Media-buying and advertising agencies are a worried lot. The last quarter was bad for them with overall advertising, across all media, dipping by 10-20 per cent. Some of them fear that if the global situation doesn't improve, there could be a renegotiation of prices and 10-15 per cent reduction in TV advertisement tariff. Below the line activities may still hold on considering that the December normally accounts for the maximum sales
Some trends that reflect the signs of slump:
* Upfront, there is no reduction in advertising rates, but client-to-client renegotiations are happening. Advertisers are bargaining very hard
* Brand building advertising is being badly-affected and if the market doesn't stabilise, the prospects will worsen.
* Scheme-based advertising, on the other hand, is doing well because of the festive season. If advertisers are not able to dispose their inventories by Diwali, they might extend the schemes till December
* FMCG, DTH and Telecom, etc., haven't seen any decrease in budgets. But realty and the BFSI sectors have cut their budgets by 30-40 per cent. Durables have also cut by 10-15 per cent.
October 29, 2008
Signs of Advertisement slump
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I wonder here, if the 90's learnings still hold true- especially for recessionary times and economies..brand categories such as fmcg's need to up the ante if not must maintain spends on brand communication!
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