Ad industry booms on more housing investment
August 21, 2008
 |
|
|
The advertising industry experienced a boom in the first six months of the year 2008 due to an increase in real estate sector spending on advertisement.
Ahmed Hasan, managing director of Ryans Archive, a media monitoring company, said a remarkable 132 percent investment growth in real estate sector from January to June of this year brought about a rapid growth of advertisement expenditure.
“If the trend continues, the total ad spending and market size of the industry would be tripled by the year-end,” said Ahmed.
He said in June Tk 119.5 crore was spent on TV advertisements with the real estate sector spending Tk 39.55 million, up from Tk 9.59 million in January.
“The unfavourable and stagnant business condition in the real estate sector, caused by the last year’s political uncertainty prior to the takeover of the present caretaker government, changed for the better by year-end. This positive situation inspired the manufacturers of construction materials to spend more on advertising,” he added.
Ahmed said mobile telecom sector of the country led the overall 42 percent growth in spending on advertisement. Grameenphone was the largest advertiser on television with an advertisement expenditure of around Tk 163 million in June.
Seven Circle, a cement manufacturing company, placed itself in the list of top 20 advertisers of this year with an ad spending of around Tk 10 million.
Shahriar Ahmed, sales manager of Seven Circle, said since the beginning of this year sales of construction materials has increased, pushing the ad expenditure up in recent months.
“At the same time the production capacity of cement manufacturers also increased, which helped the companies to allocate more budget for advertising,” he added.
However, the ad spending on fast moving consumer goods (FMCG) has been on the slower side in recent months.
Aly Zaker, managing director of Asiatic JWT, said advertisement expenditures on FMCGs are on the decline and by the end of the year such spending on such products would further be reduced.
He opined that the recent income growth of the advertisement industry would be temporary.
“This growth would not last for long because of the global economic situation,” he said.
A research, conducted by Ryans Archive, estimates the total expenditure on advertisement to be Tk 3900 crore in 2008, which is more than threefold compared to the spending on advertisement last year. According to the industry insiders, the total advertisement expenditure ranged between Tk 1000 and Tk 1200 in 2007.
Print media remains the largest advertising vehicle accounting for 43 percent of spending on advertisement, followed by TV advertising that accounts for 36 percent. Internet is still the least preferred advertising vehicle that accounts for only one percent of the total advertisement spending, according to a research published in Bangladesh Brand Forum magazine.
Source: The Daily Star
Comments
Got something to say?
You must be logged in to post a comment.