Consumer durables' ad volumes dipped in Jan-July

Television advertising volumes by consumer durables declined 3 per cent during January-July this year over the same period last year, while print ad volumes of consumer durables decreased by 12 per cent, according to a new report by AdEx India, a division of TAM media research.

Consumer durables’ companies spend around 5-10 per cent of their turnover on advertising and marketing every year. However, due to global recessionary pressures, most consumer durables companies had cut ad spending by 20-50 per cent last year and then for some time this year. But with the improvement in consumer sentiments, the largest companies are once again ready to cumulatively spend at least Rs 500 crore over the next six months, targeting the festivities.

Despite the dip in ad volumes during the first six months of the year (Jan-July 2009), water purifiers and filters led with 27 per cent share in advertising of consumer durables on TV, followed by air conditioners and television sets with a 16 per cent and 10 per cent share, respectively. ‘LG Refrigerator’, ‘Hitachi Ace Follow Me’ and ‘’Whirlpool RO Water Purifier’ were the top three new consumer durable brands advertised on TV during Jan-July 2009.

The Adex report said Maharashtra was the top state in advertising of consumer durables on regional channels, followed by Tamil Nadu and West Bengal at second and third places, respectively. In print media advertising, 40 per cent of consumer durables’ brands were advertised for sales promotion ad campaigns during Jan-July 2009. Multiple promotions led with 27 per cent share among all types of sales promotion ad campaigns used for consumer durables in print, followed by ‘add on promotion’ and ‘exchange promotion’ with a 22 per cent and 17 per cent share, respectively.

Television sets, ranges of durables and air conditioners were the top three categories which together contributed for 52 per cent share of overall consumer durables advertising share in print during Jan-July 2009.

Among brand ambassadors and endorsements, Ranbir Kapoor led in advertising of consumer durable brands on TV, followed by Hema Malini and Esha Deol at the second place, with an equal share of 11 per cent during Jan-Jul ‘09.

Amitabh Tiwari, business head—consumer electronics of LG India, said, “Last year, consumer sentiment was bad. But it has improved substantially now. So, we are spending Rs 110 crore this festive season for advertising and promotions, up from Rs 68 crore last year. We are looking at launching a new range of products and investing in more television commercials.”

Whirlpool India is looking at increasing its advertising and marketing spending by 10-15 per cent this financial year, from Rs 45 crore last year, thanks to improving consumer confidence. Said Shantanu Dasgupta, VP, corporate affairs and strategy, at Whirlpool: “While last year was uncertain due to the global recession, markets are already improving now.”

Godrej & Boyce is also looking at launching a new range of refrigerators and washers between September and December. Kamal Nandi, VP, Marketing, said: “Now that consumer sentiment is improving, we expect Rs 700 crore from the festive season starting September. Last year, we made Rs 500 crore during the festive months.”