The real estate sector, one of the biggest ad spenders during festival season, has slashed its ad budget by over 50 per cent as the sector is facing slowdown in demand due to various reasons including tight liquidity situation.
According to advertising industry experts, the real estate sector which is grappling with liquidity issues and large inventories since demonetisation in November 2016, has massively reduced their ad spends on TV and print media, and have moved a portion of their ad spend to the digital space to cut cost.
"Realty sector has been sluggish since the last two years and deepening general slowdown has only exasperated it," media and digital marketing communications company Dentsu Aegis Network chief executive for Asia Pacific Ashish Bhasin told PTI.Today, most developers are struggling with financial constraints mainly because of plunging demand."Due to this, they have either delayed or defaulted their payments to media agencies, which are now wary to work with such developers," he said.
Bhasin further said real estate companies will be spending more on performance, marketing and sales related efforts than building brand and accordingly have cut their ad spends by almost 50 per cent.Havas Media Group chief executive for India and Southeast Asia Anita Nayyar said, pre-Navratri is the time when developers spend hugely on advertising. But this time around it has just crashed.
"Since liquidity is an issue, developers are resorting to barter private treaties by entering into brand capital deals with leading news dailies. These treaties could be in the form of publisher picking up some stake for the ad money value by or developers offering space a project to the publication...READ MORE
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