The total ad spend by India Incorporation this season is tipped to cross INR 25,000 crore. This will amount to a hike of over 10% on advertising, marketing and promotions spent over the same period, Business Daily Economic Times has reported with inputs from country’s leading media buyers.
The festive season contributes a large chunk to advertising expenditure every year. Starting with Ganesh Chaturthi and Onam, the season peaks during Diwali and continues till Christmas, accounting for about 40% of overall advertising expenditure every year. With the season contributing 40% of annual sales, companies spend heavily on promotions to make the best use of the biggest shopping opportunity of the year, states the ET report.
The paper has based the report on inputs from the leading media buyers in the country. This is what the market experts have told Economic Times:
Ashish Bhasin, CEO -South Asia, Dentsu Aegis Network: “I expect this year the festive season should be good and we should see a healthy double-digit growth during the festive season. I expect an overall growth of around 10-12%. This year, some digital entertainment companies like Netflix, Amazon Prime are coming up. They are likely to spend during the festive season.”
Sam Balsara, chairman of Madison World: “The April-May-June quarter has been reasonably good. Consumer spending seems to have gone up and I think that has resulted in driving up the sentiments further.”
Lakshmi Narasimhan, chief growth officer of GroupM, South Asia: Prospects of a good monsoon this year, which is expected to boost crop production, have also fuelled the hopes of consumer-driven industries. “There is a revival in demand from the rural market, so a lot of related sectors will grow.”
Consumer sentiment is expected to be buoyant after two subdued festive seasons on account of demonetisation in November 2016 followed by the implementation of the goods and services tax from July 1 last year, states the report.
Industries that are expected to drive the maximum growth on the back of rural demand and a good monsoon are fast-moving consumer goods, automobiles and two-wheelers and handsets, especially through sales by e-commerce platforms during the festive season.