Signals are for a mild ad slowdown: Mindshare's Lala

MUMBAI: The ad slowdown is not a serious worry at this stage but is beginning to bite mildly, a senior executive at Mindshare said.

Slashing 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.

"If 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," said Lala.

The 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.

"We should be growing at 10 per cent unless we are pulled down by bearish influences," he said.

Mindshare 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 billion.

Lala 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.

The 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.

Another 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.

Though it is still early to ring the alarm bells, expect a mild ad slowdown this year if the economy doesn‘t slump further.

Also Read:

Ad Slowdown Looms

Latest Reads
fbb celebrated world shorts day with Rapper Chandan Shetty in Bengaluru

fbb, the fashion destination at Future Group, is back again this year with World Shorts Day on 21st April.

MAM Marketing MAM
Panasonic India takes modern lifestyle to a new high with its latest brand campaign #AspireToMore

In an endeavor to provide total lifestyle solutions for its customers, Panasonic India, has recently launched a new marketing campaign “AspiretoMore” for its range of premium home appliances.

MAM Media and Advertising Ad Campaigns
Ottomate and The Womb bring ‘common sense’ into smart fan innovations

In a category that has seen next to no meaningful innovation in the last 100 years, Ottomate plans to bring innovations to fans that today’s Indians truly want.

MAM Media and Advertising Ad Campaigns
Mullen Lintas Bangalore to step up Ruosh creative mandate

Ruosh – premium footwear and accessories brand – has appointed Mullen Lintas as its brand agency.

MAM Media and Advertising Account
Innovative product from Cornitos - Mélange Veggie Nacho Crisps

Keeping pace with the trend of healthy snacking, Cornitos has developed a innovative product - Mélange Veggie Nacho crisps, made from natural vegetable extracts blended with Corn Masa & seasoned with Himalayan Pink Salt and Roast Garlic.

MAM Marketing MAM
Kingston Technology, InDeed launch ‘Earth Edition’ flash drives on World Earth Day

In a bid to draw attention towards our planet’s current state, Kingston Technology has launched #EarthEditionDrive, which turns the Earth into a USB flash drive that educates and drives people to take action.

MAM Marketing Brands
Ogilvy and

Introducing, a new sports content website and app for cricket fans powered by innovative data driven insights and content offerings.

MAM Marketing MAM
Cartoon Network collaborates with POPxo to launch The Powerpuff Girls collection

Cartoon Network continues its 20th-anniversary celebrations of The Powerpuff Girls by unveiling an exciting collaboration with POPxo, India’s largest community for women.

MAM Marketing Brands
Fit & Glow's digital-first marketing strategy

When in 2013, we started our company Fit & Glow Healthcare Pvt Ltd it was to work around our passion for health, wellness and nature-inspired beauty products. We wanted to introduce to the consumers a new concept of products which contained the best and the purest forms of bio-actives and...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories