Corporate ad-budgets rise up to 40% in 2010-11
28 Sep 2010
The revival of the economy after the recessionary trends has led companies in India to raise the advertising and promotional budgets by an estimated 30-40 per cent in fiscal 2010-11, said the Assessment of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The industry body pegged the hike in expenses for brand promotions and entertainment to the spurt in demand and manufacturing.
The sectors with huge ad-spends include fast moving consumer goods (FMCG), home and electronic appliances, automobile, real estate, textiles, gems and jewellery and luxury products.
ASSOCHAM also noted that newspapers and magazines have increased the pages in to accommodate the ads being sponsored by corporates.
D S Rawat, secretary general, ASSOCHAM , said in a statement, ''If the trend continues the advertisement budget's of the companies may go up further in another two quarters of the financial year.''
Nearly 500 companies in the large and medium segment had participated in the internal assessment exercise by ASSOCHAM in Delhi, Mumbai, Chennai, Hyderabad, Pune, Kolkata and Chandigarh.
''The ad promotion activities and enhancement in entertainment and other allowances will pick up fast, which will increase the growth of advertisement specially during the ensuring festive months,'' said ASSOCHAM in a statement.
