thing. This advertisement makes children
believe that consumers who use Pepsodent are immune to any tooth decay
because of the superior quality of the product. This claim is unauthenticated
and attempts to mislead children. Close Up, on the other hand, does not
perceive children as its target audience. Instead, it targets teenagers and the
youth. It creates a brand image of confidence and popularity for young
consumers between the age group of 16-30. Its advertisements constantly
feature successful friendships and romances between Close-Up users. Millions
of rupees are spent on advertising a product which costs as little as Rs. 30 and
is considered ordinary by most consumers. From pushing toothpaste on neem
sticks to advertising in the Kumbh mela, the market can go to any extent to
boost its sales. After a point, the sales tend to stagnate. This negative
development is offset by constantly repackaging the present product and
introducing new products. For instance, Colgate has a number of brands in the
market, like Colgate Total, Colgate Dental Cream, Cibaca, Colgate Gel and
Colgate Herbal. Young consumers are special targets of the junk-food industry.
The market knows that fast food is addictive and once young people get used to
having their fat, salts and sugar rich food, they will become their consumers for
life.

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Examples
Latest add of 2012 by Vodafone
India featuring a love story of two
kids and the famous Vodafone dag
helping them.

The advertisement gives a false
message in context of the culture of
India as traditional culture of India
does not support it.

A television commercial of
Maggie featuring a mother
making Maggie for his son
telling him that the Maggie is
good for his health

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Latest ad by Flipkart.com
featuring two kids.

The point is that children are not only used in products which are used by the
children but now a day‘s children are used in almost every ad. Children are
used in products which are not made for them. Thus the rate of use children in
India is increasing with an increasing rate.
Celebrity Endorsements
India is a country where people love to live in dreams. They worship
celebrities. Celebrities which might be cricket stars like Sachin Tendulkar,
Mahinder Singh Dhoni or Film Stars like Shah Rukh Khan or John Ebrahim.
They treat them as God. Marketers use this very preposition so as to influence
their target customers may be existing or potential ones. For this they rope in
these celebrities and give them whopping amount of money. They believe that
by doing this they can associate their products with their target customers. This
is called celebrity endorsement.
Everyday consumers are exposed to thousands of voices and images in
magazines, newspapers, and on billboards, websites, radio and television.
Every brand attempts to steal at least a fraction of a person‘s time to inform
him or her of the amazing and different attributes of the product at hand. The

45


challenge of the marketer is to find a hook that will hold the subject‘s attention.
In helping to achieve this, use of celebrity endorsers is a widely used marketing
strategy. In this modern age, people tend to ignore all commercials and
advertisements while flipping through the magazines and newspapers or
viewing TV. But even then, the glamour of a celebrity seldom goes unnoticed.
Thus, celebrity endorsement in advertisement and its impact on the overall
brand is of great significance. In this process, the companies hire celebrities
from a particular field to feature in its advertisement campaigns. The
promotional features and images of the product are matched with the celebrity
image, which tends to persuade a consumer to fix up his choice from a variety
of brands. Although this sounds pretty simple, but the design of such
campaigns and the subsequent success in achieving the desired result calls for
an in-depth understanding of the product, the brand objective, choice of a
celebrity, associating the celebrity with the brand, and a framework for
measuring the effectiveness.
Companies invest large sums of money to align their brands and themselves
with endorsers. Such endorsers are seen as dynamic with both attractive and
likeable qualities and companies plan that these qualities are transferred to
products via masscom activities. Furthermore, because of their fame, celebrities
serve not only to create and maintain attention but also to achieve high recall
rates for masscom messages in today‘s highly cluttered environments.
Similarly every product has an image. The consumer tries to consume a brand
which has the maximum fit with his/her own personality/image. The celebrity
endorser fits in between these two interactions, where he tries to bring the
image of the product closer to the expectation of the consumer, by transferring
some of the cultural meanings residing in his image to the product.
The general belief among advertisers is that brand communication messages
delivered by celebrities and famous personalities generate a higher appeal,
attention and recall than those executed by non-celebrities. The quick message-
reach and impact are all too essential in today‘s highly competitive
environment.

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What is Celebrity Endorsement?
The use of celebrities in order to increase the sales and/ or the recall value of a
brand is called celebrity endorsement
The late '80s saw the beginning of celebrity endorsements in advertising in
India. Hindi film and TV stars as well as sportspersons began encroaching on a
territory that was, until then, the exclusive domain of models. There was a spurt
of advertising, featuring stars like Tabassum (Prestige pressure cookers), Jalal
Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar
(Dinesh Suitings). Of course, probably the first ad to cash in on star power in a
strategic, long-term, mission statement kind of way was for Lux soap, a brand
which has, perhaps as a result of this, been among the top three in the country
for much of its lifetime. Endorsements by celebrities have started since a long
time. The very fact that their use has continued for so long is proof enough of
its immense advantages, but they have several disadvantages too. When it
comes to celebrity endorsement, the first brand that comes to the Indian mind is
that of Lux, the Beauty Bar of the Stars. Since its inception, Lux the brand has
grown positioning itself thus. However, recently Lux has tried to change its
positioning from being a woman‘s soap to being soap for men as well. Sticking
to its strategy of using celebrities to appeal to its target audience, this time
around it has used Shah Rukh Khan to endorse Lux. But
this time the response has been confusing. One of the first sports endorsements
in India was when Farokh Engineer became the first Indian Cricketer to model
for Brylcream The Indian cricket teams now earns roughly Rs. 100 crore
through endorsements. There was a spurt of advertising, featuring stars like
Tabassum (Prestige Pressure cookers). Jalal Agha (Pan Parag).Kapil Dev
(Palmolive Shaving cream) and Sunil Gavaskar (Dinesh Suitings)

Rise of Celebrity Culture
The modern mass media has increased the exposure and power of celebrity.
Often, celebrity carries with it immense social capitals that is highly sought
after by some individuals. High paying jobs and other social perks unavailable

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to most people are readily available to celebrities, even for wok not connected
to the talents or accomplishment that made them famous. For example A
retired athletes might receive high ―speaking fees ‗or compensation for public
appearances, despite his talent having been sports. Often, celebrities cannot
escape the public eye & risk being followed by fans. As well, child celebrities
are notorious for having poor emotional health in adulthood, and often turn to
drug and alcohols abuse when their fame fades. In India today, the use of
celebrity advertising for companies has become a trend and a winning formula
of corporate image building and product marketing. Associating a brand with a
top-notch celebrity can do more than perk up brand recall. It can create
linkages with the stars appeal, thereby adding refreshing and new dimensions
to the brand image.

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Indian Perspective – examples
In recent times, we had the Shah Rukh-Santro campaign with the objective of
creating awareness about an unknown Korean brand in the Indian market,
Hyundai. The objective was to garner faster brand recognition, association and
emotional unity with the target group. Star power in India can be gauged by the
successful endorsement done by Shahrukh for three brands- Pepsi, Clinic All
Clear and Santro.
Similarly, when S. Kumar's used Hrithik Roshan, then the hottest advertising
icon for their launch advertising for Tamarind, they reckoned they spent 40-50
per cent less on media due to the sheer impact of using Hrithik. Ad recall was
as high as 70 per cent, and even the normally conservative trade got interested.
Confining to India, it would not be presumptuous to state that celebrity
endorsements can positively affect the overall brand. We have numerous
examples exemplifying this claim. A standard example here is Coke, which, till
recently, internationally didn't use stars at all - in fact, India was a first for
them. The result was a ubiquitously appealing Aamir cheekily stating 'thanda
matlab coca cola'. The recall value for Nakshatra advertising is only due to the
sensuous Aishwarya. The Parker brand of pen, which by itself commands
equity, used Amitabh Bachchan to revitalize the brand in India. According to
Pooja Jain, Director, Luxor Writing Instruments Ltd. (LWIL), post-Bachchan
Parker's sales have increased by about 30 per cent.
India is one country which has always idolized the species of the celluloid
world. Therefore, it makes tremendous sense for a brand to procure a celebrity
for its endorsement. In India, there is an exponential potential for a celebrity
endorsement to be perceived as genuinely relevant, thereby, motivating
consumers to go in for the product - this would especially prove true if the
endorser and the category are a natural lifestyle fit (sports-persons and foot-
wear, Kapil-Sachin and Boost, film stars and beauty products, Katrina Kaif and
Lux).
The young, handsome, self controlled, composed, autonomous cricket captain
of Indian young brigade is one of the most famous images in Indian market. In

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India, cricket is religion and cricketers are placed among the gods. Dhoni is a
brand in himself and an attractive choice for the marketers as a brand endorser.
Dhoni has been successfully used indifferent advertisement as a brand
ambassador. Few of the brands that Dhoni endorse are the famous Youngistan
advertisement of Pepsi, Rebook‘s ad of Your Move and funky ad of Lays with
Saif Ali Khan.

PEPSI: YOUNGISTAN MERI JAAN
Pepsi has always tried to tap the young
segment of India through their
promotions. Beginning from the famous
―Ahaa‖ series of ads to the ―Yeh Dil
Mange More‖ to today‘s ―Youngistan
Meri Jan‖, Pepsi has always made ads to
attract the youth. They have always
chosen the young stars, may not be
established, as a face of young India. So
the main reason of using Dhoni is same in
case of the latest Youngistan Meri Jan

REEBOK: YOUR MOVE

Reebok is the most visible and
remarkable sports brand of all time. It
makes innovative products which are
making a lot of difference to
consumers and athletes worldwide. As
all the persons related to sports are its
target market, Reebok has been using
different sport celebrities for its
promotion. Dhobi’s “YOUR MOVE” is a
famous advertisement of Reebok.

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Other than the above given names we have numerous examples of celebrity
endorsements in India like Akshay Kumar in Thums up, Selman khan in
Revital capsules, Aishwarya rai in L‘Oreal shampoo, Katrina Kaif in slice, Saif
Ali khan in lays chips and Taj Mahal tea, Ranbeer Kapoor Nissan Micra,
Shahrukh khan in Hyundai cars etc.

Source AdEx India (A Division of TAM Media Research)

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Online Advertising

Online advertising is a form of promotion that uses the Internet and World
Wide Web to deliver marketing messages to attract customers. Examples of
online advertising include contextual ads on search engine results pages,
banner ads, blogs, Rich Media Ads, Social network advertising, interstitial ads,
online classified advertising, advertising networks and e-mail marketing,
including e-mail spam. Many of these types of ads are delivered by an Ad
server.

The internet has become an ongoing emerging source that tends to expand
more and more. The growth of this particular medium attracts the attention of
advertisers as a more productive source to bring in consumers. A clear
advantage consumers have with online advertisement is the control they have
over the product, choosing whether to check it out or not. Online
advertisements may also offer various forms of animation. In its most common
use, the term "online advertising" comprises all sorts of banner, e-mail, in-
game, and keyword advertising, on platforms such as Facebook, Twitter, or
MySpace has received increased relevance. Web-related advertising has a
variety of sites to publicize and reach a niche audience to focus its attention to
a specific group. Research has proven that online advertising has given results
and is growing business revenue. For the year 2012, Jupiter research predicted
$34.5 billion in US online advertising spending.

Revenue models

The three most common ways in which online advertising is purchased are
CPM, CPC, and CPA.

• CPM (Cost Per Mille) or CPT (Cost Per Thousand Impressions) is when
advertisers pay for exposure of their message to a specific audience. "Per
mille" means per thousand impressions, or loads of an advertisement.

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However, some impressions may not be counted, such as a reload or internal
user action.

• CPV (Cost Per Visitor) is when advertisers pay for the delivery of a Targeted
Visitor to the advertisers website.

• CPV (Cost Per View) is when advertisers pay for each unique user view of an
advertisement or website (usually used with pop-ups, pop-under and
interstitial ads).

• CPC (Cost Per Click) or PPC (Pay per click) is when advertisers pay each
time a user clicks on their listing and is redirected to their website. They do
not actually pay for the listing, but only when the listing is clicked on. This
system allows advertising specialists to refine searches and gain information
about their market. Under the Pay per click pricing system, advertisers pay
for the right to be listed under a series of target rich words that direct
relevant traffic to their website, and pay only when someone clicks on their
listing which links directly to their website. CPC differs from CPV in that
each click is paid for regardless of whether the user makes it to the target
site.

• CPA (Cost Per Action or Cost Per Acquisition) or PPF (Pay Per Performance)
advertising is performance based and is common in the affiliate marketing
sector of the business. In this payment scheme, the publisher takes all the
risk of running the ad, and the advertiser pays only for the amount of users
who complete a transaction, such as a purchase or sign-up. This model
ignores any inefficiency in the seller's web site conversion funnel. The
following are common variants of CPA:

• CPL (Cost Per Lead) advertising is identical to CPA advertising and is based
on the user completing a form, registering for a newsletter or some other
action that the merchant feels will lead to a sale.

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• CPS (Cost Per Sale), PPS (Pay Per Sale), or CPO (Cost Per Order)
advertising is based on each time a sale is made.

• ECPM: Effective CPM or ECPM calculated through other conversion events
such as Cost per Clicks, Cost per Downloads, Cost per Leads etc. for
example when an advertiser getting $2 per download and for 100,000
impressions you received 10 downloads worth $20, in this case your
effective CPM or ECPM will be 2*20*1000/100,000= $0.4

• Fixed Cost: Advertiser paying fixed cost for delivery frame by campaign
flight dates without any relevance to performance

• Cost per conversion Describes the cost of acquiring a customer, typically
calculated by dividing the total cost of an ad campaign by the number of
conversions. The definition of "Conversion" varies depending on the
situation: it is sometimes considered to be a lead, a sale, or a purchase.

Types of online Ads

Though, as seen above, the large majority of online advertising has a cost that
is brought about by usage or interaction of an ad, there are a few other methods
of advertising online that only require a onetime payment. The Million Dollar
Homepage is a very successful example of this. Visitors were able to pay $1
per pixel of advertising space and their advert would remain on the homepage
for as long as the website exists with no extra costs.

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• Floating ad: An ad which moves across the user's screen or floats above the
content.

• Expanding ad: An ad which changes size and which may alter the contents of
the webpage.

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• Polite ad: A method by which a large ad will be downloaded in smaller pieces
to minimize the disruption of the content being viewed

• Wallpaper ad: An ad which changes the background of the page being
viewed.

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• Trick banner: A banner ad that looks like a dialog box with buttons. It
simulates an error message or an alert.

• Pop-up: A new window which opens in front of the current one, displaying an
advertisement, or entire webpage.

• Pop-under: Similar to a Pop-Up except that the window is loaded or sent
behind the current window so that the user does not see it until they close one
or more active windows.

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• Video ad: similar to a banner ad, except that instead of a static or animated
image, actual moving video clips are displayed. This is the kind of advertising
most prominent in television, and many advertisers will use the same clips for
both television and online advertising.

• Map ad: text or graphics linked from, and appearing in or over, a location on
an electronic map such as on Google Maps.

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• Mobile ad: an SMS text or multi-media message sent to a cell phone.

• Superstitial: An animated adv on a Web page from Enliven Marketing
Technologies. It uses video, 3D content or flash to provide a TV-like
advertisement. Used to be known as Unicast Transitional ads as they were
originally made by Unicast Communications but the company was acquired by
Viewpoint Corporation in 2004, which then changed its name to Enliven in
2008.

• Interstitial ad: a full-page ad that appears before a user reaches their original
destination.

In addition, ads containing streaming video or streaming audio are becoming
very popular with advertisers.

E-mail advertising

Legitimate Email advertising or E-mail marketing is often known as "opt-in e-
mail advertising" to distinguish it from spam.

Display advertising

Display advertising appears on web pages in many forms, including web
banners. These banners can consist of static or animated images, as well as
interactive media that may include audio and video elements. Display
advertising on the Internet is widely used for branding. This is why metrics like

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interaction time are becoming more relevant. This may change in the future as
display advertising is becoming much more targeted to users, much like how
search engine ads can be extremely relevant to users based on what they are
searching for. Display advertisers use cookie and browser history to determine
demographics and interests of users and target appropriate ads to those
browsers. Banner ad standards have changed over the years to larger sizes, in
part due to increased resolution of standard monitors and browsers, in part to
provide advertisers with more impact for their investment. The standards
continue to evolve. Banner ads can be targeted to internet users in many
different ways in order to reach the advertiser's most relevant audience.
Behavioral retargeting, demographic targeting, geographic targeting, and site
based targeting are all common ways in which advertisers choose to target their
banner ads.

Affiliate marketing

Affiliate marketing is a form of online advertising where advertisers place
campaigns with a potentially large number of small (and large) publishers, who
are only paid media fees when traffic to the advertiser is garnered, and usually
upon a specific measurable campaign result (a form, a sale, a sign-up, etc.).
Today, this is usually accomplished through contracting with an affiliate
network. Affiliate marketing was an invention by CDNow.com in 1994 and
was excelled by Amazon.com when it launched its Affiliate Program, called
Associate Program in 1996. The online retailer used its program to generate
low cost brand exposure and provided at the same time small websites a way to
earn some supplemental income.

Behavioral targeting

In addition to contextual targeting, online advertising can be targeted based on
a user's online behavior. This practice is known as behavioral targeting. For
example, if a user is known to have recently visited a number of automotive
shopping / comparison sites based on click stream analysis enabled by cookies

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stored on the user's computer, that user can then be served auto-related ads
when they visit other, non-automotive sites. In the United States the Federal
Trade Commission has been involved in the oversight of behavioral targeting
for some time. In 2011 the FTC proposed a "Do Not Track" mechanism to
allow Internet users to opt-out of behavioral targeting.

Online Advertising in India

In last few years, online advertising has been growing at much better pace than
any other traditional advertising medium – According to recent report put
together by Magna

Global, online advertising spends will touch 71 Billion dollars this year
globally. In India, online advertising is picking up pace as well, thanks to
growth of Internet users in India, which has now crossed 100 million user
mark. Currently, advertising spends in India are pegged at 200 Million USD,
less than 0.5 percent of global market share. But over next 3 years, it is
expected that Indian online advertising will touch close to USD 1 Billion.
While doing a comparison on average advertising rates in India, I came across
an interesting chart published by Social Bakers giving average global
advertising rates for Facebook. Although India is now one of the top 5
countries in the world in terms of internet users, average advertising rates (Cost
per thousand impressions – CPM & Cost per Click -CPC) are abysmally low.

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Source: Magna Global

Social Media Marketing

Social media marketing refers to the process of gaining website traffic or
attention through social media sites. Social media marketing programs usually
center on efforts to create content that attracts attention and encourages readers
to share it with their social networks. A corporate message spreads from user to
user and presumably resonates because it appears to come from a trusted, third-
party source, as opposed to the brand or company itself. Hence, this form of
marketing is driven by word-of-mouth, meaning it results in earned media
rather than paid media. Social media has become a platform that is easily
accessible to anyone with internet access. Increased communication for
organizations fosters brand awareness and often, improved customer service.
Additionally, social media serves as a relatively inexpensive platform for
organizations to implement marketing campaigns.

Social media Advertising
Social network advertising is a term that is used to describe a form of Online
advertising that focuses on social networking sites. One of the major benefits of
advertising on a social networking site (Facebook, MySpace, Friendster, Bebo,
Orkut...and many others) is that advertisers can take advantage of the user‘s
demographic information and target their ads appropriately.

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Forms of Social Network Advertising
There are three major classifications of Social Network Advertising:
• Direct Advertising that is based on your network of friends - This can be the
most effective format but also causes the most controversy. An example is
the Facebook beacon project. Based on an action your friend has taken,
you might see a message in your news feed saying 'Bob has just bought a
'Radiohead CD from Music World'. This can be an extremely effective
mode as often people make decisions to purchase something or do
something based on their close group of friends. However, there is also a
lot of controversy surrounding this as it can be considered exploiting the
personal relationships you have with your friends and also raises privacy
concerns.

• Direct Advertising placed on your social networking site - This is a more
traditional form of web advertising that is minimally effective. Just like
you see banner ads on many other sites, this is a similar concept, except on
a social networking site. You can see these - for example - as a brick in the
top right of MySpace pages or as a banner on the left of Facebook profiles
and so on. There are two differences however - One is that these social
networks can take advantage of demographic data on your profile and
hence target the ad directly to you. Secondly, these types of ads can also be
placed by individual developers on their application pages through ad
networks. They have access to the same data and can generate income for
application developers giving them further motivation to create apps and
giving advertisers a more engaging way to reach out to these social
networking users.

• Indirect Advertising by creating 'groups' or 'pages' - This is an innovative
marketing technique in which a company will create a 'page' or 'group' that
users can choose to join. They will use this to build up 'subscribers' or
'fans' and use this to market a contest, a new product, or simply just to

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increase brand awareness. These groups can quickly grow in numbers of
subscribers which can become a very effective marketing tool.

Major sites for Social media Marketing

Twitter
Twitter allows companies to promote products on an individual level. The use
of a product can be explained in short messages that followers are more likely
to read. These messages appear on followers‘ home pages. Messages can link
to the product‘s website, Facebook profile, photos, videos, etc. This link
provides followers the opportunity to spend more time interacting with the
product online. This interaction can create a loyal connection between product
and individual and can also lead to larger advertising opportunities. Twitter
promotes a product in real-time and brings customers in.

Facebook
Facebook profiles are more detailed than Twitter. They allow a product to
provide videos, photos, and longer descriptions. Videos can show when a
product can be used as well as how to use it. These also can include
testimonials as other followers can comment on the product pages for others to
see. Facebook can link back to the product‘s Twitter page as well as send out
event reminders. Facebook promotes a product in real-time and brings
customers in. As marketers see more value in social media marketing,
advertisers continue to increase sequential ad spend in social by 25%.
Strategies to extend the reach with Sponsored Stories and acquire new fans
with Facebook ads continue to an uptick in spend across the site. The study
attributes 84% of "engagement" or clicks to Likes that link back to Facebook
advertising. Today, brands increase fan counts on average of 9% monthly,
increasing their fan base by
two-times the amount annually.

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Blogs
Everyday there are more reasons for companies to use blogging platforms to
their social media repertoire. Platforms like LinkedIn create an environment for
companies and clients to connect online. Companies that recognize the need for
information, originality and accessibility employ blogs to make their products
popular and unique, and ultimately reach out to consumers who are privy to
social media. Blogs allow a product or company to provide longer descriptions
of products or services. The longer description can include reasoning and uses.
It can include testimonials and can link to and from Facebook, Twitter and
many social network and blog pages. Blogs can be updated frequently and are
promotional techniques for keeping customers. Other promotional uses are
acquiring followers and subscribers and direct them to your social network
pages. In a similar fashion, online communities benefit businesses because they
enable them to reach the clients of other businesses using the platform. These
online environments can be accessed by virtually anyone; therefore consumers
are invited to be a part of the creative process. To allow firms to measure their
standing in the corporate world, Glass door is a site where employees can place
evaluations of their companies. Some businesses opt out of integrating social
media platforms into their traditional marketing regimen because their
employees dislike such isolated online environments. There are also specific
corporate standards that apply when
interacting online. Other corporations fear that the general public has too much
power over how their marketing is perceived, due to the accessibility of
Internet-retrieved information. To ensure having the advantage in a business-
consumer relationship, businesses have to be aware of four key assets that
consumers maintain: information, involvement, community, and control.

LinkedIn
LinkedIn, being a professional business-related networking site, allows
companies to create professional profiles for themselves as well as their
business to network and meet others. Through the use of widgets, members can

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promote their various social networking activities, such as Twitter stream or
blog entries of their product pages, onto
their LinkedIn profile page.[17] LinkedIn provides its members the opportunity
to generate sales leads and business partners.[18] Members can use ―Company
Pages‖ similar to Facebook pages to create an area that will allow business
owners to promote their products or services and be able to interact with their
customers.

Yelp
Yelp consists of a comprehensive online index of business profiles. Businesses
are searchable by location, similar to Yellow Pages. The website is operational
in seven different countries, including the United States and Canada. Business
account holders are allowed to create, share, and edit business profiles. They
may post information such as the business location, contact information,
pictures, and service information. The website further allows individuals to
write, post reviews about businesses and rate them on a five point scale.
Messaging and talk features are further made available for general members of
the website, serving to guide thoughts and opinions.

YouTube
YouTube is another popular avenue; advertisements are done in a way to suit
the target audience. The type of language used in the commercials and the ideas
used to promote the product reflect the audience's style and taste. Also, the ads
on this platform are usually in sync with the content of the video requested; this
is another advantage YouTube brings for advertisers. Certain ads are presented
with certain videos since the content is relevant. Promotional opportunities
such as sponsoring a video is also possible on YouTube, ―for example, a user
who searches for a YouTube video on dog training may be presented with a
sponsored video from a dog toy company in
results along with other videos.

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Examples of Social site

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Some Indian examples of social media advertising:

Vodafone’s zoo zoo advertisement is a very successful campaign by Vodafone
India.

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Maggie noodles from the house of Nestle India promoting the product on

www.youtube .com

69


The official fan page of ford motor company USA on Facebook.

70


Shahrukh khan the Indian superstar promoting his movie RA-ONE online

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Findings
The research states following findings:

The advertising industry in India is growing with a great pace. The
industry has been changed if compared form the early advertising
industry which started in early 1880.
The advertising industry has started using children in products that are
not used by children. Business men have started exploiting children for
advertisements for their own profit.
The use of celebrity in advertising is also increasing with a great pace in
India. The business men are using celebrities as an inspirational group
for the people to increase sale.
Use of multiple celebrities in ad is increasing for example:
advertisement of head & shoulders with Karenna Kapoor and Saif Ali
khan.
The last but not the least it is found that business men are now moving
towards online ads as these ads are cheap in price and are more
reachable too people. These ads are now broadcasted on social
networking sites like Facebook, Twitter, and LinkedIn.
Thus ad world is now changing towards a new dimension of
promotional efforts which will not only increase the scope and reach of
ad but will also reduce the cost of advertising

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CONCLUSION
The whole purpose of advertising is to sell products or ideas, so the massive
expansion of foreign companies and advertising, whether coming from
overseas or created in India, has meant the massive expansion of the sales of
foreign products. The liberalization of the Indian economy in the early 1990s
has led to the accelerated entry of foreign business and foreign advertising
agencies to sell the products of foreign products to the vast potential Indian
market of over a billion people. Though there are approximately about 37%
living at or below the poverty line, the expanding potential markets represented
by those above the poverty line number hundreds of millions for low priced
repeat purchase consumer goods, and many millions for those able to purchase
consumer durables and luxury goods.

Advertisers are using considerable ingenuity to develop strategies to
enter these markets. In the early 1990s there were Indian advertising companies
in the profile of top advertising agencies but by the end of the decade most had
made strategic alliances with foreign agencies. There was a concentration in
revenue, both in products, companies, (HUL being the largest company and the
greatest spender on advertising), and in the fact that 25 agencies accounted for
75% of the advertising revenue in India in 1999 (Srinivas, 1999).

The major competition is in the low end of the market between the cola
giants, the personal products and soap markets but there is also an expanding
market for electronics, consumer durables and services amongst ‗the
consuming classes‘. Television and satellite television has been eroding the
market dominance of print advertising in the 1990s, but print is still the largest
source of media, including newspapers and magazines, which have expanded
considerably in the 1990s. Advertising in the 1990s focused on the Hindi and
English speaking population via television and print, which was predominantly,
educated, urban and middle class. In the 2000s however, major companies have

73


been using strategies to other markets, such as the rural and village market
(70% of the population), and the internet user teenage market.

These increases in advertising expenditure and the promotion of foreign
products have impacts on culture, through the undermining of traditional habits
and behaviors, the creation of new wants and desires, often for products like
soft- drinks that have no nutritional benefit, and also by strategies that rework
cultural values and beliefs. The roles of men, women and children are
changing, traditional places within home and family, concepts of beauty,
identity and personal cleanliness are undergoing major change. The overall
impact of massive increases of foreign company advertising is the acceleration
of India into the culture and ideology of consumerism, the expansion of foreign
businesses into India and the export of profits to foreign corporations.

With the dawn of the Internet have come many new advertising opportunities.
Popup, Flash, banner, advergaming and email advertisements (the last often
being a form of spam) abound.

Each year, greater sums are paid to obtain a commercial spot during the super
bowl, which is, by the most measures, considered to be the most important
football game of the year, or for the matter of fact the new format of 20-Twenty
cricket which has been introduced by the Indian Cricket Board as IPL (The
Indian Premier League) which is expected to generate unprecedented volumes
of advertising and that will be the revenue generator for the whole tournament
which has attracted major attention both from media but also from all the
cricket playing countries whether negative or positive.

The Indian online advertising market size is estimated between 150-175 cores
and is growing at more than 50% year-on-year. Almost 70-80% of online
advertising is happening on a handful of large sites like Indiatimes, Rediff,
Yahoo India, Google India, Sify, Moneycontrol and MSN India. Compared to
print and television the number of players and market size is still very small.
To exponentially grow the online advertising business.

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