ADVERTISING AGENCIES

Submitted to:
Mr. Rajpreet Singh Chatwal

Submitted by:
Arshdeep Singh Kochar
PGDM 2014

INRODUCTION
An Advertising Agency is a service based business
dedicated to creating, planning, and handling
advertising (and sometimes other forms of promotion)
for its clients.
An ad agency is independent from the client and
provides an outside point of view to the effort of
selling the client's products or services.
An agency can also handle overall marketing and
branding strategies and sales promotions for its clients.

HISTORY
The first acknowledged advertising agency was William Taylor
in 1786.
Another early agency, started by James 'Jem' White in 1800 at
Fleet Street, London, eventually evolved into White Bull
Holmes, a recruitment advertising agency, that went out of
business in the late 1980s

HISTORY
In 1812 George Reynell, an officer at the London Gazette, set
up another of the early advertising agencies, also in London.
This remained a family business until 1993, as 'Reynell & Son,'
and is now part of the TMP Worldwide agency (UK and
Ireland) under the brand TMP Reynell.

HISTORY
Another early agency that traded until recently, was founded
by Charles Barker, and the firm he established traded as
'Barkers' until 2009 when it went into Administration.

HISTORY
Volney B. Palmer opened the first American advertising
agency, in Philadelphia in 1850.
This agency placed ads produced by its clients in various
newspapers.

HISTORY
In 1856 Mathew Brady created the first modern
advertisement when he placed an ad in the New York Herald
paper offering to produce "photographs, ambrotypes and
daguerreotypes."
His ads were the first whose typeface and fonts were distinct
from the text of the publication and from that of other
advertisements.
At that time all newspaper ads were set in agate and only
agate.
His use of larger distinctive fonts caused a sensation.
Later that same year Robert Bonner ran the first full-page ad
in a newspaper.

HISTORY
In 1864, William James Carlton began selling advertising space
in religious magazines.
James Walter Thompson joined this firm in 1868.
Thompson rapidly became their best salesman, purchasing
the company in 1877 and renaming it the James Walter
Thompson Company, which today is the oldest American
advertising agency.
Realizing that he could sell more space if the company
provided the service of developing content for advertisers,
Thompson hired writers and artists to form the first known
Creative Department in an advertising agency.
He is credited as the "father of modern magazine
advertising" in the US.

HISTORY 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.

HISTORY in INDIA
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.

HISTORY in INDIA
The first advertising appeared on state television in 1976.

HISTORY in INDIA
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.

HISTORY in INDIA
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.

HISTORY in INDIA
Indian Advertising starts with the hawkers calling out their
wares right from the days when cities and markets first began
Shop front signages
From street side sellers to press ads
The first trademarks
Handbills distributed separately from the products

HISTORY in INDIA
Concrete advertising history begins with classified advertising
Ads appear for the first time in print in Hickey's Bengal
Gazette. India's first newspaper (weekly).
Studios mark the beginning of advertising created in India (as
opposed to imported from England) Studios set up for bold
type, ornate fonts, more fancy, larger ads
Newspaper studios train the first generation of visualisers &
illustrators
Major advertisers: Retailers like Spencer's, Army & Navy and
Whiteaway & Laidlaw
Marketing promotions: Retailers' catalogues provided early
example

HISTORY in INDIA
Ads appear in newspapers in the form of lists of the latest
merchandise from England
Patent medicines: The first brand as we know them today
were a category of advertisers
Horlicks becomes the first 'malted milk' to be patented on 5th
June 1883 (No. 278967).
1931- National Advertising Service Pr. Ltd. Bombay set up
1936- Indian Broadcasting Company becomes All India Radio
(AIR)
1978 -First television commercial seen
1990-Marks the beginning of new medium Internet
1991- First India-targetted satellite channel, Zee TV starts
broadcast

AAAI
On September 21, 1945, 60 years ago, Advertising Agencies
Association of India (AAAI) was registered as a society in
Calcutta. 4 agencies from Calcutta D J Keymer, General
Advertising Agency, J Walter Thomson Co. and Press Syndicate
and 3 agencies from Bombay Adarts, Lintas and National
Advertising Service were the signatories in the registrars
office doing the honours.
Initially the registered office of the Association was located at
37, Chowringhee, Calcutta. Calcutta, under the British Raj,
was a vibrant commercial city.
In 1961, the AAAI office was shifted to Bombay.

AAAI
What was the size of the ad industry then? The Governments
own Press Commission in 1953 noted that the value of print
advertising was Rs. 35 million. Other media spends were
estimated at another Rs. 15 million.
In such an era, these were some real bold men, who felt the
need to create a platform to promote advertising, as a
professional activity
After India became a Republic in 1950, our successive
Governments promoted the policy of self-reliance and import
substitution. For three decades from 1951 to 1980
advertising in India had limited purpose to play.

AAAI
AAAI has thus come a long way from its humble beginnings 60
years ago. But as they say, the future is always more exciting
than the past.
AAAI is alive to the changes that the future holds out and the
next decade would be a stimulating period, ushering the
advertising industry in newer challenges and opportunities.

Biggest Advertising Agencies as of

July 2013
1.
2.
3.
4.
5.
6.
7.
8.
9.

WPP Group, London $15.6 billion

Omnicom Group, New York City $14.3 billion
Publicis Groupe, Paris $7.7 billion
Interpublic Group, New York City $6.693 billion
Dentsu, Tokyo $3.1 billion
Havas, Suresnes, France 1.77 billion euros
Hakuhodo DY Holdings, Tokyo 1.2 trillion yen
Merkle, Lanham, Maryland, $300 million
Global Experience Specialists, subsidiary of Viad, $249.3
million
10. Epsilon, subsidiary of Alliance Data

TOP 10 ADVERTISING AGENCIES in

INDIA
1 Ogilvy & Mather Ltd
Corporate office New York, USA
Establishment 1948 Business Advertising, Marketing
Website www.ogilvy.com
Ogilvy & Mather is a well known and among the top
Advertising companies in India founded by David Ogilvy and
has offices in more than 150 countries worldwide.
Some of the notable ad campaigns done by Ogilvy & Mather
includes Cadbury Dairy Milk and Vodafone.

TOP 10 ADVERTISING AGENCIES in

INDIA
2 GWT Hindustan Thompson AssociatesCorporate office
New York, USA | Establishment 1864 |Business
Advertisement and Marketing |
Website www.jwt.com
One of the oldest advertisement company in the world, JWT
was founded in year 1864.
The company has been operating in more than 90 countries
worldwide and taken over Hindustan Thompson in the year
2002.
It is a leading advertisement company in India which has
notable clients such as nestle, Unilever, DTC etc.

TOP 10 ADVERTISING AGENCIES in

INDIA
3 Rediffusion DY&RCorporate office New Delhi, India
Business Advertisement | Website www.wpp.com/ |
Rediffusion is a part of WPP group which is rated one among
the leading advertisement company in India.
The company offers various services which includes
advertisement, consultancy, web design, social media,
promotion and program setups.

TOP 10 ADVERTISING AGENCIES in

INDIA
4 Mudra Communications Ltd
Corporate office Ahmadabad, Gujarat | Establishment
1980 |
Business Advertising and Marketing |
Website ddbmudragroup.com |
Mudra Communications Ltd. founded in 1980 a
Omnicom/DDB Worldwide Group company is a leading
advertising company in India. It has offices in fifteen cities
in India. Its clients include HDFC , Akai, Future Group ,
Ashok Leyland, Asian Paints, Bata, Cipla, Aircel & Reebok.

TOP 10 ADVERTISING AGENCIES in

INDIA

5 | McCann-Erickson India Ltd

Corporate office U.S.A | Establishment 1930 |
Business Advertising | Website mccann.com |
A highest ranked company in the advertising industry in India
McCann has offices in 120 countries. McCann has been
awarded the Global Agency of the Year by Adweek thrice.
Some of the iconic ads created by McCann Erickson includes
Coca Cola, MasterCard commercial and Nescaf.

TOP 10 ADVERTISING AGENCIES in

INDIA
6 | Pressamn Advertising and Marketing Ltd
Corporate office Kolkata, West Bengal | Establishment
1960s|
Business Advertising | Website www.pressmanindia.com
|
Pressman is a well known name in the advertising industry in
India, having presence in many cities includes Siliguri,
Mumbai, Kolkata, Delhi, Chennai, Bhubaneswar, Hyderabad,
Bangalore, Nagpur, Guwahati and Patna. Pressman is Indias
ISO 9001:2008 certified agency.

TOP 10 ADVERTISING AGENCIES in

INDIA
7 | FCB-Ulka Advertising Ltd
Corporate office Mumbai, Maharashtra | Establishment
1961 |
Business Advertising | Website www.draftfcbulka.in |
FCB-Ulka established in 1961 is consistently maintaining its
position in the top 10 Advertising agencies in India since its
inception. FCB-Ulka has its presence in 92 countries having
150 offices across the world.

TOP 10 ADVERTISING AGENCIES in

INDIA
8 | RK Swamy BBDO Advertising Ltd
Corporate office Mumbai, Maharashtra | Establishment
1973 |
Business Advertising | Website www.rkswamybbdo.com |
RK Swamy started the advertisement business in year 1973
and became leading brand since then. The company merged
with BBDO and renamed it to RK Swamy BBDO advertising. It
deals with giant MNCs and national companies and corporate
such as Air India, Mercedes-Benz, Piaggio, Asia motors,
Volvoline cummins etc.

TOP 10 ADVERTISING AGENCIES in

INDIA
9 | Trikaya Grey Advertising (India) Ltd
Corporate office New York, U.S. | Establishment 1917 |
Business Advertising, Entertainment, Marketing | Website
www.grey.com |
Grey offers variety of services like advertising, marketing,
entertainment, customer relationship management etc. Based
in New York, U.S. company has offices in 96 countries
including India, Bangladesh, Thailand, Malaysia, Canberra,
Korea and more. Companys clients includes GlaxoSmithKline,
Procter & Gamble, Volkswagen and other renowned brands.

TOP 10 ADVERTISING AGENCIES in

INDIA
10 | Chaitra Leo Burnett Pvt Ltd
Corporate office Chicago, United States | Establishment
1992 |
Business Advertising | Website leoburnett.co.in |
Rated among the top 10 advertisement agencies in India, Leo
Burnett is a Chicago based advertisement company
established in 1998. The company is operating in India from
their regional offices based at Bangalore, Karnataka. It has
over 100 offices located in different parts of the world.

FUTURE
As far as the present trends I think many new
small creative ad agencies will emerge as quite
big players but it will take some time.
Though the existing big names will become
stronger only as they are constantly keeping in
sync with the changing times.

THANK YOU