India is planning to slash ad spend for the first time in the country’s history in coming weeks as Prime Minister Narendra Modi announced the “business is now back”.
Key points:Advertisers say the cuts will boost sales in the months to comeIndia will be the biggest advertiser in the world, but is facing its biggest competition in the marketThe cuts are expected to boost sales of adverts for the next three monthsIndia’s top advertising executive said the cuts would boost sales by about $4 billion in coming quartersIndia’s Advertising Standards Authority has recommended that ad spending in the coming three months is cut by up to $4bn.
India’s advertising industry is facing the biggest challenge since the start of the economic slowdown, with consumers and brands alike reporting a steep drop in sales.
Its ad spend has been reduced in the last few years and was up only 2% in the third quarter of 2016, according to the Advertising Standards Board.
That had led to fears that the sector would slow down.
But Prime Minister Modi said in his weekly address to the nation that the country was facing a “historic opportunity” to boost the economy and boost sales.
“The government has done its part to help the business and business people in the past year, and we will continue to do so,” Mr Modi said.
I will continue this support for you.””
I would like to thank the country for its support and commitment to our economic growth.”
I will continue this support for you.
“India’s business, which accounts for a third of the countrys GDP, was hit hard by the financial crisis in 2008, when it was one of the world’s most indebted countries.
It has now overtaken China to become the world leader in ad spending.”
There is a great desire in India to increase sales.
It’s also a great source of support for the economy,” said Amit Mishra, the president of global marketing company Adhia Media Group.”
India’s consumers are hungry for better quality goods and services.
We need to be patient and allow this to happen.
“Advertising standards board member Kishore Kumar said the government was also doing its best to boost Indian exports, particularly in apparel and footwear.”
What is clear is that the industry is recovering in India.
We have been able to recover the full share of our share, which is about 40% of our total share,” Mr Kumar said.
However, the advertising industry will face challenges in the years to come.
India’s top advertisers, including Adidas and PepsiCo, have already reduced spending.
In January, Adidas cut its ad spending to less than $2.5bn, and Pepsi was the only ad agency to increase its spending.
Adidas has already cut its spending by more than $7bn in the first half of 2017.”
That’s a very significant amount.
It shows how serious the market is, but we also know that there is an industry that will grow and expand.
The industry is in a period of transition and we are seeing that,” Mr Mishra said.
Advertising in India has traditionally been the lifeblood of India’s economy, but with its current political climate, the country has struggled to keep up with the demand for its goods.
Advertiser surveys have also been showing a sharp drop in consumer interest in adverts in recent months.