Approximately 70% Indians are ready to spend more this Diwali, resulting in a 35% increase from last year, according to the third Festive Pulse Survey conducted by global advertising technology company, The Trade Desk. The planned increase in consumer spend is led primarily by consumers’ view that their financial situation has improved (53%), and consumers’ eagerness to celebrate a lot more this year (49%).
The new research indicates growing optimism among Indian consumers is slated to drive larger festive sales this year, giving brands an opportunity to build advertising campaigns tailored to consumer interests and preferences.
Skyrocketing optimism spurs consumer spend
The surge in optimism is driving increased consumer spend, with a majority expressing an interest in purchasing luxury goods and apparel (84%) and gold (80%). Amongst those who plan to spend more, 68% said they are more likely to increase spend on new clothes, 65% on gold and jewellery, 64% on Diwali food items and gifts for family, and 64% on friends and colleagues.
“This year’s Diwali is shaping up to be the most significant shopping season ever. People are gearing to celebrate more, in turn, they plan to spend more. To make the most of this opportunity, marketers should focus on building trust to engage customers with relevant advertising campaigns that reach them at the right place at the right time. The Trade Desk is empowering marketers to make smarter media decisions for the festive season and for the long term, whilst helping them track campaign performance to drive business growth effectively,” Tejinder Gill, general manager- India, The Trade Desk, said.
Brands who engage early and consistently will stay top-of-mind
The findings show that an always-on branding strategy is the key in engaging consumers . When shopping for Diwali, more than 58% of Indians consider themselves to be planned shoppers, while approximately 45% regard brand trust as an important factor in their Diwali shopping decisions.
The research also reveals significantly higher brand loyalty, compared to Diwali shopping last year. Within the top three product categories where consumers demonstrate the strongest loyalty, 74% of consumers will stick to the same brand when purchasing products in health and personal care, an increase of 23% compared to last year. While 69% of Indian consumers will do so for consumer electronics, an increase of 30%, and 65% for makeup and fragrances, an increase of 27% from last year.
Indian consumers are least likely to hold strong brand affinity for toys, games, and collectibles (50%), home and living (50%) and travel (47%). Marketers who employ an always-on strategy can help enhance brand affinity by maintaining consistent connections with their audience throughout their entire purchasing journey.
OTT platforms are effective advertising channels
The open internet provides a place for brands to advertise as over-the-top (OTT) streaming platforms continue to garner traction. 61% respondents express a willingness to research a product online if they like the ads shown. Furthermore, people aged 25-40 years exhibit a larger appetite for ads on OTT platforms, as 51% reportedly pay attention to ads on the channel. Concurrently, 43% said they direct their attention towards ads on news, websites, and blogs.