The aggressive cost-cutting strategies adopted by companies in the corporate sector to cut down their advertising and marketing expenses have prompted some industry players to believe that this would have a major impact on the revenue of the Indian advertising industry. Some experts in the sector have predicted a slow growth for the ad industry this year as compared to the last few years.
“In times of uncertainty like this, businesses are tightening their budgets and relegating their promotional activities to the backseat. Hence, the margins of small and mid-sized marketing and advertising firms in India have come under tremendous pressure as their clients continue to cut back on ad-spends,” said Sudhir Ranawat, who works with Crossway Advertising and Marketing, a mid-sized advertising firm in Mumbai.
The low-growth projections have also forced some ad players to put a stop to their ambitious expansion plans and review their marketing strategies.
“Shrinking budgets, heightened competition and tough economic conditions have compelled ad firms to rethink their growth plans. Hence, we anticipate that the advertising industry will see sluggish growth in the current financial year,” said M Roy, senior ad executive working in Accord Advertising, a small ad firm in Kolkata.
Although increasing cut-backs in advertising budgets are a cause for concern for small ad firms, some clients are still investing in result-oriented, innovative and smart marketing initiatives. Hence, there is a need for small advertising companies to come up with brighter ideas and competitive pricing policies in order to sustain their growth.
For more detail on
Indian Manufacturers log on to http://www.bizxchange.in
David Parks is a well known author and has written articles on
Toys Suppliers, B2B Portal,
Products Directory, suppliers, Manufactures and many other subjects.
