A STUDY ON COMPETITIVE ADVANTAGE FOR

SUSTAINABLE DEVELOPMENT WITH REFERENCE TO

ADVERTISEMENT INDUSTRY IN INDIA
DISCIPLINE: MANAGEMENT- MARKETING AND SERVICES

Author:
MR.MADHUSUDHAN T.K
CO-AUTHORS: 1. MR.SUNIL KUMAR K.N
2. DR.SUDHEER PAI K.L
DATE:

20-02-2015

RNS FIRST GRADE COLLEGE BENGALURU

KARNATAKA

OUTLINE OF PRESENTATION
Introduction
Objectives and methodology
Theoretical overview and analysis of
information
Advertisement industry growth details
Competitive advantage for advertisement
industry in India
Conclusion

INTRODUCTION
It performs the triple function To inform, to
persuade and to remind
Advertising as a promotional tool is an integral part
of our social and economic system. In our complex
society, advertising has evolved as a vital
communication system for both consumers and
companies
Advertising is an investment made today to achieve
benefits in the future
Many Researchers defend advertisements on various
economic grounds

OBJECTIVES AND METHODOLOGY

The main objectives of the study involves To understand the global advertisement industry
growth and its future prospects
To analyze the Indian Advertisement Industry
spending towards their activities and the consumer
spending related to ad effects.
To understand the economic development of the
country due to competitive advantage in the
advertisement industry and the way it lead to
sustainable development of India.
Methodology- Secondary data collection and analysis

THEORETICAL OVERVIEW AND ANALYSIS OF

INFORMATION
The total global spending on advertising in 2008 was 1,22,742
million US$, it increased to 15,55,351 million US$ with CAGR from
2008-2013 of 4.8 %. The projections showing that, the spending
will reach up to 21,60,355 million US$ with the CAGR from 20142018 of 6.4%.
Growth in spending of Asia Pacific region from 3,46,690 million
US$ during 2008 and it increased to 5,06,655 million US$ with
CAGR of 7.9 % from 2008-2013. The projections made that the
spending will reach up to 7, 34,395 million US$ by 2018 with the
rate of 7.7% CAGR.
Advertisement spending in India during 2008 amounted to 233.56
billion INRs and forecast for 2014 is almost 435.65 billion INRs
Advertising revenue generated in India in 2008 was 221 billion
INRs and it is predicted that the revenue will amount to 410
billion Indian rupees in 2014.
Always there is a relation between advertisement spending and
revenue generation because of advertisements.

ADVERTISEMENT INDUSTRY GROWTH

DETAILS

The structure of the advertising industry in Asia Pacific has been

affected by globalization and international alignments
Very sophisticated software optimization and planning systems are
now integral to the industry, enabling agencies to offer a unique
positioning in the marketplace to attract new business.
With a population of approximately 1.2 billion, and a middle class
that's larger than the total population of the United States, there's
definitely money to be made.
Local retailers in apparel, food, watches and jewelers have all
increased their average ad spending by almost 50% in the past two
years. Coupled with many other local players big retailing brands are
spending to the tune of Rs 12,000 crores annually on advertising and
promotional activities.
The local firms are using all the available advertising tools from
electronic to print, outdoor advertising and even models.
The advertising industry in India is growing at an average rate of 1012% per annum. Over 80% of the business is from Mumbai and Delhi
followed by Bangalore and Chennai.

COMPETITIVE ADVANTAGE FOR

ADVERTISEMENT INDUSTRY IN INDIA
India has a rich pool of strategic planning, creative and media
services personnel
Indian talent is recognized and respected in global agency
networks. No other country has access to so many trained
management graduates who can provide strategic inputs for
brand and media planning.
Our standards in TV and print media have improved: With a
vibrant animation software industry, we have access to this area
digitalization of TV.
India's advanced IT capabilities can be used to develop Webbased communication packages for global clients.
Online advertising industry also growing, 87% of active internet
users are there in India against 85% globally.
Growing e-commerce, e-tailing also contributing to the
development of the sector.

CONCLUSION

The fortunes of the advertising industry are linked to the growth of

the economy.
Rising incomes in the hands of people encourage them to spend
more on discretionary products.
The demographic profile of India also favors higher spend on
advertisement, with the consuming class forming a sizeable chunk
of the country's total households.
Innovation will be the key to attract more consumers and deliver
relevant content and services that are profitable too.
With metros already being saturated, regional markets provide
ample scope for growth in the sector. In print media, newspapers
are being published in vernacular language. In television, newer
channels are introduced in local languages.
Tier II and Tier III cities and towns are set to drive the Indian
consumption story in the next few years. Television will continue
to lead the media industry in terms of revenue contribution with
39%, followed by internet access with 28 %.
The Indian advertising industry is a very upcoming and promising
sector