According to industry experts, despite significant expenditures on the IPL, elections, and the T20 World Cup, brands are expected to maintain strong budget allocations for the festive months. As India enters its festive season, a critical period in the advertising calendar, brands aim to capitalize on increased consumer spending and engagement.
Industry experts assert that, despite big-ticket events such as the IPL, general elections, and the recently concluded T20 World Cup occupying much of the brands’ attention and budget, the festive season budgets remain unwavering. This period promises maximum returns for advertisers due to heightened consumer activities.
Speaking to exchange4media, Vishal Shah, Managing Partner at EssenceMediacom, expressed optimism about the upcoming festive period, noting a positive overall sentiment. “We will have a good festive season. Advertisers who see more traction during this period budget for it in advance. They do not exhaust their funds during the April-May period,” he stated.
Shah further explained that the wedding season and the broader festive period always attract advertisers as consumer purchases and consumption spike. “Brands plan their budgets in advance to ensure they can leverage the various segments, opportunities, and consumer needs during festivals in India,” Shah added.
Manesh Swamy, Managing Director & Chief Creative Officer at LS Creative, shared a similar view, emphasizing that the festive season always generates high buzz and advertisers consistently reserve budgets for this period. “The festive season in India is ingrained in the culture, and consumer journeys typically spike. Giants like Google are enhancing the brand ecosystem with festive offerings, and other players will likely follow suit. As an industry, we are optimistic and preparing for the festive season,” Swamy stated.
Karan Taurani, Senior VP at Elara Capital, predicted a better festive season for TV ads revenue compared to the previous year. Last year, a significant portion of the festive budget was allocated to the World Cup. He emphasized that, despite spending on major events, advertisers likely set aside budgets specifically for the festive season, which remains a substantial portion of the advertising pie.
According to a report, TV ad revenue dropped by ₹21 billion (6.5%) in 2023 compared to 2022, from ₹318 billion to ₹297 billion. However, TV remains a crucial medium for building brands and driving sales. FMCG and retail categories like jewelry, mobile, fashion, and consumer durables are expected to be particularly active during the festive season.
Shah noted that while digital spending is rising, TV continues to be essential, especially for FMCG brands that have consistent consumption throughout the year. “While TV is seeing pressure and digital spends are rising, other media like print and radio are facing significant challenges. TV continues to be a key medium to build brands and drive sales and cannot be ignored,” he said.
Swamy added that the FMCG and consumer durables categories would continue to be active and grow during the peak of the season. “Consumer needs and wants will drive the market. Summer categories such as beverages, air-conditioners, and male-targeted categories like BFSI may have focused more on summer and cricket events, but the festive season’s consumption cannot be ignored. Brands will invest in the same,” he noted.
“There will also be new product launches across categories that will leverage the festive period to drive consumption and trials,” Swamy added. He further emphasized that digital, including e-commerce, would continue to grow in importance but that TV would remain a crucial platform, capturing relevant budgets and catering to the nation’s diversity and scale.
Taurani highlighted that FMCG ad spends are still significant on TV. “Close to 35-40% of FMCG ad spends are going to digital, but a larger chunk, like 40% plus, goes to TV. The FMCG ad spend market is about ₹35,000 crores, with close to 45-50% allocated to TV and the balance between digital and other mediums,” he explained.
“This year, we are seeing traction in FMCG due to lower inflationary pressure. I think FMCG will spend aggressively on TV advertising, positively impacting overall TV ad revenue for Q3, which could be a blockbuster quarter,” Taurani added.
Taurani also mentioned that there would be no budget constraints as the types of verticals active during the festive season differ. “I don’t think the T20 World Cup saw ad spends or the size of ad spends close to the 50-over World Cup last year because it was held in India and in favorable time zones,” he noted.
Key Takeaways from the Industry
- Optimism Despite Major Events: Industry experts remain positive about the festive season, highlighting that brands plan their budgets to ensure they can capitalize on this period despite expenditures on IPL, elections, and the T20 World Cup.
- Strategic Budget Planning: Brands allocate budgets for the festive season well in advance, understanding its importance in driving consumer purchases and engagement.
- Continued Importance of TV: Despite the rise in digital ad spending, TV remains a vital medium for reaching a broad audience, particularly for FMCG and consumer durables.
- Impact of Lower Inflation: Lower inflationary pressure is expected to result in aggressive TV ad spending by FMCG brands, potentially leading to a blockbuster quarter for TV ad revenue.
- New Product Launches: The festive season will see new product launches across various categories, leveraging increased consumer activity to drive trials and consumption.
The festive season in India is set to be a pivotal period for TV ad revenue, with industry experts predicting robust advertising activity. Despite earlier expenditures on significant events, brands are strategically planning their budgets to capitalize on the festive season’s heightened consumer engagement. The enduring importance of TV, especially for FMCG brands, ensures it remains a key platform for advertisers. With new product launches and increased consumer spending, the festive season promises to deliver significant returns for advertisers and drive overall TV ad revenue.
