Advertising is paid, one-way communication through a medium in which the sponsor is identified and the message is controlled by the sponsor. Variations include publicity, public relations, product placement, sponsorship, underwriting, and sales promotion. Every major medium is used to deliver these messages, including: television, radio, movies, magazines, newspapers, the Internet (see Internet advertising), and billboards. Advertising clients are predominantly, but not exclusively, profit-generating corporations seeking to increase demand for their products or services. Some organizations which frequently spend large sums of money on advertising but do not strictly sell a product or service to the general public include: political parties, interest groups, religion-supporting organizations, and militaries looking for new recruits. Additionally, some non-profit organizations are not typical advertising clients and rely upon free channels, such as public service announcements. The advertising industry is large and growing. In the United States alone in 2005, spending on advertising reached $144.32 billion, reported TNS Media Intelligence. That same year, according to a report titled Global Entertainment and Media Outlook: 2006-2010 issued by global accounting firm PricewaterhouseCoopers, worldwide advertising spending was $385 billion. The accounting firm's report projected worldwide advertisement spending to exceed half-a-trillion dollars by 2010. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. History of Advertising Advertising as a discrete form is generally agreed to have begun with newspapers, in the seventeenth century, which included line or classified advertising. Simple descriptions, plus prices, of products served their purpose until the late nineteenth century, when technological advances meant that illustrations could be added to advertising, and color was also an option. An early advertising success story is that of Pears Soap. Thomas Barratt married into the famous soap making family and realized that they needed to be more aggressive about pushing their products if they were to survive. He launched the series of ads featuring cherubic children which firmly welded the brand to the values it still holds today. He took images considered as "fine art" and used them to connote his brand's quality, purity (i.e. untainted by commercialism) and simplicity (cherubic children). He is often referred to as the father of modern advertising. ·
Profile of Barratt ·
Selection of ads ·
History of Bubbles However, it was not until the emergence of advertising agencies in the latter part of the nineteenth century that advertising became a fully fledged institution, with its own ways of working, and with its own creative values. These agencies were a response to an increasingly crowded marketplace, where manufacturers were realizing that promotion of their products was vital if they were to survive. They sold themselves as experts in communication to their clients - who were then left to get on with the business of manufacturing. World War I saw some important advances in advertising as governments on all sides used ads as propaganda. The British used advertising as propaganda to convince its own citizens to fight, and also to persuade the Americans to join. No less a political commentator than Hitler concluded (in
Mein Kampf) that Germany lost the war because it lost the propaganda battle: he did not make the same mistake when it was his turn. One of the other consequences of World War I was the increased mechanization of industry - and hence increased costs which had to be paid for somehow: hence the desire to
create need in the consumer which begins to dominate advertising from the 1920s onward. The 1950s not only brought postwar affluence to the average citizen but whole new glut of material goods for which need had to be created. Not least of these was the television set. In America it quickly became the hottest consumer property - no home could be without one. And where the sets went, the advertisers followed, spilling fantasies about better living through buying across the hearthrug in millions of American homes. The UK and Europe, with government controlled broadcasting, were a decade or so behind America in allowing commercial TV stations to take to the air, and still have tighter controls on sponsorship and the amount of editorial control advertisers can have in a programmer. This is the result of some notable scandals in the US, where sponsors interfered in the content and outcome of quiz shows in order to make their product seem, by association, more sexy. Unhappy with the ethical compromise of the single-sponsor show, NBC executive Sylvester Weaver came up with the idea of selling not whole shows to advertisers, but separate, small blocks of broadcast time. Several different advertisers could buy time within one show, and therefore the content of the show would move out of the control of a single advertiser - rather like a print magazine. This became known as the
magazine concept, or
participation advertising, as it allowed a whole variety of advertisers to access the audience of a single TV show. Thus the 'commercial break' as we know it was born.
History
Commercial messages and political campaign displays have been found in the ruins of ancient Arabia. Egyptians used papyrus to create sales messages and wall posters, while lost-and-found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock-art paintings that date back to 4000 BCE. As printing developed in the 15th and 16th century, advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. These early print advertisements were used mainly to promote: books and newspapers, which became increasingly affordable due to the printing press; and medicines, which were increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack" advertisements became a problem, which ushered in the regulation of advertising content. As the economy expanded during the 19th century, advertising grew alongside. In the United States of America, classified advertisements became popular, filling pages of newspapers with small print messages promoting various goods. The success of this advertising format eventually led to the growth of mail-order advertising. In 1841, the first advertising agency was established by Volney Palmer in Boston. It was also the first agency to charge a commission on ads at 25% commission paid by newspaper publishers to sell space to advertisers. At first, agencies were brokers for advertisement space in newspapers. N.W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer opened in 1875, and was located in Philadelphia. When radio stations began broadcasting in the early 1920s, the programs were aired without advertisements. This was so because the first radio stations were established by radio equipment manufacturers and retailers who offered programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups. When the practice of sponsoring programs was popularized, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. However, radio station owners soon realized they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single businesses per show. This practice was carried over to television in the late 1940s and early 1950s. A fierce battle was fought between those seeking to commercialize the radio and people who argued that the radio spectrum should be considered a part of the commons – to be used only non-commercially and for the public good. The United Kingdom pursued a public funding model for the BBC, originally a private company but incorporated as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were likewise able to persuade the federal government to adopt a public funding model. However in the United States, the capitalist model prevailed with the passage of the 1934 Communications Act which created the Federal Communications Commission. To placate the socialists, the U.S. Congress did require commercial broadcasters to operate in the "public interest, convenience, and necessity". Nevertheless, public radio does exist in the United States of America. In the early 1950s, the Dumont television network began the modern trend of selling advertisement time to multiple sponsors. Previously, Dumont had trouble finding sponsors for many of their programs and compensated by selling smaller blocks of advertising time to several businesses. This eventually became the norm for the commercial television industry in the United States. However, it was still a common practice to have single sponsor shows, such as the U.S. Steel Hour. In some instances the sponsors exercised great control over the content of the show - up to and including having one's advertising agency actually writing the show. The single sponsor model is much less prevalent now, a notable exception being the Hallmark Hall of Fame. The 1960s saw advertising transform into a modern, more scientific approach in which creativity was allowed to shine, producing unexpected messages that made advertisements more tempting to consumers' eyes. The Volkswagen ad campaign--featuring such headlines as "Think Small" and "Lemon" (which were used to describe the appearance of the car)--ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind. This period of American advertising is called the Creative Revolution and its poster boy was Bill Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this incredibly creative period. The late 1980s and early 1990s saw the introduction of cable television and particularly MTV. Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer tunes in for the advertising message, rather than it being a byproduct or afterthought. As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and Shop TV. Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access. At the turn of the 21st century, the search engine Google revolutionized online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising. The share of advertising spending relative to GDP has changed little across large changes in media. For example, in the U.S. in 1925, the main advertising media were newspapers, magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9%. By 1998, television and radio had become major advertising media. Nonetheless, advertising spending as a share of GDP was slightly lower -- about 2.4%. A recent advertising innovation is "guerrilla promotions", which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. This reflects an increasing trend of interactive and "embedded" ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social networking sites (e.g. MySpace). Indian Advertising History 18th Century 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 advertisements. 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 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). | 1905 | - | B Dattaram & Co claims to be the oldest existing Indian agency in |
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| Girgaum in Bombay |
| 1912 | - | ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake |
| 1920s | - | Enter the first foreign owned ad agencies |
| - | Gujarat Advertising and Indian Advertising set up |
| - | Expatriate agencies emerge: Alliance Advertising, Tata Publicity |
| - | LA Stronach's merges into today's Norvicson Advertising |
| - | D J Keymer gives rise to Ogilvy & Mather and Clarion |
| 1925 | - | LR Swami & Co, Madras |
| 1926 | - | LA Stronach & Co (India) Pr. Ltd, Bombay starts |
| - | Agency called National set up for American rather than British |
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| Advertisers |
| - | American importers hire Jagan Nath Jaini, then advertising manager |
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| of Civil and Military Gazette, Lahore. National today is still run by |
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| Jaini's family |
| - | Beginning of multinational agencies |
| - | J Walter Thompson (JWT) opened to service General Motors business |
| 1928 | - | BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set up |
| 1929 | - | J Walter Thompson Co Pr. Ltd formed |
Indian agencies, foreign advertising in the thirties | 1931 | - | National Advertising Service Pr. Ltd. Bombay set up |
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| - | Universal Publicity Co, Calcutta formed |
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| 1934 | - | Venkatrao Sista opens Sista Advertising and Publicity Services as first full service Indian Agency. |
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| 1935 | - | Indian Publicity Bureau Pr Ltd, Calcutta established |
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| 1936 | - | Krishna Publicity Co Pr. Ltd, Kanpur begins operations |
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| - | Studio Ratan Batra Pr. Ltd, Bombay established |
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| - | Indian Broadcasting Company becomes All India Radio (AIR) |
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| 1938 | - | Jayendra Publicity, Kolhapur started |
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| 1939 | - | Lever's advertising department launches Dalda – the first major |
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| example of a brand and a marketing campaign specifically developed |
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| For India |
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| - | The Press Syndicate Ltd, Bombay set up |
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Indianising advertisements in the forties | 1940 | - | Navanitlal & Co., Ahmedabad set up |
| 1941 | - | Lux signs Leela Chitnis as the first Indian film actress to endorse the |
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| Product |
| - | Hindustan Thompson Associates (HTA), the current incarnation of |
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| JWT, coins the Balanced Nourishment concept to make Horlicks |
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| more relevant to India |
| - | Green's Advertising Service Agents, Bombay formed |
| 1943 | - | Advertising & Sales Promotion Co (ASP), Calcutta established |
| 1944 | - | Dazzal, Bombay comes into existence |
| - | Ranjit Sales & Publicity Pr. Ltd, Bombay started |
| 1945 | - | Efficient Publicities Pr. Ltd, Madras set up |
| - | Tom & Bay (Advertising) Pr. Ltd., Poona begins operations in India |
| 1946 | - | Eastern Psychograph Pr. Ltd., Bombay set up |
| - | Everest Advertising Pr. Ltd, Bombay established |
| 1947 | - | Grant Advertising Inc, Bombay formed |
| - | Swami Advertising Bureau, Sholapur started |
| 1948 | - | RC Advertising Co, Bombay set up |
| - | Phoenix Advertising Pr. Ltd, Calcutta formed |
Corporate advertising in the fifties | 1950s | - | Radio Ceylon and Radio Goa become the media option |
| 1951 | - | Vicks VapoRub: a rub for colds, causes ripples with its entry |
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| in the balm market |
| 1952 | - | Shantilal G Shah & Co, Bombay |
| 1954 | - | Advertising Club, Mumbai set up |
| - | Express Advertising Agency, Bombay |
| - | India Publicity Co. Pr. Ltd., Calcutta |
| 1956 | - | Aiyars Advertising & Marketing, Bombay |
| - | Clarion Advertising Services Pr. Ltd, Calcutta |
| 1957 | - | Vividh Bharati kicks off |
| 1958 | - | Shree Advertising Agency, Bombay |
| 1959 | - | Associated Publicity, Cuttack |
Creative revolution in the sixties | 1960 | - | Advertising Accessories, Trichur started |
| - | Marketing Advertising Associates, Bombay set up |
| 1961 | - | Industrial Advertising Agency, Bombay comes into existence |
| - | Bal Mundkur quits BOMAS to set up Ulka the same year |
| 1962 | - | India's television's first soap opera - Teesra Rasta enthralls |
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| Viewers |
| 1963 | - | BOMAS changes names to SH Benson's |
| - | Stronach's absorbed into Norvicson |
| - | Lintas heading for uncertainty |
| - | Levers toying with giving its brands to other agencies |
| - | Nargis Wadia sets up Interpub |
| - | Wills Filter Tipped cigarettes launched and positioned as made for |
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| each other, filter and tobacco match |
| 1965 | - | Kersey Katrak sets up Mass Communication and Marketing (MCM) |
| 1966 | - | Government persuaded to open up the broadcast media |
| - | Ayaz Peerbhoy sets up Marketing and Advertising Associates (MAA) |
| 1967 | - | First commercial appears on Vividh Bharati |
| 1968 | - | Nari Hira sets up Creative Unit |
| - | India wins the bid for the Asian Advertising Congress |
| 1969 | - | Sylvester daCunha left Stronach's to run ASP; later sets up |
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| daCunha Associates |
| 1970 | - | Frank Simoes sets up Frank Simoes Associates |
The problematic seventies | 1970 1978 | - | National Readership Studies provided relevant data on |
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| consumers' reading habits |
| 1970 | - | Concept of commercial programming accepted by All India Radio |
| - | Hasan Rezavi gives the very first spot on Radio Ceylon |
| 1971 | - | Benson's undergo change in name to Ogilvy, Benson & Mather |
| 1972 | - | Western Outdoor Advertising Pvt Ltd (WOAPL) introduces first |
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| closed circuit TV (CCT) in the country at the race course in |
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| Mumbai |
| 1973 | - | RK Swamy/BBDO established |
| 1974 | - | MCM goes out of business |
| - | Arun Nanda & Ajit Balakrishnan set up Rediffusion |
| 1975 | - | Ravi Gupta sets up Trikaya Grey |
| 1976 | - | Commercial Television initiated |
| 1978 | - | First television commercial seen |
| 1979 | - | Ogilvy, Benson & Mather's name changes to Ogilvy & Mather |
Glued to the television in the eighties | 1980 | - | Mudra Communications Ltd set up |
| - | King-sized Virginia filter cigarette enters market with brand name |
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| of 'Charms' |
| 1981 | - | Network, associate of UTV, pioneers cable television in India |
| 1982 | - | The biggest milestone in television was the Asiad '82 when |
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| television turned to colour transmission |
| - | Bombay Dyeing becomes the first colour TV ad |
| - | 13th Asian Advertising Congress in New Delhi |
| - | Media planning gets a boost |
| 1983 | - | Maggi Noodles launched to become an overnight success |
| - | Canco Advertising Pvt. Ltd. Founded |
| - | Manohar Shyam Joshi's Hum Log makes commercial television |
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| come alive |
| - | Mudra sponsors first commercial telecast of a major sporting event |
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| with the India-West Indies series |
| 1984 | - | Hum Log, Doordarshan's first soap opera in the colour era is |
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| born |
| - | Viewers still remember the sponsor (Vicco) of Yeh Jo Hai |
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| Zindagi! |
| 1985 | - | Mudra makes India's first telefilm, Janam |
| 1985- | - | 915 new brands of products and services appearing on the Indian market. |
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| 1986 | - | Sananda is born on July 31. The Bengali magazine stupefies India |
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| by selling 75,000 copies within three hours of appearing on the |
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| newsstands. |
| - | Mudra Communications creates India's first folk-history TV |
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| serial Buniyaad. Shown on DD, it becomes the first of the |
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| mega soaps |
| - | Price quality positioning of Nirma detergent cakes boost sales |
| 1988 | - | AAAI's Premnarayan Award instituted |
| 1989 | - | Advertising Club Bombay begins a biennial seminar called |
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| 'Advertising that Works' |
Tech savvy in the nineties | 1990 | - | Marks the beginning of new medium Internet |
| - | Agencies open new media shops; go virtual with websites and |
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| Internet advertising |
| - | Brand Equity (magazine) of The Economic Times is born |
| 1991 | - | First India-targetted satellite channel, Zee TV starts broadcast |
| - | Close on the throes of the Gulf War enters STAR (Satellite |
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| Transmission for Asia Region) |
| 1992 | - | Spectrum, publisher of A&M, constitutes its own award known as |
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| 'A&M Awards' |
| - | Scribes and media planners credit The Bold And The Beautiful |
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| serial on STAR Plus channel as a soap that started the cultural |
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| Invasion |
| 1993 | - | India's only advertising school, MICA (Mudra Institute of |
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| Communications Ahmedabad), is born |
| - | Tara on Zee TV becomes India's first female-centric soap |
| 1995 | - | Advertising Club of Bombay calls its awards as Abby |
| - | Country's first brand consulting firm, SABRE (Strategic Advantage for |
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| Brand Equity) begins operations |
| 1996 | - | The ad fraternity hits big time for the first time by bagging three |
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| awards at the 43rd International Advertising Festival, Cannes |
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| Sun TV becomes the first regional TV channel to go live 24 hours |
| - | a day on all days of the week |
| 1997 | - | Media boom with the growth of cable and satellite; print medium |
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| sees an increase in titles, especially in specialised areas |
| - | Government turns towards professional advertising in the private |
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| sector for its VDIS campaigns |
| - | Army resorts to the services of private sector agencies |
| - | Advertising on the Internet gains popularity |
| - | Equitor Consulting becomes the only independent brand consultancy |
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| company in the country |
| - | Several exercises in changing corporate identity |
| - | For the first time ever, Indians stand the chance of winning the $ 1- |
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| million booty being offered by Gillette as part of its Football World |
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| Cup promo 1998 |
| - | Events assume important role in marketing mix |
| - | Rise of software TV producers banking on ad industry talent |
| - | Reinventing of cinema -advertising through cinema begins |
| 1998 | - | Lintas becomes Ammirati Puri Lintas (APL) |
| 1999 | - | B2B site agencyfaqs.com launched on September 28, 1999 |
| - | The Advertising Club Bombay announces the AdWorks Trophy |
In the new millennium | 2000 | - | Mudra launches magindia.com - India's first advertising and marketing |
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| Gallery |
| - | Lintas merges with Lowe Group to become Lowe Lintas and Partners |
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| (LLP) |
| - | bigideasunlimited.com - a portal offering free and fee ideas for money |
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| launched by Alyque Padamsee and Sam Mathews |
| - | Game shows like Kaun Banega Crorepati become a rage; media buying |
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| industry is bullish on KBC |
| - | Kyunki Saas Bhi Kabhi Bahu Thi marks the return of family- |
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| oriented soap on TV |
| - | French advertising major Publicis acquires Maadhyam |
| 2001 | - | Trikaya Grey becomes Grey Worldwide |
| - | Bharti's Rs 2.75-crore corporate TV commercial, where a baby |
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| girl is born in a football stadium, becomes the most expensive |
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| campaign of the year |
| 2002 | - | Lowe Lintas & Partners rechristened Lowe Worldwide |
| - | For the first time in the history of HTA, a new post of president is |
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| created. Kamasssssl Oberoi is appointed as the first president of HTA |
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