Advertising sector in Kolkata is expected to remain steady, bypassing the national recessionary trend which predicts close to 50 per cent drop in advertising in 2009.
According to industry experts and advertising agencies in Kolkata, while advertising in mediums like magazines and cinema is likely to see a decline this year, spends on the outdoor are unlikely to grow but may not decline either. Television and newspapers will see only a marginal growth in ad spends.
According to analysts, Shah Rukh Khan-led Kolkata Knight Riders (KKR) was the biggest media and advertising property created in Kolkata in 2008, which marked the arrival of a long-term property and was able to push General Entertainment Channels to re-look at their pricing.
To be fair, while all other IPL teams, that did not make it to the finals, expect to break even in two-three years, KKR was the only team to have made a profit of Rs 5 crore in the inuagural IPL season, thanks to sale of merchandise and exhaustive viewership.
According to Sharmistha Dev, senior VP of Ogilvy & Mather, Kolkata, "Advertising has not seen a hit in Kolkata, but the growth has been nominal with existing large clients. Also, 2008 did not see entry of any major businesses. Going forward, there may be a nominal drop in spends for some of the key advertisers from Kolkata."
According to Raji Ramaswamy, senior VP of JWT in Kolkata, "Advertising revenues did not drop so far and we have managed to meet the targets set for 2008 as an office and agency. Our revenues are not dependent on organic growth only but also on newer opportunities from inorganic and new sources. The oulook is one of cautious optimism. I think both print and television will hold. There may be a cut down on the overall outdoor spends and other spends."
"Advertising funded programmes where the brand gets integrated into the programme is gradually emerging since there are too many reality programmes being aired. However, it is still relatively expensive and so largely funded by FMCG brands. Internet is emerging as a viable platform and clients are considering it, albeit in a smaller scale. Mobile is likely to be the next big communication platform. Activation will continue to play its role in creating brand experience and conversion," Ramaswamy added.
According to Ramaswamy, "There may be some new properties created around the IPL in 2009, though on a smaller scale."
"IPL was a big property built in 2009 but any new properties will require serious monetary backing and it is unlikely that 2009 will see takers for new properties on account of recessionary pressures that are likely to loom larger in 2009," Dev pointed out.
According to Amitava Sinha, executive VP of Rediffusion in Kolkata, "Growth in advertising will depend largely on how the largest advertisers grow in 2009. In Kolkata there are only a handful of big advertisers like ITC, Spencer's Retail, ITC, Eveready, among others. Advertising space in Kolkata is dominated by FMCG, retail and real estate companies and a few local jewellery brands."
"Print ads may dip but other less expensive advertising medium will grow, like digital, online and low-cost interactive advertising platforms," Sinha added.
According to Nirmal Thakur, secretary of Outdoor Advertising Agency Association, "November and December 2008 saw close to 30 per cent drop in outdoor advertising in Kolkata, despite the festive season. The year ahead may see outdoor growing marginally." The total market for advertising in Kolkata is estimated at Rs 500 crore, of which outdoor comprises around Rs 200 crore.
