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Dot.com boom set to buck Indian ad industry fortunes 

Lalitha Srinivasan  
MUMBAI, MARCH 24: The dotcom boom has come as a boon for the Rs 7000-croreIndian advertising industry which has been witnessing a declining growthrate during the last three years. ``In the new millennium, the advertisingindustry will be revived by the dotcom advertising boom, after the slow-downin growth,'' predicts Prem R Mehta, vice-chairman and managing director,Lintas India Limited.

Adds Mehta ``At Lintas, we expect Rs 50 crore billings to come from ourdot.com clients in 2000. As for the ad industry, we are looking at around Rs300 crore flowing into this industry over the next year or so.'' Withcapitalised billings of Rs 625 crore, Lintas currently handles four dotcomclients which include- jadoonet.com and Planetasia.com. The Indianadvertising industry grew by 17.9 per cent in 1998-99, much lower than thepeak of 49.5 per cent achieved in 1994-95. The decline, since then has beensteady and the growth rate has finally settled at just under 18 per cent.

Echoing Mehta's views, Arvind Sharma, managing director of Chaitra Leo-Burnett says that the advertising industry will be resuscitated by this newsegment in 2000.``With our dotcom advertising, we hope to add Rs 25 crore toour current billings which stands at Rs 185 crore. I think the ad industrymay get Rs 300 crore from dotcom companies this year,''hopes Sharma.

In a bid to cater to the new media needs of its clients, Chaitra is all setto launch a separate dotcom services division by the end of this week.Sharma is, however reluctant to divulge details on Chaitra's plans for itsnew dotcom division.

Sorab Mistry, chairman & chief executive, McCann-Erickson India, expects achunk of Rs 30 crore to come from its six dotcom clients which include`chaitime.com' and `Dishnet.com'.``With the advent of dotcom companies, theIndian ad industry will surely register a growth rate of 22 to 25 per centin 2000,''adds Mistry.

According to MG Parameshwaran, executive director, FCB Ulka, his agency willget additional capitalised billings of Rs 50 crore from its dotcomclients.``Currently, we handle the dotcom advertising of a host of newentrants in this segment. Our clientele includes- egurukul.com,webduniya.com amongst others,''informs Parameshwaran. With the dotcomadvertising boom gaining momentum, many medium-sized Indian advertisingagencies also expect a steady increase in its capitalised billings in thenew millennium. Says Kurien Mathews, director, TBWA Anthem: ``We expect Rs15 crore billings from our four big dotcom clients which includeIndiapropertty.com,icleo.com and Cyberastro.com.'' Yet another medium-sizedagency `Concept Communications' hopes to get Rs 30 crore from its dotcomclients in 2000.``At present, we are handling the ad accounts of over sevendotcom companies such as Skumar.com and Zapinfotech.com,''says HimanshuKapadia, manager, Concept.

According to Sumit Roy, vice-president, Advertising Club of Bombay, it willbe once again boomtime in the Indian advertising industry with the entry ofdotcom companies.``The industry may get Rs 500-700 crore from dotcomadvertising. But the real growth will come from relationship marketing onthe Net. On the flip side, there will be a brain drain in Indian advertisingagencies. Also, the financial advertising will slowly die with dotcomboom,''adds Roy.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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