Brands plan ₹25,000 cr festive ad splurge3 min read . Updated: 09 Sep 2020, 06:05 AM IST
- Experts say gradual increase in consumer demand, and fresh content and live sports, such as IPL, returning on television is set to boost ad spends by brands.
New Delhi: The festive advertising from brands across categories can touch as high as ₹25, 000 crore between October and December on the back of gradual increase in consumer demand, and fresh content and live sports (via IPL, or the Indian Premier League) returning on television, said top media buyers at advertising agencies. With Diwali being celebrated in mid-November, the festive season is longer this year and with businesses and economy opening up under Unlock 4 guidelines, brands will have a longer window to advertise.
There has been a 15-20% drop in media spends between July to September over 2019, but IPL coinciding with the festive season will drive festive spends, with investment in ads to increase from all major categories such as auto, consumer durables, apparel, jewellery, fast moving consumer goods (FMCG), e-commerce and startups. Television will lead this growth followed by digital and print.
"Under the Unlock 4 guidelines, opening up businesses and services is for real now except for probably movie theatres. Therefore, the normalcy is beginning to return. I expect October to be heavy in terms of festive ad spends which may touch ₹25, 000 crore in the best-case scenario in the last quarter of this year," said Navin Khemka, CEO, MediaCom, South Asia.
Ajit Gurnani, chief client officer, Zenith India, a Publicis Groupe media agency, pointed out that brands are already planning their festive media strategy as it is a make or break time for certain categories such as jewellery and consumer durables. “I expect reasonable amount of advertising investments from categories such as jewellery, FMCG, consumer durables and smartphone firms," he said.
PepsiCo India recently launched a festive campaign to promote its co-branding pact with Bharti Airtel where prepaid users get up to 2GB of free 4G data on purchase of Kurkure, Lay’s, Uncle Chipps and Doritos snack packs from 1 September. It also plans to increase media spends and plans to leverage IPL advertising.
"Like festive season, IPL has also become a social occasion. Any social occasion helps our business as our product consumption increases. IPL is coming at a time when there has been an absolute lack of live cricket and I'm sure marketers will make the most of it," said Dilen Gandhi, senior director and category head, foods, PepsiCo India, speaking at a webinar held by Mint last week.
Vivek Srivatsa, head, marketing, passenger vehicle business unit, Tata Motors, said that the company has launched its festival campaign. “This year’s festive season is going to be an important time for all the businesses and especially the auto industry as customers will be looking to make big-ticket purchases post the lockdown. Despite the slowdown caused by the pandemic, this year’s festive season has already begun on a positive note for Tata Motors. Our market share has already doubled after the first quarter of this financial year to 9.5%, as compared to the number at the end of the last fiscal year," said Srivatsa.
Value fashion chain Max Fashion India is looking forward to the festive season and plans to build on customer loyalty programme through festive promotions and campaigns. "We are currently working on our festive advertising campaign strategy. There will be offers and promotions but all our marketing efforts will be digitally driven this year," said Jiten R. Mahendra, senior vice-president for marketing at Max Fashion India.
Some brands might restrain spends, said Khemka, as they are still facing challenges with supply chain issues owing to the dependence on imported raw materials along with labour shortage being faced by component manufacturers. Therefore, they are not able to produce to the full capacity.
"Advertising in such a scenario when demand cannot be met can be tricky," said MediaCom's Khemka.