According to the figures collated by Arthur Andersen and FICCI, the total below-the-line advertising is already touching the Rs 3,000 crore market. The growth rate of mass-media has been stagnating between 5-10 per cent annum, whereas below-the-line advertising is growing at 80-100 per cent.
Take for example, Fem Care Pharma Limited spend close to 30 per cent of their total advertising and marketing budget into the below-the-line activities. Britannia Industries has increased its spend by 20 per cent. At the launch of Kwality Wall’s softy ice-cream, HLL spend 30 per cent of the total ad budget on the below-the-line activities.
Major players like Maruti Udyog Limited and Godrej Foods Limited are using BTL even for new launches. Also, among the new sectors opening up to BTL communication will be healthcare, insurance and financial services.
Among the reason why BTL is growing faster in India is that mass media rates have shot up thanks to media fragmentation. While the spends are enormous, the returns are not measurable. Secondly promotions or loyalty programmes cost much less and the results are immediately measurable. The conversion rate is also higher.
The changing market place is also responsible for popularising BTL communication. In India recession is forcing companies to opt for BTL.
While US spends $14 on promotion for every dollar spent on mass media, in India, the ratio is 40:60.