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Indian ad pie shrinks by 4.1 per cent, market spend by 9.6 per cent

21-November-2000
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Indian ad pie shrinks by 4.1 per cent, market spend by 9.6 per cent

The downfall in advertising and marketing spend of Top 200 companies continued during the year 1999-2000, according to the latest A&M Big Advertising and Marketing Spenders survey. While the adspend of the Top 200 companies marked a 4.1 per cent fall, the marketing spend of the Top 200 spenders fell by a huge 9.6 per cent.

The shift towards the `new economy' is clear with sunrise industries making their presence felt strongly. Of the 200 adspenders -71 companies are new entrants to the list while the Top marketing spenders' list has 94 new entrants.

The survey throws an important trend: companies seem have reposed faith in `push' as opposed to `pull' with most of the Top 200 companies having a far higher growth rate in marketing spends compared to adspends. For instance, the communication industry, electrical generation, explosives, glass and glassware and soda ash amongst others, have shown a negative growth in adspends but significant marketing spends.

Last year's leader Maruti, which had initiated a hike of Rs 91.2 crore, is no more in contention this year. The Top 10 marketing companies have five newcomers this time, compared to last year. Ashok Leyland takes the lead this time with Reliance Industries reaching No. 6 from last year's No. 11. Adspends, on the other hand, show a declining trend: compared to a Rs 187.0-crore adspend during 1998-99, the FMCG major HLL had a Rs 46.6 crore increase in adspend in 1999-00. The sales of the Top 200 advertisers-listed in the survey-was Rs 167,412.8 crore in 1999-2000 against Rs 174,537.0 crore in 1998-99, marking a 4.1 per cent fall. The adspend of the Top 200 companies fell to Rs 3,865.6 crore in 1999-2000 from Rs 3,941.7 crore in 1998-99. As a percentage of sales, adspends of these 200 companies stood at 2.3 per cent, same as last year.

The total sales of the Top 200 marketing spenders on the other hand was Rs 189,677.9 crore compared to last year's Rs 204,865.0 crore. While it was Rs 4,623.8 crore last year, the figure this year is only Rs 4,181.4 crore.

As far as individual rankings are concerned, HLL is still the No. 1 with Rs 715.40 crore as its adspend. Colgate-Palmolive (Rs 193.98 crore) and ITC (Rs 185.09 crore) have swapped positions on the second and third ranks. Dabur India (Rs 120.02 crore) and Nestle (Rs 113.09 crore) retain their positions at No. 4 and 5, respectively. There are two new entrants in the Top 10 adspenders list-Britannia (Rs 77.01 crore) and Bajaj Auto (Rs 90.24 crore).

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