Advertising and

branding industry
Contents
Advertising Agencies Industry Overview.....................................................................................................2
Competitive Landscape...........................................................................................................................2
Products, Operations & Technology........................................................................................................2
Advertising Agency Functions..................................................................................................................2
Types of Advertising................................................................................................................................3
Types of Advertising: Product-Oriented..................................................................................................3
Types of Advertising: Image.....................................................................................................................4
Types of Advertising: Advocacy...............................................................................................................4
Types of Advertising: Public Service........................................................................................................4
Major Players...........................................................................................................................................4
Ogilvy...................................................................................................................................................4
Leo Burnett Company, Inc...................................................................................................................4
J. Walter Thompson Company.............................................................................................................5
BBDO Worldwide, Inc..........................................................................................................................5
McCann Worldgroup...........................................................................................................................5
Advertising in India..................................................................................................................................5
The top ten advertising agencies of India............................................................................................6

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Advertising Agencies Industry Overview
Companies in this industry are involved in creating advertising campaigns for their clients. Offerings
include creative services, production, account management, and media planning and buying for media
such as TV, radio, print, and online/digital. Advertising agencies generally work on a fee or commission
basis. Companies in this industry create advertising campaigns, implement public relations campaigns,
and engage in media buying, among other advertising services. Major companies include Interpublic and
Omnicom, (both headquartered in the US); WPP (Ireland); Publicis (France); Dentsu (Japan); and
Hakuhodo DY Holdings (Japan).

Competitive Landscape
Demand for advertising and marketing services comes largely from businesses that sell consumer
products, entertainment, financial services, technology, and telecommunications. The profitability of
individual companies depends on creative skills and maintaining client relationships. Large companies
benefit from being able to serve the varied needs of major customers. Small companies can compete by
focusing on niche markets or by offering lower pricing. The industry is fragmented: the top 50
companies generate about one-third of revenue.

Products, Operations & Technology

Major services are advertising for print, broadcast, and online media (25 percent of industry sales),
direct mail advertising (15 percent), and public relations (10 percent). Other services include display
advertising, media buying (reselling advertising time or space), and media representation (selling
advertising time or space on behalf of media outlet owners).

Advertising Agency Functions

Professionals at advertising agencies and other advertising organizations offer a number of functions including:
 Account Management – Within an advertising agency the account manager or account executive
is tasked with handling all major decisions related to a specific client. These responsibilities
include locating and negotiating to acquire clients. Once the client has agreed to work with the
agency, the account manager works closely with the client to develop an advertising strategy.
For very large clients, such as large consumer products companies, an advertising agency may
assign an account manager to work full-time with only one client and, possibly, with only one of
the client’s product lines. For smaller accounts an account manager may simultaneously manage
several different, though non-competing, accounts.
 Creative Team –The principle role of account managers is to manage the overall advertising
campaign for a client, which often includes delegating selective tasks to specialists. For large
accounts one task account managers routinely delegate involves generating ideas, designing
concepts and creating the final advertisement, which generally becomes the responsibility of the

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 agency’s creative team. An agency’s creative team consists of specialists in graphic design, film
and audio production, copywriting, computer programming, and much more.
 Researchers – Full-service advertising agencies employ market researchers who assess a client’s
market situation, including understanding customers and competitors, and also are used to test
creative ideas. For instance, in the early stages of an advertising campaign researchers may run
focus group sessions with selected members of the client’s target market in order to get their
reaction to several advertising concepts. Researchers are also used following the completion of
an advertising campaign to measure whether the campaign reached its objectives.
 Media Planners – Once an advertisement is created, it must be placed through an appropriate
advertising media. Each advertising media, of which there are thousands, has its own unique
methods for accepting advertisements, such as different advertising cost structures (i.e., what it
costs marketers to place an ad), different requirements for accepting ad designs (e.g., size of
ad), different ways placements can be purchased (e.g., direct contact with media or through
third-party seller), and different time schedules (i.e., when ad will be run). Understanding the
nuances of different media is the role of a media planner, who looks for the best media match
for a client and also negotiates the best deals.

Types of Advertising
If you ask most people what is meant by "type" of advertising, invariably they will respond by defining it in
terms of how it is delivered (e.g., television ad, radio ad, etc.). But in marketing, type of advertising refers to
the primary "focus" of the message being sent and falls into one of the following four categories:

1. Product-Oriented Advertising
2. Image Advertising
3. Advocacy Advertising
4. Public Service Advertising

Types of Advertising: Product-Oriented

Most advertising spending is directed toward the promotion of a specific good, service or idea, what we have
collectively labeled as an organization’s product. In most cases the goal of product advertising is to clearly
promote a specific product to a targeted audience. Marketers can accomplish this in several ways from a low-
key approach that simply provides basic information about a product (informative advertising) to blatant
appeals that try to convince customers to purchase a product (persuasive advertising) that may include direct
comparisons between the marketer’s product and its competitor’s offerings (comparative advertising).

However, sometimes marketers intentionally produce product advertising where the target audience cannot
readily see a connection to a specific product. Marketers of new products may follow this "teaser" approach in
advance of a new product introduction to prepare the market for the product. For instance, one week before the
launch of a new product a marketer may air a television advertisement proclaiming "After next week the world
will never be the same" but do so without any mention of a product or even the company behind the ad. The
goal is to create curiosity in the market and interest when the product is launched.

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Types of Advertising: Image
Image advertising is undertaken primarily to enhance an organization’s perceived importance to a target
market. Image advertising does not focus on specific products as much as it presents what an organization has
to offer. In these types of ads, if products are mentioned it is within the context of "what we do" rather than a
message touting the benefits of a specific product. Image advertising is often used in situations where an
organization needs to educate the targeted audience on some issue. For instance, image advertising may be
used in situations where a merger has occurred between two companies and the newly formed company has
taken on a new name, or if a company has received recent negative publicity and the company wants to let the
market know that they are about much more than this one issue.

Types of Advertising: Advocacy

Organizations also use advertising to send a message intended to influence a targeted audience. In most cases
there is an underlying benefit sought by an organization when they engage in advocacy advertising. For
instance, an organization may take a stand on a political issue which they feel could negatively impact the
organization and will target advertisements to voice their position on the issue.

Types of Advertising: Public Service

In some countries, not-for-profit organizations are permitted to run advertisements through certain media
outlets free-of-charge if the message contained in the ad concerns an issue viewed as for the "greater good" of
society. For instance, ads directed at social causes, such as teen-age smoking, illegal drug use and mental
illness, may run on television, radio and other media without cost to organizations sponsoring the
advertisement.

Major Players
Ogilvy
Ogilvy & Mather Worldwide does advertising by the book. Founded by ad pioneer David Ogilvy (author
of Ogilvy on Advertising), the firm is one of the world's leading creative agency networks, providing
advertising campaign development and management, brand development, public relations, and
strategic planning services to clients such as American Express, IBM, and Cisco. Ogilvy & Mather offers
specialized communications and relationship marketing services through OgilvyOne; its Ogilvy
CommonHealth Worldwide unit offers services targeted for global clients in the health care industry.
Operating through more than 450 offices around the world, it is one of the primary agency subsidiaries
of UK-based WPP Group

Leo Burnett Company, Inc.

This company has come up with some great ideas to promote brands. The #2 ad agency in the US
(behind WPP Group's JWT), Leo Burnett has helped create some of the top consumer brands, including
Kellogg's Frosted Flakes cereal and its Tony the Tiger icon. It offers creative development and campaign
planning services through about 95 offices in almost 85 countries. Its Arc Worldwide subsidiary provides

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promotional and direct marketing services, as well as multimedia and interactive marketing
development, while Lápiz Integrated Hispanic Marketing targets Spanish-speakers. The company, which
does business as Leo Burnett Worldwide, is owned by ad conglomerate Publicis.

J. Walter Thompson Company

J. Walter Thompson Company, doing business as JWT, is a leading advertising agency in the US and one
of the largest in the world (along with McCann Worldgroup and BBDO Worldwide). It has provided
creative ad development, campaign management, and strategic planning services to such clients as
Ford, Kimberly-Clark, and Shell. JWT also offers brand development and specialized marketing services,
including customer relationship marketing, event marketing, and sponsorships. Its Digitaria unit provides
digital and new media marketing services. JWT operates in almost 90 countries through more than 200
offices. Founded in 1864, it is one of the flagship agency networks of UK-based media conglomerate
WPP.

BBDO Worldwide, Inc.

This alphabet soup of advertising begins here. As the flagship agency of media conglomerate Omnicom
Group, BBDO Worldwide offers creative development services for some of the world's top brands using
television, print, and other media. BBDO Worldwide also provides campaign planning and management
services, as well as other brand promotion services. The firm's Atmosphere BBDO unit offers interactive
marketing services in North America. BBDO's clients have included such heavy hitters as Chrysler, FedEx,
and PepsiCo (including the famous "Pepsi Generation" campaign). It operates through some 290 offices
in about 80 countries, featuring outposts like Abbott Mead Vickers, Barefoot Proximity, and Proximity
London.

McCann Worldgroup
If there was an interpretive dance to describe integrated advertising and marketing services, it might be
called the McCann-can. A division of media services conglomerate Interpublic Group, McCann
Worldgroup is one of the world's largest advertising agency networks, providing creative ad services,
media buying, public relations, and brand development work through many main operating units,
including McCann Erickson, Universal McCann, FutureBrand, and Momentum Worldwide. It offers
relationship marketing services through MRM Worldwide, and it serves clients in the health care
industry through McCann Healthcare. McCann Worldgroup's subsidiaries have offices in more than 100
countries.

Advertising in India

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Advertisers in India have reached 75 percent of the population, using television as a media
device, and the rest of the population is reached via radio. India, however, favors newspapers,
magazines, television, radio, billboards and business publications to convey messages about
various products. It is the advertising agencies' advertisements which portray ideas to the
audience – agencies that compete to be ranked as the best. The world's leading advertising
agencies – Ogilvy and Mather, J. Walter Thompson, BBDO, Lintas, McCann-Ericsson and Leo
Burnett have successfully made a mark in the Indian market. The advertising agencies are ranked
in order of their creativity as well as the expertise to deliver the content and message to the
clientèle. There are many parameters on which they are graded, and these are just a few.

The top ten advertising agencies of India

 Ogilvy and Mather Limited:- Headed by Mr. Piyush Pandey:

The most local of the internationals, The most international of the locals are words written to
describe the identity of Ogilvy. Basically, what this means is that the advertising agency follows
the local market, understands the customer's needs and then networks worldwide with MNC and
other relevant clients.

In all its years of business, Ogilvy has struggled to build brands and has proved its ability to
build brands. The agency does its best to enhance the customer-brand relation. For this, it
undergoes the process of scrutiny of the tools and techniques which work well to build a long
and lasting association with a brand.

 Mudra communications Pvt. Ltd:- Head: Mr. Madhukar Kamath:

The agency practises the art of communication in order to express ideas that can shape the
brands. As the name suggests, the agency is influenced by the artistic traditions of Indian dance,
drama and painting. These, in turn, inculcate feelings, ideas, thoughts and emotions for the
success of a brand. Mudra peeps into the local consumer markets, channels and media, and has
its own identity in communication of brands. It looks for the entrepreneurial zeal which causes
continuous and speedy growth for each brand. The advertising agency always believed in doing
interesting work that pleases its clients.

 Lintas India Pvt. Ltd:- Head: Mr. Pranesh Misra (President & COO - Lowe, India):

After the merge of Lintas India Ltd. with Lowe Lintas and Partners group of the UK, it is now
known as Lowe Lintas. India Pvt. Ltd. The turnover of Lintas is Rs. 750 crore. The advertising
agency inculcates advertising, media buying house, direct marketing, public relations, design
consultancy, market research, events, rural communications and interactive communications.
Enterprise Nexus, the agency partner of Lowe in India, continues to be a member and is known
as the 'Independent Brands' division which is the only specialist in advertising and marketing
communications. Lowe Lintas India is a successful agency which is inclined towards quality
creative advertising and works for the benefit of its clients.

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  JWT (Hindustan Thompson Associates Pvt. Ltd.):- Head:Mr.Colvyn Harris (Chief
Executive Officer):

The advertising agency has a special portfolio which includes creativity, innovation, clients, case
studies, awards, well-thought out leadership and talent. Clients perceive the agency as a resource
of ideas which tell the brand's story to the customer, dealing with market research. In this
process, the agency includes innovative ideas.

 FCB-Ulka advertising pvt. Ltd:- Head Mr. Anil Kapoor (Managing Director and CEO):

FCB, being one of the the top three advertising agencies in the USA, ranks number 10 in the
world. FCB-Ulka has made its mark in India as Ulka Advertising. It was founded in 1961. On the
creative front, Ulka is known to stand out. FCB-Ulka has made a smooth transition from a
creative shop to a large mainstream agency. Around the mid-seventies, FCB-Ulka had become
the fifth largest agency in India and has sustained this status till date. The efforts of FCB-Ulka
deserve praise. It also gave recognition to those brands that were not in the limelight earlier but
are now completely above other market players. Santoor soap did thorough research and focused
on advertising which gave growing sales figures against stiff competition from Levers and P&G
brands. Not surprisingly, FCB-Ulka is seen as a turnaround specialist - an agency that does brand
building and more.

 Rediffusion DY&R Pvt Ltd:- Mr. Mahesh Chauhan (President):

This advertising agency places its people first. It believes that the strength of a brand lies in the
efforts the people of the organization make. Rediffusion DY&R follows system-driven 'thinking'
in its culture. The agency attracts right minds because it thinks of a perfect balance between
creativity and strategy.

 RK Swamy BBDO Pvt Ltd:- Mr. Srinivasan K Swamy (Head)

It is the agency of the worldwide-renowned BBDO network. The advertising agency suggests
comes up with solutions for its clients regarding their marketing communication problems and
provides them with intelligent solutions and supports them in attaining their goals. The symbol
or logo of the advertising agency is Hansa and is known to separate milk from the water.
Similarly, RK Swamy of BBDO is capable of deriving the essential elements from the irrelevant
ones in order to promote each brand. The agency practises high level of commitment and spirited
teamwork for a common cause.

 McCann-Ericsson India Ltd:- Sorab Mistry (Head)

This advertising agency is a leading global agency and has the power and passion to achieve its
mission .McCann-Ericsson is known as a world class advertising agency and has found
outstanding talent in its employees.

 Leo Burnett:- Mr. Arvind Sharma (Chairman and CEO):

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The advertising agency is totally idea-centric. It generates big brand ideas. It regards the pencil
as its engine no matter the size - it is the means through which it can generate plenty of creative
ideas. The agency is never too satisfied with its endless efforts in building up a brand. It believes
that the brands can become and remain leaders by building better ideas. It's no wonder that the
founder of the advertising agency, Leo Burnett, regards the pencil as a metaphor for the kind of
ideas he was coming up with for his clients.

 Grey worldwide (India) Pvt Ltd:- Mr. Nirvik Singh (President south east Asia &
chairman South Asia, Grey Global):

The agency handles above the line advertising for the Grey group. It has launched Dominos in
India. It has had Ambuja cement, Thums Up, Arrow, Lee and many more brands in its portfolio.
The mission of the agency is to remain the largest global integrated agency to leading brand
ideas.