The advertising industry in Goa, is still largely dependenton business from the government sector and the pie has remained the same sizewith the small retail client still not convinced by the efficacy ofadvertising. Keith Fernandes, CEO and owner of Slipdisc Advertising and Eventsfelt this had resulted in many of the top agencies in the country moving out ofthe state after trying to look for business amongst the corporate and the smallcompanies operating in the state.
For a company that started 10 years ago, it has been aninteresting and at times bumpy ride. From trying to canvass local businessesand charging individuals Rs. 500 to create hotmail accounts, Keith haswitnessed some of the changes in the local advertising business from closequarters. Today, according to him, 30% of the customers are aware ofadvertising as a marketing tool and so the job of convincing them was slightlyeasier. This problem is exacerbated by the notion that in Goa word of mouth isimportant as compared to advertising.
The advertising market in the state is approximately valuedat Rs. 5 crores with 80% of the business provided by the various governmentdepartments. This means, he said that various advertising agencies in the statewere either just release houses or were providing huge discounts to the clientto win business. The big business houses, he said were not in ventures thatdemanded advertising and were content with releasing the occasional corporatecampaign which was not regular enough to sustain an agency. In addition thereluctance to pay creative charges meant that agencies were struggling to staysolvent.
With 45 hoardings, Slipdisc is a serious player in thatbusiness in the state. The business however is blighted by the fact that thehoardings in the state are given free by the national agencies to clientsadvertising on an all India basis. Media rates in Kolhapur, Keith said was fivetimes more than what was prevalent in the state. Media planners, he said wouldcombine Goa in the Maharashtra circle and would give the hoardings for free inthe package. This ensured the monies earned by the agencies who owned thehoarding were low.
The event held last week by the agency to encourage youngentrepreneurs was an attempt to increase the base of businesses in the state.According to Keith, the more business ventures come in, the more nationalagencies would be interested in coming and staying in the state, which would inthe long run improve quality as well as increase billing.
Asked to gauge his agency, Keith felt it was possibly in thelist of top five brands in the state with a valuation of approximately Rs 20-25crores. On the future of any brand coming into Goa he felt that the youth was afactor that would have to be part of the marketing mix. Pricing would have to be an important factorsince salaries were not very high in the state and the average youth does nothave access to large sums for daily expenditure.
He however expressed his confidence in the future sayingthat the market was changing very fast and with their knowledge of the youthmakeup in the state they were ready to tap in and help brands grow.
