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India loses ad revenue to S’pore, China : Assocham

India loses ad revenue to S’pore, China : Assocham
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First Published: Tue, Nov 13 2007. 04 10 PM IST
Updated: Tue, Nov 13 2007. 04 10 PM IST
New Delhi: China and Philippines are among the six countries that are posing a threat to India’s advertising outsourcing business. They are taking away a major chunk of advertisement outsourcing business from India, the size of which at presently estimated at over $290 billion, of which $70 billion is in creative, animation and production spheres.
Other countries which are eating into this pie are Singapore, Malaysia, South Africa and Australia, according to a study carried out by Assocham on ‘Outsourcing in Indian Advertising’.
Identified countries offer sound infrastructure and single window clearance to conveniently entertain outsourcing advertisement calls from all part of the globe whereas in India, policy makers have yet to evolve a mechanism to take a call to accept outsourcing business opportunities.
Estimates reveal that during 2005-06, Indian advertising industry spent $7-8 billion of foreign exchange in going overseas to shoot films, something which could have been accomplished in India with less than half the money.
This happened because advertising industry in India faced numerous problems in obtaining permissions to shoot sites of scenic beauties for making film documentaries to promote ads. In 2006-07, expenses amounted to around $10 billion.
Whereas in countries like China, Philippines, Malaysia, Singapore, South Africa and Australia, film makers are quick to give permission for shooting and subsidies are extended to undertake the job. This is one major reason that contributes in making these nations an attractive destination for outsourcing advertisement assignments.
Recommendations
* Adopt a process driven approach which will give higher confidence to the international customer in India
* Members of advertising agencies should come together with a common vision that India’s collective capability has to be sold to the international market rather than looking only at the agencies’ individual capabilities
* Government should create a Rs.single window clearance’ for communication creation work to enable advertisers to outsource their business in India in a hassle free environment as also reduce import duties to promote import of equipments needed to manufacture cameras that are effective and cost competitive
* To promote the advertising industry, organize major events and exhibitions where international delegates can also participate and share their experiences
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First Published: Tue, Nov 13 2007. 04 10 PM IST