With the economy showing signs of a revival, the advertising industry in India is expecting advertising spend to show a growth of 10-13 per cent next financial year. Even sectors like print and outdoor advertising, which saw a decline last year, are expected to make a comeback, say advertising professionals.
“Companies were cautious in 2009 with the economic slowdown. However, the caution is leading to an optimism in 2010. With ad spends expected to rise, the industry could register a double-digit growth,” said Srinivasan K Swamy, chairman of R K Swamy BBDO.
Industry estimates that the total ad spend in 2009 was roughly around Rs 20,000 crore, of which print and television advertising occupied the major chunk with nearly Rs 16,000 crore and the rest was distributed among outdoor, internet and radio-based advertising. While television advertising continued to register a 6-8 per cent growth, outdoor and print advertising is estimated to have declined 15-20 per cent.
Sectors, said Swamy, that contributed majorly to the ad spend in 2009 included auto, telecom, FMCG and financial services. Real estate, stock market-related businesses, capital goods, textiles and cement recorded negative ad spend.
Despite a prediction of growth in ad spends, industry insiders say it would be difficult to predict growth in business for advertising agencies.
“Ad spend will go up in 2010, but it could well be because of cost inflation and fragmentation of media. I am not sure how much of that ad spend will translate into business for an advertising agency,” said a senior officIal at Brand-Comm.
Advertising agencies say that for 2010, companies would be looking at ways to connect with customers at a time when a young consumer born between 1982 and 2000 receives over 3,000 distinct advertising messages everyday. Calling it an age of ‘disruption’, Swamy said the industry would have to build its brand and stay relevant against the backdrop of constantly changing consumer profile and evolving media mix.
To address this, the Confederation of Indian Industry (CII) is organising ‘Brand Summit 2010’ in its fifth edition, a two-day international conference on brand building, with the theme of ‘Marketing Disruption: How Will Brands Woo Consumers in the Age of Discontinuity?” at Bangalore on February 19 and 20, 2010.