According to week 41 (October 8 to 14) of the BARC Ratings, Snapdeal continues to be in the list of ‘Top 10 Brands’ among the top spenders from the e-commerce lot on TV. It has moved one place up to No 5 with 17,860 insertions as compared to last week’s 19,143 insertions. Week 39, was the first time, when the brand entered the list with 18,177 insertions.
The increase in spends by the brand on TV and also on the other mediums, has happened on the back of Snapdeal allocating Rs 200 crore as marketing spends for a span of two months. The brand has recently gone for a new positioning titled ‘Unbox Zindagi’ or Unbox Life, as it seeks to position itself differently in the hyper-competitive e-commerce business. The new brand identity was rolled out at all touch points, on the app, website, mobile site and through all brand communication.
Snapdeal has started the third wave of deals with its Unbox Diwali sale from October 19 till 21. The first round was from 2 to 6 October, and the second was held between 12 to 14 October. The brand has been consistently promoting their deals through TVCs titled ‘Khushiyon ki Chakri’ on the theme of “unboxing” emotions.
Last week for week 40, Amazon made it to the fourth place with 21,981 insertions. It was the time, when the brand had released their campaign ‘BadeDilWale’ to promote their ‘Great Festival Sale’. In the same list, Flipkart stood at the eight place with 12,827 insertions during the time, when it was heavily advertising for its Big Billion Day sale.
However, for week 41, both Flipkart and Amazon don’t figure in the list of Top 10 Brands. Infact, as per the BARC data in the last four weeks, it is clearly visible that these brands are using their marketing money in bursts on TV, typically in line with the ongoing discounts on their website.
Amazon was running their Great Indian Festival from October 17 to 20. It was seen to spend more on print with their jacket ads in mainline papers. Flipkart will be starting with their Big Diwali Sale, from October 25 to 28.
The e-commerce sector, which has been grappling with a lot of challenges lately, has witnessed an overall reduced ad spends in the first half of 2016. In fact, according to the revised Pitch Madison numbers, e-commerce ad spends for H1’16 fell by 37 per cent as compared to spends for the same period last year.As per the report, spending by e-commerce retailers, some of the biggest advertisers during the previous two festive seasons, dropped to Rs. 394 crore in the first half of 2016 from Rs. 629 crore in the first half of 2015.
According to the same report, e-commerce’s category’s contribution to overall adex fell from 7 per cent in H1’15 to 4 per cent in H1’16. It also highlighted that reduction in e-commerce ad spends could also be a reason why television ad spends have just grown 11 per cent in H1’2016 as opposed to a predicted growth rate of 20 per cent for the year.
Media planners had predicted that with the kick-start of the festive season, we will see players, who were on a tight string budget in the first half of 2016, will be seen spending more. The increase in spends can already be seen as these players release their respective marketing campaigns. But it is surprising to see that other than Snapdeal who is the most aggressivewith their two-month marketing plan, the other big players like Flipkart and Amazon are using the other platforms like print and outdoor more than TV.