Advertising
India in a new light
University of Incarnate Word

Abstract

Online advertising are being seen as much more valuable to businesses across India. According to an article Future of Mobile Marketing and Advertising in India,it is vital to reassess your brands target audience on a regular basis to ensure you’re moving in step with the people you want to engage with(Mishra, Manish). The most unlikely customers to reach with ads are the illiterate and the people who live in areas with frequent power outages, which occurs in the entire country. Advertising reaches even the most difficult people, and they too can obtain advertisements with mobile phones. Power outages effect TV usage and computer usage. In reality mobile devices help close the gap with the power outages as well as the illiterate.
In the article Future of Mobile Marketing and Advertising in India it clearly proves that advertising impressions have sky rocketed. Marketers are emphasizing on mobile as an important channel to disseminate the brand message.The marketers have started to plan their communication by keeping as the Mobile first because it is the fast growing usage of medium.

Keywords: business culture, statistics, advertising

Facts about India

India is the seventh largest landmass in the world. Its official name is Republic of India. India is bounded by the Himalayas to the north, the Arabian Sea to the west, and the Bay of Bengal to the east.The very large mass of land sits on a separate tectonic plate from the rest of Asia. India shares this plate with Pakistan and Bangladesh. The borders are shared with China, Nepal, Bhutan and Myanmar. Based the studies, over the decades since independence, India has become a more populous and urbanized society. Although India has many geographical and cultural disadvantages going against their economic development they are overcoming and are becoming the fastest growing third world country in Advertising of international businesses. The economy in India is the world’s tenth-largest by nominal GDP and third-largest by purchasing power parity (PPP). However, India continues to face many challenges.

A.wikipedia.org/wiki/Nuclear_weapons_state” title=”Nuclear weapons state”>nuclear weapons state and a.wikipedia.org/wiki/Power_(international_relations)#Power_as_status” title=”Power (international relations)”>regional power
state, it has the.wikipedia.org/wiki/List_of_countries_by_number_of_troops” title=”List of countries by number of troops”>third-largest standing army
in the world and ranks.wikipedia.org/wiki/List_of_countries_by_military_expenditures” title=”List of countries by military expenditures”>ninth in military expenditure
among nations. India is a.wikipedia.org/wiki/Federalism” title=”Federalism”>federal.wikipedia.org/wiki/Constitutional_republic” title=”Constitutional republic”>constitutional republicgoverned under a
.wikipedia.org/wiki/Parliamentary_system” title=”Parliamentary system”>parliamentary system consisting of.wikipedia.org/wiki/States_and_territories_of_India” title=”States and territories of India”>29 states and 7 union territories.
India is a.wikipedia.org/wiki/Pluralism_(political_philosophy)” title=”Pluralism (political philosophy)”>pluralistic,
.wikipedia.org/wiki/Languages_of_India” title=”Languages of India”>multilingual, and a multi-ethnic
society.
India
is a very distinctnation encompassing many different identities, languages,
cultures and religions. These factors, in addition to the caste system’s legacy
and the gap between poor and wealthy, make India one of the most diversified
nations on earth. This makes it very difficult to make generalizationsabout
Indian culture.
India has more than 1600 languages used in the country.
There are 22 official languages and two classical languages. The two classical
languages are Sanskrit and Tamil. The national language of India is Hindi and
English is the major language in which they conduct business and higher
education. Since there are so many languages used in India, it is often called
the linguists paradise.
Widespread.wikipedia.org/wiki/Licence_Raj” title=”Licence Raj”>state intervention and regulation largely blocked the economy off
from the outside the world. An acute.wikipedia.org/wiki/1991_India_economic_crisis” title=”1991 India economic crisis”>balance of payments
crisis in 1991
forced the nation to.wikipedia.org/wiki/Economic_liberalisation_in_India” title=”Economic liberalisation in India”>liberalize
its economy;since
then it has slowly moved towards a free-market system by emphasizing both
foreign trade and direct investment inflows.India decided to become a member of
the.wikipedia.org/wiki/WTO” title=”WTO”>WTO to open their options into the foreign trade market.
Business
Culture in India
.In
the beginning cultural attitudes were hostile to big business. As a result of
politics influencing businesses. Corruption was a big problem for India. The
corruption came about because the government passed a law banning company
donations to political parties. The governments role in making major
international purchases- of weapons, oil, sugar, fertilizer any major commodity
that was being acquired in the name of the nation as a whole for public
distribution- became a source of corruption (Tharoor 257).here are many things
that should be taken into consideration when planning to conduct foreign
business meetings and transactions. Business in India is based on a hierarchy
system. With this system the decisions are made at the highest level of the
organization Roles are well defined and tasks such as manual labor will only be
carried out by a specific person meaning, tasks will be done only by the person
assigned to that tasks.
Indians
learn very early that making mistakes are forbidden. This is the most difficult
task of growing up in the Indian culture. When mistakes are made they are
ignored, hidden when needed and even fixed at all costs before it becomes
public (Stephens 144). Mistakes must be managed and minimized because they can
have emotional and relational consequences. Not only does this effect personal
lives but it also effects professional lives in India business world.
Indian children
are supported and directed by family and caste, or the community. Because of
this, when the child has grown up in this system, a network is already
established. Relatives usually work together to maintain its established
support system and insurance.
Relationships
are of great value to Indians. In India many business decisions are made based
on the early developed relationships with contacts. Indians welcome the small
talk in lieu of getting to know a possible business associate. Trust is
essential and when entering a business meeting and the most senior person
should be greeted first.
CEOs
in India have many concerns when it comes to their economic growth but the most
concerning issue are over regulation, currency volatility, and talent issues.
These are not new issues either. These issues have plagued their country for
many years. According to the PwC- 17th Annual CEO Survey for India,
the biggest threat is competition but, today inadequate infrastructure is the
top threat in India.
A
CEO or anyone with a status position will be given the respect due to their
position, regardless of color, caste or gender. In the same respect supervisors
are also given the same respect. Being disobedient is not acceptable behavior
towards a superior. Indians place a very high value on pleasing those in
authority. Why? Because this is how they were taught growing up.
There
are many mistakes that foreigners make in business relationships. The most
common mistakes are treating everyone equal, addressing people by their first
names, greeting people with a hug or kiss, publicly pointing out problems or
conflicts in an attempt to solve them, initiating a discussion that requires a
debate or disclosure of weakness, assuming everyone understands your English,
assuming you are getting all the facts and the list goes on. The big point to
get from this section is to do research on the culture of the country that is
the anticipated business prospect.
India
has had a reputation of being the third world country in poverty. For many,
this country was viewed as an exotic destination for tourists. India is now the
worlds one stop technology shop (Stephen pg142).
The Statistics of India
The 486.6-million worker.wikipedia.org/wiki/Labour_in_India” title=”Labour in India”>Indian labor force was the.wikipedia.org/wiki/List_of_countries_by_labour_force” title=”List of countries by labour force”>world’s
second-largest,
as of 2011. The service sector makes up 55.6% of GDP, the industrial sector
26.3% and the agricultural sector 18.1%. Major agricultural products are rice,
wheat, oilseed, cotton, jute, tea, sugarcane, and potatoes (Walsh pg338).Major
industries include textiles, telecommunications, chemicals, pharmaceuticals,
biotechnology, food processing, steel, transport equipment, cement, mining,
petroleum, machinery, and computer software (Walsh pg339). In 2006, the share
of external trade in India’s GDP stood at 24%, up from 6% in 1985. In 2008,
India’s share of world trade was 1.68%;in 2011, India was the world’s.wikipedia.org/wiki/List_of_countries_by_imports” title=”List of countries by imports”>tenth-largest
importer and the.wikipedia.org/wiki/List_of_countries_by_exports” title=”List of countries by exports”>nineteenth-largest
exporter.Major
exports include petroleum products, textile goods, jewelry, software,
engineering goods, chemicals, and leather manufactures (Walsh pg339).Major
imports include crude oil, machinery, gems, fertilizer, and chemicals.Between
2001 and 2011, the contribution of petrochemical and engineering goods to total
exports grew from 14% to 42%.
Averaging an economic growth rate of 7.5% for several years
prior to 2007, India has more than doubled its hourly wage rates during the
first decade of the 21st century.Some 431 million Indians have left poverty
since 1985; India’s middle classes are projected to number around 580 million
by 2030. Though ranking 51st in.wikipedia.org/wiki/Global_Competitiveness_Report” title=”Global Competitiveness Report”>global
competitiveness,
India ranks 17th in financial market sophistication, 24th in the banking
sector, 44th in business sophistication, and 39th in innovation, ahead of
several advanced economies, as of 2010.With 7 of the world’s top 15 information
technology outsourcing companies based in India, the country is viewed as the
second-most favorable outsourcing destination after the United States, as of
2009..wikipedia.org/wiki/India#cite_note-FOOTNOTESheth2009-223″> India’s consumer market, currently
the worlds.wikipedia.org/wiki/List_of_largest_consumer_markets” title=”List of largest consumer markets”>eleventh-largest, is anticipated to become
fifth-largest by 2030.
NewIndustry Trends inIndia
India’s.wikipedia.org/wiki/Communications_in_India” title=”Communications in India”>telecommunication
industry, the
world’s fastest-growing, added 227 million subscribers during the period
201011,and after the first quarter of 2013, India surpassed Japan to become
the third largest smartphone market in the world after China and the U.S. India
achieved this great achievement by Advertising. Advertising is the highway to an
increased GDP and overall growth for Indias economy.
The.wikipedia.org/wiki/Pharmaceutical_industry_in_India” title=”Pharmaceutical industry in India”>Pharmaceutical
industry in India
is among the significant emerging markets for global pharma industry. The
Indian pharmaceutical market is expected to reach $48.5 billion by 2020.
India’s R & D spending constitutes 60% of.wikipedia.org/wiki/Biopharmaceutical” title=”Biopharmaceutical”>Biopharmaceutical industry. India is among the top 12 Biotech destinations of
the world. The Indian biotech industry grew by 15.1% in 201213, increasing its
revenues from 204.4 Billion INR (Indian Rupees) to 235.24 Billion INR (3.94 B
US$ – exchange rate June 2013: 1 US$ approx. 60 INR) although hardly 2% of
Indians pay.wikipedia.org/wiki/Income_tax” title=”Income tax”>income taxes
Despite impressive economic growth
during recent decades, India continued to face socio-economic challenges. India
contains the.wikipedia.org/wiki/Poverty_in_India” title=”Poverty in India”>largest
concentration
of people living below the World Bank’s international poverty line of US$1.25
per day the proportion having decreased from 60% in 1981 to 42% in 2005, and
25% in 2011, 44% of India’s children under the age of five are underweight,
half the children under five suffer from chronic.wikipedia.org/wiki/Malnutrition_in_India” title=”Malnutrition in India”>malnutrition, and in the states of.wikipedia.org/wiki/Madhya_Pradesh” title=”Madhya Pradesh”>Madhya Pradesh,.wikipedia.org/wiki/Andhra_Pradesh” title=”Andhra Pradesh”>Andhra Pradesh,.wikipedia.org/wiki/Bihar” title=”Bihar”>Bihar,.wikipedia.org/wiki/Chhattisgarh” title=”Chhattisgarh”>Chhattisgarh,.wikipedia.org/wiki/Haryana” title=”Haryana”>Haryana,.wikipedia.org/wiki/Jharkand” title=”Jharkand”>Jharkhand,.wikipedia.org/wiki/Karnataka” title=”Karnataka”>Karnataka, and.wikipedia.org/wiki/Uttar_Pradesh” title=”Uttar Pradesh”>Uttar Pradesh, which account for.wikipedia.org/wiki/List_of_states_and_union_territories_of_India_by_population” title=”List of states and union territories of India by population”>50.04% of India’s population, 70% of the children between the
ages of six months and 59 months are.wikipedia.org/wiki/Anaemic” title=”Anaemic”>anemic The.wikipedia.org/wiki/Mid-Day_Meal_Scheme” title=”Mid-Day Meal Scheme”>Mid-Day Meal Scheme attempts to lower these rates.Since
1991,.wikipedia.org/wiki/List_of_Indian_states_by_GDP” title=”List of Indian states by GDP”>economic inequality between India’s states has
consistently grown: the per-capita.wikipedia.org/wiki/Net_domestic_product” title=”Net domestic product”>net state domestic
product of the
richest states in 2007 was 3.2 times that of the poorest.].wikipedia.org/wiki/Corruption_in_India” title=”Corruption in India”>Corruption in India is perceived to have increased
significantly,with one report estimating the illegal capital flows since independence
to be US$462 billion.
Driven by growth, India’s nominal.wikipedia.org/wiki/GDP_per_capita” title=”GDP per capita”>GDP per capita has steadily increased from US$329 in 1991, when economic
liberalization began, to US$1,265 in 2010, and is estimated to increase to
US$2,110 by 2016; however, it has remained lower than those of other Asian
developing countries such as Indonesia, Iran, Malaysia, Philippines, Sri Lanka,
and Thailand, and is expected to remain so in the near future. While it is
currently higher than Pakistan, Nepal, Bangladesh and others.
According to a 2011.wikipedia.org/wiki/PricewaterhouseCoopers” title=”PricewaterhouseCoopers”>PricewaterhouseCoopers report, India’s GDP at purchasing power parity could
overtake that of the United States by 2045. During the next four decades, Indian
GDP is expected to grow at ayearly average of 8%, making it potentially the
world’s fastest-growing major economy until 2050. The report highlights key
growth factors: a young and rapidly growing working-age population; growth in
the manufacturing sector because of rising education and engineering skill
levels; and sustained growth of the consumer market driven by a rapidly growing
middle class. The World Bank cautions that, for India to achieve its economic
potential, it must continue to focus on public sector reform,.wikipedia.org/wiki/Transport_in_India” title=”Transport in India”>transport
infrastructure,
agricultural and rural development, removal of labor regulations,.wikipedia.org/wiki/Education_in_India” title=”Education in India”>education,.wikipedia.org/wiki/Energy_policy_of_India” title=”Energy policy of India”>energy security, and.wikipedia.org/wiki/Healthcare_in_India” title=”Healthcare in India”>public healthand nutrition.
Citing persistent.wikipedia.org/wiki/Inflation” title=”Inflation”>inflation pressures, weak.wikipedia.org/wiki/Public_finances” title=”Public finances”>public finances, limited progress on fiscal consolidation and ineffectiveness
of the government, rating agency.wikipedia.org/wiki/Fitch_Group” title=”Fitch Group”>Fitch revised India’s Outlook to Negative from Stable on 18 June
2012. Another.wikipedia.org/wiki/Credit_rating_agency” title=”Credit rating agency”>credit rating agency.wikipedia.org/wiki/Standard_%26_Poor%27s” title=”Standard & Poor’s”>S&P had warned previously that a
slowing GDP growth and political roadblocks to economic policy-making could put
India at the risk of losing its.wikipedia.org/wiki/Bond_credit_rating” title=”Bond credit rating”>investment grade
rating. However,
.wikipedia.org/wiki/Moody%27s_Investors_Service” title=”Moody’s Investors Service”>Moody did not revise its outlook on India
keeping it stable,but termed the national government as the “single
biggest drag” on business activity.
Entry
Modes into India
There
are several entry modes that can be used for international exporting and
importing.
Entry modes differin
degree of risk they present, the control and commitment of resources they
require, and the return on investment they promise. There are two major types
of entry modes: non-equity and equity. The non-equity category includes export
and contractual agreements. The equity category includes joint venture and
wholly owned subsidiaries. The most frequently used entry mode in India is
joint venture and subsidiary.
A joint venture is a business arrangement in which two or more
parties agree to pool their resources for the purpose of accomplishing a
specific task. This task can be a new project or any other business activity.Joint
ventures are often entered into for a single purpose – a production or research
activity. However, they may also be formed for a continuing purpose.In a joint venture, each of the participants share management,
the responsibility for profits, losses and costs associated with it. However,
the venture is its own entity, separate and apart from the participants’ other
business interests.
Some
advantages of joint venture is they are a separate legal entity and limited
liability, may raise further finance
through new share issues or from lenders and pledge security using assets.
The
major products that are exported most frequently from India are petroleum
products, textile goods, gems and jewelry, engineering goods, chemicals, and
leather manufactures (Walsh page 339). Indias largest trading partner and
defense weaponry supplier was the USSR prior to the 1990s. During the 1990s the
three largest exporters for India was United States, United Emirates and China.
This should not be a surprise that these are the top three exporter Countries.
Advertising
Trend in India
Advertising istheactorpracticeofcallingpublicattentiontoone’sproduct,service,need,etc.,especiallybypaidannouncementsinnewspapers. The first
newspaper in India was produced by an Englishman James Augustus Hickeyin 1780 and
the paper was releasedon Saturdays. The
name of the first paper in India was called theCalcutta General Advertiseror Hickey’s Bengal Gazette(B.Sumangal).
It is safe to say that advertising in India began through
newspapers. Today India is more technically savvy. According to an Article Research
and Markets: India Digital Advertising Spend in India Databook Q2 2014
Featuring Google, Yahoo, Microsoft,Facebook, YouTube & Twitter,Online
advertising in India stood at US 0.65 billion by the end of 2013, accounting
for 8.7% of total advertising. It is great to see that India utilizes the ways
of the new age, the internet. Over the next five years (2014-2018), it is
expected that the online advertising spendingwill grow at a CAGAR of 24.7% to
reach US 2.0 billion in 2018 (Wood, 2014). If this spending goal is reached it
will account for 20% of the total advertising spending.
Changing Trends in
High Impact Advertisingis another article that clearly discusses how the
quickly changing technology enables the quick dissemination of information
through online means such as high impact digital advertising. A
good example of a new high impact digital advertising opportunity is the Full
Screen TV Ad on the web, where the TV Commercial spreads across the screen. It
looks just like a TVC on the TV. It not only grabs the users attention but the
ad performance is also very high, the reason why it is called high impact
advertising (Souza, Roy de). This article just confirms that more and
more TV advertisers are looking to widen their reach to consumers.
Online
advertising are being seen as much more valuable to businesses across India.
According to an article Future of Mobile
Marketing and Advertising in India,it is vital to reassess your brands
target audience on a regular basis to ensure youre moving in step with the
people you want to engage with(Mishra, Manish).
The most unlikely customers to reach with ads are the illiterate and the people
who live in areas with frequent power outages, which occurs in the entire
country. Advertising reaches even the most difficult people, and they too can
obtain advertisements with mobile phones. Power outages effectTV usage and
computer usage. In reality mobile devices help close the gap with the power
outages as well as the illiterate. In the articleFuture
of Mobile Marketing and Advertising in Indiait clearly
proves that advertising impressions have sky rocketed. Marketers are
emphasizing on mobile as an important channel to disseminate the brand message.The
marketers have started to plan their communication by keeping as the Mobile
first because it is the fast growing usage of medium

References

Stephen, Becky (2010).India Customs & Culture, By Becky
Stephen
Random House Distribution Services
New York, NY
Tharoor, Shashi (1997). India From Midnight to the Millennium
Arcade Publishing, New York, NY
Walsh, Judith E. (2010).A Brief History of India, Second Edition
An imprint of Infobase Publishing, New York, NY

Manish, Mishra (2014)Future of Mobile
Marketing and Advertising in IndiaRetrieved from.indiadigitalreview.com/article/future-mobile-marketing-and-advertising-india/14456″>http://www.indiadigitalreview.com/article/future-mobile-marketing-and-advertising-india/14456
Wood,
Laura (2014) Research and Markets: India Digital Advertising Spend in India
Databook Q2 2014 Featuring Google, Yahoo, Microsoft, Facebook, YouTube &
Twitter
Retrieved fromwww.reuters.com/article/2014/09/30/research-and-markets
Roy de Souza, CEO, Reach India
(2014) Changing Trends in High
Impact Advertising
Retrieved from.indiadigitalreview.com/article/changing-trends-high-impact-advertising”>http://www.indiadigitalreview.com/article/changing-trends-high-impact-advertising

Appendix A

With the growth of Indian mobile market, the
mobile internet advertising segment has also seen a significant augmentation.
With an increase in the number of feature phone and smartphone users, there is
an upsurge in the mobile internet usage by the consumers, especially from the
Tier II & Tier III towns. With mobile devices being a primary digital
access point for many consumers, the marketers now have a range of
opportunities, particularly when it comes to reaching consumers who are
traditionally difficult to reach.

India by the Numbers
130 million: that’s the current
estimate of mobile internet users in India
250 million: expected number of Indian mobile internet users by
2015
30% : ad inventory growth on the BuzzCity Network in India
over the past year
861 million: total number of mobile phones in India (second
highest in the world, behind China)
10% : the percentage of Indian mobile users who now have
smartphones
It is expected that there will be more smartphones than humans around the
world, and with consumers becoming constantly connected via mobile it has a
great offering for marketers.

The following graph shows the rise in the number of ad impressions served,
comparing India with Indonesia and the US:

Appendix B
Everybody is jumping into the digital rat race to grab a slice of the
advertising pie. But with display advertising still doing nothing truly high
impact, all big brand advertisers still prefer TV. Sometimes they choose social
(Facebook) advertising medium but often they don’t run advertising on the
Internet at all.
Those who have been in the online advertising industry for more than a
decade all agree that brand advertisers in India don’t believe much in Internet
advertising. Therefore it is time Internet advertising companies improve this
by developing new innovate advertising opportunities that have high impact
and are as good as TV advertising.
A good example of a new high impact digital advertising opportunity is the
Full Screen TV Ad on the web, where the TV Commercial spreads across the
screen. It looks just like a TVC on the TV. It not only grabs the users
attention but the ad performance is also very high, the reason why it is called
high impact advertising.
The CTR of standard banners is officially 0.09% in India (or maybe lower).
However, full screen TV Ads on the web are better value for money. If numbers
speak volumes than it would only be fair to compare the Impressions, Clicks and
CTR between standard banner ads and running Full Screen TV Commercials on the
web.

Appendix C
Map of India

Appendix D
Flag of India

Advertising
India in a new light University of Incarnate Word AbstractOnline
advertising are being seen as much more valuable to businesses across India.
According to an article Future of Mobile
Marketing and Advertising in India,it is vital to reassess your brands
target audience on a regular basis to ensure youre moving in step with the
people you want to engage with(Mishra, Manish).
The most unlikely customers to reach with ads are the illiterate and the people
who live in areas with frequent power outages, which occurs in the entire
country. Advertising reaches even the most difficult people, and they too can
obtain advertisements with mobile phones. Power outages effectTV usage and
computer usage. In reality mobile devices help close the gap with the power
outages as well as the illiterate. In the articleFuture of Mobile Marketing and
Advertising in Indiait clearly proves that advertising
impressions have sky rocketed. Marketers are emphasizing on mobile as an
important channel to disseminate the brand message.The
marketers have started to plan their communication by keeping as the Mobile
first because it is the fast growing usage of medium.Key
words: business culture, statistics, advertising Facts about India India is the seventh largest landmass in the world. Its official name is Republic of India. India is bounded by the Himalayas to the north, the Arabian Sea to the west, and the Bay of Bengal to the east.The very large mass of land sits on a separate tectonic plate from the rest of Asia. India shares this plate with Pakistan and Bangladesh. The borders are shared with China, Nepal, Bhutan and Myanmar. Based the studies, over the
decades since independence, India has become a more populous and urbanized society. Although India has many geographical and cultural disadvantages going against their economic development they are overcoming and are becoming the fastest growing third world country in Advertising of international businesses.