NEW DELHI: Companies operating in India are predicted to cut their adspend levels and outlay on entertaining clients by as much as 35% in the next fiscal year, according to figures from The Associated Chambers of Commerce and Industry of India.
Based on a survey of 300 companies, ASSOCHAM found that companies in the automobile and FMCG sectors would normally spend between 10% and 12% of their earnings on advertising.
However, due to a slowdown in spending, it now reports that online networks and print titles in the country have reduced their ad rates by between 25% and 30% in an effort to attract advertisers.
The organisation does predict that public sector spending will remain largely the same this year, while, as previously reported, political adspend is expected to rise as a result of elections this year.
It also forecasts that the current advertising slowdown could last for another ten months to a year.
Data sourced from Economic Times; additional content by WARC staff