The ad slowdown is not a serious worry at this stage but is
beginning to bite mildly, a senior executive at Mindshare
the early forecast, Mindshare principal partner Jai Lala pegged
the growth figure at 8-10 per cent this year on the back of
a weak GDP growth and a dip in sports advertising revenues.
in the recent years we were growing at 18-20 per cent, we
will now grow at 8-10 per cent. It's not degrowth but slower
growth. A good quarter will, however, bring the buoyancy back,"
Mindshare executive believes that the upper limit is the most
likely speed the ad industry will grow in India this year
but does not rule out certain slowing influences that could
dampen the mood.
should be growing at 10 per cent unless we are pulled down
by bearish influences," he said.
had at the beginning of the year predicted that the ad industry
would grow at 12 per cent, expecting it to touch Rs 373.97
feels that the dip in financial advertising would be more
or less made up by the FMCG companies as they come out with
new launches and increase spends due to intense competition
in the sector.
retail sector is also witnessing a slowdown. "Print would
be more affected since both financial services and retail
are heavy ad spenders in that medium. Finance is co-related
to the Sensex and we could see a bounce back if the markets
start doing well," explained Lala.
drag down has been the Indian Premier League (IPL) which fetched
lower revenues than last year. "We were anyway expecting
the sports genre to be hit as we had the cricket World Cup
last year. The reduction in ad spends on the IPL may be attributed
largely to the fact that consumer durables and automobile
categories did not spend as robustly on the property as last
year," averred Lala.
it is still early to ring the alarm bells, expect a mild ad
slowdown this year if the economy doesn't slump further.