A PROJECT REPORT

ON
CHANGING TRENDS IN
ADVERTISING MARKET
For the Partial Fulfillment of the Requirement
For The Award of

DBJCC
(2014-2015)
FROM UNIVERSITY OF DELHI

SUBMITTED TO
Dr. Pushkar Srivastava

SUBMITTED BY
TUSHAR PATHAK
Roll No.
DBJCC-2nd Sem

SHRI GURU GOBIND SINGH COLLEGE OF COMMERCE

DELHI UNIVERSITY, DELHI

ACKNOWLEDGEMENT
I thank my institute Sri Guru Gobind Singh College of Commerce, Delhi for
providing the foundation for this study. Institute provided the structure, the
focus and the direction for the successful completion of this project, and had
it not been for the clarity that it provided, this dissertation report would not
have been possible.
I would like to thank my mentor Dr. Pushkar Srivastava. The sincerity,
dedication and interest that she showed in my study was very encouraging
and of extreme value. I am very grateful to her for the pains she took to
support this study by giving me valuable insights and reference material.
I wish to express my heartfelt gratitude to all the faculty and staff members
who have been associated with this study in many small and big ways.

TUSHAR PATHAK

TABLE OF CONTENTS
Chapter
No.

CONTENTS

Executive Summary

Research Methodology
2.1 Primary Objective
2.2 Research design
2.3 Scope of study
2.4 Limitation of study

Critical Review Of Literature

Recent advertising trends in sectors and medium

4.1 Recent advertising medium used
4.2 Recent advertising technology used
4.3 Recent advertising trends in different sectors

Online Advertisement

Mobile Advertisements

Changing Advertising Trends in Markets

7.1 Telecom Sector
7.2 FMCG Sector

Changing Trends in Advertising Market

8.1 Alternate advertising
8.2 Bluetooth advertising

Recommendations

10

Conclusion

11

Bibliography

CHAPTER ONE
EXECUTIVE SUMMARY
Advertising spending has increased dramatically in recent years. In 2009, spending on
advertising has been estimated at $155 billion in the United States and $385 billion worldwide
and the latter to exceed $500 billion by 2010.While advertising can be seen as necessary for
economic growth, it is not without social costs. Unsolicited Commercial Email and other forms
of spam have become so prevalent as to have become a major nuisance to users of these services,
as well as being a financial burden on internet service providers. Advertising is increasingly
invading public spaces, such as schools, which some critics argue is a form of child exploitation

If we talk about the recent trends in advertisements then it can be said that 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 allow users to record the programs for
later viewing, enabling them to fast forward through commercials. Additionally, as more seasons
4

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 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. 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.

Thus my study will be to analyze:

What are latest trends and technologies that are being adopted by the advertising
agencies?
the upcoming trends in the advertising industry with special focus on online advertising
in order to aid the enhancement of the credibility of the advertisements
The measures for improving the ad recall by cognition of positive perception in the mind
of target audience.

CHAPTER TWO
RESEARCH METHODOLOGY
PRIMARY OBJECTIVE:

To study the upcoming trends in the advertising industry with special focus on online
advertisements, in order to aid the enhancement of the credibility of the advertisements
To look for the measures for improving the ad recall by cognition of positive perception
in the mind of target audience.

RESEARGH DESIGN:
NATURE OF STUDY:
This report is not based on primary data. It is based on secondary source of data, journals of the
countries, companies, business magazines, business news papers, as well as internet, one of the
reliable and easiest methods of data collections
TYPE OF STUDY: Exploratory Research-Qualitative
SCOPE OF THE STUDY:
The report aims to impart understanding regarding the latest technologies and upcoming trends
in advertisement industry. It includes various strategies to enhance the effectiveness of
advertisements which depends on advertisement objectives, media planning, ad content, ad
influencing capability and consumer psychology.
LIMITATION OF STUDY:
No availability of primary data for the study

CHAPTER THREE
CRITICAL REVIEW OF
LITERATURE

Our world is full of fads, and the internet isn't an exception. After Google, internet advertising
trends have shown the world that they work. If this wasn't the case then Go ogle wouldn't have
been able to earn US$ 7 billion in revenue. The art of mastering internet advertising involves
having both the technology and the knowledge of the market. Even for free online advertising.
What Is Hip Right Now?
In the past, prior to the dot com burst, advertisers were charged for the amount of time an ad
appeared, quite similar to the scheme used in other media like TV and radio. But this didn't work.
Internet required a new way of doing things. Now, advertisers are charged for the number of
times that a user clicks on their ads. Is this method better than the old online web site
advertising? Sure it is. The main benefit is that the advertiser will know how many times his ad is
clicked. This means that he can evaluate his propaganda and apply a performance evaluation to
it. No more marketing campaigns with unclear results. This new approach has empowered
companies and provides them with valuable information on the market and their clients.
So, the latest internet advertising trend is empowering companies with instantaneous
information. Although Google benefited from it from their Ad Words and Ad Sense programs,
there are many other companies who have exploited this new advertising trend. For example,
there is Web Side Story, which gives to its clients' information on incoming traffic. Bank rate is
another company. They dedicate themselves to research data in the financial industry and process
it for their clients.
But, who are you going to call if you want to make an internet campaign? The second internet
advertising trend is the pool of companies specialized in internet marketing. Thanks to the new
technologies and the rebirth of this market, companies like 24/7, Real Media and aQuantive are
offering their clients services that adapt perfectly to these new ways.
7

Unfortunately, besides the positive, legal and moneymaking trends in online advertising, there is
also a negative, illegal trend in online ads. Its name is click fraud. In click fraud, a person or an
automated program is used for making clicks on an ad so the person or the author of the software
can benefit from it. Although some laws exist against it and some companies have started to offer
services for fighting click fraud, it seems that this cancer will not disappear from the internet
advertising trends.
All of these trends for advertising online are based on different strategies and schemes. Each one
of them is focused on determined markets and situations. As in war, no serious online marketing
campaign uses one type of weapon. It needs to combine an adequate series of tools and resources
for achieving victory. One of these tools is behavioral advertising, which is expected to
increase 65 percent for this year, according to iMedia Communications. Behavioral advertising is
an advertising tool that targets a user in accord to his previous preferences when navigating the
web.
Pay per call (PPC) advertising is another kind of tool, in which an advertiser pays a fee for each
client that makes a call to an advertised number. Once it has taken note of the call, the central
reroutes the call to the company's actual phone

ARTICLE BY HEATHER CONARY

Top 7 Trends in Online Ad Design
. By Heather Conary

Whether you love them, hate them, or just ignore them, online ads are still a vast source of
revenue in the online world. If you look at them from a marketer's perspective (or at least as a
Website owner who wants to earn extra revenue), online ads are a potentially lucrative option.
For many companies, online advertising is becoming more profitable. A study by the Interactive
Advertising Bureau and PricewaterhouseCoopers calculated that advertising revenue in the
United States increased by $1.3 billion dollars to an astounding $7.3 billion in 2008.
With both large corporations and mom-and-pop stores now using online ads, it's tough to
compete. In this article, we'll take a look at the seven most prevalent design trends in online
advertising.
Trend #1: Curves and Organic Shapes
In writing this article, I looked at, analyzed and considered several hundred online ads. In nearly
three-quarters (and possibly even more) of those ads, some form of curves or other organic
shapes featured. Big name companies such as Weight Watchers use organic shapes -- arcs,
circles, and rounded edges, for example -- to appeal to target audiences. The recent proliferation
of these particular shapes is a sharp contrast to the hard-edged, square styles favored previously.
In an effort to appear more comforting, approachable and appealing to their target audiences,
8

companies have used the current economy to shed their "hard" styles in favor of these "softer"
images.
Several well-known companies are shown in greater detail below:
1.
Weight Watchers - This ad uses a combination of techniques discussed in this article. It
uses Trend #1: Curves in its layout, along with a combination of two increasingly popular
colors (see Trend #2: Colors). It also makes use of a stock photo that shows a "happy
customer" (see Trend #3: Imagery).
2.
OfficeMax - The office supply mega-store employs Trend #1 in the curves in its banner
ad. It avoids the usage of the trendy colors, in favor of its corporate ID colors. Also,
OfficeMax abandons the trend of sans-serif fonts (Trend #7: Fonts and Their Usage) in
favor of its corporate font.
3.
ReliaQuote - This online insurance company whose ads appear all over the Web employs
two of the seven trends discussed in this article. It successfully employs Trend #1, using
curves to overlay a stock photo (Trend #3: Imagery) of a face. ReliaQuote also uses a
sans-serif font (Trend #7: Fonts & Their Usage).

It should be noted that this trend may not to be limited to online ads, as it appears in Website
layouts and print design as well.
For the Adobe Photoshop users in the crowd, I've created a set of four curve brushes, to aid you
in your development of banner ads. To install these into your version of Photoshop, make sure
you have Photoshop closed, and navigate to your Adobe Photoshop install
9

Trend #2: Colors

Anyone who has spent any time online in the past few years will have noticed the vast usage
(and in some cases, success) of the color combination of orange and blue. Recently, these colors
have come to be associated with tech and computer firms. And in online ads, these colors seem
to be just as popular as their layout-based counterparts. Through my research, several shades of
blue and orange showed up, but they maintained the combination, usually with only the addition
of neutrals (black and white).

)
The example image shows some of the more prominent colors I saw in my research for this
article, along with their hex codes and RGB values.
1.
#ED7F09; (237, 127, 9)
2.
#FF6600; (225, 102, 0)
3.
#2188E0; (33, 136, 224)
4.
#0066CC; (0, 102, 204)
5.
#23497C; (35, 73, 124)
All of these colors work nicely with neutrals (black, white and shades of gray). For help with
color schemes, two of my favorite tools are:
WellStyled's Color Scheme Generator v2
Color Schemer Online v2
I've created an Adobe Photoshop color palette of these colors to quicken the banner development
process. To install the palette into your version of Photoshop, make sure you have Photoshop
closed, and navigate to your Adobe Photoshop install folder Open the Presets folder, then the
Color Swatches folder. Copy the .aco file from this .zip and, next time you open Photoshop, the
color palette will be loaded.
Trend #3: Imagery
Many popular ads have moved from the extensive-copy-and-image format to heavy usage of
stock photography that shows their "customers." An ad may show happy children playing, a
satisfied mother, or a productive looking office -- any combination of upbeat images that
showcases the intended customer reaction to their product.
In this example image, T-Mobile shows customers that instead of spending too much time inside
(in corporate cubicle hell), that they should be doing things that they truly enjoy.

10

There are many royalty-free stock photography sites out there. Two of the most popular -- also
my favorites -- are:
Corbis Images
Getty Images
.
For those who need to create ads on a limited budget, my personal favorite is Stock exchange,
which offers a great selection of free stock photography (much of it rivaling, and in some cases
surpassing, the royalty-free image sites).

Trend #4: Deals and Copy

Online ad copy is currently focused on a tradition that marketers have followed for years.
The copy in most ads I ripped apart focused on these "Big Three" principals:
1.
Get something for free
2.
Save money
3.
Make life easier
Big computer companies, including Dell and its competitors, offer traditional seasonal sales,
including back-to-school events, and advertise their substantial savings in banner ads. Other
companies, including many popular newspapers, offer discounts to readers who switch from
traditional paper-based formats to their online counterparts.
Some of the most effective online ads use simple, direct copy to entice visitors to visit the
vendor's Website (the challenge), then hit the visitor with the complete sales pitch once they get
there.
Trend #5: Interactivity
Ever since animated GIFs gained support in mainstream browsers, people have made
"interactive" banner ads. These range from the Punch-the-Monkey ads to more complex formats
that feature simulated form fields. The main drive of animated ads is to gain clickthroughs.
With the invention and mainstream acceptance of Macromedia Flash, a new class of ads popped
up. Hewlett-Packard was one of the first companies to jump on the bandwagon, enticing
customers to check out its music software via an ad that featured a piano layout that allowed you
to create your own tunes. The company continues this tradition today with audio-driven ads that
explain and teach potential customers about HP's fotoimaging technology, and basically function
as mini-presentations.
Along the same lines, more and more companies have thrown their hats into the ring with Flash
overlay ads. These ads (usually of gargantuan file size) overlay the text of Web pages and entice
customers to view much more than can typically fit into a banner ad. Currently, these behemoth
11

ads are only available in Internet Explorer, but other browsers are now building in support for
these overlays. However, even though many users find them annoying at best (confusing at
worst), these overlay ads are reported to achieve clickthough rates up to a 50 times better than
traditional banner ads.
If you decide the risk of offending your customers is worth the reward of the high clickthrough
rate.
Trend #6: Sizes and Layouts
Still the most common and most-used ad size, the banner ad is measured at 468x60 pixels. This
ad size has become so popular that it's a preset in recent versions of Adobe Photoshop. Also
popular are "skyscraper" banners, which weigh in at 120x600 pixels. Lots of ads don't fit a predefined size, such as all the Flash pop-over ads which have become more popular in recent
months.
Many banner and skyscrapers ads follow a "thirds" formula. Two-thirds of the ad contains a
picture and the main advertising points; the remaining third is devoted to minimal copy and
clickable buttons.
In the examples provided here, both Carnation and Microsoft use similar layouts for vastly
different products and markets.

Other sizes and shapes gaining (and in some cases, losing) popularity include:
Square ads (most often seen in technology Websites)
Pop-ups (most certainly losing steam since most Web browsers and toolbars come
equipped with a pop-up blocker)
Pop-unders (not quite as bad as pop-ups, but still losing ground due to pop-up blockers)
Interstitials (a nearly full-page ad that loads between the page you clicked and the one
you want to see; one site I found that used them extensively was iVillage
Overlay ads (gaining popularity due to the decline in pop-up ads; we talked about these in
#5: Interactivity)
Trend #7: Fonts And Their Usage
It seems as if the growing shift from serif fonts to sans-serif fonts online is now projecting itself
into online advertising. Nearly all the ads I examined used sans-serif fonts, often in addition to
the company's "signature" font.
A great font resource, which I've seen mentioned several times in the SitePoint Forums, is What
the Font. By simply uploading a simple JPEG, GIF, TIFF or BMP image, you can identify which
font is used in a particular ad. This is particularly handy for reviving older ads for which you've
lost the original files.
If you truly feel like browsing for a new font, 1001 Free Fonts offers a vast selection of fonts.
The only downside of this site is that the fonts are categorized by font name, and not by style.
12

If you're new to font selection, and are used to using any old thing that happens to be in your font
list, here's a quick overview. Serif fonts, pictured in the upper-half of the example above, have
"tails" that are used as decorative touches to the letter. Times New Roman and Garamond are two
common examples of serif fonts. Sans-serif fonts, pictured in the lower half of the example
above, are absent of the "tails," and frequently have much cleaner lines. Verdana and Arial are
examples of common sans-serif fonts.
What NOT to Do
If you're tired of reading the same standard marketing fare and technical how-tos, and are
looking for a refreshing perspective on online advertising, check out Brand Suicide. This blog is
subtitled "Ads that Suck" and features some of the most annoying, confusing and poorly puttogether ads online. Akin to Vincent Flanders' book Web Pages That Suck, this site is a how-notto guide to online advertising.
For a more in-depth look at the acceptance by Web users of various online ad formats, Dynamic
Logic published a recent study on Consumer Perception (March 2004). To summarize the
findings, this study shows that the online ad format preferred by most consumers was the banner
ad; the one they prefer least was the pop-up ad.
Why Online Ads Are Weathering the Recession
In most media, 2009 will bring unkind cuts, and Madison Avenue will never be the same.
But Internet advertising seems to be holding up
SOURCE: BUSINESS WEEK
December 24, 2008,
By Jeffrey F. Rayport
It hardly matters what sector of the economy you're init's none too soon for 2008 to be over. In
the advertising business, the pain has proved especially acute, compounded by the latest
estimates of where ad budgets are heading in 2009.
Just last week, Barclays Capital (BCS) lowered its projections for U.S. ad spending to a negative
10% next year and a positive 1% in 2010. Every one of the traditional media platforms is getting
hit, with newspapers (no surprise) taking the brunt of the pressure, with a drop of 17%, followed
by TV (minus 15.5%), magazines (minus 15%), and radio (minus 13%). While other researchers
13

aren't offering prophesies quite so dire, one thing is clear: This is already no typical ad recession.
In 1991, ad spending dropped a mere 1.9% from the prior year, while in 2001 it fell only 6.2%.
The only bright spot this time is online advertising, which, despite a series of downward
revisions, is still expected to grow between 6% and 10% next year over 2008 levels.

Radical Restructuring
We already know that Wall Street and Detroit will never be the same. Radical structural changes
in financial services this year have unfolded at a breathtaking pace. Now, it looks as if we may
add advertising to the short list of industries that will emerge from this recession altered in
dramatic ways, and for good. The harbinger of advertising's radical transformation is the
sustained growth of online.
Remember that the last recession knocked online advertising for a loop. The Interactive
Advertising Bureau (IAB) reports that Internet advertising was down 12% in 2001 and 16% in
2002. It wasn't until 2004 that online surpassed spending levels reached in the medium's peak
year of 2000. But during the current recession, online is holding its own, and traditional media
are taking the hit. Indeed, a survey of 400 senior-level marketing decision-makers, released last
week by Permission TV, confirmed the view that digital marketing would be the least affected by
budget cuts among all major commercial media.
So why is this time around for online advertising different?
For starters, online has come of age as a medium since the early 2000s. IAB President Randall
Rothenberg observed recently that in a typical recession, "above-the-line dollars below the line."
When budgets are tight, pay-as-you-go approaches (say, point-of-sale promotion) are more
appealing than betting on what may come (mass-market TV spots). In the last recession, online
advertising had yet to prove itself as a bona fide option, above or below the line. Now, it's
credibly done both.
Second, the brightest aspects of online advertising's appeal are the special strengths of digital as
an ad medium. One is accountability. That's what continues to give search advertising its
momentum, fueling the growth (albeit slowing) of market leader Google. Every marketer can
determine what a search-based "click-through" is worth by calculating the impact on sales. It
helps, too, that marketers pay only for search ads that result in a click-through. No surprise,
search will expand by a healthy 15% in 2009. Another attribute of digital is the compelling user
experiences based on rich integrated media formats and built-in interactivity. That's why industry
analysts expect spending on online video ads to grow by a robust 45% next year, revised down
only slightly from earlier estimates. Third, it's an iron law of marketing that word of mouth is the
most powerful medium that money can't buy. Online environments are, of course, rapidly
becoming social media, where word-of-mouth communications travel at lightning speed and
exert ever more influence on consumer behavior. No one, including social networking giants
Facebook and MySpace (NWS), has cracked the code on word of mouthor its monetization.
14

But that doesn't mean they're not trying. Thanks to the huge numbers of business people who use
it, Facebook has overtaken LinkedIn as a top business networking site. It's testing B2B
marketing concepts like the recently introduced "VISA Business Network," which enables small
business owners to interact with one another and advertise efficiently on the site. Last summer,
MySpace also began targeting small businesses with a self-service model for advertising
placement. (Only 1 million of 23 million small businesses in the U.S. advertise in any way
online.)
Fourth, marketers are spending digital dollars to create "earned" rather than "paid" ad
placements. Paid placements occur when brands buy ad space from existing online publishers.
Earned placements often require that brand marketers create media vehicles of their own.
Sometimes, earned media can take shape as the online equivalent of guerrilla marketing, in
which brands create engaging online experiencessuch as Pedigree's Dogs Rule Web site,
which, with its agency TBWA\Chiat\Day, created a multifaceted online hub of services,
community, and videos for owners and lovers of dogs. Others are less playful and more sobering,
like Chevron's (CVX) partnership with the Economist Group to create Energyville, an online
game designed to educate consumers about trade-offs between global energy resources and
demands and their environmental implications.
Pinpoint Accuracy
Finally, there's the capacity of online to reach consumers with precision at specific points in the
buying process (from awareness to interest to purchase) through theme-based or algorithmdriven targeting. Whether it's "vertical" ad networks (such as the CBS College Sports Network
(CBS) of sites and blogs for online users obsessed with collegiate competition, including March
Madness) or behavioral targeting (such as Tacoda and Specific Media, which analyze users' click
streams to predict what they're likely to want or to buy), the results are similar: The online
medium can provide marketers with unprecedented capacities to target specific users and usage
occasions. Mobile advertising, which pinpoints a consumer's physical location, only adds to the
expanding possibilities.
In short, Madison Avenue won't come out of this ad recession the way it came in.
Why would advertisers budget on faith when they could invest in measurable returns? Why
would brands lavish dollars on mass media when they could target only those consumers who
matter most? Why would marketers continue to allocate less than 10% of their budgets to
interactive (in measured media), when consumers are spending more than 35% of their time with
interactive platforms even today?
It's not that online advertising will supplant traditional media. It won't. But a new and different
ad equilibrium will emerge from the coming economic recoveryand it will represent a radical
shift from anything we've known before

15

Whats Going On?

We've entered the age of stimuli bombardment, visual saturation, sound bites and microscopic
attention spans. The number of images and voices shouting for our attention has accelerated
beyond critical mass, and the resulting explosion has fragmented the public mind. In a nutshell,
weve developed mental filters to guard against hyper communication.
Im paid according to how many clients sales grow, so I needed to figure out what the problem
was--and then fix it. Heres what I discovered, tested and proved. Hopefully it can help you:
1.

Internet browsing has trained the public to more quickly disregard empty words.

2.

Message relevance has become more important than repetition.

Bottom line: Meaningful messages are working better than ever, especially when the
fundamental premise of your ad is clearly stated in the opening line. Ads full of unsupported
claims and overworked image building phrases are rejected quicker today than ever before.

You and I spend about a minute a day sorting the mail, right? Up until a few years ago, these six
minutes each week were our only exercise in high-speed content evaluation. Now were
spending at least six hours a week scanning search engine results, web pages and e-mail for
relevant, meaningful information. These hours of practice are teaching us--and our customers--to
more quickly recognize and disregard empty words.
The buying public is still out there. Whats gone is their willingness to pay attention to drivel.
Ads are failing today that would have once produced good results just a few years ago. Other ads
are working far better than expected. Fortunately, theres a pattern--and things you can do to
ensure your ads get noticed. To see the kind of results that advertising can still deliver, youre
going to have to:
1.

Talk about things your customer actually finds interesting.

2.

Write your ads in a style that rings true.

3.

Avoid heroic chest thumping, such as We are the number-one

4.

Close the loopholes in your ads--ambiguous claims make you seem dishonest.

5.

Use specifics. Theyre more believable than generalities.

6.

Remember that substance is more important than style.

7.

Relate to the customer on their own terms.

If your ad delivers a meaningful message that rings true from the moment of contact, youll find
that it works regardless of which media you choose to deliver it.
16

The new rule is to say what you've got to say, and say it clean. The opening line of your ad is its
most important element, so open big. I'm not talking about hype--something of the "Save up to
75 percent off this week only at blah blah blah" variety.
ADVERTISING: THE TIMES ARE A-CHANGING
ENRIQUE DANS
Ph.D., Professor of Information Technologies and Systems at IE Business School
Across time, we have been witness to big changes in advertising, from merely communicating a
product or service, to highly sophisticated multi-dimensional and multi-channel strategies, and
always with the same goal. Across time, we have seen a huge evolution of techniques and trends,
products, strategies, media The authentic next big thing comes with the advent of the
Internet.
Advertising is a very powerful business. All by itself, advertising powers large industries such as
television or print media, huge empires with thousands of employees and billions of dollars in
revenues which constantly feed their tummies with money coming from the advertisers. Across
time, we have been witness to big changes in advertising, from merely communicating a product
or service, to highly sophisticated multidimensional and multi-channel strategies, and always
with the same goal: to induce someone to buy or use that product or service. To achieve their
goal, advertisers use different types of weapons with very different characteristics, ranging from
pure carpet-bombing that guarantees the coverage of a large area, to highly precise snipers that
allow them to hit a specific target right between the eyes and in the perfect moment to do so.
Across time, we have seen a huge evolution of those weapons, new techniques and trends, new
products, new strategies, new media How ever, as in many other industries, the really big
change, the authentic next big thing comes with the advent of the Internet. And believe it or
not, even though the Internet has been among us for quite a significant number of years, the
change is yet to come. Let's review some of the changes that will, in the coming years, turn the
world of advertising completely upside down
The first and fundamental change is related to the so-called interruption marketing, and it
could be well expressed as don't get between my content and me. Think about it: for a number
of years, the media industry has been able to run their business with a very clear and
straightforward model - if you want to put your hands in my content, you will have to accept my
conditions. And those conditions are: either you pay for it, or you will accept interruptions.
Those interruptions will come any time, in any form or shape, and we will charge advertisers
depending on the number of eyeballs that we are able to theoretically put in front of your ad.
We the media can manage the time, the sequence, the primetime anything. We have the
control, and all you can do is to sit down and become audience, i.e. shut up and listen.
Depending on which side you are at, the idea sounds reasonable; media companies learn how to
influence us, how to shape our tastes and habits, and we accept the model because we basically
don't have any other model to compete with.

17

But all of a sudden, Internet explodes, and offers infinite choice, for free and with a completely
different interaction model: now, the user is in control, and things happen only when he or she
decides to click. And it is not just the Internet. we also get TiVO, we get Slingbox and
concepts like time-shifting or place-shifting become a true, painful reality. The conclusion is
crystal-clear: forget about control. All the control lies now in the hands of the user. Another big
change arises precisely from that locus of control: when the user controls what to do and where
to go, the role of the content provider becomes pretty much like in that movie, Field of dreams
(1989): if you build it, they'll come. Suddenly, creating content for a small audience becomes
feasible and, more than that, it proves to be profitable. With infinite shelf space, proactive
audiences, recommendation engines and other characteristics of the Internet, such as the potential
for viral diffusion, many advertisers and content providers realize that the old rules of the
Industrial Revolution are not only untrue, but also completely suboptimal. What's the point in
shooting the same ad to a large crowd when you can ask that crowd to self-segment themselves
and you know that, by doing so, the ad will be more effective? That's clearly another conclusion,
another take-home: forget about best-sellers, forget about blockbusters. The long tail of the
distribution, made up of all the teeny tiny segments that were previously impossible to target, can
be much larger and profitable than a couple of one hit wonders. The third interesting element
emerges from another characteristic of the Internet as a medium: bi-directional interactions. As
users get the control, they also get two more things: a voice, and a loudspeaker. And they demand
to be heard. They want to be able to interact, among them and with you; they actively search for
information about other customers who experienced your products, they tell the world the whole
thing when things go well, but especially when things go wrong. And we get prosumers, and we
get crowdsourcing and the competitors that rely on the users as a truly important information
channel become well known and are able to build a successful reputation. Which leads us to the
third conclusion, again, pretty clear: don't consider your customers an audience. Audience
comes from audio, from listening, and your customers want to do much more than just listening.
If you insist in considering them just an audience, they will sure get upset. The world of
advertising, the world of communication has changed, and the change is not precisely small
potatoes. As Bob Dylan says, the times they are a-changin'

Mobile Advertising in Emerging Markets: Market Trends and Strategies for the Third Screen.
Date: 04-MAR-09
Source:
M2 PRESSWIRE-4 March 2009-Research and Markets: Mobile Advertising in Emerging Markets:
Market Trends and Strategies for the Third Screen(C)1994-2009 M2 COMMUNICATIONS LTD
RDATE:04032009
Dublin - Research and Markets
(http://www.researchandmarkets.com/research/71bb6f/mobile_advertising) has announced the addition
of the "Mobile Advertising in Emerging Markets: Market Trends and Strategies for the Third Screen"
report to their offering.
18

Global mobile subscriptions surpassed 4bn at year-end 2008 and are expected to approach 6bn by
2013, making mobile services an extremely relevant platform for advertising for mass audiences. The
author believes that using mobile services as an advertising medium creates a new revenue stream for
telecom operators as well as for technology enablers and content developers. Furthermore, mobile
advertising will play a key role in driving usage of paid mobile data services.
Mobile Advertising in Emerging Markets looks at mobile advertising initiatives and the revenue
potential in emerging markets, with a particular emphasis on Brazil, China, India, Indonesia, Mexico,
Romania, Russia, South Africa and Turkey. We also put our findings in context by making
comparisons with global trends and developed markets, such as the US and UK. Our analysis indicates
that mobile advertising will boost mobile data service revenue by up to 10% and that leading operators
are pushing a variety of advertising methods, from sponsored messaging and alert services to more
sophisticated content over mobile portals.
Key questions answered
- How will mobile and Internet-based advertising compare in emerging and mature markets?
- Are there markets where the mobile sector's share of overall advertising spending will surpass that of
the Internet anytime soon?
- In light of the fact that even basic services such as sponsored messaging and alert systems are
enabling brands to reach a wider audience, how will the progression of mobile networks to 3G affect
the development of mobile advertising?
- What are the benefits to brands of including mobile advertising initiatives in their overarching
marketing strategies?
- Can SMS-based approaches ever help brands reach a substantial mobile audience in emerging
markets?
- What are the advantages to mobile operators of pushing m-advertising, besides adding a revenue
stream?
- Can advertising play a role in boosting the use of paid connectivity products?
TARGET AUDIENCE
Operators
Learn how different business models can be used to provide mobile financial services, in particular
what the role is of the main players and the supporting ecosystem. Find out which factors - regulations,
technology - make a service successful. Draw on conclusions based on the experience of successful
African operators that have wide application in markets at various stages of development. The report
also looks at examples of why privacy issues, mobile spam and unsolicited messages are key areas the
19

industry must continue to address delicately.

Banks
Find out the size of the opportunity in emerging markets, and determine how different markets require
different approaches. Learn how the mobile advertising channel can increase awareness of your
offerings, improve customer satisfaction and provide information about customer behavior and
preferences. This report provides insight into how different approaches using mobile media can help
reach customers more effectively. It also offers the analysis you need in order to take advantage of the
mobile opportunity, especially among previously unreachable income segments.
Mobile advertising platform vendors
Discover where your greatest opportunities lie and how deep your involvement in the business of
providing mobile advertising services should be. Understand the challenges facing your customers and
what role you can play in meeting those challenges. This report provides the analysis you need to win
a larger share of operator spending with informed go-to-market strategies and creative solutions,
particularly in a time of worldwide economic downturn.
Source: Pyramid Research, Inc.

20

CHAPTER FOUR
THE RECENT TRENDS IN DIFFERENT
SECTORS AND MEDIUM

In my dissertation topic on recent trends in advertising I have included:

Recent advertising medium used

Recent advertising technology used

Recent advertising trends in different sectors

The focus for trends is paying laid on what kind of advertising media and technology is being
utilized by the advertising agencies in the present scenario. Different companies are opting for
different mediums of advertising and different technologies are being entertained.
Since the inception of the advertising industry till the present scenario the trends have taken a
U turn.
Now its the era of technology and constant innovation without which no industry can survive.
And the advertising industry is one of those to witness the remarkable changes.

21

RECENT ADVERTISING MEDIUM

Earlier if we used to talk about the advertising media the mediums prevalent were
TELEVISION, NEWSPAPER and RADIO. But in the present scenario of 2009 the more
innovative trends are:

ONLINE ADVERTISING

MOBILE ADVERTISING

Therefore if see the recent trend will be more focused on internet and mobile advertising

22

CHAPTER FIVE
ONLINE ADVERTISING
Online media advertising is one of the upcoming and growing segments in Indian
advertisement sector. Internet is one such medium which is accessible by anyone and everyone
and that too in any part of the country. This is the reason why online media advertising is
catching up with the audience. With its vast accessibility and reach it is easy to reach millions of
users at one go. Seeing this latest fad we can say that India is certainly experiencing online media
advertising boom.
Sensing its reach and importance many online business publications or magazines have taken
online media advertising as a hot topic and keep a close look at the changing trend. Being the
newest and hottest field online media advertising has become the talk of the town. According to
the experts this new advertising mode carries a lot of potential and will surely rake the moolahs.
Also they think that online media advertising is in a transition period and soon it will outshine
other media with its reach and sustainability.

Online advertising has an advantage over the TV and press ad campaigns. While the good TV ad
arouses curiosity, and the effective print press ad offers a little more information, the impact gets
dissipated over the days. When people are actually ready to buy, your campaign may be off and a
rivals campaign may be on, and your potential customers have no way of retrieving your earlier
ads.
Advertising bookings for online advertising are usually made for entire months or quarters if not
for an entire year. The ads can be seen every day and every hour of the day or night during the
period for which the booking is made. There are online media in India that are powerful vehicles
for your advertising message sites like indiatimes.com and rediff.com for a general audience,
especially NRIs, and for mass/FMCG products, domain-b.com for a premium business and
investor audience, specialised sites like prdomain.com to address media persons and
investors,naukri.com if you want junior level IT vacancies, and so on.

23

COMPANIES GOING
FOR ONLINE ADVERTISING
Intel:
When chipmaker Intel checked out whether its online ads worked, it found that they did.
Research showed that online advertising improved top-ofmind awareness 13 per cent, and
perceptions of Intel being cutting edge by 15 per cent.

Novell:
A similar study done for Novell showed a whopping 75 per cent improvement in audience topof-mind perception of the companys brand, a162 per cent improvement in top-of-mind total
perceptions, a 21 per cent improvement in higher opinion than others, a 32 per cent
improvement in perceptions of Novell being industry leader, a 26 per cent improvement in
perceptions of the company meeting the respondents needs, and a 26 per cent improvement in
perceptions that Novell offers something different. Online advertising increased the likelihood
of consumers purchasing its product and brought about a 33 percent reduction in negative views
of people saying they would definitely not buy Novell. Clearly there are vast differences
between how much success different companies achieve through online advertising. See how
Novell achieved steeper improvements than Intel. That was possibly because Intel was already
better known at the popular level than Novell, thanks in part to huge investments in advertising
across all media. It could well be argued that Novell, which is not so visible through TV
advertising, has made a more cost-effective decision by spending on online advertising. That
could be misleading because the market segments the two companies are addressing are
different. Intel needs to use the electronic media more than Novell because it needs to reach a
wider, lay audience compared to Novell, which needs to address a business/technical audience.
Does all this mean that online ads always work? It doesnt. What applies to offline advertising
applies to online advertising too. In both kinds of media, some ad campaigns work, some dont.
Intel, for example, had an online ad that required users to interact with the ad before getting the
Intel branding message. Most users didnt interact with the ad. When it re-worked its online
advertising approach, it succeeded.

Procter & Gamble:

There is the example of Procter & Gamble in the US,which got IRI to measure the impact of
online advertising on later sales. It found that over a 16-week period, online advertising banners
resulted in a 19 per cent growth in sales for its snack food brand. This in spite of the fact that the
clickthrough rate was a pathetic 0.27 per cent. The advertising worked because it aimed to
increase brand awareness and top-of-the-mind recall rather than clickthroughs.

24

DEVELOPMENT IN ONLINE
ADVERTISEMENT

IN 90s
Banner Ads
Classifieds
Email marketing
IN 2000
Text Ads (Contextual)(Conte

IN 2009
Display Advertsing
Search engine optimization

Multimedia

MAJOR PLAYERS:
YAHOO
GOOGLE
25

 AMERICAN ONLINE
MICROSOFT

Online Paid Advertisements

Online paid advertisements are advertisements placed by online advertising networks on
webmasters web pages with permission of the webmasters, so that the viewers of the website
may click on the adverts and the webmasters get paid for ads when any visitor clicks over the
advertisement. This is fiscally highly profitable for the webmaster - who owns the website. There
are many programs that offer this kind of novel income opportunity. The webmasters get paid for
ads that have been clicked by visitors to his site.

Types of Online paid advertisements:

Online paid advertisements come in different formats and shapes, starting from banner ads. Other
formats include pop-up ads, pop-under ads, text ads, and news letter ads. Each online paid
advertising format is unique by itself, i.e., every ad format has its special purpose. Looking to
each format in detail will give a clearer picture.

Banner Ads
Banners ads, as the name implies is a banner that has ads within it. There are different types of
paid banner advertising. Some of the standard formats are, horizontal banner - leader board
(480x60) and vertical banner - skyscraper (120x600). other formats include half banner
(234x60), button (125x125), wide skyscraper (160x600), square (250x250), large (336x280) and
small rectangle (180x150). The webmaster can choose to display between image ads and textonly ads on his/her WebPages. If he/she likes to display image ads, then it will cover the entire
banner. But if one would like to display text-only ads, you may have from a minimum of one text
ad to four or five text ads within the banner. Banner ads are also displayed in paid email
advertising.

Pop-up Ads
Using Pop-up ads is a very conventional form of online paid advertising. Whenever a webpage
loads, a pop-up also emerges. Before a visitor can see the webpage he has to view the pop-up
26

-provided by the online advertising network. The online paid advertising networks such as
Adsense, and Adbrite -, provide small HTML codes that can be into host web pages.

Pop-under Ads
Pop-under ads are ads that are displayed when an user visits a website, but unlike pop-ups these
ads tend to stay minimized so that the visitor does not get annoyed. On closing the active
window, then pop-under ads will be displayed. This type of advertising is gearing up pace in the
online advertising market, as it is quite non-intrusive and doesn't irritate the visitor or internet
user. Many online advertising networks are currently offering pop-under ads and the webmasters
are paid reasonably well when compared to pop-ups.

Text Ads
Text ads are normal text-only ads that are mainly used for search engine optimization (SEO)
purposes. There are two types of text ads, one for SEO purpose and pay-per-link (PPC) ads. In
those text ads created for the SEO purposes, the hyperlink is visible in the ads thereby it
enhances the page rank in search engine listings, whereas the ads created for PPC do not have a
visible hyperlink .The user gets to see the website only he/she clicks on the text link. The
purpose of this is to allow the user to click on the attractive ad caption and then visit the website.

Ezine/Newsletter Ads
The ads that are displayed in e-mail newsletters circulated among a list of ezine users are known
as newsletter ads. These ads take up nearly one-fourth of the space occupied by newsletter e-mail
or may use up the bottom portion of the e-mail. Most of the users tend to click on these ads as
they are flamboyant. Most of the ezine owners only allow small ads to be displayed in enewsletter, as the content in the newsletter has to be given more importance. The ad may be an
image ad, or a text-only ad - which purely depends upon the advertiser and ezine owner. The next
issue is selection criteria. To get optimum hits and more value for money, ensure that you chose
only highly targeted ezines to run you ads, rather to run your ads for a cheaper price at an ezine
that runs at a low-level.

Measuring ROI's of Campaigns

Return on Investment (ROI) assumes significance in the case of online paid advertisements. The
ROI is generated by taking into account, the number of clicks, the average cost per click (CPC),
PPC Fees, the number of orders, the conversion rate, the average order, total sales, net profit
before PPC fees, and net profit after PPC fees.

Calculating Conversion Rate of Your Site

27

This is a vital criterion in measuring the site performance; it helps to fine tune the site to
optimum performance. To calculate conversion rates some measures are important. common
measures that are used to calculate the conversion rate include the following, calculating the days
between the user's first visit and first purchase, the number of visits between the purchase, and
the number of total purchases made by the user and his life time value.

28

Calculate the Net Profits

In order to find out the real value of a visitor, calculate the net profits, i.e., take home profits of
every sale by subtracting the total expenses. And from the gross revenue you can deduce your
monthly earnings.As there exists tremendous opportunities for online advertising and marketing,
online paid advertisements play a significant role and are instrumental in enabling webmasters
get paid for ads.

29

Examples of Recent Online

Advertising Work

Tasks: Banners; HTML emails

Examples:

Tasks: Banners
Examples:

Tasks: Banners; HTML emails

Examples:

Tasks: Banners; HTML emails

Examples:

Tasks: Banners; HTML emails

Examples:

30

CHAPTER SIX
MOBILE ADVERTISING

Mobile penetration in India is the second highest in the world today. Every month over 8 million
users are being added. Mobile Phones are a constant companion today and its almost certain that
the user will read the advertisement. Mobile advertising is in its nascent stage in India and
therefore there is larger demand to educate agencies and advertisers. There are challenges in
making consumers use these services. Data services are also not huge in India. So initially
consumers may demand for free services and this will bring attention towards information. The
third generation (3G) spectrum has been further delayed. We therefore feel once it comes to place
the data usage will go up drastically and then we have big expectations from this business.
Mobile Advertising is a sector of the overall advertising industry that is reaching an important
milestone. Though still rapidly evolving, and driven in large part by innovative mobile web
startup companies worldwide, the Mobile Advertising industry is approaching $1 billion in
31

global revenue for 2007 and attracting attention from top brands and advertising agencies.
Mobile Advertising is the next wave of opportunity for marketers, brands, and advertising
agencies to capture the attention of highly-desirable and affluent consumers on the go.

The Mobile Advertising Market Opportunity

At the moment, most mobile advertising takes the form of text messages. But telecoms firms are
also beginning to deliver ads to handsets alongside video clips, web pages, and music and game
downloads, through mobiles that are nifty enough to permit such things. Informa forecasts that
annual expenditure will reach $11.4 billion by 2011. Other analysts predict the market will be as
big as $20 billion by then.

Global Mobile Ad Spend Forecast for 2011

Source: Strategy Analytics

www.cellstrat.com
With nearly 3 billion cell phone users in the world, more than 200 million of whom are in the
U.S., it's clear that mobile advertising represents a huge opportunity.

32

The Mobile Advertising market is rapidly materializing into more than a $10 billion opportunity
globally 1. As the world enters into a period where there are more mobile devices than both
televisions and personal computers, coupled with the recent decline experienced within
traditional TV and print-media advertising, its no surprise that Mobile Advertising is becoming
an increasingly attractive channel. While predictions from various research agencies on the
overall market opportunity over the next several years vary considerably, there is a consensus on
continued accelerated growth in the years to follow.

Global Market Research Outlook for Mobile Advertising:

More people in the world have access to an Internet ready mobile device than a PC with
Internet access. And by 2008, researchers expect 1.3 billion people to be connected to the
Internet through mobile devices. (GSM Association)
Growth in mobile Internet phone sales is expected to rise from 450 million to 850 million
by 2009. T-Mobile, Credit Suisse First Boston and Pyramid Research)
EJL Wireless predicts that the global mobile ad market will reach $9.5B by 2011.
The Shosteck Group forecasts the global mobile ad market at $10B by 2010.
Informa sizes the global mobile ad market at $11B by 2011.
Strategy Analytics sizes the global mobile ad market at $14B by 2011.
ABI Research sizes the global mobile ad market at $19B by 2011.
EMarketer sizes the USA mobile ad market at $5B by 2011.
First Partner sizes the UK mobile ad market at $1.1B by 2010.
Not surprisingly, the majority of Mobile Advertising spending today is linked to text messaging
and mobile internet display ads, which happens to represent the most ubiquitously available
mobile mediums. Major global brands spanning a variety of industries including consumer
packaged goods, credit card agencies, automobile manufacturers and even non-profits have
begun implementing effective interactive text messaging campaigns. Simultaneously, dozens of
large media companies representing various content categories ranging from news, sports,
entertainment, weather and online portals have begun serving banner based Mobile Advertising
on their respective mobile Internet properties.

Consumer acceptance
Most early indications regarding consumer feed-back to Mobile Advertising has been positive, as
long as executions are useful or entertaining and arent perceived as intrusive or annoying. Most
consumers have already become accustomed to the rapidly solidifying online advertising world,
where content is offered for free in exchange for advertising exposure. The same will likely be
true in mobile as well. Especially if the mobile network operators embrace Mobile Advertising as
new revenue streams to offset the high costs of consumer mobile data services.

33

http://www.marketingcharts.com/wp/wp-content/uploads/2008/06/bigresearch-mobileadvertising-video-influence-to-purchase-by-category.jpg

Usage of picture/video phones is up 17% for all adults according to an analysis of BIG researchs
most recent Simultaneous Media Survey (SIMM 11, Dec. 07) of 15,727 participants.
That level of usage, along with the finding that 90% of adults say they regularly or occasionally
use a cell phone, makes a case for mobile advertising as a viable option for advertisers,
BIGresearch said.
However, cell phones rank low in the list of media that influence consumers to purchase: Just
6.9% of adults say video on cell phone influences them to purchase electronics; 6.4% say text
messaging does so. (Word of mouth is the top medium, with 42.6%).
Nevertheless, a mobile bright spot is that the elusive 18-24-year-old segment is influenced more
than any other: More than double the proportion say they are influenced - for both forms of cell
phone media (14.2% for video and 15.9% for text messaging):

34

http://www.marketingcharts.com/direct/mobile-advertising-influences-18-24-year-olds-most4956/bigresearch-mobile-advertising-text-influence-to-purchase-by-categoryjpg/
Given the state of our economy, mobile advertisers have a unique environment in which to
build strategies that influence consumers to buy via their cell phones, especially the mediaelusive 18-24-year-old segment, said Gary Drenik, president of BIGresearch.
More robust cell phone technology allows consumers to receive promotional offers and connect
to their favorite internet shopping site all within minutes and without having to fuel up on gas.
Understanding how consumers use cell phones is also critical in developing mobile marketing
plans, BIGresearch said: Cell phones are much more likely to trigger an online search for young
consumers than all adults (21.8% vs. 8.3%) as is text messaging (15.3% vs. 4.8%).
Other findings:

The 18-24 year old set is also more likely to download to a cell phone than the general
market (31.6% vs. 15.9%).
More than half (50.5%) of 18-24-year-olds communicate with others about a service,
product or brand via cell phone (compared with 29.6% of all adults), second only to faceto-face communication (66.9%).
18-24-year-olds are also almost three times as likely to communicate through text
messaging than all adults (30.7% vs. 10.8%).

35

CHAPTER SEVEN
RECENT ADVERTISING TRENDS IN
DIFFERENT SECTORS
The way telecom firms advertise, gives an approximate idea about the telecom trends. To
uncover some of them. At the initial launch of the mobile services, they were advertised as
lifestyle products. The message that sought to be conveyed was that if you have a mobile phone,
you have arrived in life. A few well-healed people could afford the high call rates at that time. It
was in no way for the masses. The mobile companies made a large profit out of it. Perhaps for
the first time, Indians were exposed to concepts alien to them: Customer Care Support. It saw a
booming of the ancillary services and fresh graduates, stunted in mental development though,
came out in droves for the well-paid jobs.
Airtel then sought the services of Sachin Tendulkar. He was the brand ambassador and saw his
earnings sharply increasing. His picture was everywhere exhorting to buy the mobile prepaid
card. After the initial publicity passed away, A.R. Rahman gave his now famous tune. All the
other companies have variously tried other gimmicks to sell their connections.
However, the landscape changed after Reliance came in the mobile services. Mukesh Ambani
was seen telling people about his fathers dream. The initial launch was lackluster. With the
launch of the prepaid services, the punch line was MUJHME HAI WO BAAT OR I HAVE
THAT THING I wonder how many people actually signed up after those ads. It was solely
because of the MONSOON HUNGAMA that Reliance was able to ramp up its numbers. Then
came the ad line Kar lo duniya muthi mein. (Have the world in your fist).
The icing on the cake goes to Hutch. They designed the simple ad with the kid and cute Chinese
Pug. It was a hit of all sorts. It conveyed the effectiveness of the message succinctly. It drove
Hutch connections across the places where it offered its services. However, it was considered too
elitist for the masses. The advertisement should be able to convey the message effectively; one
with which people could identify with. In this regard, BSNL could claim something. BSNL
advertisements depicted typically government mentality for awarding the contract to lowest in
the tender process. The quality clearly shows. Is there anyway people could identify themselves
with that advertisements? What of those places where BSNL is the sole service provider?
As the title goes, advertising trends are reflective of the current scenario in telecom. Airtel has
been advertising its group card labeled as Friends. In fact, until now, the market was treated as
36

homogenous. Over the period, classification has been sought to target the specific customers with
specific needs. Airtel took the lead in announcing Senior citizen cards targeted at those above 60.
The Friends card is for those who wish to restrict themselves to their group with low calling rates
and some free messages.
Reliance has realized early on about targeting the businesses. Its offer of flat rate for making
STD calls to anyone across its network is unparalleled. This way it can ensure that there would
be higher converts towards it services. R-Connect is its portal that differentiated Reliance early
on from other operators. It knows that future revenues are going to come from value added
services. This way it has foreseen the development in the industry. Following this, Airtel
introduced its Airtel Live! I guess so have the other operators across board. The voice calls
would not yield much as much as revenue as would the value added services. Hence, for the
same reason they have introduced value added cards, which would help to download ring tones
and other fancy stuff. This is the reason which have always insisted that Telecom operators
should get bullish on data services. 3G mobile services look good as technology demonstrators.
Until the time, the prices for the 3G enabled handsets fall down to manageable levels, it would
not take off. I believe that it takes up a large chunk of the scarce spectrum, which does not make
any sense to introduce. WAP and GPRS were heavily promoted but have been more or less nonstarters. The real differentiator would be the quality of services, cheap offering if these
companies have to venture in the rural areas and the reach of the network. In this regard, the
division of India in circles is not in the right spirit. It should be taken as a homogenous land
mass. The day is not far when it would be local call to call anywhere across the nation. Reliance
has made this possible to some extent.

ADVERTISING TRENDS
IN FMCG SECTOR
Cellphone advertising is witnessing the first few signs of how it has the potential to become big
in the near future. Hindustan Unilever and Coca-Cola, two of the biggest advertisers in the
country belonging to the fast moving consumer goods sector, have launched campaigns to tap
mobile users. Coca-Cola announced a mobile campaign for its clear-lime fizzy drink Sprite. The
campaign will encompass as many as 230 million mobile subscribers across all telecom
operators in the country. Similarly HUL launched a mobile advertising campaign for its icecream brand Cornetto. Both these campaigns, executed by integrated value-added service
provider for mobiles Oxigen, have gathered momentum. The initiative by Coca-Cola comes after
it discovered in an in-house research that there was an overlap between 230 million mobile users
in India and Sprite consumers. It was also found that the largest segments of mobile users in
India are college students with pre-paid mobile connections. This mobile campaign has been
launched at the peak of the summer season, a period of three months when 55 per cent of the
annual soft drink sales happen. If the campaign runs successfully, it could give Sprite an edge
over the other soft drinks for being the first-mover in running a campaign on cellphones. There is
already a television commercial for Sprite running. This mobile campaign will give the scale as it
37

would reach out to all the mobile users in the country. Using the mobile medium is a more costeffective way of having a one-to-one interaction with the consumer. Any ground activity or
advertising through traditional media does not guarantee the kind of interaction that advertising
through mobiles can provide. Pramod Saxena, founder, Oxigen, said that Coca-Cola and HUL
are the first two companies that have approached Oxigen to execute mobile ad campaigns. There
are more players taking up mobile advertising as it reaches the end-user directly. Currently, about
80 per cent of the advertising spends by companies is on traditional media such as television and
print. For example, ITC spends just one per cent of its advertising budget on digital media.
However, seeing the success rate of digital campaigns, the companies are expected to spend more
on digital advertising. HUL's mobile campaign for Fair & Lovely skin cream executed by
Reliance Communications last year received about 45,000 responses in a month. Spotting the
sales opportunity that lies in the summer season for ice-creams, HUL also launched a "scratch
and win" campaign for Cornetto in the beginning of this month using Oxigen's technology for
mobiles termed OxiCash. It allows commercial transactions using virtual credit (like credit
cards) won through codes printed on Cornetto packs.
The campaign by Coca-Cola comprises a contest titled "Sprite Kholega to Bolega". In this
contest, all Sprite bottles would have a nine-digit alpha numeric code found under the crown.
When this code is sent as an SMS to a designated phone number, the buyer can win free talktime ranging between Rs 50 and Rs 5,000. It would also provide a micro website for Sprite and
related mobile freebies like ringtones through Oxigen's value-added service for mobiles named
"Mobibuzz."

Internet advertising building FMCG brands

Advertisers forecast that online will represent a growing share of their overall media budgets
over the next two years, especially within the FMCG sectors. The EIAA Marketers Internet Ad
Barometer, commissioned by the EIAA to understand the role online advertising plays and
attitudes towards the Internet amongst key advertisers across Europe, reveals that 42% of those
questioned already spend over 5% of their media budgets online and 74% of all those surveyed
regard the internet as a vital component of their advertising strategy. According to 80% of
respondents, increasing broadband penetration is making the Internet more attractive as a
branding medium and online ad spend is forecast to rise by over 65% by 2008.

FMCG Brands
FMCG brands are demonstrating strong signs that they are embracing online. The research
showed that the percentage of overall media budgets devoted to online are forecast to rise from
5.6% in 2007 to 9.8% in 2010 - a massive 75% growth rate. Internet advertising expenditure will
experience a boost by both the higher and lower spenders of the sector over the next two years,
with the higher spenders stating that 64% of this extra spend has come from other media budgets
and 57% of respondents claiming the spend has been diverted from TV advertising.

38

CHAPTER EIGHT
RECENT TRENDS IN
ADVERTISING TECHNOLOGIES

ALTERNATE ADVERTISING
Alternative advertising is provided to substitute to an original advertisement that a user seeks to
bypass in content. A user of an electronic device can request the device to skip the original
advertisement. The skipping is enabled however an alternative advertisement representative of
the original advertisement is presented to the user. The alternative advertisement is of a lower
perceived intrusiveness than the original advertisement.
1. A method of advertising via an electronic device of a user, the method comprising: enabling
the device to detect a user's command for bypassing through an original advertisement in
content; enabling the device to bypass through the original advertisement; and, enabling to
render to the user an alternative advertisement representative of the original advertisement and of
a lower perceived intrusiveness than the original advertisement.
2. The method of claim 1, wherein the user's command configures the device to record content
without the original advertisement; and, the method further comprising: enabling to insert the
alternative advertisement in recorded content.
3. The method of claim 1, wherein the user's command configures the device to bypass through
the original advertisement when playing out content recorded in the device with the original
advertisement; and, wherein the alternative advertisement is rendered in lieu of the original
advertisement.
4. The method of claim 1, further comprising: preventing the user from bypassing through the
alternative advertisement.
5. The method of claim 1, wherein the alternative advertisement is a video and audio clip of a
shorter duration than that of the original advertisement.
6. The method of claim 1, wherein the alternative advertisement is a still picture.
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7. The method of claim 1, wherein the alternative advertisement is rendered on a display of a

remote control device associated with the electronic device.
8. The method of claim 1, wherein the alternative advertisement is a graphic displayed on
transparence to content when content is played out to the user.
9. An electronic device enabling advertising, the device comprising: a storage medium storing
content including an original advertisement, and an alternative advertisement representative of
the original advertisement and of lower perceived intrusiveness than the original advertisement; a
controller controlling a recording and a rendering of content to the user in response to commands
from the user, the controller being operative to control a rendering of the alternative
advertisement when a user's command for bypassing through the original advertisement is
detected.
10. The device of claim 9, wherein the device is configured, in response to the user's command,
to record content without the original advertisement and the controller is further configured to
insert the alternative advertisement in recorded content.
11. The device of claim 9, wherein the controller is configured, in response to the user's
command, to bypass through the original advertisement when playing out content; and, wherein
the controller replaces the original advertisement with the alternative advertisement when
playing content.
12. The device of claim 9, wherein the controller prevents the user from bypassing through the
alternative advertisement.
13. The device of claim 9, wherein the alternative advertisement is a video and audio clip of a
shorter duration than that of the original advertisement.
14. The device of claim 9, wherein the alternative advertisement is a still picture.
15. The device of claim 9, wherein the alternative advertisement is rendered on a display of a
remote control device associated with the electronic device.
16. A device of claim 9, wherein the alternative advertisement is a graphic displayed on
transparence to content when content is played out to the user.

17. A software application for enabling advertising on an electronic device of a user, the software
application comprising instructions for enabling the device to carry out the following steps:
detecting a user's command for bypassing through an original advertisement in content;
bypassing through the original advertisement; and, rendering to the user an alternative
advertisement representative of the original advertisement and of a lower perceived intrusiveness
than the original advertisement.
It is an object of the invention to overcome the conflict between the desire of consumers to skip
commercial messages and the need of content distributors to offer effective and successful
advertising channels. It is another object of the invention to provide an advertisement scheme
with minimal disturbance for the user while achieving efficient public awareness. To this end, in
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an advertising method of the invention the device can detect a user's command for bypassing an
original advertisement in content. The device is enabled to bypass the original advertisement
however the device permits to present the user with an alternative advertisement . The alternative
advertisement is representative of the original advertisement and is of a lower perceived
intrusiveness than the original advertisement .

A method of the invention proposes an alternative solution to known multimedia advertising

schemes in view of the user being capable of deciding what is presented to him. The invention
relates to a type of advertising that directly and personally affects the user in his personal
environment: in the office, at home or in his car. The inventor has realized that the advent of
personal audio and video technologies gave the user a greater control power over his
entertainment experience than to the content distributors. Indeed, the user can command the
electronic device to bypass content segments. This can be done by configuring the device not to
play out these segments when content is played out from a buffer in the device. This can also be
done by configuring the device not to record them at the time full content is received and
recorded by the electronic device. The invention substitutes the original advertisement with an
alternative advertisement and thereby achieves a compromise between respective interests of
content distributors and users. The user can still bypass the original advertisements but a less
disturbing form of advertising is presented to him instead. The alternative advertisement can be a
still picture or a clip shorter than a traditional television commercial break. The alternative
advertisement can also be a logo or a graphic displayed for a period of time on a portion of
content viewed by the user. The alternative advertisement is not necessarily presented to the user
where content is played out. The alternative advertisement can be presented on an ancillary
device, e.g. a remote control with display, a web tablet, a cell-phone or the like. In addition, an
original video advertisement can be replaced with an alternative audio file played out on another
device.

The invention permits content distributors to partially recover control over what the user
watches or listens to and when. An advantage of one or more embodiments of the invention is to
permit content distributors to sustain revenue from advertising through electronic devices while
going in the direction of what the user wants, that is, having partial control over content.
The invention also relates to a device and a software application permitting alternative
advertising according to the invention

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BLUETOOTH ADVERTISING
Indian advertises are exploring innovative ways to reach out to customers. The next wave in
Mobile advertising is via Bluetooth device. Well, marketers will use the Bluetooth device to
push ads, ring tones, mobile games and several other value added service.Bluetooth advertising
(sometimes called bluetooth spamming by its opponents) is a method of mobile advertising that
utilises Bluetooth technology to deliver advertisements to mobile devices such as cellular
phones. Bluetooth advertising transmitters are set up to detect bluetooth devices within
transmission range. When a device is detected, the advertising transmitter sends out a message
asking the recipients if they would like to view a promotional text message, video clip, animation
or even a business card. This way of advertising is efficient and cheap. One test of such a service
at railway stations detected 87,000 phones over a period of two weeks and achieved a response
of 15%.This form of advertising has been used to deliver ads for a car in the London subway
system as well as for United States Navy Reserve recruitment. There are also software products
that are designed to do the same thing. They are designed to be installed on a computer: then,
using a dongle, they transmit advertisements in their proximity range. The software solutions are
usually cheaper than the hardware solutions and utilize existing (PC) hardware.

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CHALLENGES FOR BLUETOOTH ADVERTSING

Though the number of Bluetooth enabled devices have increased, whats really interesting is this
is a sort of if..only advertising model that is the entire viability of this model relies on whether
the consumers have kept Bluetooth switched on. Given the fact that most of the users arent tech
savvy to even understand the usage of Bluetooth, there is a huge challenge for advertisers. At the
same time, opportunities are immense, so is the possibility of spam content as well as virus
attacks.

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CHAPTER NINE
RECOMMENDATIONS
THE YOUTH SHOULD BE THE TARGETTED AS THE TARGET

AUDIENCE:
The computer and online awareness and zeal among the younger generation makes the
online advertising a potential and cost effective channel for the booming market segment
in India. The youth are the prospective and potential customers
THE ONLINE PAYMENT SYSTEM SHOULD BE CONSOLIDATED

TO GIVE A THRUST TO ONLINE ADVERTSING INDUSTRY :

For the purpose of sales the finalization of a purchase online is normally done through
credit cards. There relatively limited spread of electronic money in India. Thus this
should be looked over.
MAKING

THE TARGET AUDIENCE UPDATED WITH THE

TECHNOLOGIES:
The target audience should be updated with the latest technologies and trends in
advertising and marketing sector, because until and unless they are aware of them they
wont operate it. Thus the motive is left over behind

ENABLE THE PRICES OF 3G ENABLE HAND SETS TO FALL

DOWN:
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Telecom operators should get bullish on data services. 3G mobile services look good as
technology demonstrators. Until the time, the prices for the 3G enabled fall down up to a
manageable limit the mobile advertising wont take off.
INTRODUCING STRINGENT ADVERTISING LAWS.
The three primary legal requirements for truth in advertising are:

Advertising must be truthful and not misleading.

Advertisers must have evidence to back up their claims.

Advertisements cannot be unfair.

Thus some online advertising laws should be passed protecting the privacy of consumers'
personal information and shielding them from misleading, fraudulent, and deceptive advertising
practices.

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CHAPTER TEN
CONCLUSION
ADVERTISING TRENDS IN 2010: Advertising trends are changing every day. Marketers are
always in search for new and effective ways to reach the target market before the competitors.
However, if we monitor the changes in advertising and marketing trends for a few years, you will
be able to see some regular changes. For example, online advertising is an unavoidable element
in any marketing mix. Just to add, these developments do not occur all of a sudden. These are
often a continuous growth or development over a long period.
So what are the advertising trends in 2010?
If you look at the advertising trends of 2009, you would see that many companies are investing
on green marketing. In addition, we can see the same trend growing in bigger number in 2010.
Especially if you look at the car branding, many companies are coming up with environment
friendly cars that run on alternative fuels. Many experienced marketers think that this Going
Green is not just a fancy trend any more. People have already started believing in this concept
and the immediate need of taking some action. However, we would some changes as the Go
Green concept runs. Today it is not enough that you advertise the Go Green concept. You must
add a comprehensive story and show that your business or organization is actually supporting the
cause.
As far as market segment is concerned, baby boomers are still the most important marketing
demographics. More than 80% marketing professionals rank the boomers in top as an important
or the most important demographics to target. However, generation X and Y are following them
very closely. In addition, in 2010, the same trend will continue without much change.

As far as marketing trends are concerned, we can see some changes like these:
The marketers are more concerned about better customer satisfaction for better customer
retention rate. This is somewhat different from the marketing trends of earlier years. In earlier
years, when internet was developing into a great platform to get huge number of targeted visitors,
marketers concentrated mainly on reaching more people. The equation was simple more people
= more business. However, now it is also important that you retain the existing customers.
Marketers are now more concerned about reaching the niche and this trend will continue even
in 2010 they are looking for better ROI. Apart from that as far as online branding and
marketing is concerned, social networks and social media promotion will gain more popularity.
46

Marketers and advertisers will be trying different avenues to reach target market. In addition, the
whole process will revolve around more personalized or one to one solution rather than one
solution for all. To add to this, there would be much emphasis on quality product development.
To add to all these marketing and advertising trends, you will also see that people, even the small
business owners, will be investing on branding brand loyalty development. Marketers will spend
more
time to find out niche to reduce the cost per customer.
These are some trends that we may see in marketing and advertising industries in 2010.
However, irrespective of your marketing or advertising strategy, we would recommend you to
develop a comprehensive and believable story around your brand. These stories will set you
apart from your competitors.

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CHAPTER ELEVEN
BILIOGRABHY
&
REFERENCES
1.
2.

4Ps Business and Marketing, (7th nov to 20th nov 2008), Page No. 60, Article on
Advertising.
Marketing Mastermind, (2007 the icfai university press), Page no. 17
Cover Story AD EFFECTIVENESS AND ITS EVOLVING METRICS

3.

Ducoffe, R.H.(1996).Advertising Value and Advertising on the web. Journal of

Advertising Research

4.

Hanson,W.(1999). Principles of Internet Marketing(2nd ed.). Englewood

Cliffs,NJ: Prentice Hall

5.

Internet Advertising Bureau Report.(2007). Retrieved December 12, 2000 from

the world wide web: http://www.iab.net

6.

Kotler, A. (1994). Principles of Marketing(6th ED.). Englewood Cliffs,NJ:

Prentice Hall

7.

Anurag Gupta (2006),Online Advertising in India: How to make the big leap.

8.

Pipper Jaffray (2006), The User Revolution, The New Advertising Ecosystem
and the Rise of the Internet as a Mass Medium.

9.

Briggs, Rex, and Nigel Hollis. 1997. Advertising on the web: Is there response
before clickthrough? Journal of Advertising Research,37 2:33-45

48

10.

Bauer H.H., Reichardt, T; Barnes, S.J.; Neumann,M.M.: Driving Consumer

Acceptance of Mobile Marketing: A Theoretical Framework and Empirical Study. In:
Journal of Electronic Commerce Research, Vol 6

11.

Dellarocas, C; The Digitalization of Word of Mouth: Promise and Challenges of

Online Feedback Mechanisms. In: Management science

12.

Gladwell, M.(2002). The Tripping Point: how little things can make a big
difference.Boston, BackBay Books.

13.

Internet Marketing Overview By Toby Bloomberg

14.

Bansal,H.S., & Voyer, P.A.(2000). Word of- mouth processes within a services
purchase decision context. Journal of Service Research, 3(2), 166-177

REFERENCES

www.advertisespace.com

www.marketmyproducts.com

www.ipsender.com

www.businessweek.com

www.advertisespace.com

www.ciadvertising.org

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