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Writing Instruments, Toilet soaps and Two-wheelers fastest growing spenders.<br>ORG-MARG Ad-Spend data provides valuable insights- Part I

18-March-2002
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Writing Instruments, Toilet soaps and Two-wheelers fastest growing spenders.<br>ORG-MARG Ad-Spend data provides valuable insights- Part I

According to the latest ORG-MARG data, in 2001, Writing instruments category increased the advertising by a whopping 125% thereby becoming one of Top 10 advertising categories. Toilet soaps and Two-wheelers also increased ad spends by 61% and 57% respectively. The data is based on ORG-MARG's ADEX service and captures both Television and Print medium. FMCGs, in fact, dominated the spending with only two durable categories, Cars/jeeps and Two-wheelers, featuring in Top 10.

ORG-MARG notes that 'increased competition' has led to this surge in media spending by 'latent categories' like Writing Instruments and Mosquito Repellents. It also notes that "many Indian FMCG firms have decided to take the fight into the MNC's court through aggressive advertising…especially in toilet soaps and skin care category," and are likely to fuel future growth. In 2001, there were as many as 5 Indian FMCGs companies in top 15 advertisers compared with only 2 such companies in 1999.

The ADEX data puts total Print and Television advertising size at Rs. 17,795 crores. Ad size on TV is estimated at Rs.13, 263 crores. Satellite TV has over 85% share. Clearly, these estimates don't match with other industry sources. Independent estimates put TV size close to Rs 3,000 crores accounting for close to 40% of total ad spends. This mismatch is because ADEX data is based on card rates and hence is inflated several times. But more importantly, the trends and insights such as above would hold since the 'base' (card rates) is common to all advertisers and categories.

Coca-Cola, Pepsi and Thumps Up were No1, 2 and 4 brands in the survey. Hindustan Lever, Coca-Cola and Paras Pharmaceutical were top 3 advertisers.

TOP 10 PRODUCT CATEGORIES 2001
PRODUCTS
ADEX Rs. Crores
YOY% CHANGE
1 Toilet Soaps
749.8
61
2 Corporate/brand Image
619.8
11
3 Soft Drink Aerated
579.2
42
4 Tooth Pastes
512.6
39
5 Cars/jeeps
505.7
27
6 Shampoos
491.7
51
7 Two Wheelers
469.8
57
8 Washing Powders/liquids
382.8
32
9 Writing Instruments
316.9
125
10 Hair Oils
307.1
37

The recessionary trends had a major impact on the advertising strategy. "The advertising has changed from product based advertising to scheme/offer based advertising for the FMCG as well as the Durable sector," notes ORG-MARG.

In Part II, to appear tomorrow, we’ll look at the press shares and outlook for 2002.

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