ADVERTISING AGENCY OF INDIA

Chapter 1

ADVERTISING AGENCY OF INDIA

ADVERTISING
INTRODUCTION Advertising is a form of communication whose purpose is to inform p
otential customers about products and services and how to obtain and use them. M
any advertisements are also designed to generate increased consumption of those
products and services through the creation and reinforcement of brand image and
brand loyalty. For these purposes advertisements often contain both factual info
rmation and persuasive messages. Every major medium is used to deliver these mes
sages, including: television, radio, movies, magazines, newspapers, video games,
the Internet (see Internet advertising), and billboards. Advertising is often p
laced by an advertising agency on behalf of a company. Advertising, in its non-c
ommercial guise, is a powerful educational tool capable of reaching and motivati
ng large audiences. "Advertising justifies its existence when used in the public
interest - it is much too powerful a tool to use solely for commercial purposes
." - Attributed to Howard Gossage by David Ogilvy
Advertisements can also be seen on the seats of grocery carts, on the walls of a
n airport walkway, on the sides of buses, heard in telephone hold messages

ADVERTISING AGENCY OF INDIA and in-store public address systems. Advertisements

are usually placed anywhere an audience can easily and/or frequently access visu
als and/or audio and print organizations which frequently spend large sums of mo
ney on advertising but do not strictly sell a product or service to the general
public include: political parties, interest groups, religion-supporting organiza
tions, and militaries looking for new recruits. Additionally, some non-profit or
ganizations are not typical advertising clients and rely upon free channels, suc
h as public service announcements. Advertising spending has increased dramatical
ly in recent years. In the United States alone in 2006, spending on advertising
reached $155 billion, reported TNS Media Intelligence.[1] That same year, accord
ing to a report titled Global Entertainment and Media Outlook: 2006-2010[2] issu
ed by global accounting firm PricewaterhouseCoopers, worldwide advertising spend
ing was $385 billion. The accounting firm's report projected worldwide advertise
ment spending to exceed half-a-trillion dollars by 2010. While advertising can b
e seen as necessary for economic growth, it is not without social costs. Unsolic
ited Commercial Email and other forms of spam have become so prevalent as to hav
e become a major nuisance to users of these services, as well as being a financi
al burden on internet service providers.[3] Advertising is increasingly invading
public spaces, such as schools, which some critics argue is a form of child exp
loitation.
Meaning - Advertising is the promotion of a company’s products and services
carried out primarily to drive sales of the products and services but also to bu
ild a brand identity and communicate changes or new product /services to the cus
tomers. Advertising has become an essential element of the corporate world and h
ence the companies allot a considerable amount of revenues as their advertising
budget. There are several reasons for advertising some of which are as follows:

ADVERTISING AGENCY OF INDIA

• • • • •
Increasing the sales of the product/service Creating and maintaining a brand ide
ntity or brand image. Communicating a change in the existing product line. Intro
duction of a new product or service. Increasing the buzz-value of the brand or t
he company.
Thus, several reasons for advertising and similarly there exist various media wh
ich can be effectively used for advertising. Based on these criteria there can b
e several branches of advertising
Definition; One definition of advertising is: "Advertising is the nonpersonal
communication of information usually paid for and usually persuasive in nature a
bout products, services or ideas by identified sponsors through the various medi
a."(Bovey, 1992, p. 7) So much for academic doubletalk * Advertising is a form o
f communication that typically attempts to persuade potential customers to purch
ase or to consume more of a particular *Advertising - communication whose purpos
e is to inform potential customers about products and services *Advertising - An
y paid form of no personal presentation and promotion of ideas, goods, or servic
es by an identified sponsor. *Advertising - Usually a company’s encouragement to
consumers to buy its products or services. Advertising is paid for by the spons
oring business. No journalists often confuse advertising with publicity *Adverti
sing - A paid, mediated, form of communication from an identifiable source, desi
gned to persuade the receiver to take some action, now or e future
Types of advertising

ADVERTISING AGENCY OF INDIA

Print Advertising – Newspapers, Magazines, Brochures, Fliers
The print media have always been a popular advertising medium. Advertising produ
cts via newspapers or magazines is a common practice. In addition to this, the p
rint media also offers options like promotional brochures and fliers for adverti
sing purposes. Often the newspapers and the magazines sell the advertising space
according to the area occupied by the advertisement, the position of the advert
isement (front page/middle page), as well as the readership of the publications.
For instance an advertisement in a relatively new and less popular newspaper wo
uld cost far less than placing an advertisement in a popular newspaper with a hi
gh readership. The price of print ads also depend on the supplement in which the
y appear, for example an advertisement in the glossy supplement costs way higher
than that in the newspaper supplement which uses a mediocre quality paper.
Outdoor Advertising – Billboards, Kiosks, Tradeshows and Events
Outdoor advertising is also a very popular form of advertising, which makes use
of several tools and techniques to attract the customers outdoors. The most comm
on examples of outdoor advertising are billboards, kiosks, and also several even
ts and tradeshows organized by the company. The billboard advertising is very po
pular however has to be really terse and catchy in order to grab the attention o
f the passers by. The kiosks not only provide an easy outlet for the company pro
ducts but also make for an effective advertising tool to promote the company’s p
roducts. Organizing several events or sponsoring them makes for an excellent adv
ertising opportunity. The company can organize trade fairs, or even exhibitions
for advertising their products. If not this, the company can organize several ev
ents that are closely associated with their field. For instance a company that m
anufactures sports utilities can sponsor a sports tournament to advertise its pr
oducts.
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ADVERTISING AGENCY OF INDIA

Broadcast advertising – Television, Radio and the Internet
Broadcast advertising is a very popular advertising medium that constitutes of s
everal branches like television, radio or the Internet. Television advertisement
s have been very popular ever since they have been introduced. The cost of telev
ision advertising often depends on the duration of the advertisement, the time o
f broadcast (prime time/peak time), and of course the popularity of the televisi
on channel on which the advertisement is going to be broadcasted. The radio migh
t have lost its charm owing to the new age media however the radio remains to be
the choice of small-scale advertisers. The radio jingles have been very popular
advertising media and have a large impact on the audience, which is evident in
the fact that many people still remember and enjoy the popular radio jingles.
Covert Advertising – Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a parti
cular brand is incorporated in some entertainment and media channels like movies
, television shows or even sports. There is no commercial in the entertainment b
ut the brand or the product is subtly (or sometimes evidently) showcased in the
entertainment show. Some of the famous examples for this sort of advertising hav
e to be the appearance of brand Nokia which is displayed on Tom Cruise’s phone i
n the movie Minority Report, or the use of Cadillac cars in the movie Matrix Rel
oaded.
Surrogate Advertising – Advertising Indirectly
Surrogate advertising is prominently seen in cases where advertising a

ADVERTISING AGENCY OF INDIA particular product is banned by law. Advertisement f

or products like cigarettes or alcohol which are injurious to heath are prohibit
ed by law in several countries and hence these companies have to come up with se
veral other products that might have the same brand name and indirectly remind p
eople of the cigarettes or beer bottles of the same brand. Common examples inclu
de Fosters and Kingfisher beer brands, which are often seen to promote their bra
nd with the help of surrogate advertising.
Public Service Advertising – Advertising for Social Causes
Public service advertising is a technique that makes use of advertising as an ef
fective communication medium to convey socially relevant messaged about importan
t matters and social welfare causes like AIDS, energy conservation, political in
tegrity, deforestation, illiteracy, poverty and so on. David Ogilvy who is consi
dered to be one of the pioneers of advertising and marketing concepts had report
edly encouraged the use of advertising field for a social cause. Ogilvy once sai
d, "Advertising justifies its existence when used in the public interest it is m
uch too powerful a tool to use solely for commercial purposes.". Today public se
rvice advertising has been increasingly used in a non-commercial fashion in seve
ral countries across the world in order to promote various social causes. In USA
, the radio and television stations are granted on the basis of a fixed amount o
f Public service advertisements aired by the channel.
Celebrity Advertising
Although the audience is getting smarter and smarter and the modern day consumer
getting immune to the exaggerated claims made in a majority of advertisements,
there exist a section of advertisers that still bank upon celebrities and their
popularity for advertising their products. Using celebrities for advertising inv
olves signing up celebrities for advertising campaigns, which

ADVERTISING AGENCY OF INDIA consist of all sorts of advertising including, telev

ision ads or even print advertisements.
The features of advertising
1. the fact that it is ‘a paid form’ of presentation emphasis’s that advertising
space or time must be purchased 2. its “non personal” nature emphasis’s the fac
t that it is not a direct or personalized presentation to one individual but to
the masses 3. “presentation” signifies the format in which advertisement communi
cate 4. “promotion “indicates the objective of advertising and 5identified spons
or refers to the identification of the brand or the advertiser that is communica
ting Today advertising has become an integral part of our social and economic st
ructure. An increasing number of company’s are spending millions of dollars on a
dvertising in India every year.
Significance of advertising:
In every walk of business and industrial activities, there is a throat-cut compe
tition, therefore no business can survive without advertisement. Advertisement i
s useful not only for the business enterprises but for the community as a whole.
The economic utility of advertisement can broadly be divided into five categori
es:
1) Benefits to Manufacturers:

ADVERTISING AGENCY OF INDIA

• • • • • • • • •
Helps in Creation of demand for new products Helps in Stabilizing the demand for
the product Helps in increasing the demand for existing products Helps in intro
duction of new products retail price maintenance increase in profits Creates a b
rand image in the minds of consumers Reduces the cost of production Helpful in e
stablishing a direct contact between manufacturers and consumers Helpful in gett
ing efficient, experienced and effective middlemen
•
2) Benefits to Middlemen:
• • • • • • •
Increases the rate of turnover of stock. Convenient in selling Stability in sale
s and profits Reputation created is shared by the wholesalers and the retailers
alike. Ensures more economical selling Increase in sales Increase in goodwill
3) Benefits to Consumers:
• • •
Provides knowledge of new products Convenient in purchasing, i.e., where and whe
n to buy Provides opportunities to compare the merits and demerits of various su
bstitute products Saving of time and labor No possibility of cheating by sellers
Modern advertisements are highly informative
• • •

ADVERTISING AGENCY OF INDIA

• • •
Increase in the standard of living Elimination of middlemen Stresses quality and
very often prices that forms an indirect guarantee to the consumers. Provides k
nowledge of alternative uses of products.
•
4) Benefits to Salesmen:
Makes the introduction of new products easy Reduces sales efforts Establis
h good and permanent contact with the customers Helps in weighing the effectiv
eness of advertising.
5) Benefits to Community:
Creates more employment opportunities Increases standard of living Encoura
ges healthy competition Encourages research and development Helpful in indus
trial progress and prosperity Encourages art and designing Educative
Functions of advertising
1. To differentiate the product from their competitors 10

ADVERTISING AGENCY OF INDIA 2. To communicate product information 3. To urge pro

duct used 4. To expand the product distribution 5. Too increase brand preference
and loyalty 6. To reduce overall sales cost 7. Creates new demands
1. Differentiate the product from their competitors :
An important function of advertising is the identification function, that is, to
identify a product and differentiate it from others; this creates an awareness
of the product and provides a basis for consumers to choose the advertised produ
ct over other products this creates an awareness of the product and provides a b
asis for consumers to choose the advertised product over other products. The ide
ntification function of advertising includes the ability of advertising to diffe
rentiate a product so that it has its own unique identity or personality. There
are four additional ways to differentiate your offering from the competition and
increase your differentiation: 1. leveraging the brand, 2. innovating your serv
ice offering 3. designing product 4. packaging
2. Communicate product information

11

ADVERTISING AGENCY OF INDIA Another function of advertising is to communicate in

formation about the product, its attributes, and its location of sale; this is t
he information function. Product information communicated to the customers in ma
nner that meets their information needs. Most consumers tend to discount the inf
ormation in advertising because they understand that the purpose of the advertis
ing is to persuade. Making an advertising message believable is not easy; though
often it is sufficient to make the consumer curious enough to try the product.
Such curiosity is often referred to as interested disbelief. Advertisers use a v
ariety of devices to increase the believability of their advertising: celebritie
s or experts who are the spokespersons for the product, user testimonials, produ
ct demonstrations, research results, and endorsements. Example: Ponds age miracl
e, in that ad the celebrity HADIQA KAYANI is informing the consumers about the b
enefits of it. That how the old women can look younger by using it continuously.
It will make you fair cream plus it reduces freckles plus it can be used as a s
un block as well it will make you look young.
3. Urge product used
The third function of advertising is to induce consumers to try new products and
to suggest reuse of the product as well as new uses; this is the persuasion fun
ction. The basic function of advertising is to provide constant reminders and re
inforcements to generate the desired behavior the advertiser wants from them. Th
is is a particularly effective function

in the long run as reminders and reinfor
cements register in the consumers minds, becoming the base on which they shape
their future decisions. Sampling in the way to urge the product using

12

ADVERTISING AGENCY OF INDIA

4. Expand the product distribution
When the consumer comes to know about the particular product from the advertisem
ent he/she wants to try that new product. They go to shops to buy the product; i
f the new product is not available in a shop then the shopkeeper consults the di
stributor to make that product available in his shop. It is basically to provide
the product all over market. It is necessary to make sure that product should b
e accessible to everyone. Availability of product effect the distribution. . Acc
essibility is major factor for successful product
5. Increase brand preference and loyalty
Marketing is a moving thing. As your needs are changed your preferences are chan
ged. When the product delivers the promised quality, service and value, it creat
es satisfied customers who become instrumental in spreading a favorable word-of-
mouth. Satisfied customers also develop brand preference; each product features
and uses are written on the product. Example: 99% girls who are not married will
not look at the ad of pampers or any milk powder for children but when

they wil
l get married their interest will automatically move towards such ad
6. Brand loyalty
Brand loyalty is a long-term customer preference for a particular product or ser
vice. Brand loyalty can be produced by factors such as customer satisfaction wit
h the performance or price of a specific product or service, or through identify
ing with a brand image. It can be encouraged by advertising. People often make p
urchasing decisions based on how a brand makes them feel emotionally rather than
based on quality or other objective evaluations. If

13

ADVERTISING AGENCY OF INDIA "Just Do it" strikes a chord with an athlete, he ll
buy Nike; the decision may have little to do with quality. Example: For instance
, when one buys a tube of Colgate toothpaste and finds it ok, one will not have
to spend any valuable time on looking for other toothpaste brands.
7. To reduce overall sales cost
When a product is selling you have to teach the people about the product. Like i
f we would advertise through newspapers, TV, broachers and internet, it would ca
ter huge sum of masses and if you do individually it would be more costly and ti
me consuming. Example: Coke targets their consumers on a very large scale throug
h mass media whereas make cola advertise on smaller scale or go door to door to
advertise their product. Creates new demands Advertising have to create new dema
nds they should educate the people about more and more new things coming up in t
he market. Each year new products, including line extensions and new brands are
introduced into groceries and drugstores. Example: Wateen telecom is offering wi
reless internet chips, video conferencing and WIMAX services as they are introdu
cing new services in market its creating new demands.

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ADVERTISING AGENCY OF INDIA

Chapter 2

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ADVERTISING AGENCY OF INDIA

Advertising agency INTRODUCTION; Advertising agencies are outside companies that
provide for the marketing and advertising needs of other businesses and organiza
tions. Advertising agencies offer a full range of advertising services and advic
e based on market studies, popular culture and advanced sales techniques. Becaus
e Advertising agencies produce

logos, creating effective
and attractive color sc
hemes to draw the consumer s attention to their clients ads. They also prepare
slogans and brochures, and write descriptive copy for sales materials. They may
produce public service announcements for charitable organizations and social pro
grams as well, and issue press releases for new programs, events, and products.


Advertising agencies use assorted forms of media to promote their clients busin
esses or organizations, including magazine advertisements, newspaper ads, radio
and TV commercials, websites, and even infomercials. Some also plan events, prov
ide booths at conventions, and give away promotional items. they

are independent
from the client company, they can be objective about a client s promotional

nee
ds .The way advertising agencies work is by getting to know their clients produ
ct or service well and determining which demographic provides the best audience
for promotion. If a company
sells designer handbags, an ad

agency would likely t
ry to position the company s TV commercials during women s programming or on a c
hannel 16

ADVERTISING AGENCY OF INDIA geared toward women. The look
and tone of an ad camp
aign is also dependent upon demographics. If the company s target audience is ma
ture adults, design elements should be more traditional than if the target were
a younger generation There are several associations that advertising agencies ma
y belong to, such as the Ad Council, the American Advertising Federation, the In
ternational Association of Business Communicators, and the American Association
of Advertising Agencies, or AAAA. When deciding between advertising agencies, it
is a good idea to see if they are members of any associations and to check them
out with the Better Business Bureau. Also helpful is asking an ad agency for ex
amples of their work. You may find that they are responsible for wellrecognized
ad campaigns that have helped establish other companies. Such agencies may be ex
pensive and you may have to wait some time to join their list of clients, but an
agency that can make your product or service a household name is worth the wait
and the cost.
MEANING;
An advertising agency or ad agency is a service business dedicated to creating,
planning and handling advertising (and sometimes other forms of promotion) for i
ts clients. An ad agency is independent from the client

and provides an outside
point of view to the effort of selling the client s products or services. An age
ncy can also handle overall marketing and branding strategies and sales promotio
ns for its clients. Typical ad agency clients include businesses and corporation
s, non-profit organizations and government agencies. Agencies may be hired to pr
oduce an advertising campaign
HISTORY;
17

ADVERTISING AGENCY OF INDIA Volney B. Palmer opened the first American advertisi
ng agency, in Philadelphia in 1850. This agency placed ads produced by its clien
ts in various newspapers In 1856 Mathew Brady created the first modern advertise
ment when he placed an ad in the New York Herald paper offering to produce "phot
ographs, ambrotypes and daguerreotypes. His ads were the first whose typeface an
d fonts were distinct from the text of the publication and from that of other ad
vertisements. At that time all newspaper ads were set in agate and only agate. H
is use of larger distinctive fonts caused a sensation. Later that same year Robe
rt Bonner ran the first full-page ad in a newspaper. In 1864, William James Carl
ton began selling advertising space in religious magazines. James Walter Thompso
n joined this firm in 1868. Thompson rapidly became their best salesman, purchas
ing the company in 1877 and renaming it the James Walter Thompson Company, which
today is the oldest American advertising agency. Realizing that he could sell m
ore space if the company provided the service of developing content for advertis
ers, Thompson hired writers and artists to form the first known Creative Departm
ent in an advertising agency. He is credited as the "father of modern magazine a
dvertising

18

ADVERTISING AGENCY OF INDIA

ADVERTISING AGENCY IN INDIA
The First World War created conditions for the growth of some of the Indian cons
umer industries. After the war, new British investment followed. The need arose
for specialized advertising services. The British India Corporation, a British f
irm in Kanpur, with a relatively wide range of consumer goods, set up Alliance A
dvertising Associates Limited. This was probably the first advertising agency in
India to provide a wide variety of services. In 1922, Mr. L.A. Stronach, a seni
or artist of Alliance Advertising, left to start his own agency in Bombay. Thus
was born a new type of business enterprise in the service sector in India. The I
ndian advertising industry had a slow start and got its first boost during the S
econd World War. With the British personnel having to join the armed forces, opp
ortunities opened up for Indians in this new talent-intensive business. Then fol
lowed a brief interlude of uncertainty in the years immediately following Indepe
ndence. The launching of the First Five-Year Plan and more so the Second Five Ye
ar Plan, with the accent on rapid industrialization, gave an impetus to the grow
th of advertising agency business in India. By 1952 there were 109 advertising a
gencies in India with a total turnover of Rs 3.5 corer. By 1967, the number of a
dvertising agencies had

19

ADVERTISING AGENCY OF INDIA increased to 279 with a
total turnover of Rs 35 core

r. The Indian advertising industry has really come into its own with the growin
g liberalization of the economy since the mid-eighties. According to the fourth
agency report of the journal Advertising and Marketing, the Indian advertising i
ndustry grew by 36.5 per cent in 1992 -93, far outpacing the growth of Indian in
dustry. What is significant, however, is that three of the top four advertising
agencies in India continue to be subsidiaries of international advertising agenc
ies-Hindustan Thompson Associates and Lintas India being the first two, and Ogil
vy & Mather being the fourth. What is more with the new interest of many nationa
l corporations in the Indian market, a large number of international advertising
agencies have entered the Indian advertising industry in collaboration with lea
ding Indian advertising agencies. This is the process of globalization of Indian
advertising agency business. This is opening up new opportunities for Indian ad
vertising to assume greater responsibility and serve everywhere in the world and
gather experience of global marketing and advertising.
Types of advertising agencies;
Following are major types of advertising agencies that are currently serving the
advertising industry . Full Service Agencies A full service ad agency is one th
at provides a range of marketing services. A full services agency provides servi
ces that are directly related to advertising such as copywriting, artwork, produ
ction of ads, media planning etc. It also provides such services in respect of p
ricing, distribution, packaging, product design etc Modular agencies A modular a
gency is a full service agency that sells its services on a piece meal basis. Th
us an advertiser may commission an agency’s creative 20

ADVERTISING AGENCY OF INDIA department to develop an ad campaign while obtaining

other agency services elsewhere. Or, an advertiser may hire an agencies media d
epartment to plan and execute a program for advertising that another agency has
developed. Fees are charged for actual work undertaken. In House agencies Those
companies, which prefer to have closer control over advertising, have their own
in-house agency. This type is owned completely by the advertiser. It performs al
most all functions that an outside advertising agency would perform and that’s w
hy some people refer to it as full-service advertising department of the adverti
ser. However, the difference between an in-house agency and an advertising depar
tment is that the in-house agency can undertake to serve several other clients,
if the owner so desires, but an advertising department solely undertakes that wo
rk of its owner and not of outside clients. Secondly an advertising department m
ay not be equipped the personnel and facilities, which an in-advertising schedul
e and costs, but also offers convenience for its owner, because it is just avail
able in the same building as that of the head office of advertiser. Such in-hous
e agency also benefits the owner as it can bring revenue through agency commissi
on that are offered by the media and by way of fees that are collected from outs
ide parties for undertaking their advertising work. Such revenue increases the f
unds and profits of the company. There is another version of in-house agency whe
reby advertiser handles the total agency functions by buying service unit to buy
time, space and place the ads. Such an In-house agency is an administrative cen
ter (under the direction of an advertising director) that gathers and directs va
rying outside for its operation use agency would posses. In-house agency not onl
y provides control over Creative Boutiques

21

ADVERTISING AGENCY OF INDIA These are shop agencies that provides only creative
functions and not full-service. The specialized creative functions include copy
writing, artwork and production of ads, they charge a fee or percentage of full
service agencies, and as such most of them convert into a full service agency or
merge with other agencies to provide a wide range of services. Mega agencies A
significant of 1980’s is the development of mega agency. Agencies worldwide merg
e with each other serve their clients in much better way. It was in 1986, Saachi
& Saachi, a London based agency who started the movement and at present it is t
he third largest agency network in the world. The Specialists Agency There are s
ome agencies who undertake advertising work only in certain areas. there are age
ncies that specialize only in financial services or only in publicity or only in
point-of-purchase material etc. for instance Soubhagya advertising agency conce
ntrate on specialized in financial advertising.
The Benefits of Using an Advertising Agency
• • • • • • • • • • Added Expertise Media Knowledge and Unbiased Advice Easier A
dministration Media Buying Quality Control Information Fending off the media And
when things go wrong Cost Saving Time Saving 22

ADVERTISING AGENCY OF INDIA

DISADVANTAGES OF USING THE ADVERTISING AGENCIES
A main disadvantage of using an advertising agency would

be the communication fa
ctor. If an agency does not communicate or relay it s clients goals and creative
wishes properly problems can occur within a contract and lawyers may have to be
come involved. Depending on the communicative skill of the agency, you may be pr
one to being blindfolded during much of the processes of your campaign leading t
o a lot of guessing and speculation. Another disadvantage would be the media buy
ing discounts you may not be able to take full advantage of due to commission ba
rriers within an agency, however an agency may have better negotiating powers th
an your company and save you more money in the long run anyways. There are far m
ore advantages to having the right advertising agency than not.
The functions of an advertising agency:
• • • To accelerate economic growth and create public awareness To provide a tot
al, professional,
experienced service which is very personal in its nature To ta
ke the advertiser s message and convert it into an effective and memorable commu
nication

23

ADVERTISING AGENCY OF INDIA

The Working of Ad Agencies
To begin with, the agencies started as one-man agents who booked space in the Me
dia. Even today, in our country, there are so many one-man agents who book space
in the media. Soon the space booking was handed over to the contact-man, and cr
eative wordsmiths adept at sloganising undertook the actual construction of the
ad. In the course of years, the ad agency became service-oriented, and was able
to offer every possible service including marketing, market research (MR), and p
ublic relations (PR). Ad agencies have evolved over a period of time. These days
we have mostly studio-based agencies, some industrial and specialized agencies,
and hotshops who only plan creative campaign by engaging the services of freela
ncers. At Madison Avenue, most of these large agencies of the world fiercely com
pete for new accounts, resulting in a shift of millions of dollars of billing fr
om one agency to another. Advertising Age is an official publication of the Amer
ican Association of Advertising Agencies (AAAA). In India, advertising business
is worth Rs. 8,000 corers. There were only 62 advertising agencies in 1958, whic
h increased to 168 in 1978, more than 2.5 times the numbers in 1958. There are m
ore than 500 ad agencies today. The oldest and largest advertisement agency in I
ndia is Hindustan Thompson Associates Ltd. The second largest advertisement agen
cy is Lintas. Mumbai is considered to be the Mecca of Indian advertising. These
days agencies are also being set up at Bangalore, Madras, Hyderabad, Ahmedabad a
nd Delhi. In India the ad agencies are sole proprietary concern, partnership or
private limited companies. It is better to operate agencies on professional line
s, rather than as a family. It is good to install MBO (Management By Objectives)
. An agency must 24

ADVERTISING AGENCY OF INDIA necessarily plough back at least 75 % of its profits

into business. The advertising agencies are shifting from the creative mode to
the marketing mode. Today the onus is on the agency to supply the client with da
ta on his industry; the days of the clients briefing the industry are almost ove
r. The agencies are expected to maintain database. There is a leaning towards so
ftware for optimizing media usage, and computerization of studio functions. In I
ndia, the legal structure of ad agencies is that of a small proprietary concern
or a big partnership. Sometimes, they are private limited companies, either big
or small. Indian advertising is a fragmented business. There are over 733 agenci
es accredited to INS. The top 25 account for 50% of all billings. In addition, t
here are many accredited agencies. It is the top 25 agencies, most of which are
headquartered in Mumbai, that set the pace and define the shape of the industry.
Agencies like HTA, Lintas, Clarion and O & M have shaped the entire advertising
industry in the country. Many Indians firms are coming up, by importing Western
ad techniques. Many agencies die a premature death. Most people do not apprecia
te that an agency –like any other business - must be properly managed. It is sim
ply not enough just to have great idea. In recent years, there has been a health
y trend towards sound management practices, especially financial planning and co
ntrol. This is a highly paid profession. It is a conspicuous high wage island. P
eople operate on

high profile. Their life-styles are opulent because of high exp
ense accounts of entertaining clients. They got their elitist brand due to this
reason. But high salaries and freedom are necessary to attract talents.
25

ADVERTISING AGENCY OF INDIA

People working in an agency:
Accounts Executive: It is a key career option in advertising agency. He is
called an Account Director when he is a member of the Board. He is a link betwee
n a client and his staff. The marketing or advertising department of the client
briefs him. He communicates this to the agency people. He reaches out
to differe
nt clients for seeking new business. Even clients who want an agency to work fo
r them contact the accounts executive. This business development work makes it v
irtually a marketing manager of the agency. Do right-brained people make better
account directors? The faculties of logic and reason are supposed to reside in t
he left-brained people. While intuition and creativity are believed to be in the
right. So far, accounts director was considered suitable if logical and systema
tic, i.e., leftbrained. But if he has to motivate a team, he should be inspiring
and creative too, i.e., right-brained. Copywriters: They are the wordsmiths who
do the wording of an advertisement. They are bright and talented. They have a f
lair for language. They contribute to the theme of an advertisement. Creation of
successful copies for different clients establishes them in this field. Visuali
sers: These are artists who put on paper what has been thought out by the copywr
iter. They in fact design the ad. Creative Director: He co-ordinates the copywri
ting and designing. He is a senior professional who is seasoned in an existing a
dvertising agency set-up to take on this mantle.

26

ADVERTISING AGENCY OF INDIA Production Department: Persons of diverse talents li

ke printing technology, DTP, photography, typography etc. are involved here. Med
ia Planner: He has to allocate the advertising budget amongst media. He has to s
elect the appropriate media. He decides about the frequency, size and position o
f an advertisement. He decides about its publication date. He receives the tear-
off copies from the media when the ad is published. He is guided by the media re
search, which he undertakes, or by research undertaken by an outside agency. Med
ia is the most professionalized department of advertising agencies. Marketing Re
search: Modern agencies are integrated set-ups. They provide a range of marketin
g services. Research data become very useful as input to the creative process. T
he Media : Most of the media today sustain on advertising revenue. They sell spa
ce or time. While selling space or time, they have to convince the client about
the reach of their media vehicle, the composition break-up of their readers and
the pricing of their space/time selling.

They monitor the market, survey their r
eaders, and highlight their readers demographic and geographic characteristics.
They also maintain relationship with the media department of advertising agenci
es who buy space/time on behalf of clients. Ancillary Services : These are neede
d to produce/create advertisement. A whole range of services like studio service
, photographic service, printing service, gift item producers etc. fall into thi
s category. Freelancers : These are professionals who work independently and hav
e a successful track record. They are copywriters, jingle singers, radio announc
ers, artists, visualizers, technical writers etc.

27

ADVERTISING AGENCY OF INDIA

Organization Structure of Advertising Department
All major advertisers maintain an advertising department. The structure of the d
epartment however may vary from one organization

to another, as each one tries t
o develop a form, which is most suited to one s requirements. The principal form
s of organizational structure are based on • • • • • sub functions of advertisin
g, such as copywriting or artworks communication media geographical spread produ
ct and End users.
Irrespective of the specific form, the advertising department has to perform sev
eral functions. Principal among these are setting advertising goals, plans and b
udget, selecting the outside ad agency, maintaining contacts, providing support
to the marketing staff and monitor the functioning of the ad agency. Selecting t
he ad agency is one of the important tasks of the advertising department. Severa
l criteria, including experience, size, track record and the quality of the pers
onnel, are considered in the selection process. As you know, there are different
categories of advertisers. Depending upon their functions, each organization de
velops its own structure, of which advertising department is a part. What is imp
ortant in this connection is to analyze the functions an advertisement departmen
t is expected to perform.

28

ADVERTISING AGENCY OF INDIA

Organization is a Manufacturing Unit
Manufacturing firms carries out bulk of advertising. It is therefore, necessary
to understand the various principles on which the advertising department can be
organized in manufacturing units. The basic principles are: (a) By Sub-functions
of Advertising :Advertising as a function can be segmented into its various com
ponents, such as, Copywriting, Art Production and Media. A specialist who in tur
n reports to the advertising manager can handle each component.

29

ADVERTISING AGENCY OF INDIA Advertising Manager

Copywriting Manager (b) By Media
Art Manager
Production Manager
Media Manager
Advertising Manager
Newspaper
Broadcasting
Magazine
TV
Outdoor
Direct mailing
© By Product Advertising Manager
Product A (d) By Geography
Product B
Product C
Product D
Advertising Manager
Zonal Manager A
ZM(B)
ZM (C)
(e) By End User Advertising Manager
Consumer Market Manager
Institutional Market Manager
Government Market Manager 30

ADVERTISING AGENCY OF INDIA

Reporting Structure: The advertising manager has to report to somebody who is hi
gher up in the organizational structure. To whom the advertising manager would d
epend upon how much importance advertising is given to the total operations of t
he firm. There are several alternatives. These are: • • • Report to the Chief Ex
ecutive (Chairman/MD.) Report to the Director (Marketing) Report to the division
al head if the firm is a multi-division firm
and responsibility is delegated at the division level. Centralization or Decentr
alization Should advertising be done on a centralized basis or should the respon
sibility be delegated to lower levels - say product or geographical divisions? ,
Centralized Advertising Activity has been defined as that which - is located at
or directed by headquarters, reporting to corporate sales or marketing head or
in top management. In operation it gets the necessary product, market, and budge
t information from the divisions and then controls the execution of the various
programmes by: 1. Providing the needed information and guidance to the advertisi
ng agency and other Services; 2. Then reviewing and approving the completed work
before getting division approval 31

ADVERTISING AGENCY OF INDIA A Decentralized Advertising Activity is operated and

controlled by individual units located in each major division, usually reportin
g to a division head or to a division marketing or sales head.


The division


adve
rtising, sales and marketing people and control both the what and how of the
advertising job, getting only advice and counsel plus miscellaneous services fr
om a central advertising function. In practice, however, it has been found that
most companies follow the centralized pattern of advertising organization. There
are at least two important reasons for it. 1. It is difficult to transfer the t
asks of preparation and execution of creative advertising from to the many witho
ut loss of efficiency to a great extent. 2. Most companies entrust their adverti
sing work to outside agencies and it is more convenient with them in a centraliz
ed way.

32

ADVERTISING AGENCY OF INDIA Interface with other Departments Advertising and, th

erefore the people, manning the advertising department, do not function in a vac
uum. Advertising is a tool of marketing. It is done to achieve a specified short
-term or long term goal. The advertising staff, therefore, must actively interac
t with other departments most importantly, marketing and sales. The interaction
has to be intensive to draw up a coordinated plan, of which advertising is a par
t. In fact, not only the advertising department, but also the outside advertisin
g agency it may have employed, would have to be actively associated with the for
mulation of the marketing plan. In companies, which realize the importance of ad
vertising in its proper perspective, the advertising department gets useful inpu
ts from sales, product and brand managers; from Marketing heads, General manager
s and top management and also from many others in the engineering and manufactur
ing departments who provide valuable advice in respect of appeals to be focused
and also other advertising matters.

33

ADVERTISING AGENCY OF INDIA

Functions of the Advertising Department
Just as the organizational structure of an advertising department varies, the ac
tivity profile also is subject to change from one organization to another. Klepp
ner has identified14 activities, which include all the major functions an advert
ising department in a manufacturing organization is supposed to carry out. These
are: 1. Determine in consultation with top management the advertising goals, th
e advertising budget, and the advertising plan. 2. Help select the advertising a
gency. 3. Set up a plan of activity, allocating which work is to be done by the
agency and which by the advertiser. Establish with top management the internal d
ivision of such non-commissionable duties as sales promotion, research and publi
c relations 4. Transmit the policy and problems of management to the agency; kee
p it informed of changes in marketing strategies and other related areas. 5. Dec
ide upon the proportion of the appropriation to be assigned to different tasks i
n the advertising programme depending upon the importance of these tasks. 6. App
rove the plans for advertisements by the agency and by others who work on the ad
vertising problems. 7. Prepare, purchase and issue sales material - point-of-pur
chase displays and direct mail, including receipts, dealer advertising service,
premiums (unless company has separate premium departments). 8. Prepare, issue an
d control billing of corporate advertising. 9. Keep the sales force informed of

forthcoming advertising. 10. Prepare portfolios of advertising for the salesman
s use in showing advertising to the trade and to other distributors. 11. Work wi
th the sales department in preparing special programmes. 12. Prepare instruction
manuals for those who will sell and use the product; all in all, do everything
possible to make the most effective use 34
ADVERTISING AGENCY OF INDIA of the advertising investment. 13. See that all mail
enquiries are answered with mailings as required. 14. See that all bills are pr
operly checked; keep an account of funds and prepare proper reports for manageme
nt. The ad manager in charge of an advertising department has both managerial an
d operational functions. He is responsible for interacting with agencies and the
media. He pays attention to outdoor aids. He takes part in campaign planning an
d media planning. He frames an ad budget, and allocates it. He is responsible fo
r broadcast media. He gets POP prepared. He is the man behind SP and merchandisi
ng. He maintains press relations, and PR functions. He brings out a house-journa
l. He is appointed on the basis of his knowledge of advertising and journalism,
his knowledge of the industry, his management background, and his marketing back
ground. He maintains a good client agency relationship so essential for the succ
ess for the campaigns.

35

ADVERTISING AGENCY OF INDIA

Advertising Agency s Role
Suppose you are a company with a product. It may be a totally new product. As a
company with a product or service to sell, designing and making that item is onl
y part of the battle. People are not going to beat a path to your door. You have
to seek a channel of communication. Ad agency need to consider, for example: •
• • • • • • • • • For whom is the
product or service designed? Who would use it?
Who is the "target group"? What s
special about the product? In what way is it
distinct? Unique? Different? What s its "position" in relation to other similar
products? What do you want to convey to the public about your product? How shoul
d your company contact the public? What medium should it use? Radio? TV? Newspap
ers? Magazines? Billboards? Bus/subway ads? Direct mail? etc. How extensive a re
gion should your company try to cover? How often?
Communication and marketing decisions involve specialized expertise. Many compan
ies that design and produce products or offer services lack these specific capab
ilities. This is where advertising agencies fit in. Advertising agencies

exist t
o help companies to communicate with the public, Market the company s product. C
ompany with a product or service Ad Agency Media Public

36

ADVERTISING AGENCY OF INDIA

The process of advertising involves considerable specialized knowledge and exper
tise • • • About people - Their interests, preferences, needs, wants, lifestyles
, expectations About media - Their reach, their effectiveness, their specific ap
peal About the company and its product – And about competing companies and their
products
Services offered by ad agency ;-Total Advertising Services :Strategic planning,
creative development and media services for advertising, particularly in televis
ion, newspapers, magazines and radio; providing the best creative designed to ca
pture the imagination of consumers Marketing Services: Provision of a number of
advertising related services, including sales promotion, market research, PR and
event marketing. E-Solution Services : e-solution services, including system in
tegration services, e-business consulting and customer relationship management (
CRM), Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-p
romotions using the Internet and mobile. Content Business: Sales of sponsorship,
broadcasting and other rights, and the production and marketing of such media /
content as sporting

37

ADVERTISING AGENCY OF INDIA events, films, TV programs, animated content, music

and other forms of entertainment. Integrated Media Services : Bringing value to
both clients and mediarelated companies by offering a wide range of media soluti
on services Sales Promotion : Providing comprehensive sales promotion planning d
esigned to complement mass media and other activities Event Marketing : Assistin
g clients by providing dynamic vehicles for their messages in the form of on-the
-spot interactive communications Integrated Branding Services : Assuring clients
the highest quality of branding services for their communication needs
TOP 10 ADVERTISMENT AGENCY OF INDIA
• • • • • • • • • • Adbur Pvt Ltd Akshara Advertising Mudra communication ltd Ch
aitra Leo Burnett Pvt Ltd Contract Advertising (India) Ltd Crayons Advertising a
nd Marketing Pvt Ltd Creative Advertising Enterprise Nexus Communications Pvt. L
td Euro RSCG Advertising Pvt Ltd Everest Integrated Communications Limited

38

ADVERTISING AGENCY OF INDIA

The source of an advertising agency’s income:
A manufacturer who operates out of a small and unpretentious office is often imp
ressed (sometimes unfavorably!) by the obviously furnishings in the offices of s
ome advertising agencies. Paying for part of the agency’s overhead, rent, payrol
l, etc. is naturally going to use up some of the money he spends for advertising
. Should he spend his money through an agency, or should he spend that money dir
ect and thus save the cost of the agency’s services? Questions like these are go
od questions, but the answer to them is often not as clear or simple as it seems
. In order to answer them, attention must be focused not on the total costs of a
dvertising agency service but on the additional costs, if any which the use of a
n advertising agency will involve as against the expenditure of the same number
of advertising dollars on a direct basis without agency participation in the exp
enditure. The difference is a vital one, because of the nature of historically e
stablished advertising agency compensation methods. An advertising agency tradit
ionally derives its basic income from “agency commissions”. Those commissions, f
or the most part, are paid to the advertising agency by various advertising medi
a (e.g., newspapers, magazines, radio or televisions stations or networks, etc).
Agency commissions is usually established at or near the level of 15 per cent o
f the “card” or “list” price of the space, time or other facility purchased. To
be sure you understand how the commission is derived, let’s use a specific examp
le is previously mentioned, a full-page four-colour 39

ADVERTISING AGENCY OF INDIA advertisement in LIFE cost $39,500. if you as an adv

ertiser brought a one-page four-colour single insertion in LIFE direct from the
publisher you would be billed the full published rate of $39,000. However, if yo
u had the ad prepared for you by an advertising agency which placed the ad with
the publisher of LIFE, the agency would be billed for the rate of $39,000 less 1
5% agency commission. That commission of $5,925 would represent the agency’s gro
ss income on the creation and placement of that single ad. From your viewpoint a
s an advertiser, the effect of this compensation method is clear. It would cost
you no more dollars out of your total advertising budget (or appropriation, as i
t is called), for advertising space if you used an advertising agency that would
if you did not. You may well ask: Why should advertising media pay my advertisi
ng agency for services performed by the agency for me, the advertiser? The answe
r is buried in the historical development of the advertising agency, and would r
equire more space here than its relevance to the subject of this report warrants
. What you should remember is that, illogical or not, that is the basis of most
advertising agency compensation generally. For a more complete picture of the co
mpensation question, we might note a few exceptions, which introduce added costs
to the use of an agency. Some advertising media (the large direct-mail house, f
or example), do not grant advertising-agency commission. If your places some of
your advertising through non-commissionable media, the invoice which you receive
from your agency for such advertising is likely to consist of two items, each i
dentified. The first is the base cost which represent the sum, which the agency
paid out of its corporate pocket to the media. The second is an additional figur
e, representing agency commission. In that way the agency receives the same rela
tive gross

40

ADVERTISING AGENCY OF INDIA income from the advertising it places, as it would h

ave received if the media granted commissions to agencies. It is customary also
to add agency commission to various other non-commissionable expenditures made b
y the agency for its advertiser-client, such as the cost of the engravings used
in advertisements (purchased by the agency from a photo-engraving house), and th
e cost of the finished artwork from which those engravings were made. Some adver
tisers tend to resist and resent the practice of agencies’ adding an agency comm
ission to non-commissionable items. For example, the agency may buy artwork, eng
ravings or typographic composition, or prepare a portfolio for the use of your s
alesman. Any activity of that type costs the agency money, in terms of the time
and overhead associated with the activities of skilled and experienced people in
performing such specialized tasks. Agencies pass along the costs involved by ad
ding an agency commission to the cost incurred, or by charging a special fee for
the service. You should be alert to the possibility that the fee or commission
may be out of the line with the agency’s costs. You should not, however, expect
the agency to provide such service – on which there is no commission from a medi
a, nor any other income for the agency to use to offset its costs – without char
ge. Such charges are an established trade practice. Not the vital importance of
paying agency commission on all noncommissionable media. If such expenditures we
re not commissionable, the agency would often be in the position of having to ch
oose between two or more media, with significant difference in the agency’s own
income as one influence on the decision. Since all media expenditure carry the s
ame commission, whether it is the policy of the media to pay an agency commissio
n or not, the agency’s decision is influenced only by

41

ADVERTISING AGENCY OF INDIA its judgment as to what contributes the soundest med
ia approach to achieving the planned objectives sought by its client.
Agency commission represents gross income, within which a profit-provision must
be made:
It is important to remember that the agency commission, whether paid to the agen
cy by a media or whether added to the client’s invoice and paid by the client in
the case of non-commissionable media or non-media advertising expenses, constit
utes the gross income and not the net income of the advertising agency. Out of t
hat gross income, all of the expenses of operating an agency is typically its pa
yroll account. In addition to salaries, which often represent as much as half of
total agency expenses, such other items as rent, heat, light, telephone and tel
egraph, postage, and travel and entertainment costs must be paid. There is, in a
ddition, a further “cost” which should be recognized. An advertising agency, lik
e a manufacturing organization, is in business to make a profit. An agency can r
ealize a profit only if the total of all its gross income. The management of an
advertisement agency typically plans for achievement of a planned-for profit mar
gin by the process of reserving a portion of anticipated income from a given cli
ent (on account) for profit, and budgeting the remainder over various expense it
ems involved in serving the account. This tendency, to take a “slice off the top
” of total income from an account as profit, differs from the profitplanning app
roach of some manufacturing organization. It is rather general in advertising-ag
ency management.

42

ADVERTISING AGENCY OF INDIA

The amount and quality of advertising service which you as an advertiser can exp
ect from an agency depends directly on the size of your total expenditure ;Now t
o arrive at accurate perspective on what you as an advertiser can expect, in the
way of service, from an advertising agency you hire, let’s mentally transpose o
urselves to the agency’s side of the desk. Assume that you are the president of
an advertisement agency, considering an account-present or perspective – in term
s of how important that account is to you or would be if you had it, and of how
much service you could afford to give the account if it wore “in the shop”. What
criteria do you use? A very simple one – a rough estimate of the potential gros
s and net profit the account would provide. Suppose that the account in question
has a total appropriation, you estimate, of $100,000. That represents gross inc
ome of $15,000. What would it represent to you in real profit – that is, in net
income? Assume that your agency does its profit – that is, in net income? Assume
that your agency does its profit – planning in the expectation that it will ret
ain as profit after taxes, 2 per cent of its expenditure. In order to have 2 per
cent after taxes, however, you need about 4 per cent before taxes. Note that is
4 per cent out of the total of 15 per cent you receive as commission in other w
ords a little more than on –quarter of the total amount you receive as commissio
ns you plan (or hope!) to retain as before-tax profits in order to have about on
e-eighths of that income as

43

ADVERTISING AGENCY OF INDIA your after-tax profits. (There are two wide variatio
ns in the earnings ratios of different types of advertising agencies and of diff
erent sizes of advertising agencies. The 4 per cent before taxes – per cent afte
r taxes figures used are reasonable figures for any agency in the moderate size
range – that is, with total billings in an area from 5 million to 9 million, and
with gross income at about 15 per cent of total billings.). The purpose of this
relatively long example is to make an extremely vital point. You as an advertis
er approach an agency, and discuss with the principals of that agency the possib
ility that they may be appointed to handle your account, which you estimate will
total $100,000 a year. If you appoint them, you will be creating for yourself,
in effect, a “service bank account” in the amount of $11,000 a year. (The $11,00
0 represents gross income of $15,000 reduced by profit provision of a $4,000 bef
oretax sum.) You are entitled to know just how much in the way of what kind of s
ervice you will receive for that $11,000. the agency will (or should) tell you.
You should be on guard against being “over sold” – against being promised $20,00
0 or $30,000 in service. You know from the above figures that the only way an ag
ency can deliver that much service on an account your size, is for the agency to
lose a substantial sum of money in serving you. As a minor exception to the abo
ve comment, we might note that some agencies – perhaps most agencies – realize l
ittle or not profit in the first year or two that they handle an account. There
are substantial nonrecurring costs involved in acquainting the agency team with
the particular problems of the advertiser and his industry. Particularly on an a
ccount, which is estimated to have substantial growth potential, a

44

ADVERTISING AGENCY OF INDIA deliberate policy of “investment spending” (i.e., sp

ending in service and in direct costs a sum in excess of commission income) is n
ot unusual. But mark this well: it is a very different thing for an agency to ha
ve a planned policy of investing in new accounts in the first year or two of ser
ving them, and for an agency to promise continually to provide more service than
the commissions and/or fees involved can pay for. While commission income repre
sents the major source of agency compensation, there is an additional method of
working out the agency’s income from an account, which warrants mention. In some
cases, the cost of preparing a client’s advertising would be far in excess of t
he commission income involved. Such a pattern is not usual in the case of advert
isers with multiple product-lines, using a variety of different specialized busi
ness publications. Such publications reach selective audiences. The circulation
of each is far smaller than the multimillion copy circulation of some consumer p
ublications. The cost of a page of space (and, therefore, the commission on a pa
ge of space) is correspondingly small. On that type of operation, it is not unus
ual for the advertiser and the agency to agree upon a service for handling the a
ccount. Often commissions earned on advertising placed by the agency are credite
d against and hence reduce the net fee the advertiser must pay. The point to not
e here is that the advertising agency, like the advertiser, is in business to ma
ke profit and is entitled to do so when soundly managed. If the amount of expens
e involved in handling a particular advertiser’s account (including time salarie
d personnel, overhead items, etc.) is in excess of the commissions which would b
e generated by the amount of advertising in question, the agency is enlisted to
and will typically insist upon a fee in addition to commission sufficient to rei
mburse it for its costs and leave a profit for the agency’s management.

45

ADVERTISING AGENCY OF INDIA

Against the background of these general comments about the nature of the adverti
sing agency, it would be logical now to move into a consideration of specific ag
ency types and of factors involved in the selection of an agency. Before you as
an advertiser can discuss intelligently with an advertising agency whether you a
re or are not interested in their services or whether they are or should be inte
rested in handling your account, it is necessary for you to have in mind at leas
t an approximate dollar figure which represents a preliminary estimate of the si
ze of your advertising account.

46

ADVERTISING AGENCY OF INDIA

Chapter-3

47

ADVERTISING AGENCY OF INDIA

Company profile
Mudra communication limited
Introduction;
One client vimal and a 500 sq ft office that was Mudra in the year 1980 They wer
e a small agency tucked away in Ahmedabad with one clearly Articulated goal to b
e a top 5 agency .there ambition with an almost manic obsession by creating the
best contemporary advertising that had our client and other people taking notice
As a young agency operating out of Ahmedabad our growth was driven helping smal
l business with big ambition explode their brands to the country at large With i
n 9 years they were the largest Indian advertising agency HISTORY POINTS :-
•
Mr.AG Krishnamurthy founded mudra communication on 25th march 1980

48

ADVERTISING AGENCY OF INDIA • • • Mr Krishnamurthy started his advertising caree

r with shilpi advertising in 1976 He moved to Reliance Industry as advertising m
anager 4years later he founded mudra communication Mr Krishnamurthy started mudr
a with one brand vimal .today mudra has 125 client this multifold increase is a
testy many to his passion and zeal • • In 1991 he created the mudra institute of
communication Ahmedabad (MICA) the only advertising school of it s kind in Asia
In 1995 Mr. Krishnamurthy was nominated as advertising person of the year
PROFILE OF MUDRA COMMUNICATION LTD Head quarter Industry Type Status founded San
jay Sharma Company size Web site Mumbai Marketing and advertising Privately held
Operating 1980 New president(North&East0 501-1000 employees www.mudra.com

49
ADVERTISING AGENCY OF INDIA
Members in the management of the mudra communication ltd Name Designation Sebast
ian Joseph Executive,vicepresident,and head Mohit Bhagchandani Joy deep dasgupta
Sonal Jheej technology Country head,mudra sport Vice president and national str
ategic, planning head Account planner
Present situation of mudra communication;
It was started in 1980 mudra rose to become the 3rd largest agency in the countr
y. In a short span of nine years. Today the mudra group is one of the India s le
ading marketing communication networks The group utilizes it s deep understandin
g of consumers brands and media to deliver creative business solution –A customi
zed and collaborative approach helps it s client build enduring and profitable b
rands The group offers integrated communication services through it s platform (
1) mudra and DDB (2) mudra (advertising) (3) mudra max(integrate communication p
lanning and implementation) mudra

50

ADVERTISING AGENCY OF INDIA (4)mudra health and life style(health and life style
advertising) (5)water (brand strategy and design consulting) In the present yea
r mudra is poised to exceed a turnover in excess of 15 billion at it continues t
o maintain it s aggressive growth rate. Mudra is one of the management admired m
arketing communication network in the country a highly rated agency both by clie
nt and industry. Mudra south won the agency of the year at the ad club cochin s
paper awards 2009 10.4.09
Achievements of the mudra communication ltd
*It was a mudra that first gave India double spread colors ads *it was mudra tha
t first sponsored commercial telecast of a major sporting event with the India a
nd west Indies series of 1983 *it was mudra that first branded a public issue re
liance khazana *it was mudra that made India s first teleflim Janam *it was mudr
a that gave Doordarshan Rajani .The serial that heralded a new consumer awarenes
s in India *it was mudra that gave India s it s first academy for advertising .
THE Mudra Institute Of Communication(MICA) *it is a mudra that gave India s adve
rtising community its first advertising archives marketing and Advertising Galle
ry(MAG)
MEMORABLE ADVERTISING
51

ADVERTISING AGENCY OF INDIA

Mudra has created some of the most memorable advertising in India they are; 1 on
ly vimal
2 I love you rasna
3 my daddy strongest
4Humko binie mangta
5The world in your pocket
6 The mint with the hole
52

ADVERTISING AGENCY OF INDIA

7 Team Samsung
8 McDonalds mein hai kuch baat
9 Kar lo duniya muthi mein
Services: Services are provided by the organization
53

ADVERTISING AGENCY OF INDIA

1
Mudra is a today the largest Indian advertising agency .it s meteoric
growth has been driven by some epochal work mudra has created some of most memor
able advertising like 1 Only vimal 2 I love you rasna 3 my daddy strongest 4Humk
o binie mangta 5The world in your pocket Today it handles over 125 client nation
ally .though it s four independent units they are; 1 Mudra Mumbai 2 Mudra South
(including Bangalore Chennai cochin) 3 Mudra north Ahmedabad 4 Mudra north and e
ast (including Delhi and kolkata) Mudra often the entire spectrum of brand commu
nication competency ranging from strategic planning brand management creative, M
udra is also one of the few agency networks in the country that offers a compreh
ensive suit of marketing services under one umbrella .these are supported by the
largest national network among all agency.
2
Mudra health and life style (MHL);

54

ADVERTISING AGENCY OF INDIA It is specialize in the emerging common needs of the

health core industry marrying in-depth understanding of the medical business wi
th refreshing consumer doctor and channel insight it is uniquely positioned to a
ddress .the common requirement of the health and life style space MHL also has a
strong track record in the domain of social common and pharmaceutical brand pro
motion. Mudra health and life style client included J&J medical buyer Bistol – M
yers Squibb, Alembic, Unicef & USV among others.

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CLIENTS
1. Paros pharmaceuticals
2. Reliance communication
3. Union bank of India 4. Life Insurance Cooperation of India 5. Godrej 6. The P
hilips 7. Hindustan unilever ltd. 8. Pepsi 9. Jet air ways
10. Reliance ADAG
11.Spice telecom 12.ICI points 13.Union bank of India 14.Amrutanjan
AWARDS
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ADVERTISING AGENCY OF INDIA

Mudra communication ltd. has got national and international awards.
1. International awards- Number of award-230 like Connes, D&AD, Clio, One show,
Ad fest, communication arts, New York festivals and others 2. National awards
–
Number of awards-825 like Abby, CAG, Ad
clubs, AAAI show case of India advertising and others 3. Agency of the year 8 ti
mes • • • • •
–
Mudra founder A.G. Krishna
Murty has been honored multi times including Calcutta Ad club Hall of fame A&M A
d person of the year Media international one of the international Ad industry 19
98 AAAI premnrayon award recognition of pioneering spirit and entrepreneurial vi
sion Mudra south agency of the year at paper award and the Ad club Cochin.
SWOT Analysis of mudra communication
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ADVERTISING AGENCY OF INDIA

Strength
-
Satisfying the need of the customers Meeting up the client requirements in time
Innovative & creative in advertisement segment Quality in advertisement Global e
xposure with higher rewards & appreciation Efficient team working environment
Weakness
-
Pricing strategy Lack in promotion strategies towards increasing the brand name.
Opportunities
-
Entering in global market to attract global clients Being the oldest advertising
 agency in India, it brand among its clients- they have lot of client coming bac
k with new product for getting advertised.
-
In its successful journey, they lot of wonderful memorbal advertisement done by
them- this has increased there brand image in the Indian market.

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ADVERTISING AGENCY OF INDIA

Threats
-
Challenging stiff competition from its competitor’s from both domestic & interna
tional levels. Changes in the taste & preferences of clients. Lack of creative m
inds & also too expensive in overall management.
Competitors of the mudra communication;
AGENCY
Adbur Pvt Ltd Akshara Advertising Ambience D’Arcy Chaitra Leo Burnett Pvt Ltd
PLACE
Ghaziabad New Delhi Mumbai Mumbai -
Conclusion:
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ADVERTISING AGENCY OF INDIA

In today’s world which is fast moving & dynamic, people’s wants, need and desire
s are changing; it’s very important to know them and give them what they want. T
his is the main objective of advertising where ad agency plays major role in mar
ket research, making of creative, launching it in the market, taking the feedbac
k of consumer and making any product famous and acceptable among consumers. Ad a
gencies are playing an important role in shaping present and future of not just
selected brand but of entire company. There is no one -- sure-fire -- best way t
o advertise your product or service. It is important to explore the various adve
rtising media and select those which will most effectively convey your message t
o your customers in a cost-efficient manner. Always to be remember, advertising
is an investment in the future of your business. Ad agency is service industry i
t is growing very fast .talented people are hired and they are showing there cre
ativity ability .the ad agency are providing services to the branded company car
rying there advertisement campaign most effectively. They know how to attract th
e consumers .from one side agency are very costly they are charging more money f
or the advertisement campaign. On other side it is useful to the company .the ad
agency can launch the company product in better way. I think ad agency are play
ing key role in-increasing the brand & performance of a product or services of a
company Thank to ad agencies contribution for changing our world of dreams & de
sire.

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ADVERTISING AGENCY OF INDIA
Bibliography-
Marketing management by Philip kotler Advertising principle practice by Burnett
wells Mariraty www.google.com www.india advertising agency.com www.yahoo.com www
.msn.com

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ANNEXURE

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