Ad experts suggest that numerous advertisers are currently adopting a cautious approach as they await the outcome of the polls. The uncertainty surrounding the election results has put them in a wait-and-watch mode. These advertisers are eagerly anticipating the budget presentation, which is scheduled to take place after the installation of the new government.
Economic conditions have shown signs of improvement recently, with inflation easing in the last few months. Despite the excitement surrounding the Indian Premier League and the upcoming T20 World Cup, many advertisers in India are exercising caution when it comes to their budgets.
According to industry experts interviewed by e4m, brands are hesitant to invest heavily in advertising until after the elections, opting to wait for more stability. Vishal Chinchankar, CEO of Madison Digital and Madison Alpha, mentioned that this conservative approach is expected to persist until the government presents its main budget.
While some brands are considering spending on the day of the election results, the focus will primarily be on TV and digital platforms with FCT/Non-FCT packages.
Results for the upcoming general elections are scheduled to be announced on June 4. The formation of the new government might take a few weeks. Anticipations are high for the release of the main budget in August, with the industry eagerly awaiting new policy measures to be introduced.
Despite the fact that the budget will cover the remaining 9 months of the current fiscal year, there is a sense of positivity within the industry that it could lead to an increase in consumer spending and market activity.
Shradha Agarwal, the Founder and CEO of Grapes, mentioned, “Marketers are currently divided. One faction is holding back on spending, while the other is investing as needed.”
Nevertheless, some marketers are adamant that they are continuing to spend as usual. “The demand for consumer products is not solely reliant on the outcome of elections,” stated Rajiv Dubey, the Media Head at Dabur India.
Shashi Sinha, the CEO of IPG Mediabrands, India, shares similar sentiments.
The advertising market in India is estimated to be worth around Rs one lakh crore. However, industry insiders have noted that the first four months of the calendar year 2024 have been lackluster compared to the previous year. This can be attributed to various challenges, including weak consumption in rural areas of the country, resulting in sluggish growth for the advertising and marketing industry.
According to a senior executive at a prominent advertising agency, many clients are adopting a cautious approach and are hesitant to allocate significant funds in the first quarter of the new fiscal year. Instead, they are reserving their resources for what they anticipate to be a post-election boom.
Some advertisers are placing their hopes on a victory for the BJP, led by Prime Minister Modi. They envision a scenario of market stability, along with developmental initiatives and pro-industry policies that could stimulate consumer demand. The FMCG (Fast-Moving Consumer Goods) and Automobile sectors are expected to benefit the most from such policies.
Some marketers are optimistic about the economic growth potential in the country, regardless of the election outcome. A marketing expert mentioned that the return of the BJP or a resurgence of the INDIA alliance could lead to pro-people policies, resulting in higher disposable income and increased advertising expenditure to fuel growth. Additionally, they may be more willing to invest once the political landscape becomes clearer.
