|
|
India Corporations Cut Advertising Budgets
Jul 26, 2012 2:59 AM
By Dilipp S Nag
|
|
|
RAPAPORT... Corporate India curtailed its advertisement budget for brand promotions by up to 45 percent in the fiscal year that ended March 31, 2012, according to a survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). Advertising budgets were cut due to the high cost of credit, increased raw material prices, a hike in the interest rate and weak demand in domestic and export markets.
The survey entitled, “Ad Budget of Corporate India for 2011-12,” noted that the banking, telecom, financial services and insurance sectors, which account for a major share of ad expenditures in India, all reduced spending in the fourth quarter that ended on March 31. The government also minimized its advertising spending, ASSOCHAM noted.
D. S. Rawat, the secretary general of ASSOCHAM, explained that interest rate hikes adversely affected industry as the cost of borrowing rose, investments dried up and profit margins tightened.
The research, which surveyed approximately 500 companies across the country, revealed that big companies cut back on big brand advertising campaigns, opting instead for short-term sales promotions such as issuance of coupons and point-of- sale discount promotions to win over cash-strapped consumers. Rawat claimed that television and radio networks are facing tougher times as advertisers reduce their marketing budgets.
ASSOCHAM stated that the majority of companies are still hesitant to allocate more funds to their advertising and entertainment budgets due to a decline in earnings for fiscal 2012.
|
|
|
|
|
|
|
|
|
|
Tags:
Advertisement, ASSOCHAM, brand, budget, Corporate India, Dilipp S Nag, gems, Gems and Jewelry, India, Jewelry, promotion, Rapaport
|
|
|
|
|
|
|
|
|
|
|
|
|