Festive season to be a hit for TV ad rev, say marketers
India will soon enter its festive season this year, regarded a critical time in the advertising calendar as brands prioritise investments to capitalize on heightened consumer spending and engagement. Industry experts believe that despite big-ticket events such as the IPL, general elections, and the recently concluded T20 World Cup that kept brands occupied, budgets for the festive season remain steadfast, as this period promises maximum returns for advertisers.
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Speaking to exchange4media, Vishal Shah, Managing Partner, EssenceMediacom, said he expected a good festive period this year, adding that the overall sentiment has been positive. “We will have a good festive season. Advertisers who see more traction in the festive period budget for it in advance. They would not exhaust their money in the April-May period.”
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“The wedding season and overall festive season always attract advertisers as consumer purchase and consumption will happen. Brands plan their budgets in advance to ensure they tap into different segments, opportunities and needs of consumers. Festivals in India are definitely big,” Shah added. Sharing a similar view, Manesh Swamy, Managing Director & Chief Creative Officer - LS Creative, said that the buzz for the festive season in India will always be high and that advertisers keep the budgets aside for this period irrespective of the other properties. “From a marketer's plan or the consumer lens the buzz for the festive season in India will always be high. It is ingrained within the culture, and consumer journeys mostly go up North. Giants like Google have also started fuelling the brand ecosystem with their festive Offerings during the Google Marketing Live last week. I'm sure other players will also follow the trend. We all, as an industry, are optimistic and are preparing for the festive season. According to Karan Taurani, Senior VP, Elara Capital, this year will be better during the festive season for TV ad revenue because last year a large chunk of festive spends went into the World Cup, so there will be a positive impact. Talking about whether advertisers have already exhausted a significant portion of their budgets on major events this year, such as the IPL, T20 World Cup, and the general elections, Swamy said, “I feel advertisers would have specifically parked budgets for festive, as festive is and will be a huge chunk of the advertising pie, fluid events like IPL, World Cup, and elections are more filler events in the cycle. Yes gaming, FMCG, and a few big BFSI brands made these events their tentpole properties as the core consumer was genuinely interested.” According to a report, TV ad revenue saw a Rs 21 billion drop (by 6.5%) in 2023 compared to 2022. From Rs 318 billion in 2022, the advertising revenue for TV reduced to Rs 297 billion in 2023. It stood at Rs 320 billion in 2019, falling to Rs 251 billion in 2020 and showing a rising trend in 2021 and 2022 at Rs 313 billion and Rs 318 billion respectively. As per industry experts, the advertising revenue in the television industry declined due to a slowdown in spending by gaming and D2C brands, which impacted revenues for premium properties. According to industry veterans, there may be pressure on TV but it remains a key medium to build brands. They also believe that FMCGs, which too have been drifting towards digital, will always be at the forefront as consumption happens throughout the year. “While TV is seeing pressure and digital spends are rising, other media like print and radio are seeing challenges predominantly. TV continues to be a key medium to build brands and drive sales and cannot be ignored. “FMCG will always be on the forefront as consumption happens through the year, other than that we also see Retail categories such as Jewellery, Mobile, Fashion, Ecom, EConsumer Durables, Automobiles will definitely be bullish,” said Shah. Echoing his opinion, Swamy said that FMCG and consumer durables categories will continue to be active and grow during the peak of the season. “No surprises there as the consumer needs and wants will drive the market. Summer categories such as Beverages, Air-Conditioners and Male Tg dominated categories like BFSI would have paid more emphasis in Summer and Cricket Impact properties, however consumption in H2 specially around festive cannot be ignored and brands will invest in the same. “There will also be new product launches across categories which will leverage the festive period to drive consumption and trials,” he said. He further said that digital including E-commerce will continue and grow to be brand favorites but TV will continue to co-exist, grab the relevant budgets, and cater to the diversity and scale the nation offers. Sharing a similar opinion, Taurani said, “TV is still a larger share for FMCG as a vertical in terms of digital. Close to 35-40% of FMCG ad spends are going to digital but a larger chunk, like 40% plus share, is coming on TV. So, the FMCG ad spend market is about Rs 35,000 crores and close to about 45-50% of this goes to TV and the balance is between digital and other mediums.” “This year, we are seeing traction in FMCG because of lower inflationary pressure. I think FMCG will spend aggressively on TV advertising and that will kind of have a positive impact on overall TV ad revenue for Q3 which could be a blockbuster quarter,” he said. According to Taurani, there'll be no budget constraints as the kinds of verticals during festivals are very different. “And I don't think the T20 World Cup saw the number of ad spends or the size of ad spends anywhere close to the 50-over World Cup last year because last year it was in India and in favourable time zones,” he noted. For more updates, be socially connected with us on
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Tags : Festive Ad Spending Tv Ad Revenue