Owing to slowdown in the realty sector, the developers in the state have squeezed their advertising spend, which was the mainstay of their aggressive marketing strategy.
“The developers in the state have cut their ad spends on different media and non-media platforms by 90 per cent due to the slowdown in the sector. No one is advertising big, instead they are using their websites to update the customers on their products”, said Manoj Kumar Sahoo, ex-vice president of Confederation of Real Estate Developers’ Associations of India(CREDAI)-Odisha chapter and managing director, Green Park Developers (pvt) limited.
Now the sector is flooded with projects with supply eclipsing the demand and the discernible customers are well aware of the new projects coming up in the city through non-media channels, he said and added that the gradual reduction in advertising expenditure has started since November 2011.
Sahoo attributed the slowdown in the industry to slackening mining activities, higher interest rates etc.
“Due to the poor market conditions we have stopped all sorts of campaigning activities and delayed the launch of new projects”, said Punyabrata Mohanty, Head (corporate communications), Assotech BEBL Infrastructure Limited. The cutting down of advertising budget by the realtors has hit hard the advertising agencies also.
“The realty sector which contributes about 50 per cent to the outdoor advertising has been down by about 75 per cent since November 2011″, said Yagyansis Mohapatra, managing director, Torrent Advertisers , a leading outdoor advertising agency in the state.The deceleration in flow of advertising from the telecom sector has also added to the woes of outdoor advertisers, he added.
source: Business Standard