Wednesday December 24, 09:10 AM

Source: Indian Express Finance

Downturn to aid smart ad agencies in gaining market share

By Lalitha Srinivasan
What will really work in the Rs 19,000-crore Indian advertising industry in 2009? When the going gets tough, the tough get going will be the catch phrase in 2009, feel advertising agency chiefs across the country. They predict that smart agencies will gain market share during difficult times. Mediocre agencies will go down while ad agencies with great ideas will flourish in the new year. Key sectors like telecom, FMCG and financial services will spur the advertising industry s growth in 2009, said Sagar Mahabaleshwarkar, chief creative officer, Rediffusion DYR. Sam Balsara, chairman and managing director, Madison World, feels that media agencies will grow in importance in 2009 and one can expect a greater arbitrage in media rates. I am sure the industry will not decelerate; rather, it will grow at a rate that most of us will not be happy with. I think FMCG, education and insurance sectors will be major growth drivers in 2009, he said. Madhukar Kamth, chairman and managing director, Mudra Group, predicts that the industry will register single digit growth, roughly 6-9%, in 2009. Given the current environment, what will work in 2009 is accountability and return on investments (ROI). Ad agencies that deliver results will flourish in 2009. Sectors such as FMCG and telecom will register consistent growth in the new year, he noted. Prasanth Mohanachandran, executive director, digital services, OgilvyOne Worldwide, India and Neo@Ogilvy, India also airs similar views. He said that accountability and performance marketing will be the key factors in the 2009. I am optimistic about the growth of the Indian ad industry. You can call it cautious optimism . I think the media and entrainment sector will be a key growth engine for ad industry in 2009, he said. MG Parameswaran, executive director and CEO, Mumbai, Draftfcb + Ulka, said that the Indian ad industry will face turbulent times in 2009. We are expecting financial recovery in the next few months. Sectors like FMCG and telecom will spur the industry s growth. But other sectors will be under pressure, he said. According to industry analysts, there will be a shift in advertising patterns in the next year. We expect telecom service providers to be a growth driver in 2009. Service providers like Vodafone, Idea and Airtel (BHARTIARTL.BO : 283.65 +2.65) will continue to spend more on advertising in the new year, said an industry analyst based in Mumbai.