Firms revive ad spends to boost consumption2 min read . Updated: 28 Oct 2020, 08:50 AM IST
Advertiser interest in big-ticket properties, festive season is raising spends
A number of advertisers across categories have been heavily investing across platforms, to boost consumer confidence and kickstart the consumption cycle during the festive season.
Media spends, which witnessed a dip in the first half of the year, have been reviving owing to high advertiser interest in big properties such as Indian Premier League (IPL), Big Boss, and Kaun Banega Crorepati, as well as the ongoing festive season.
Compared to a muted first half (H1) of 2020, which witnessed 25-30% overall drop over 2019 H1, the second half of the year should bridge the gap lower to a single-digit drop vis-a-vis 2019, said Kishan Kumar M.S., chief growth officer, and south head at media agency Wavemaker India.
“We expect Diwali to bring in a lot of cheer into the adex (advertising expenditure) and not just because IPL is part of this year’s Diwali dhoom. A lot of other big-ticket properties coupled with Bihar elections are making the adex bounce back. Apart from television and digital, other media are also in the recovery path. Print is slowly growing now because of festive demand, while outdoor is also getting back in select markets," he said.
Ads from categories such as retail, auto, consumer durables, fast-moving consumer goods (FMCG), e-commerce, and lifestyle are already visible across platforms this festive season. New entrants such as edtech and online gaming are adding to the media spend momentum.
The second half of the year has been seeing a month-on-month revival and the upswing is going to bring down the overall ad expenditure gap that had been created in the April-June quarter, said Sujata Dwibedy, group trading director, Amplifi, Dentsu. The July-November spends would have covered for a lot of the difference that was created because of the covid-19 pandemic. “The growth is essentially coming from digital and television to a large extent. Print and radio are also catching up and reviving," she said.
October is looking up significantly, said Harshad Jain, chief executive officer, radio and entertainment, HT Media Ltd and Next Mediaworks Ltd.
“The overall outlook till mid-November is positive with retail, SMEs and MSMEs starting to advertise. A lot of corporates across real estate, FMCG, and banking, financial services, and insurance (BFSI) have started actively advertising. The advertising outlook is bullish right now but it would be interesting to see how things evolve post Diwali," he noted.
Online furniture retailer Pepperyfry said it is ramping up marketing spends this festive season by also making an appearance on television after nearly one-and-a-half years. Kashyap Vadapalli, chief marketing officer and business head, Pepperfry, said spends are typically made in proportion to demand trends.
Suneera Tandon contributed to this story.