ASSIGNMENT
ON
ADVERTISMENT INDUSTRY
Submitted to
Prof. Jayamohan Nair
Submitted by
Harsha.V.S
I MBA
ICM IMK, Poojappura
ABSTRACT
Advertising industry is a rapidly growing industry and determines to a considerable extent the Gross domestic product (GDP) of any country. The advertising industry besides functioning as an intermediate between the manufacturers and the customers plays an important role in the economy of the country. This industry necessitates investment for funding different resources. One cannot measure the degree of development by interpretation of inputs in the economy which yields some production. In the event when consumption levels far exceed than what is reckoned, this is not a means of triggering or bringing about transformation in the culture, society or development in human resources or economy. What the time demands is optimum and efficient execution of advertising projects by involving appropriate technology along scientific lines.
Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries.
There are different forms of Advertising like Media, Television commercials, E-mail advertising, Infomercials, Using Celebrities, etc. But in today's highly competitive world Traditional media proved to be insufficient in fulfilling any advertisers' exacting standards of efficiency and customer interaction. Now Internet is the solution to their requirements, since it is a two-way interpersonal communication medium, with key distinguishing factors of feedback and interaction in real time. Similarly there are many advantages for the Internet Advertising and now it is preferred by more number of advertisers.
There are lots of advertising companies in the industry and the contribution of advertising companies towards the yearly revenue sums up approximately to $60 billion.
But the advertisement industry is subjected to many risks. Risks can be of three types, structural risks, Growth risk and sensitivity risk.
Overcoming from all those risks advertising industry plays a significant role in contributing to the Global Gross Domestic Product). Advertising industry trends suggested that advertising expenses with regard to magazines in the beginning of 2007 escalated by 7.1% as compared to the first half of 2006.
CONTENTS
TOPIC
PAGE NO.
1. EVOLUTION OF ADVERTISMENT INDUSTRY
4
2. MEDIUMS OF ADVERTISING
7
3. OUTDOOR ADVERTISING INDUSTRY
14
3. ADVERTISING COMPANIES IN INDIA
16
4. RISKS INVOLVED IN THE INDUSTRY
17
5. TRENDS/FUTURE OF ADVERTISMENT INDUSTRY
19
6. ADVERTISING INDUSTRY TRENDS IN DIFFERENT MEDIA
21
7. CONCLUSION
22
ADVERTISING
Advertising is a form of communication used to help sell products and services. Typically it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. However, Advertising does typically attempt to persuade potential customers to purchase or to consume more of a particular brand of product or service.
EVOLUTION OF ADVERTISMENT INDUSTRY
Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries.
Advertising promotion is older than most people think, and here is a brief history of advertising companies. As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons and their proprietors used street callers or town criers to announce their whereabouts for the convenience of the customers. As education became an apparent need and reading, as well printing developed, advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. The first advertising agency, Volney B. Palmer, was opened in Philadelphia in 1841. By 1861 there were 20 advertising agencies in New York City alone. Among them was J. Walter Thompson, today the oldest American advertising agency in continuous existence. Radio became a commercial medium in the 1920s. For the first time, advertising could be heard, not just seen. Soap operas, music, and serial adventures populated the new medium, and as radios appeared in virtually every home in America, sales of products advertised on the air soared. Advertisers rushed to write infectious advertising jingles, an art form that still has its place in the advertising repertoire of today.
Then television changed everything. Although TV was invented in the 1920s, it didn't become a mass commercial medium until the 1950s when the prices of television sets began to approach affordability. Print and radio had to take a back seat because, for the first time, commercials were broadcast with sight, sound and motion. The effect of the television on the advertising industry and the way products were sold was remarkable. Advertising agencies not only had to learn how to produce these mini movies in units of 30 and 60 seconds, they had to learn to effectively segment the audience and deliver the right commercial message to the right group of consumers.
Cable television was the next great innovation, offering a greater variety of channels with more specific program offerings. That allowed advertisers to narrowcast. Before the advent of cable television, the networks attempted to reach demographics by airing at different times throughout the broadcast period. Soap operas were broadcast during the day to reach women, news in the evening to reach an older target audience. Cable television, on the other hand, brought with it channels like MTV that catered to young music lovers, ESPN, for (typically) male sports fans, and the Food Network, for people who love cooking (or at least love to watch others cook).
A Coca-Cola advertisement from the 1890s
At the turn of the century, there were few career choices for women in business; however, advertising was one of the few. Since women were responsible for most of the purchasing done in their household, advertisers and agencies recognized the value of women's insight during the creative process.
These new advertising channels were delightful for advertisers who wished to target certain audiences with specific interests, though less so for the networks who saw their share of ad revenue dwindle.
Organizations that frequently spend large sums of money on advertising that sells what is not, strictly speaking, a product or service include political parties, interest groups, religious organizations, and military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements. Money spent on advertising has increased dramatically in recent years. In 2007, spending on advertising has been estimated at over $150 billion in the United States and $385 billion worldwide and the latter to exceed $450 billion by 2010.
DIFFERENT FORMS/MEDIUMS OF ADVERTISING
• Media
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 popups, 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, stickers on apples in supermarkets, shopping cart handles 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.
A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular mediums for advertisers.
• Television commercials
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 $3 million (as of 2009).The majority of television commercials feature 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 background where none exist in real-life. Virtual product placement is also possible.
• Infomercials
There are two types of infomercials, described as long form and short form. Long form infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to 2 minutes long. Infomercials are also known as direct response television (DRTV) commercials or direct response marketing.
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.
• Celebrities
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.
• Media and advertising approaches
Increasingly, other media are overtaking many of the "traditional" media such as television, radio and newspaper because of a shift toward consumer's usage of the Internet for news and music as well as devices like digital video recorders (DVR's) such as TiVo.
Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives.
As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached $2.2 billion and providers such as Admob delivered billions of mobile ads. More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service picture and video messages, advergames and various engagement marketing campaigns. A particular feature driving mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese mobile phone users already are active users of 2D barcode
• E-mail advertising
E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "spam". Spam has been a problem for email users for many years. But more efficient filters are now available making it relatively easy to control what email you get. Email is however, becoming a major force in advertising when bulk mailed correctly, not as unsolicited Spam, but as e-blasts. The difference between spam and e-blasts is spam is unsolicited email advertisements that continue to be mailed against the recipients wishes while e-blasts can be "opted out" so the recipient will not receive it again. More and more people are choosing a select number of email solicitations they wish to receive, making e-blasts a viable method of advertising. In addition to the fact e-blasts are relatively inexpensive to use, you can track the recipients viewing of your advertising with great precision depending on the program you use. There are a number of companies that offer on-line systems to distribute e-mail blasts. You can also buy software capable of sending and monitoring e-blasts. In both cases, these programs are designed to allow the recipient to opt out if they do not wish to receive your ads.
• Mobile billboard advertising
Mobile billboards are truck- or blimp-mounted billboards or digital screens. These can be dedicated vehicles built solely for carrying advertisements along routes preselected by clients, or they can be specially-equipped cargo trucks. 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
Big advertisements from smaller companies
Others
• Public service advertising
The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues, such as HIV/AIDS, political ideology, energy conservation, religious recruitment, and deforestation.
Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating 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.
Public service advertising, non-commercial advertising, public interest advertising, cause marketing, and social marketing are different terms for (or aspects of) the use of sophisticated advertising and marketing communications techniques (generally associated with commercial enterprise) on behalf of non-commercial, public interest issues and initiatives.
In the United States, the granting of television and radio licenses by the FCC is contingent upon the station broadcasting a certain amount of public service advertising. To meet these requirements, many broadcast stations in America air the bulk of their required public service announcements during the late night or early morning when the smallest percentage of viewers are watching, leaving more day and prime time commercial slots available for high-paying advertisers. Public service advertising reached its height during World Wars I and II under the direction of several governments
• Internet Advertising
Traditional media, in today's highly competitive world, has proved to be insufficient in fulfilling any advertisers' exacting standards - of efficiency and customer interaction. The interactive Internet is the solution to your requirements, since it is a two-way interpersonal communication medium, with key distinguishing factors of feedback and interaction in real time. It is Interactive, Interpersonal & Cost effective - these are but a few of the many advantages that the Internet, as advertising medium offers. The Internet offers unlimited low cost space compared to the expense and limited capacity of traditional media and the ability to accurately measure audience usage. Every day millions of new users spend increasing amounts of time online. And that's where the opportunity lies - for every minute spent online is an advertising opportunity for you. Internet advertising is very similar to TV and radio advertising. The programs are offered as a free service; commercial advertising pays the expenses. The same is true of Internet advertising. The information is free, with the costs defrayed by advertising. A major advantage of Internet advertising is the ability to attract a specific target audience. This advantage is limited or nonexistent in other forms of media advertising. With the Internet, ads are directed towards the right group of people. Internet ads are known as banners. Virtually all banners are links to other sites, but there are still those few that are just meant to be seen, like billboards. One advantage of Internet advertising is that it opens new possibilities to spread messages to a targeted audience. By advertising to a particular group, chances of success are indeed great.
There are various Internet advertising techniques:
1.The ad owner pays a fixed amount for each person who visits the page with the ad.
2. The ad owner pays a fixed amount for each click on an ad that links to the advertisers' web site.
3. The ad owner pays a fixed rate to have his advertisement posted for a specified duration.
4. The ad owner has the option of either promoting their product or service through survey based contests on our site.
• Global advertising
Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. For global advertisers, there are four, potentially competing, business objectives that must be balanced when developing worldwide advertising: building a brand while speaking with one voice, developing economies of scale in the creative process, maximising local effectiveness of ads, and increasing the company’s speed of implementation. Born from the evolutionary stages of global marketing are the three primary and fundamentally different approaches to the development of global advertising executions: exporting executions, producing local executions, and importing ideas that travel.
Classification
• On line Advertising Industry
Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
Trend in the growth of the Online advertising Industry and its impact on the economy
Online advertising industry is expected to be stable and manifest an upward trend in the year 2007. This trend is likely to continue till 2011. The compound annual growth rate is anticipated to increase by 17.4% during this period( 2007 through 2011) and touch the $197.11 billion mark. Every industry in the US economy use the Online advertising tool for marketing products. The different sectors yield revenues and add to the GDP or the gross domestic product. Online advertising tools can be used in several sectors as enumerated below:
• Banking
• Real Estate
• Steel
• Mining
• Paper
• Plastic
• Software
• Biotechnology
• Health Care
• Agriculture, etc.
OUTDOOR ADVERTISING INDUSTRY
Outdoor advertising, sometimes referred to as out of home advertising, is made up of more than 100 different formats, totaling $6.99 billion in annual revenues in 2008. Outdoor advertising is essentially any type of advertising that reaches the consumer while he or she is outside the home (or office). This is in contrast with broadcast, print, or internet advertising.
Out of home advertising, therefore, is focused on marketing to consumers when they are 'on the go' in public places, in transit, waiting (such as in a medical office) and/or in specific commercial locations (such as in a retail venue). Outdoor advertising formats fall into four main categories: billboards, street furniture, transit and alternative advertising.
Outdoor advertising industry and employment:
In addition to generating revenue for the country, it also provides employment facilities to individuals directly associated or indirectly associated with the advertising industry. It was found that in Florida alone, the total number of jobs available in the outdoor. Advertising segment or outdoor advertising related segment was 10,000 in the year 2001. It is believed that there will be a decrease in the number of jobs, the job count going down to 7,600 by 2010. The decline can be attributed to diversification in other industries. The Gross revenue product or the GRP was found to be $405 million in the year 2001 and is expected to be $457 million by the year 2010. Statistics also suggest that the real disposal income in the outdoor advertising industry as in 2001 was $264 million which is likely to rise to $311 million in 2010.
Regulations on Advertising
In the US many communities believe that many forms of outdoor advertising blight the public realm. As long ago as the 1960s in the US there were attempts to ban billboard advertising in the open countryside. Cities such as São Paulo have introduced an outright banwith London also having specific legislation to control unlawful displays. There have been increasing efforts to protect the public interest by regulating the content and the influence of advertising. Some examples are: the ban on television tobacco advertising imposed in many countries, and the total ban of advertising to children under 12 imposed by the Swedish government in 1991. Though that regulation continues in effect for broadcasts originating within the country, it has been weakened by the European Court of Justice, which had found that Sweden was obliged to accept foreign programming, including those from neighboring countries or via satellite.
In Europe and elsewhere, there is a vigorous debate on whether (or how much) advertising to children should be regulated. This debate was exacerbated by a report released by the Kaiser Family Foundation in February 2004 which suggested that food advertising, such as that for fast foods, targeting children was an important factor in the epidemic of childhood obesity in the United States.
In many countries - namely New Zealand, South Africa, Canada, and many European countries - the advertising industry operates a system of self-regulation. Advertisers, advertising agencies and the media agree on a code of advertising standards that they attempt to uphold. The general aim of such codes is to ensure that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory organizations are funded by the industry, but remain independent, with the intent of upholding the standards or codes like the Advertising Standards Authority in the UK.
In the UK most forms of outdoor advertising such as the display of billboards is regulated by the UK Town and County Planning system. Currently the display of an advertisement without consent from the Planning Authority is a criminal offense liable to a fine of £2,500 per offence. All of the major outdoor billboard companies in the UK have convictions of this nature. Naturally, many advertisers view governmental regulation or even self-regulation as intrusion of their freedom of speech or a necessary evil. Therefore, they employ a wide-variety of linguistic devices to bypass regulatory laws (e.g. printing English words in bold and French translations in fine print to deal with the Article 120 of the 1994 Toubon Law limiting the use of English in French advertising). The advertisement of controversial products such as cigarettes and condoms is subject to government regulation in many countries. For instance, the tobacco industry is required by law in most countries to display warnings cautioning consumers about the health hazards of their products. Linguistic variation is often used by advertisers as a creative device to reduce the impact of such requirements.
ADVERTISING COMPANIES IN THE INDUSTRY
The contribution of advertising companies towards the yearly revenue sums up approximately $60 billion. Omnicom, WPP, Interpublic are some of the reputed advertising companies operating in America. Segregation prevails in the advertising market. Trends in the advertising industry indicate that the as many as 50 companies which are quite reputed hold around 40% of the market stake. This was an increase by approximately 4.2% as compared to the revenues earned in the year 2005. The yearly revenue earned from every employee in the advertisement industry amounts to $150,000.
Advertising industry-facts:
• Movies, Internet, Print Media, broadcasting constitute 0.99% in approximately 57 countries in terms of economic growth worldwide. This ratio was found to be unaltered in the years 2005 through 2006.
• It was observed that expenses incurred on advertising in the European countries exceeded the expenses incurred by United States of America in the year 2005.
• Reports also suggest that the trend of growth in the advertising industry may become sluggish in 2007, the ratio being 5.6%. This ratio may drop to 5.3% in the year 2008.
• 2005 through 2008 will see a majority of the emerging markets whose advertising markets are likely grow as much as USD19.2 billion. On the other hand, the stake in the global advertising market may escalate from 7.9%- 10.8% during the same period.
It is apprehended that the advertising industry which contributed 0.96% towards the global GDP in the year 2005, is anticipated to escalate to 0.99% in 2008.
RISKS INVOLVED IN THE ADVERTISEMENT INDUSTRY
There are many risks which the advertisement industry is subjected to. The advertisement industry report throws light on the various types of risks and the statistical data pertaining to the risks which the advertisement companies have been subjected to at that point of time. Risks can be of three types, structural risks are the risks which may be encountered from within the advertisement industry. Growth risk report provides the probabilities of the risks likely to appear in future. Several factors like prices of articles, regulations of the government rates of interest and exchange rates may affect the advertising industry to a considerable extent and these factors constitute the last risk factor called the sensitivity risk.
Advertising Industry Report
The Advertising Industry Report suggests that the revenue earned from media as well as advertising in the United States of America attained the $13.10 billion mark in the year 2006. Advertising Industry Report analyzes the trends and the market conditions pertaining to the advertising industry. Advertising industry reports revolving around advertising related activities like campaigning, electronic and printed displays, billboards, shopping malls, retail market etc are all taken into consideration while working out reports. The contribution of the advertising industry to GDP or the gross domestic product is also accounted for. The advertising industry report also implies that as many as 30,000 plus companies operate in the United States of America.
ADVERTISING RESEARCH
Advertising research is a key to determining the success of an ad in any country or region. The ability to identify which elements and/or moments of an ad that contributes to its success is how economies of scale are maximized. Once one knows what works in an ad, that idea or ideas can be imported by any other market. Market research measures, such as Flow of Attention, Flow of Emotion and branding moments provide insight into what is working in an ad in any country or region because the measures are based on the visual, not verbal, elements of the add Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. It entails numerous forms of research which employ different methodologies.
Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer. Continuous ad tracking and the Communicus System are competing examples of post-testing advertising research types. One way to measure advertising effectiveness is known as Ad Tracking. This advertising research methodology measures shifts in target market perceptions about the brand and product or service. These shifts in perception are plotted against the consumers’ levels of exposure to the company’s advertisements and promotions. The purpose of Ad Tracking is generally to provide a measure of the combined effect of the media weight or spending level, the effectiveness of the media buy or targeting, and the quality of the advertising executions or creative.
Trends/ Future of Advertisement Industry
Advertising Industry trends reflect the dynamics of the advertising industry and its contribution to the economy of the country. The advertising industry plays a significant role in contributing to the Global Gross Domestic Product. Advertising industry trends suggested that advertising expenses with regard to magazines in the beginning of 2007 escalated by 7.1% as compared to the first half of 2006. The same period witnessed a decrease in the expenses on magazines dealing with business articles, reports and business statistics by as much as 5.2%. A survey conducted on the advertising industry trends also suggested that total amount spent on advertising pertaining all categories of media registered a reduction by 0.3% in the first three months of 2007 as compared to the last quarter of the 2006. The advertising analysis report conducted on advertising industry trends observed that approximately 19.2% was spent on magazines during the first 3 months of 2007. There was an increase by 0.9% as compared to the hike registered last year during the same time.
With the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner, Popunder, Advergaming, and email advertisements (the last often being a form of spam) are now commonplace. The ability to record shows on digital video recorders (such as TiVo) allow users to record the programs for later viewing, enabling them to fast forward through commercials. Additionally, as more seasons of pre-recorded box sets are offered for sale of television programs; fewer people watch the shows on TV. However, the fact that these sets are sold, means the company will receive additional profits from the sales of these sets. To counter this effect, many advertisers have opted for product placement on TV shows like Survivor. Particularly since the rise of "entertaining" advertising, some people may like an advertisement enough to wish to watch it later or show a friend. In general, the advertising community has not yet made this easy, although some have used the Internet to widely distribute their ads to anyone willing to see or hear them. Another significant trend regarding future of advertising is the growing importance of the niche market using niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail, advertisers will have an increasing ability to reach specific audiences. In the past, the most efficient way to deliver a message was to blanket the largest mass market audience possible.
However, usage tracking, customer profiles and the growing popularity of niche content brought about by everything from blogs to social networking sites, provide advertisers with audiences that are smaller but much better defined, leading to ads that are more relevant to viewers and more effective for companies' marketing products. Among others, Comcast Spotlight is one such advertiser employing this method in their video on demand menus.
These advertisements are targeted to a specific group and can be viewed by anyone wishing to find out more about a particular business or practice at any time, right from their home. This causes the viewer to become proactive and actually choose what advertisements they want to view.
In the realm of advertising agencies, continued industry diversification has seen observers note that “big global clients don't need big global agencies any more”. This trend is reflected by the growth of non-traditional agencies in various global markets, such as Canadian business TAXI and SMART in Australia and has been referred to as "a revolution in the ad world"
In freelance advertising, companies hold public competitions to create ads for their product, the best one of which is chosen for widespread distribution with a prize given to the winner(s). During the 2007 Super Bowl, PepsiCo held such a contest for the creation of a 30-second television ad for the Doritos brand of chips, offering a cash prize to the winner. Chevrolet held a similar competition for their Tahoe line of SUVs. This type of advertising, however, is still in its infancy. It may ultimately decrease the importance of advertising agencies by creating a niche for independent freelancers.
ADVERTISING INDUSTRY TRENDS IN DIFFERENT MEDIA
Research and analysis carried out in the context of the advertising industry noticed the following advertising industry trends:
• As many as 1,370 magazines were launched in the United States of America and Canada in the year 2006.
• The advertising industry report anticipates that another 820 magazines are likely to be launched within 2007. This will take the number of magazines to 26,960 by 2007 end.
• It is apprehended that a decrease is likely to occur in the number of advertisement pages in the magazines by around 9% between 2006 through 2011. The shift in the trend of advertising industry from the print media to the Internet is considered to be one of the reasons for the down slope.
• Surfing the Internet for various purposes like shopping on line, information about a store, searching for information or randomly browsing the net accounted for approximately 12%, 15%, 22% and 31% respectively.
Studies on advertising industry trends also revealed that people are opting for surfing the net for commodities on line as compared to the print media. Due to escalation in the cost of postage in the year 2007, a tendency might set in when the publishers may opt for the reduction of the size of papers and decrease in paper weight. Consequently, page volume is likely to go down by 9% by the year 2011.
CONCLUSION
The modern advertising industry plays a special part in the social relations of modern society. By virtue of its presence in everyday life and of the economic dimensions of its activity, it appears to be an independent business institution, but it can be described more accurately as the point of intersection for the major institutional forces. The industry absorbs into itself information about the world of products, the world of media, the world of consumers, and the world of audiences. Perhaps no other institution in modern society reflects and holds within itself such complex relations.
Advertising using powerful media control peoples' choices. With the dawn of the Internet came many new advertising opportunities. Studies on advertising industry trends also revealed that people are opting for surfing the net for commodities on line as compared to the print media.
The contribution of advertising companies towards the yearly revenue sums up approximately $60 billion. The yearly revenue earned from every employee in the advertisement industry amounts to $150,000.
Thus Advertising industry is a rapidly growing industry and determines to a considerable extent the Gross domestic product of any country.
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