It's a wonderful time for the ad Industry. The sector has witnessed
a double digit growth rate estimated at 15 and 20 per cent this year,
primarily because of Infrastructure and real estate companies' demand
of advertising. Companies in general are increasing their expenditure
on advertising.
"The year has been fantabulous with the industry having phenomenal
business. The major contributors to the ad industry boom are companies
which have begun to advertise for the first time, especially from the
Real Estate Sector.
The list of companies range from those building airports such as GMR
to a real estate major such as India Bulls. While unconventional advertisers
in the construction and real estate sector have jumped on to the advertising
bandwagon, the FMCG industry, which has always relied on advertising
to build its brands has raised its spends in the past year.
According to Mr Balakrishnan HUL has increased its ad spends this year.
"We continue to have 35 per cent of the revenues contributed by
the FMCG companies." So while the usual advertisers have been increasing
their ad spends, there are exceptions such as consumer durable players
who have been conservative this year.
"The ad spends by durable brands has remained constant this year
although high spends have been made by financial services, infrastructure,
insurance and FMCG companies," says Balakrishnan.
