The foundations of professional advertising business in India was led by two English companies J. Walter Thompson and D. J. Keymer’s Lintas India came on the scene in 1939. However O & M was set up in 1926.
In pre-independence India only press independence was there. In 1930 with the development of radio it emerges as media for advertisement. In 1950s cinema advertisement began. In 1960s professionalization within the ad agencies started. 1970s was the era of media boom. In 1967 radio services were commercialized. It was in the 60s and early 70s that the concept of brand building appeared on the scene. In 1977, DD became commercial and this brought about the qualitative change in Indian advertising. This was also the time for expansion and diversification of agencies. Within its changing color, starting from august 15, 1982 TV emerged as the most powerful medium. In 90s emphases was given on direct marketing. During the time, satellite TV emerges. The major development was the introduction of 24hr movie channels and pay channels. FM radio also comes into picture. Gradually the main era of concern was given to brand equity. This was also the time of internationalization of advertising. In India, the last decade of 20th century has witnessed a phenomenal growth in ad business. In 1990-91 the overall growth in business was recorded to 17.1% and till 1994-95 it improved up to 49.5%
This was due to the first major economy boom in the country. Since then the growth rate has been slowing down and has settled at almost 18% in 1998-99. According to analyst 49.5% growth was an outcome of an irrational response to economic liberalization and the media inflation of 1990s.
As economic policy changes, introduced in 1990s, have opened the door for global competition a new economic era has begun. Aggressive marketing efforts by domestic and foreign business houses are increasing. The emergence of growth of new technologies, availabilities of new media and media vehicles and an increase in middle class income and aspirations have contributed to the phenomenal increase in the level of advertising and other form of promotion.
The future of Indian advertising is bright, provided that those in the profession acknowledge the social responsibility of advertising and conduct themselves in such a way as to be seen as an important part of the economic development effort of the country.
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