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Govt’s ad expenditure shows declining trend in FY16

MUMBAI: The Narendra Modi-led National Democratic Alliance (NDA) government is spending less on advertising this financial year. At least, that is what the data for the first eight months of the current fiscal show. The Directorate of Advertising & Visual Publicity (DAVP) has spent Rs 460.4 crore (Rs 4.6 billion) on advertising in the current fiscal until 2 December, Minister of State in the Ministry of Information & Broadcasting Rajyavardhan Rathore told the Lok Sabha.

The DAVP had spent Rs 979.7 crore (Rs 9.79 billion) in the trailing fiscal. Although not strictly comparable, the government’s advertising expenditure in FY16 has been less than half of what it had spent in the previous fiscal, with just one more quarter left in the current fiscal.

It had spent Rs 1021.39 crore (Rs 10.2 billion) and Rs 654.11 crore (Rs 6.54 billion) in FY14 and FY13 respectively.

There has been another change this year, though the final four months may go the other way round. Reversing the earlier two financial years, the DAVP has spent more on print than on audio visual in the current fiscal. Out of the Rs 460.4 crore (Rs 4.6 billion), the DAVP has spent Rs 225.24 crore (Rs 2.25 billion) on print, Rs 215.59 crore (Rs 2.16 billion) on audio visual and Rs 19.60 crore (Rs 196 million) on outdoor in the current fiscal.

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A similar trend was visible in FY13, when print was favoured over audio visual for advertising. However, the ad spend on audio visual was more than print in both FY14 and FY15. After witnessing an incremental increase in ad spend for three years in a row, this fiscal has proved to be a dampener for outdoor media.

FY16 will mark the first full fiscal of the Modi government. Modi was sworn in as Prime Minister on 26 May 2014.

Rathore also informed that the DAVP has empanelled 8,213 newspapers, 676 agencies including FM, CRS, TV, digital cinema, websites, SMSes, and 303 outdoor publicity agencies.

DAVP has empanelled seven Impact Assessment Agencies to assess the impact of publicity campaigns of ministries/departments, on their request.

Rathore also said that DAVP releases advertisements only in accordance with the requirements of the client ministries/departments keeping in view of the target audience, client requirements, and budget availability. The central government does not maintain the details of advertisements of non-government agencies, he noted.