Advertising has become the big business today. Total advertising expenditure has crossed the 6000 crore barrier. There are more than 1000 large and small advertising agencies operating in India with the average of 6 crores. India’s top most agencies like HTA, Mudra communications, Ogilvy & Mather Ltd, Ulka advertising have the billing of 116 crores, 57 crores, 47 crores and 44 crores respectively.

The proportion of advertising expenditure to gross national product is approximately 2%. Today, after the entry of multinationals, the advertising scene has totally changed. Some large companies like ITC, Hindustan Lever, Videocon international, Brooke Bond, Lipton are spending approx. 182 crores, 108 crores, 107 crores, 72 crores respectively advertising in a year.

Small scale industries like Rasna, Pan Parag are also equally lavish in advertising expenditure. Total advertising expenditure has increased ten folds in the last five years. In this audio visual media is playing a major role. The print media expenditures are increasing at the constant rate.

Today the advertisers are spending a lot, putting the clutter of advertisements around the well accepted serials on DD and on private channels like Sony, Zee, Star TV, ESPN etc. Today everything is advertised whether it is product or service or the personality.


But the sad part is that many economists and sociologists even today consider advertising as waste and misleading and leads to price hike. They do not realize that without advertising we would not have obtained Nirma Washing Powder and its competitor Hindustan Lever’s Wheel over India at low prices. Two Akai TV’s at the price of one.

Today, the markets are created through advertising alone. Reliance textile became the giant, only through its ‘Only Vimal’ campaign. Pan Parag became the house hold name because of its advertisement featuring the film stars. Close up and Pepsodent created their markets through advertising alone. Pepsi, Coca Cola, Uncle Chips, Reynolds, Rasna, Magic Noodles and many more have become the household names.

Advertising very successfully play the role of informer and persuader. Today the consumer will not look at the product which is not advertised. Nobody wants to take any chances with a non-advertised product. Todays trend has become a boon for the ill paid creative persons and copy writers. Creative person, art person and copy writers are today a very scarce productive resource and everyone is talking of creativity and creative people.

Multinationals Hindustan Lever, Brooke Bond, Lipton are showing way to the rural markets which is now buying half the manufacturing output and is likely to go upto its population proportion of 70% by the end of this century.


Video vans equipped to show the commercials interspersed with film songs and film shorts are now available to any advertiser. The Entry of MBA bridgade has made the marketing and advertising very professional and the future of advertising is very rosy.