They have witnessed surge in business ahead of Dashain, as many business houses are making big investment on advertisement to pull the festive shoppers.[break]
According to Advertising Association of Nepal (AAN), advertising agencies have reported 20-25 percent growth in business in the run up to Dashain. “Some have even witnessed growth of as high as 35 percent,” officials of AAN said.
“It is natural for the advertising business to increase during festive season as people believe that this is the best time to buy new items be it clothing, housing, automobiles or electronics,” Raj Kumar Bhattarai, president of AAN, said. “Business houses bring attractive offers and schemes to attract the festive shoppers.”
A snap survey conducted by Republica shows real estate companies, suppliers/manufacturers of construction materials, and distributors of electrical and home appliances as well as mobile and gadgets are among the top advertisers this festive season.
Umang Shakya, chief operating officer of Outreach Nepal, said business volume at his agency increases by 20-25 percent during festive months compared to rest of the year. “The business during major festivals depend on product category, media strategy and product relevance,” he added.
Nirmal Raj Poudel, CEO of Welcome Advertising Agency, said his company has reported 30-35 percent growth in business compared to a month ago. “There are no strikes and trade union problems this year compared to last year. This has raised confidence of business houses and encouraged them to spend more,” Poudel said. “Business houses have increased their advertising investment as they hope the upcoming CA election will bring political stability in the country.”
According to agencies, flow of advertisements is high in TV and print media. “These two media has received lion´s share of advertisement as it is easier for advertisers to explain offers of their clients in these media,” Deependra Tandon, director of Business Advantage, said.
Besides print media and TV, Shakya said tactical BTL activations, which are important to enhance visibility in the marketplace while consumers are busy shopping, have also increased.
Advertising agencies said increment in advertisement flow at a time when revenue of advertising industry had been dropping has increased their confidence level.
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