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SWOT analysis of Advertisement industry
Transcript of SWOT analysis of Advertisement industry
Ads appeared in the first newspaper “BENGAL GAZETTE” which was published in 1780
Advertising on radio started in India in 1950's
19th century - Many advertising agencies came into existence, B. Dattaram & Co. Mumbai, being the oldest existing agency of that time.
The Association of Advertising Agencies of India (AAAI) was established in 1945
The Audit Bureau of Circulation(ABC) was started in 1948.
Total annual ad spend
– Rs 26,000 crore.
45% - spent on television and radio.
Grew from Rs 728 billion in 2011 to Rs 820 billion in 2012,
Overall growth of 12.6 %
Despite the economic slowdown, advertising revenues saw a growth of 9 per cent in 2012
PRESENT STATUS IN INDIA
Strong distribution all over the world
High number of mergers and acquisitions for expansion
High reputation for quality work to corporate
Market share is limited due
to many competitors
Geographic penetration is
Not much is done by these agencies for the social welfare and advertising of social values
Premium charged is high
Decentralised decision making is helpful as local marketing needs vary from one region to another
Entering in global markets
Successful and memorable advertisements increases the brand image
Increasing lawsuits due to sheer
negligence in preparation of ads
Recession may hit the industry as cut is primarily on marketing budget of corporate
Cut-throat competition offered by other players in the industry
Changes in the tastes & preferences of clients
Lack of creative minds and also too expensive in overall management
A quick sneak peek at the top ten advertising firms of India as of today.
Ogilvy & Mather-Cadbury, Asian Paints and Fevicol.
J Walter Thompson-Nestle, Cadbury, Bayer, Ford, Nokia and Unilever.
Mudra Communication-Neutrogena, HBO, Philips, Reliance Net Connect, Big Bazaar.
FCB Ulka Advertising Ltd-Tata Indicom, Whirlpool, Zee Cinema, Santoor, Sunfeast and Amul.
McCann Erickson India Ltd.-“Thanda Matlab Coca Cola”
Grey Worldwide (I) Pvt. Ltd.-Hero Honda, Maruti Suzuki,, Indian Oil, Ambuja Cement, UTV, P&G and Godrej.
Leo Burnett India Pvt. Ltd-McDonald’s, Complan, Bajaj and HDFC.
Contract Advertising India Ltd.-Asian Paints, Domino’s Pizza, Spice Jet and American Tourister.
Competitors in India