It’s raining ads! Spends to go up by 10-15% to Rs 27,500-34,500 this festive season

By: and |
September 02, 2021 7:58 AM

Television is expected to garner the highest share of ad spends at around 40% during the festive season, followed closely by digital at nearly 30%

ad spent, ad expenditure, advertising expenditure, television expenditure, digital ad spends, The festive season, which kicks off with Onam and continues till the new year, typically accounts for 40% of the overall advertising expenditure.

As festive season began with Onam, so has the advertising blitzkrieg, add to that the upcoming second leg of the Indian Premier League (IPL) in UAE and ICC T20 Cricket World Cup. In all, advertisers are expected to spend anywhere in the range of Rs 27,500 – Rs 34,500 crore, this is a 10-15% increase from the last festive season. “Due to the sheer volume, television will have the highest revenue but digital will see the highest growth. Sporting events, elections, coupled with big ticket properties such as Kaun Banega Crorepati (KBC), Bigg Boss, Saregama, among others, will enable growth of the TV medium. Meanwhile, OTT platforms will be the key driver for the growth of digital as many shows are being launched on these platforms first,” Sujata Dwibedy, group trading director, Amplifi India told BrandWagon Online. 

The festive season, which kicks off with Onam and continues till the new year, typically accounts for 40% of the overall advertising expenditure. However, last year was a tad different. The lockdown between March to June, last year forced advertisers to shift the spending to the second half of the year. This resulted in 55-60% of the overall budget being spent during the second half of 2020. This year too, the second half will see anywhere around 60% of the overall ad spends for the year, Dwibedy said, adding that advertisers from telecom, food, e-commerce, e-pharma, edtech, fintech, and digital wallet payments are expected to up their spending. 

Television is expected to garner the highest share of ad spends at about 40% or more during the festive season, followed closely by digital at 30%, as per industry experts. Interestingly, BARC India’s latest report titled ‘TV Ad Volumes Insights – The Mid-Year Analysis’ revealed that ad volumes registered in June 2021 was the highest when compared to the same period for 2019 and 2020 despite the impact of the second wave of Covid-19. To give perspective, June 2021 registered six percent growth in ad volumes over June 2019 with a total of 1,839 advertisers and 3,074 brands advertising on television. H1,2021 too witnessed higher growth with 12% and 37% increase in ad volumes when compared to 2019 and 2020, respectively. 

As per Mahesh Shetty, head-network sales, Viacom18, this year the demand for advertisements slots have increased. “While ad volumes have been growing steadily, there has been a strong growth in the number of advertisers especially with new categories such as D2C brands, edtech, fintech, gaming, crypto, among others, joining the traditional advertising categories. Last year, post the first wave, the ad revival was primarily driven by the large FMCG clients, however this time around it’s more spread out. Also with the pricing holding strong, I expect ad revenues to grow in strong double digits while volume growth would be in mid single digit,” he added.  In fact, the early trends from the data by AdEx India, a division of TAM Media Research, goes on to support this. Compared to 2019’s Onam period, ad volumes during 2020 and 2021 increased by 9% and 28%, respectively on TV. For Shashi Sinha, CEO, IPG Mediabrands, broadcasters will benefit if they start selling TV and OTT together. “If they start integrating, they’ll definitely find a value there,” he stated.

As for digital, when compared with Onam last year, this year ad insertions have grown by 44%. As per industry experts, digital ad spends are estimated to see a rise of anywhere between 25-30% on the back of IPL, ICC T20 World Cup as well as the OTT first premium properties. “There are two types of advertisers– one who are looking to extract a lot of sales and other are the ones who will simply ride on the equity of the online. The equity driven campaigns largely ride on premium properties such as IPL and Bigg Boss OTT while the sales driven advertisers will opt for e-commerce space such as Amazon, Flipkart,” a senior digital media planner, said, on the condition of anonymity. Currently, e-commerce commands close to 25-30% of total digital spends but during the festive season it is likely to increase to 40-45%. The rest will be directed towards video platforms including social media platforms. From a broader perspective, e-commerce and video platforms will account for 80% of the total digital ad spends while the remaining 20% will be spent towards content or display ads.

Read Also: Beauty e-commerce platforms and brands take the next step towards digital transformation; posts a rise in sales

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