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Tata AIG moves ad account to Bates India

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Tata AIG moves ad account to Bates India

Tata AIG has shifted its advertising business from Hindustan Thompson Associates to Bates India. Bates Mumbai, which pitched for the account along with Ogilvy & Mather, FCB Ulka, Ambience D'Arcy, Publicis and SSC&B Lintas, bagged the account after elbowing out O&M in round two. Industry estimates put the size of the account in the range of Rs 15 to 20 crore.

One reason why Tata AIG may have thrown its lot behind Bates India is because Bates services the account in other regional markets such as Korea, Japan, Thailand and China as well.

Industry giant and public sector Life Insurance Corporation is by far the biggest ad spender. In the last three months, though, the No 2 spender has been Om Kotak, though its activity have largely remained concentrated in Delhi, followed by Tata AIG, Birla Sunlife and Max New York Life, all of which are estimated to have spent Rs 2.5 crore in the last three months.

The insurance sector is seen by the advertising agencies as one of the few categories that is likely to increase adspends in the next year. In financial year 2000, category spends were Rs 52 crore, according to monitoring agency COFT.

This year's spends have been higher, with almost Rs 50 crore being spent in the first six months of 2001 alone, according to COFT, and sources expect the year's spending to touch Rs 200 crore.

HTA's sister agency Contract recently won the Alliance Bajaj account, which was expected to move to HTA. O&M handles the Royal Sundaram and SBI Life accounts already. Tata AIG received its licence in January this year and the account had been with HTA since then.


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