In­dia Inc Plans ₹ 24k-cr Splash

The Economic Times - - Brands: Creating Desire - Shamb­havi.Anand @times­

New Delhi: In­dia Inc will spend ₹ 24,000 crore on ad­ver­tis­ing, mar­ket­ing and pro­mo­tion dur­ing the fes­tive sea­son, start­ing Au­gust, 10% more than what they spent same sea­son last year, top me­dia plan­ners said.

Con­sumer sen­ti­ment is ex­pected to be buoy­ant due to pent-up en­ergy on both de­mand and sup­ply side rid­ing on months a good mon­soon of the last few months. The up­swing in ad spend is ex­pected to make up for the blip caused by GST tran­si­tion.

“In­dus­try saw a slug­gish start to the year be­cause of the lag ef­fect of de­mon­eti­sa­tion and then tran­si­tion to the GST. Ad­ver­tis­ers were cau­tious for the past 7-8 months. So there is pent-up en­ergy on both de­mand and sup­ply side,” said CVL Srini­vas, CEO, GroupM South Asia, which is the largest me­dia agency in the coun­try.

Fes­tive sea­son con­trib­utes a large chunk to the over­all adex (Ad­ver­tis­ing ex­pen­di­ture). “The fes­tive sea­son starts with Ganesh Chaturthi and Onam, peaks dur­ing Di­wali and con­tin­ues till Christ­mas. The fes­tive sea­son con­trib­utes about 40% to the over­all adex (ad­ver­tis­ing ex­pen­di­ture) ev­ery year,” said Ashish Bhasin, CEO South Asia Dentsu Aegis Net­work.

Tra­di­tional sec­tors such as au­to­mo­bile, con­sumer durables, bank­ing com­pa­nies and fash­ion gar­ments are likely to be the star performers this years. Fin­tech firms and lo­cal brands will also add to the growth of the in­dus­try this year.

“Non-regular ad­ver­tis­ers also come and chip in dur­ing the fes­tive sea­son,” said Sam Bal­sara, chair­man and man­ag­ing di­rec­tor, Madison World.

“We are ex­pect­ing a growth of 18% in ad­ver­tis­ing spends dur­ing Au­gust, Septem­ber and Oc­to­ber as com­pared to the non-fes­tive months,” he added. This is sim­i­lar to the growth wit­nessed last year.

The surge in con­sumer spend­ing drives sales for sev­eral cat­e­gories of prod­ucts, rang­ing from con­sumer durables phones and clothes to ve­hi­cles and jew­ellery. Com­pa­nies spend heav­ily on ad­ver­tis­ing to make the best use of the big­gest shop­ping op­por­tu­nity of the year. Ecom­merce com­pa­nies, which were among the big­gest ad­ver­tis­ers two years ago have ra­tio­nalised spends and ex­pected to grow 10% this fes­ti­val year com­pared to last year’s 35-40%. While the top few play­ers will spend heav­ily, the long tail of smaller play­ers in the cat­e­gory has seen dras­tic re­duc­tion and will con­trib­ute less than last few years.

Au­to­mo­bile, con­sumer durables and bank­ing sec­tors likely to be star performers this year

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.