India might be benefiting from the retail boom, but even bigger benefits could be making their way into the pockets of advertising agencies. Experts in the thick of the action tell Moneycontrol that, huge budgets from retail giants await them by early next year.
As most companies make huge forays into the retail space, it’s time they let the world know, and what better way than to advertise. With companies like Reliance ADAG already spending huge amounts on their advertising, advertisers are gearing up to deal with huge adspends, by retail companies.
President at Ogilvy & Mather, JC Giri believes that by the beginning of 2007, there will be an increase in adspend due to the retail boom. He says, “Along with advertising, there is also a lot of PR involved. Now specific to retail, we see adspends taking shape by early next year, since right now companies are in the investment stage of their business. We will definitely benefit but I expect most of those huge budgets coming in by the fag end of this year or early next year.”
He believes that retail encompasses durables and FMCG, so while advertising budgets of FMCG companies will go up, that of durables will kick off by early next year.
Ashutosh Sharma from Lintas says that definitely adspend budgets of retail and FMCG companies will increase, more so since there is a lot of competition.
“If we look at the FMCG market, where HLL has been a market leader in terms of product reach and advertising, but it has competition from companies like Marico now. Also there is a lot of rural penetration that most companies are looking at now, so there will be aggressive advertising on that front too.”
While, he cannot reveal names but he says that they are getting accounts of a lot of companies that are significantly into the retail business.
Interestingly, companies also have a lot of options to explore as far as mediums of advertising go. And where retail is concerned, it is as personal as it gets.
“The game has changed in terms of media spend. There is a lot of juggling between various media like radio, TV, print, as well as the fast growing digital media, which includes mobile phones,” says Giri.
Ashutosh Sharma believes that one-to-one communication with consumers is what matters, especially when it comes to retail.
“Companies have been looking at e-advertising in a big way, along with advertising on the radio and digital mediums like mobile phone. Since, these are effective ways of getting personal with the consumer.”
However, all companies may not have very aggressive advertising budgets since it depends on the value they are providing the customer and how deep they plan to penetrate into the market. A lot of the focus is now on local planning and advertising on the local level, believes Giri.
Advertisers see a great amount of potential in radio, outdoor as well as digital advertising and they are indeed gearing up for the change.
Giri says, “We are prepared as an agency to deal with the changing environment. We already are into a lot of diversified advertising and have a proven expertise in that. We are looking forward to how this whole retail story unveils by next year.”
So, as India readies itself for Big (ger) Bazaars, ad agencies too are gearing up for huge accounts which will be coming their way soon.
Source : Money Control
As most companies make huge forays into the retail space, it’s time they let the world know, and what better way than to advertise. With companies like Reliance ADAG already spending huge amounts on their advertising, advertisers are gearing up to deal with huge adspends, by retail companies.
President at Ogilvy & Mather, JC Giri believes that by the beginning of 2007, there will be an increase in adspend due to the retail boom. He says, “Along with advertising, there is also a lot of PR involved. Now specific to retail, we see adspends taking shape by early next year, since right now companies are in the investment stage of their business. We will definitely benefit but I expect most of those huge budgets coming in by the fag end of this year or early next year.”
He believes that retail encompasses durables and FMCG, so while advertising budgets of FMCG companies will go up, that of durables will kick off by early next year.
Ashutosh Sharma from Lintas says that definitely adspend budgets of retail and FMCG companies will increase, more so since there is a lot of competition.
While, he cannot reveal names but he says that they are getting accounts of a lot of companies that are significantly into the retail business.
Interestingly, companies also have a lot of options to explore as far as mediums of advertising go. And where retail is concerned, it is as personal as it gets.
“The game has changed in terms of media spend. There is a lot of juggling between various media like radio, TV, print, as well as the fast growing digital media, which includes mobile phones,” says Giri.
Ashutosh Sharma believes that one-to-one communication with consumers is what matters, especially when it comes to retail.
However, all companies may not have very aggressive advertising budgets since it depends on the value they are providing the customer and how deep they plan to penetrate into the market. A lot of the focus is now on local planning and advertising on the local level, believes Giri.
Advertisers see a great amount of potential in radio, outdoor as well as digital advertising and they are indeed gearing up for the change.
Giri says, “We are prepared as an agency to deal with the changing environment. We already are into a lot of diversified advertising and have a proven expertise in that. We are looking forward to how this whole retail story unveils by next year.”
So, as India readies itself for Big (ger) Bazaars, ad agencies too are gearing up for huge accounts which will be coming their way soon.
Source : Money Control