History of Advertising in India

There has been a long tradition of advertising in India since the first newspapers published in India in the 19th Century carried advertising. The first advertising agency was established in 1905, B. Datram and Company, followed by The India-Advertising Company in 1907, the Calcutta Advertising agency in 1909, S.H.Bensen in 1928, J. Walter Thompson Associates through its Indian associate, Hindustan Thompson Associates in 1929, Lintas (Lever international Advertising Services) in 1939 and McCann Erikson in 1956. Advertising expenditure in the 1950s was estimated at $US 300,000. Under the more socialist political environment of the 1960s and 1970s there was little incentive for companies to advertise because advertising was not tax deductible. In the 1970s there was a 58% growth in the number of registered agencies from 106 in 1969 to 168 in 1979, and this included a growth in Indian agencies. The first advertising appeared on state television in 1976.

With the opening of the economy in the 1980s there was a growth in the number of alliances with multinational agencies and an expansion in advertising though foreign network participation in agency ownership was limited. In 1987 Hindustan Thompson was affiliated to J. Walter Thompson. Lintas, the 2nd ranking agency, held only 4% of its subsidiary, as did Ogilvie and Mather. Saatchi and Saatchi/Compton had minority interests in Compton as did Lintas. A study done in 1984 of the largest companies in India found that the ratio of advertising expenditure to sales had risen from .64 in 1976, to .71 in 1980 to .74 in 1984. Foreign controlled corporations had the dominant share of total advertising expenditure, and 80% of these were in the consumer goods sectors. Advertising was very concentrated with the top 50 advertisers accounting for 80% of the advertising spending and the top 10 advertisers made up 40% of that figure, 32% of the total. The largest advertiser throughout the period was Hindustan Lever which was nearly 10% of the advertising budget of the corporate sector companies. Pharmaceutical companies were also significant advertisers at this time.

Landmarks in Indian Advertising:

1. 1931- National Advertising Service Pr. Ltd. Bombay set up.

2. 1936- Indian Broadcasting Company becomes All India Radio (AIR)

3. 1978 -First television commercial seen

4. 1990-Marks the beginning of new medium Internet

5. 1991- First India-targeted satellite channel, Zee TV starts broadcast.

Thus following the trends of trade and competitive markets, advertising too has become vibrant, dynamic and resourceful in its content, creativity and philosophy. Twenty first century has seen major upheavals in the global political arena, major fluctuations in stock markets on the economic front and globalization of marketing creating severe and chaotic competitive environment. The job of marketing is getting increasingly tough making advertising an important thrust area for the marketers to excel in the market place for improving market share. As a result, advertising is seeing new heights in skills, innovation in both creativity and media and more of the same seems to be on the way. Today’s campaign could be considered as far fetched by the purists. However, if these campaigns are bringing the desired results who would complain.

Success in business in this century will come only through innovation, quality and superior service and a relentless pursuit of the elusive customer and advertising comes as a major driving force for the purpose.