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Flipkart, Amazon, Snapdeal collectively splurge Rs. 100-120 crore on festive sales

15-October-2015
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Flipkart, Amazon, Snapdeal collectively splurge Rs. 100-120 crore on festive sales

The beginning of the festive season has brought about a flurry of ads from various brand categories. Expectedly, this time ecommerce companies are the frontrunners. With many pre-festive campaigns being rolled out prior to the Diwali festive period, the ad spends of ecommerce are expected to rise significantly. While ecommerce festive ad spends were expected to reach Rs.1,300 crore, some media planners now say that this is expected to rise further with non-stop campaigning by many players such as Amazon, Snapdeal and Flipkart.

Television is expected to get the largest share of these ad spends. While most ecommerce companies are putting around 60% of their ad spends on television, some brands are even extending that to 80%. In a previous article on exchange4media we saw TV broadcasters expecting a minimum 25% rise in their ad revenues during the festive season, primarily due to the contribution from ecommerce companies.  According to a recent report by TAM Media Research, ecommerce spends on TV during July to September alone this year amounted to Rs. 1,200 crore. This included 50 ecommerce companies. However, while Snapdeal, OLX and Bluestone had increased their ad spends during the July-September period in comparison to the same period last year, Flipkart, Myntra and Paytm had reduced their spends during the same period. This would explain the heavy marketing campaigns of these brands have started from October onwards.

Big bucks on big festive sales

This week and the week prior to it witnessed a flurry of advertising by three of the largest ecommerce brands Amazon, Flipkart and Snapdeal which have been advertising their big sales from October 13-17. While Flipkart was advertising about ‘The Big Billion Days’ sale, Amazon had campaigns running for the ‘Great Indian Festive Sale’ and Snapdeal too advertised for its festive sale. According to a senior media planner, the ad spends of these three brands together for their campaigns over more than two weeks are estimated at Rs.100-120 crore. A major portion of this has gone on television followed by print. 

An article by exchange4media yesterday saw the three ecommerce giants spending Rs 9-10 crore together advertising on The Times of India (TOI) alone over the three days of the sale. Flipkart is said to have spent around Rs. 4 crore, while the deals for Snapdeal and Amazon were in the range of Rs. 2.5 – 3 crore. ecommerce players also advertised across front pages of other newspapers such as Hindustan Times, DNA, Mint and Mumbai Mirror.

“Around 60-70% of the ad spends of these three brands was on television through the heavy marketing campaigns on their respective sales. The rest was spent on print which also amounted to a large sum of spends,” said a media planner. He further added that they will be expected to spend even more before the Diwali period.

“In the festive season we believe that Snapdeal will be spending close to Rs.100 crore, Amazon around Rs.70 -80 crore and Flipkart around the same and Paytm will be around Rs.100 crore,” said Rajul Kulshreshtha, Co-Founder of media planning and buying agency Xposure Media. He further expected the spends of these ecommerce brands to grow higher before Diwali. “I think the peak will be around Dhanteras. Also what we need to remember is that categories such as mobiles are also getting active and there will be some fight on the share of voice angle,” he said.

While these past two weeks has seen a large burst of ad spends from the three major ecommerce brands, the spends are definitely expected to be several times more closer to Diwali. According to another senior media planner, the ad spends will be 2-3X more than what we just saw for the big festive sales. This is as brands such as Paytm, which has budgeted a large portion of their marketing budget for the festive period, has yet to bring out its campaign in full swing. “Paytm is still on a brand building stream but I suspect that they will come in a little later with a good burst,” said Kulshreshtha. Apart from this are several other ecommerce brands such as OLX, Quikr, Freecharge, Jabong, Shopclues, Askme Bazaar, Junglee, etc. which are also looking towards making a big splash this festive period. Apart from this there are several other smaller ecommerce brands which have just forayed into the market and are flushed with funds from investors. 

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