Corporate ad spend to dip up to 35 percent: ASSOCHAMApril 2nd, 2009 - 8:27 pm ICT by IANS
New Delhi, April 2 (IANS) Corporate India’s budget for brand promotion and entertainment will fall by nearly 32-35 percent in 2009-10 on account of the current meltdown, an industry lobby said in a report released Thursday.
An internal assessment of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), which involved nearly 300 companies, said a “vast majority” of private sector firms were yet to make their promotional budget public.
The companies that participated in the assessment exercise were from several sectors such as fast moving consumer goods (FMCG), home and electronic appliances, real estate, textiles, gems and jewellery and luxury products.
“Private sector ad and entertainment budget will shrink by 32-35 percent. The situation will be similar for the public sector as well,” said ASSOCHAM secretary general D.S. Rawat.
According to the industry group, the automobile and FMCG firms usually earmark about 10-12 percent of their total earnings for brand promotion.
“However, the current situation is so bad that despite the electronic and print media slashing ad rates by 25-30 percent and offering heavy discounts, majority of corporates are still dithering to fix allocations for advertisement and entertainment,” it said.
Rawat said leading dailies, which in the past came out with “thicker and heavier” weekly pullouts to create additional advertising space, have reduced the size by almost half.
“This indicates corporates are not making use of space available in such pullouts,” he added.
ASSOCHAM, however, said promotional activities were likely to pick up once economic turmoil blows over in 10-12 months.
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