No turnaround in ad spends despite bullish market sentiment

MUMBAI: The business sentiment may have turned positive following a slew of FDI policies but advertisement spends are not going to change dramatically.

The festival season has already begun but the advertisement spends are not as anticipated. The slowdown in ad spends since the beginning of this year will see no recovery yet, experts said.

“This festive season is pretty in its run and the mood is not very great. The advertising spends are not up to the kind of

expectations, there is still a slowdown,” said Allied Media COO P M Balakrishnan.

He said as far as the reforms by the government are concerned, “it’s the steroid put in the economy to create the right sentiment.”

Officials at other media agencies too said that though the business climate is better than earlier months of this year, it’s not better than the same period of last year.

Echoes OMD India COO Harish Shriyan, “Festive season is always better. Most of the advertisers in any case are spending money and they will continue to do so but the level and kind of money they used to spend earlier is not the same this time. Though it is better than the previous few months I don’t think there is any kind of major reaction because of the policies and all. I doubt that advertising spend will increase in these (the remaining) months (of the year).”

Balakrishnan feels the advertising spends on television will continue to be moderate this year. “Slowdown is going on. It’s not that people are withdrawing but also they aren’t going over-board and gung-ho this season.”

According to GroupM’s revised forecast, the advertising expenditure on television is estimated to grow at 5.6 per cent to gross Rs 148.12 billion in calendar year 2012 against earlier estimate of a 12 per cent growth.

Havas Media CEO India and South Asia Anita Nayyar agreed that the growth in spends this season will be in the same range of five

to six per cent.

She noted that the festival season has now started to look up and it’s high time as Diwali is just a little more than a month away. “Earlier the season preparation would start almost two to two-and-a-half months in advance. It’s always nice for the advertising industry to grow and I hope that advertisers will now start seeing advertising budgets as investments rather than expenditures now that the sentiment is improving.”

SMG CEO Malli CR, however, feels that ad spends on television are ok. “It is not that the things are terribly down, there are quite few sectors where things are ok, and they may not be growing at an exponential rate. Sectors like telecom and consumer goods are advertising and FMCG is anyway continuing to advertise so it’s not that the economy has come to a standstill.”

“Some sectors like BFSI, automobile are probably not spending as much as they would have. FMCGs put together account for about more than 55 per cent TV advertising. Everybody is hoping that Diwali should lead to something better. People are spending on digital and other mediums, so it’s not a bleak scenario,” Malli added.

Latest Reads
Fogg maker takes on fairness creams with Pretty24

Taking a stab at fairness creams’ perennial message of fair skin being the benchmark beauty and success, Fogg deodorant maker Vini Cosmetics (Vini) is touting the idea that every shade of skin is equally beautiful. The company has been plugging the primetime of mainline television channels for the...

MAM Marketing MAM
55% marketers make better decisions with machine learning: iProspect report

MUMBAI: Digital agency iProspect has released its third annual Future Focus whitepaper geared to examine how machines and technology are impacting marketing and advertising in the year ahead. The paper takes a look at how brands can make the most of machines in 2018, from facilitating seamless...

MAM Marketing MAM
Paisabazaar aims Rs 1500 cr mutual fund AUM by 2018

MUMBAI: Paisabazaar has announced that assets under management (AUMs) garnered through its mutual funds products crossed Rs 1000 crore mark last month. The organisation says it is confident of reaching Rs 1500 crore of AUM by March 2018. The fin-tech company launched mutual funds on its platform...

MAM Marketing Brands
Blackberrys gives digital mandate to FoxyMoron

MUMBAI: Menswear fashion brand Blackberrys has assigned its digital mandate to FoxyMoron after a multi-agency pitch. The account will be managed from the agency's north office. As per the mandate, FoxyMoron will be managing the digital creative, media, search engine optimisation as well as website...

MAM Marketing Brands
Kajaria Ceramics launches campaign with Anushka Sharma

MUMBAI: Kajaria Ceramics through its subsidiary Kajaria Bathware has launched a 360-degree marketing campaign with Anushka Sharma who was recently announced as the brand ambassador. By investing in this marketing campaign and an extensive distribution network Kerovit, the bath solutions brand by...

MAM Marketing MAM
Greenply questions your plywood choice

MUMBAI: Greenply has launched its new campaign to make consumers aware that there are consequences of compromising on the quality of plywood used in their furniture.

MAM Marketing MAM
NBA partners Jabong to operate official online store

The National Basketball Association (NBA) and Jabong, India’s fashion and lifestyle e-commerce platform – today announced a multiyear partnership extension that will provide fans access to authentic NBA merchandise in more than 730 cities across India.

MAM Marketing Brands
Coca-Cola launches Maaza Gold

MUMBAI: Coca-Cola India has announced the launch of 'Maaza Gold', a premium mango drink made from the choicest of mangoes.

MAM Marketing Brands
Cipla launches TVC for ActivKids Immuno Boosters

MUMBAI: Mothers’ concern for their children’s health goes to the extent of restricting them from indulging at times. Capturing one of these many concerns, Cipla has released a new TVC for its kids' immunity supplement ActivKids Immuno Boosters.

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories