19 June, 2021

Ad Infinitum? No More

The industry is hit hard as consumer good prices actually fall and consumers delay purchases

Ad Infinitum? No More

HAS the advertising slump bottomed out? Or is it going to get even worse? Advertising agencies of all sizes and shapes will certainly be hoping that things will get better now. For times are hard indeed.

The slowdown began a couple of years ago, when marketers, after four years of heady activity—brand launches, ad blitzes, concept selling, brand building—suddenly faced up to the fact that the Indian consumer was not responding enough to the enticements. Miscalculations of potential market size, inability to convert imagined potential to real numbers and the pall of political uncertainty that has been hanging over India for the last two years have forced marketers to cut back on advertising and concentrate on other means to get the customer to bite the bait.

"The main problem in the economy," says S. Dharmarajan, associate media director, Euro RSCG. "There is no stable government, as a result there is no stable fiscal policy. So no one can undertake any planned expenditure." So no advertising, which is...

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