TRENDS IN INDIAN ADVERTISING INDUSTRY BY LARGE CORPORATE SECTOR

1.Advertising in India is primarily a phenomenon of the consumer goods producing
companies.
2. FCCs single handedly accounted for a dominant share in the total advertisement
expenditure. The Indian Big business, as represented by the Indian MRTP companies,
accounted for a sizeable share in the total advertisement budgets of the corporate
sector, though lower than that of FCCs.
3. Consumer goods producing FCCs accounted for more than four fifths of the
expenditure by the FCCs, and more than half the expenditure by the total reporting
companies. These companies emerged as the most important contributors to the
advertisement budgets of the corporate sector.
4. Among the FCCs, the ex-FERA companies and the foreign subsidiaries were the prime
contributors to the advertisement budget of the FCCs and majority of them were
consumer goods producing companies.
5. Trends similar to above were also reflected in the proportion of the sales turnover
spent on adver-tising, the exception to the rule being the Indian non-MRTP companies
producing consumer goods, that spent more than 1.00 percent of their sales turnover
on advertising in both 1980 and 1984.
6. Advertisement expenditure by the Indian Corporate Sector are highly concentrated.
Top 50 advertisers accounted for nearly 80 per cent of the total advertisement
budgets, whereas the Top 10 advertisers accounted for nearly 40 per cent of the total
advertisement budgets.
7. The Top 50 advertisers were primarily the consumer goods producers and the majority
of them were FCCs. Again, a majority of the FCCs constituting the Top 50 also
belonged to the categories of either the ex-FERA companies or the foreign
subsidiaries.
8. Hindustan Lever Ltd., the all time top advertiser accounted for nearly 10 per cent of
the expenditure by the corporate sector as a whole, as represented by the companies
under study.