"Life's good!" the LG corporate line proclaims. This line seems to resonate today, as far as the economy and the advertising industry is concerned.
India is poised for growthin this decade and beyond. Economic gurus, politicians of all hues and captains of Indian industry are all of this view. Forgotten are the shadows of 9/11 and the dark days of recession.
One can feel a general sense of optimism all around. Advertisers are dusting out proposals for new marketing and brand initiatives that had been shelved for some years. Uncertainty seems to have given way to a new confidence. The new government seems to be steadily in place. Thankfully, there have not been any major shifts in policy from the previous government, even in the face of some opposition from the Left. International oil prices are now coming down after the American Presidential Election. Inflow of funds into India maintains a steady clip, and the Rupee is getting stronger. Everything suddenly seems to be going right.
Advertising thrives on growth, since growth creates competition and competition fuels advertising. As the virtuous circle accelerates, consumers have more to save and spend. So going forward, I believe that 2005 will be a great year for the advertising and media industry.
Given the tardy growth in the past, the ad industry has, in recent years, been more focused on costs than on investment. As a result, it is being perceived to be a conservative industry and is no longer seen to be "happening". The industry faces competition from other happening industries that are clocking high double-digit growth: IT, Consultancy, Financial Products, Telecommunication Services and so on. These sectors, with a more confident posture in the past five years, have attracted the best of talent. |
