Ad spend rise hopes rest on RBI rate cut

Even a lower than anticipated rate cut might help convince large advertisers to add extra money to their ad budgets, says Nawal Ahuja of exchange4media

e4m by Nawal Ahuja
Published: Jun 18, 2012 3:09 AM  | 3 min read
Ad spend rise hopes rest on RBI rate cut

With the economy poised delicately, RBI’s cautionary advice ahead of today’s quarterly rate review came in view of inflation numbers released Thursday. The numbers highlight challenges faced by the bank in balancing growth and price rise worries.

Analysts and industry expecting promising rate cuts to kick-start economic growth might have to temper down their expectations. However, even a lower than anticipated rate cut might help convince large advertisers across industries to add extra money to their ad budgets boosting ad industry growth prospects for the current year.

In its annual industry outlook released at the start of this year, Pitch Magazine had projected a nine per cent growth for the ad industry. With one full quarter of slow growth behind us, most industry watchers don’t expect that figure to be bettered. With absence of a big TV property such as Cricket World Cup this year and lesser than expected revenues of IPL, Q1 numbers for the broadcasting industry have anyway been lower.

Sectors such as real estate, auto, financial services that get directly affected by interest rates have borne the brunt of plunging sales. Telecom, the star advertising sector of the last decade has seen companies squeezed of cash by multiple factors such as 3G licence costs and drying up of credit lines from lenders on back of scams that has led to a cut in ad spends.

But a cut in interest rates could change all that and convince companies to recalibrate their growth prospects and open up ad budgets. A 0.5 per cent cut in interest might not be enough to boost auto sales or increase home sales but it has the potential to improve investor sentiment and point towards easing liquidity situation, factors most important to kick-start consumer spending.

Recent hike in petrol prices and talk of diesel price hike has already added uncertainty to the auto sector’s prospects. Though industry and analysts in a recent article in exchange4media had predicted heightened ad activity by auto players to sell their petrol vehicle stock, continuation of sales trends of last couple of years might result into stagnation of ad spends, unless RBI cuts rates and makes vehicle buying more lucrative.

Consumer goods companies though have emerged as the silver lining. Unaffected by inflation and interest rates, people continue to use soaps and oils. Companies such as Marico and Colgate that countered the last round of downturn by increasing prices and cutting costs have seen profit margins rise that has allowed them the liberty of investing the extra earned cash in advertising.

In the three months ending March 2012, Marico had upped its ad spend by 76 per cent on YOY basis, indicating renewed push on chasing volume growth, a trend likely to continue this year. Increasing competition in the consumer durables sector is also forcing companies to up ad presence. In a recent PTI report, Sony India’s Managing Director Masaru Tamagawa was quoted to have committed a 30 per cent increase in ad spends for the company. To counter heightened competitive activity, the company is launching a slew of new models and backing them with elaborate ad support. Companies such as Canon, Nikon have been very active over the last quarter.

After a mixed last few years when leading companies such as Star, BCCL, Zee, Viacom have seen healthy growth on one hand and new entrants such as 9X, Imagine TV, Real TV shutting shop, media companies will be looking at RBI with keen interest to see how media companies will be looking at RBI with keen interest to see how the next few quarters shape up.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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