Indian companies pumped up ads but that didn't help sales

IANS

  • India spent ₹422 billion on advertising and promotions across sectors — 12% up from last year.
  • It is estimated to be the second fastest growing advertising market in Asia, according to a report titled ‘Trends in advertising and sales promotion spends in India’ published by a credit rating agency CARE Ratings.
  • The IT sector spent least — ₹10 billion — on advertising during 2019 fiscal compared to ₹9 billion last year
As digitisation spreads, more brands are now spending aggressively on advertising and promotions.

In spite of a widespread slowdown across industry, The country spent ₹422 billion on advertising and promotions in 2018-19 — up 12% from last year. India’s advertising industry is estimated to be the second fastest growing advertising market in Asia, according to a report titled ‘Trends in advertising and sales promotion spends in India’ by CARE Ratings.

In fact, the sectors with lower net sales — FMCG, healthcare and chemicals — are also spending on ads. Households and personal products, recreational clubs and TV broadcasting and software production contributed the highest share of their net-sales-to-advertising at 12%, 11% and 6% respectively.

However, Information Technology (IT) sector spends the least on advertising. According to the report, it spent nearly ₹10 billion on advertising during 2019 fiscal compared to ₹9 billion last year.

Here are the top five sectors that spent the most on advertising in 2019.

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1. FMCG (Fast Moving Consumer Goods)

1. FMCG (Fast Moving Consumer Goods)

Ad spends in 2019: ₹103.5 billion

Ad spends in 2018: ₹94.2 billion

2. Automobile & Ancillaries

2. Automobile & Ancillaries

Ad spends: ₹72 billion

Ad spends in 2018: ₹66.5 billion

3. Healthcare

3. Healthcare

Ad spends: ₹36.8 billion

Ad spends in 2018: ₹32.6 billion

4. Banking

4. Banking

Ad spends: ₹21 billion

Ad spends in 2018: ₹19.1 billion

5. Chemicals

5. Chemicals

Ad Spends: ₹20.7 billion

Ad spends in 2018: ₹19.4 billion

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