The Anchor: Nagesh Alai on 6 ways advertising & promotion can prosper in the new fiscal

02 Apr,2012

By Nagesh Alai


#1 Economic Situation:

This is one of the prime factors driving advertising and promotions. In a challenging economic environment, which the GDP downtrend seems to be indicating, ensuring brand recall and staying top of mind with the consumers will be a necessity. While the sluggishness in anticipated growth started showing signs on the back of inflation, high interest, falling currency, etc., in the second half of last year, in a research conducted by our Group’s consulting arm, Cogito Consulting, the bold Report 2012 (available on shows that CEOs and CMOs of leading companies have predicted a slightly more positive outlook this year with a marginally higher growth rate than earlier years. Some see it as the beginning of a slow return to the high growth rates in the past. My expectation is that the more aggressive companies will take advantage of this trend and try and be the early drivers of growth in their respective categories, thereby investing ahead of their competition to establish an early lead.


#2 The London Olympics

Usually there is very little interest in the Olympics and more often than not this event slips by the advertisers radar. However, this year there is some interest in Men’s Hockey, Boxing, Wrestling, Badminton, Tennis and the firing range etc….which might pull in a larger number of sports hungry Indian audiences as they search for heroes beyond their usually preferred cricket


#3 CAS and Digitisation will lead to better segmentation and availability of more robust data about the audience, this will encourage companies as they will be able to measure the efficacy and coverage in a more systematic manner. The recent Star-Zee combine efforts and push for ensuring real reporting of actual subscribers should also give a further fillip in capturing better viewership data, as will the industry bodies ( IBF, ISA and AAAI ) coming together on BARC.


#4 Blockbusters on TV

As everyone knows, movies are a big, big draw in India. Nearly 40-50% of total content on TV is directly or indirectly based on films. The entire movie distribution model has changed. Unlike in the past, now blockbuster movies come on TV within weeks of their release in theaters, instead of months earlier. DTH, Pay TV and Video-on-Demand are shortening the time frames dramatically. This is also drawing audiences and therefore attracts higher spends by advertisers, ultimately helping grow the advertising industry


#5 New/Dormant Categories getting active

The general anticipation (though some call it sheer optimism) is that the government will open up new categories like retail. An upward trend to the economy would also help drive spends in financial services etc. The government is keen on generating funds for development by diluting it stake in several public sector companies. It is also a reality that there is a huge pent up queue for IPOs planned by various private sector companies as well….an improving economic situation will encourage companies to go public to raise funds and thereby spur the need for corporate campaigns and IPO advertising which will expand the industry further.


#6 And lastly, but not the least, the increasing “through-the-line” emphasis, whereby communication concepts are conveyed to target audience/consumers seamlessly through print, TV, out-of-home, activation, internet, social media, etc. will ensure that advertising and promotion will prosper. At the end of the day, it is all about building the brands and the clients better see advertising and promotion as an investment (which prudent clients do) and not as a cost – it is important to have long term view of brand building and not be blindsided by quarter pressures.


Nagesh Alai is the Director – Draftcfcb Ulka Group India Operations and the President, AAAI.



Post a Comment 

Comments are closed.