New car launches to gear up ad industry

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New Delhi: The Indian advertising industry, which has seen a steady slide in earnings since the beginning of the year, is expected to get a leg-up during the May-July period. This is because the automobile sector has begun to loosen its purse strings. Maruti Suzuki India (MSI), Honda Siel Cars India and Fiat India are expected to spend close to Rs 50 crore during the period to push their new small cars—Ritz, Jazz and Grande Punto—launched in the past three weeks. The amount equals mobile service provider Aircel’s ad spends last year and it is the sum Canon plans to shell out for ads in 2009. The advertising industry in the country generated Rs 22,683-crore revenue in 2008 (GroupM data).

Traditionally, passenger vehicle advertising peaks in the July-September quarter. And this year, after a rather slow start, the passenger car market seems to be coming back on track, bringing some cheer for the advertising industry honchos.

According to the Society of Indian Automobile Manufacturers, domestic passenger car sales in May went up to 1,13,490 units, from 1,10,745 units in the same period last year.

Maruti, which has consistently retained its position among the top three advertisers in the category, has a high voltage campaign lined up for its compact hatchback Ritz, which will sport the tagline ‘Live The Moment’. The company plans to spend close to Rs 15 crore in the first three months (May-July). “The first three months will be crucial in creating a strong positioning for the brand,” says Shashank Srivastava, chief general manager (marketing) of the Indian car major. Dentsu, which is handling the advertising duties for Ritz, is looking at print, television and the digital media to create a buzz around the brand.

Honda has drawn up similar plans for its premium hatchback Jazz, the only small car model from the auto major in India. It is available in three variants and is priced between Rs 6.8 lakh and Rs 7.33 lakh (ex-showroom, Delhi).

The advertising agency for Jazz is Meridian, the second agency of Ogilvy & Mather India. For the first three month, the company plans to spend around Rs 18-20 crore in mass advertising, which will revolve around the proposition “A lot of inquiries and test drive requests are pouring in already,” says a company spokesperson.