Home sales are down‚ cash flows are drying up but builders just can't cut on advertising. Instead‚ advertising spends of the real estate industry is growing at 30 per cent year-on-year‚ say admen‚ with top builders such as Hindustan Construction Company‚ Omaxe‚ Amrapali‚ Jaypee ‚ Indiabulls ‚ Lodha ‚ ATS and DLF continuing to advertise extensively‚ reports Economic Times.
“We are spending about Rs 50-70 crore on advertising every year. We have 40 projects and we need to spend on advertising to create brand visibility‚” said Shiv Priya executive director Amrapali Group. The company has roped in MS Dhoni as the brand ambassador and also associated itself with Chennai Super Kings as a sponsor in the fourth season of Indian Premier League.
Advertising budgets of the industry have also grown a third this year. Last year‚ builders and property firms‚ including brokerages‚ spent about Rs 1‚400-1‚500 crore on publicity‚ which was roughly 5 per cent of the total advertising revenue of all industries put together‚ a back of the envelope analysis by one adman revealed.
Data collated by AdEx India- a division of TAM Media Research‚ which tracks advertising expenditure‚ indicate that print and TV advertising by real estate companies grew by 64 per cent and 21 per cent respectively in 2010 compared to 2009. Ad industry professionals say that the realty segment may emerge as one of the top ten categories in spending in 2011.
Source: June 11‚ 2011‚ Economic Times