Advertising agencies upbeat as rural marketing becomes mantra for corporates
Advertising agencies like Lowe Lintas and O&M are making the most out of the opportunity, with several FMCG clients looking towards Indian villages to market their products.
Lowe Lintas and O&M, which are considered to be most active in rural communication among all agencies say that rural advertising still accounts for a small part of the total revenues.
Lowe Lintas rural communications division, Linterland, has over 9,000 people in its network and has recently covered 2.5 million rural homes for HLL’s Fair & Lovely cream while pushing Titan’s Sonata watch and Britannia’s Tiger biscuit in the rural markets.
O&M rural communication division Outreach, is driving brands like Lux and Bru into the rural market among other products. In fact, such has been its rural penetration, the agency is also handling social projects like population and education programmes for the government and NGOs.
According to the agencies the cost per contact in the rural market is expensive. But the cost of acquiring market share is cheaper than the urban market.
Agencies find it quite challenging to reach the message to the rural population as no brand is largely urban or rural.
Our typical marketing budget is usually 10 per cent of the topline spend
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