Ad industry ends up spending more at foreign locales

The outdoor advertising industry is facing a threat from countries such as China, the Philippines, South Africa and Australia because of the difficulties faced for outdoor location shoots in the country, says an Assocham report.

Venugopal Dhoot, president, Assocham, said, "The Indian advertising industry is currently valued at $290 billion, of which $70 billion is estimated to be in creative, animation and production space. Estimates reveal that during 2005-06, the advertising industry spent $7-8 billion for overseas shoots, which could have been accomplished in India with less than half the money."

In 2006-07, the expenses for shooting overseas amounted to around $10 billion, according to the report.

"The problems involved in obtaining licences for shoots and the lack of infrastructure at scenic locales has affected outdoor shooting schedules," said Abhijit Avasthi, executive creative director for Ogilvy & Mather Advertising, South Asia.

"In countries such as China, the Philippines, Singapore and Australia, film-makers easily obtain permissions for shooting. It is not that in India, we do not have similar locales "" just that it is difficult to obtain permissions for shooting in such locations. Moreover, most of these places in India, where one wants to shoot, do not have adequate infrastructure to support a shoot," added Avasthi.

According to the report, the other countries even extend support in the form of subsidies.

Added to this is the crowd management system in place which makes shooting there a better option, although it adds to the cost, informs Avasthi.

"It is true that the costs have gone up because of this issue and the other countries are taking advantage of the fact. However, this is not the only reason why costs here have gone up for making ad films."

To counter the effect of this phenomenon, Assocham has prepared a list of suggestions to be submitted to the government and industry. These include large budgetary allocations by the centre to states that have places of scenic beauty.

These would include Uttarakhand, Jammu & Kashmir, Himachal Pradesh, Punjab, Uttar Pradesh, Rajasthan and nearly all of the entire southern and northern-eastern states, besides Maharasthra.

"The government should create a 'single clearance window' for communication. This would encourage foreign advertisers to outsource their business to India," the Assocham report says.

Reduction of import duties on equipment needed to manufacture cost competitive cameras has also been suggested.