Ad expenses to rise to 0.55% of GDP in 3 yrs  ( May '21,2007, ET)

India is likely to increase its advertising expenses to 0.55% of its gross domestic product (GDP) from the current 0.52% in three years, says Assocham.

The Associated Chambers of Commerce and Industry of India (Assocham) noted in one its recent studies — Future of Advertisement Industry in India — that India currently spends 0.52% of its GDP towards advertisement.

China, Malaysia, Singapore, South Korea, the US and France spend more on advertisement to underscore their advantages as countries suited for global investment. According to the study, India would need to efficiently market its achievements, its potential and the opportunities it provides as a potential billion plus market through effective advertisement campaigns and tenders.

Advertisements having a strong impact are required to showcase India’s infrastructure, airports, seaports, railways and agriculture and roads. “In the years to come, things will change and will have to be conveyed to end users through a medium — which is advertisement. And that is why, India’s advertisement expenses will grow to projected 0.55% towards its GDP,” said Venugopal N Dhoot, president of Assocham.

Advertisement in India has taken off in a major way with the opening up of the economy and its liberalisation. Today, the growth rate (of the Indian advertising industry) is over 22%. However, it added that the Indian advertising industry is still in its nascent stage and the budget allocated for advertisements needs to be enhanced, along with the accessibility to advertisement sites.