Decline in financial advertising

As the stock markets were depressed, the financial advertising was affected adversely. The following diagram reveals the number of issues handled and the amount of capital raised through them in crores. There is a relationship between the number of issues raised and financial advertising. This is their major weakness too. The money was tempting enough to accommodate 76 new ad agencies entering financial markets in1995-95 alone. As stock-markets depressed, financial advertising was affected, and the agencies started looking at alternative areas of business viz., Public Relations, direct marketing, market survey, regular corporate advertising, co-ordination between issuer and registrar, investor relations, investor tracking. Some of the financial ad agencies are entering the mainline proper advertising. This transition means that financial advertising has a potential to sustain an agency up to a point only. Beyond that it has to enter product advertising business. They have also diversified into media software and corporate presentations.