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Group M: Semi-Conductor Shortages May Impact Global Motoring Adspend

Group M, WPP’s media investment group, in its Global Marketing Monitor has reported: “Semi-conductor shortages will have an uncertain impact this year, especially on motor vehicle manufacturers. Related disruptions could have an impact on spending on advertising by those companies, but could also impact the electronics companies consumers rely on to access content. Both industries have options to mitigate supply chain challenges, so negative consequences are not necessarily going to be meaningful.” The report adds that top advertising auto companies Honda, BMW, General Motors shall be short of their productivity targets, though the production is down but demand is up. Ad spending could be impacted, says the report. The global shortage could have some impact on India where things are looking up for the country as a whole and the auto sector among others. Analysts say if there is a supply chain issue, then here too in India, some of the auto companies may put their advertising campaign on hold or curtail it till they are assured of regular supply. But they say the impact could be short term. Seeing demand-supply mismatch the Tata Group has announced plans to make semiconductors.  As per Pitch Madison Advertising Report 2021 for India, auto category’s advertising contribution in 2020 was Rs 3,243 crore