India is West’s top side story for ad shoots

Vrishti Beniwal
Posted: Feb 04, 2008 at 0028 hrs IST
Updated: Feb 04, 2008 at 0045 hrs IST

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From almost a non-existent market five years ago, India today has become the hub for outsourcing TV commercials with one-third market share. That’s because the US and the countries in western Europe find India the cheapest among low-cost destinations.

The cost of outsourcing a commercial to India is 20-25% less than what it costs at its closest competitor Malaysia. The savings on cost for line production in low-cost countries are 12-38%, with India providing 31% savings. Outsourcing end-to-end production can help save 44-77%, with savings in India pegged at 68%.

Availability of directors and crew members at low fees, and relatively cheap rental of equipment in India make the country the least expensive amongst all low-cost destinations. Most line production (70%) and end-to-end production (20%) are outsourced to India because of its unique culture, says US-based KPO The Smart Cube. For instance, Metlife Insurance shot a commercial in India, targeted at NRIs in the US. It required an Indian wedding as the theme and Nomad Films of Mumbai was hired for producing the film. But account outsourcing of an entire commercial, from ideation to production, is in a nascent stage. “Account outsourcing has more to do with the creative talent. There is a lack of trust in Indian professionals managing cultural issues of foreign countries, but that perception is changing gradually,” says Sameer Walia, MD, The Smart Cube.