The advertising business has started feeling the effects of the economic slowdown with the 40 per cent drop in revenues in the last two years following a sharp decline in advertisements from the industrial sector.
People associated with the advertising industry say their business largely depends on the condition of the manufacturing sector. If industrial activity picks up, so does the advertising business.
“Uncertainty and closure of mills because of energy shortages have led to a 40 per cent drop in advertisements this winter,” said Rana Rauf, Chief Executive Officer of Golden Thoughts Advertising Agency while talking to The Express Tribune.
He said the manufacturers were producing less than normal, which caused losses to them.
“People are not thinking about buying new clothes, shoes and other necessities of life, they are only concerned about how to buy food in the midst of inflation,” said Asghar Najme, General Manager of Response Communications.
He claimed that there were virtually no new orders for advertisements despite offers of heavy discounts by many advertisers.
“This winter is the worst season for exporters and the local market and businesses are being closed down,” said an industrialist.
“Industrial production has dropped in winter, which leaves little budget for allocation to advertisement,” said Azhar Majeed, Chief Executive Officer of Arzoo Textile Mills.
Published in The Express Tribune, February 7th, 2012.
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@fahim haven't you read reports where china and india are going to be the top 2 countries GDP wise and Pakistan will be nowhere close by. Thanks to our armed forces budget we are doomed.
Advertising is a direct reflection of the economy (manufacturing and services) and the growth status of a country. We are witnessing a 40% drop clearly shows where our country is heading in future. Just checked indian ad industry and its about $ 17 billion in 2010 and expected to be $28 billion by 2015, thats in 3 years growing at CAGR 20-25% annually. Thats Huge ! China's even bigger... thats what I call growth.