India's ad expenses to increase by 2010

New Delhi, May 20: Country's advertising expenses to its GDP are likely to exceed 0.55 per cent from the current level of 0.52 per cent by 2010, according to an industry chamber estimates.

With a current GDP of 850 billion dollars, India's advertisement potential is yet to be realised that is why its budget expenditure to GDP ratio will enhance, Assocham said here today.

China, Malaysia, Singapore, South Korea, the US and France spend about 0.62 per cent, 1 per cent, 0.9 per cent, 0.8 per cent, 1.3 per cent and 0.8 per cent respectively on ads to sell off there opportunities to investors in the rest of the world, the chamber said in a paper on 'Future of Advertisement Industry in India'.

''In future, things will change and change to extend that their changing graphy will have to be conveyed to end users through a medium which is advertisement,'' Assocham President Venugopal N Dhoot said.

In India, advertisement have been picking up particularly when it opened up its economy and today the growth rate is over 22 per cent with total size of the advertisement industry touching Rs 16,000 crore by 2007.

The areas in which advertisement will make dent include infrastructure, automobile including component ports namely airports, seaports, railways and agriculture park and roads.

At present, sectors such as automobile, roads, ports and other infrastructure areas spend a great deal of their budgeted expenditure towards tendering as well as advertisement.

In future, tendering will become and established norms therefore, it will have to find a space in all channels of advertisement, be it through newspaper, television channels, radio and other medium.

Print is the leading medium for advertisements as roughly 48 per cent of total advertisements are released through print. It is because of the fact that it is mandatory requirement which has to go to end users through newspaper.

TV and Radio put together is about 48.6 per cent with break up of 45 per cent and 3.6 per cent. As regard to TV and radio, the advertisement are released t o influence the common masses for daily use products beat food, entertainment, medicine awakening and education.

The remaining percentage through cinema, outdoor and internet.

The paper said that in India the entertainment advertisement is still adds nascent space despite its usage growing wider and wider.

The chamber also suggested a slew measures to enhance the ad expenses, including accessibility to advertisement sites.

India has banned the shooting of well-known sites. Therefore, what is required is to lift the ban that is uncalled for and open its scenic sites to competition.

UNI