The spike in festive spending was validated last week in the ASSOCHAM report that said corporates are preparing to up their advertising budget by as much as 30 per cent this year.
Industry feedback suggests marketing teams across companies engaged in Business-to-Consumer (B2C) have already planned their ad campaigns that will begin from Navratras run through Durga Puja, Diwali and go right up to Christmas. Policy makers and the RBI expect consumer spending to pick up, fuelling the overall GDP growth in the current financial year to 5.5-6 per cent, ASSOCHAM General Secretary D S Rawat said while releasing the paper.
We spoke to a section of advertisers about their choice of media, expectations from the market as well as the emergence of non-metro cities as business hot spots.
In a recent interview to exchange4media Amarjit Batra, CEO, OLX had said (http://www.exchange4media.com/57385_kapil-sharma-brings-more-traffic-to-olx.html) people are likely to buy and sell more this year as there are more options available to them. “The organisation is expecting around 15-20 increase in transactions during the festive season in the backdrop of offers and deals available in the market.”
Satinder Juneja, Vice President Sales and Marketing, NIIT, said he has his eyes set on innovative print ads. “Print is now competing with other forms of media to engage consumers and I see successful brands spending more on innovation and storytelling for their print ads this festive season.”
Manu Seth, Director Marketing, HTC reiterated the ASSOCHAM report that said by upping their spend by 30 per cent corporates are hoping for a commensurate rise in sales. “There is a definite upsurge in our spends just as there are dedicated and focused plans for specific markets which will drive business. We are expecting a double-digit incremental growth to make good the investments,” he said, adding, HTC has planned special offers and schemes for channel partners and end consumers to make the most of the season of big spends. “Our ROI is that last-mile consumer using HTC devices and we are expecting an upswing in the consumption pattern of the consumer,” he said. Besides traditional media, HTC intends to use digital and PR to reach out consumers. “We will ride the media vehicle in its entirety,” he said.
While Anu Anamika, National Marketing Head, Suzuki said the company is planning to sell one lakh bikes this season. “ This is the season for automobiles. Fortunately we are launching at the right time,” she said, while elaborating on the brand's ongoing digital initiatives. “We have a robust digital platform and we are also on TV and on ground, as a sponsor of Champions League T-20,” she said.
When asked about the demand from non-metro cities she said, “We are expecting good demands from the tier I and II markets, where brands gets a huge lift when a new product is launched.”
P M Balakrishna, COO, Allied Media feels media players and brand owners can expect ad spends to go up by 20 per cent. “These two months see the highest spending in the year with telecom and durables at a high,” he added.
Suresh Balakrishna, CEO, BPN supported the expectation of the marketers and vouched for the positive consumer sentiment. “Consumer durables, jewellery, retail, automobile and telecom will be the key growth drivers and I am expecting around 18-22 per cent increase in spends this festive season.”