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Diwali advertising to push ecommerce festive spends to Rs 2,000 crore

Diwali advertising to push ecommerce festive spends to Rs 2,000 crore

Author | Collin Furtado | Thursday, Oct 29,2015 8:47 AM

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Diwali advertising to push ecommerce festive spends to Rs 2,000 crore

The festive season so far has seen ecommerce players dominating the advertising space. Some of the players such as Flipkart, Amazon and Snapdeal had been campaigning heavily during the pre-Diwali period. Flipkart, Amazon and Snapdeal rolled out their mega festive sales during 13-17 October, spent more that Rs.100-120 crore during the period. While these ecommerce companies had splurged heavily on advertising two weeks back, an even higher amount spending is expected from other ecommerce companies joining the fray in the last leg of the festive season.

For instance, ShopClues will be launching their Diwali sale from November 3 – 9 and is expected to spend a lot during this period. The brand is spending 5-10 times more than what it did during the last festive period. “While the campaign will be across medium, we are going to be most heavily focused on TV. We have done a lot of media research before the Diwali season and we found out that TV was the most efficient medium. The campaign will be launched close to the sale. We are not going to extended periods of pre-bursts. 60% of our festive spends will be put on this campaign, while 40% had been put on the previous sale,” said Nitin Agarwal, ShopClues. 

Craftsvilla, too, has Diwali plans lined-up with their new campaign launched. The brand has kept a budget of Rs 15 crore on their campaign which will run during the Diwali period. This is expected to a big period for the ecommerce company which sells ethnic products such as designer sarees and salwars, jewellery, handicrafts, home décor, etc.

Ecommerce ad spends during the festive period were expected to grow by 30 per cent from last year to Rs 1,300 crore. However, some media reports even peg the festive ad spends of ecommerce companies to go up to Rs 2,000 crore.

Amazon was one of the early brands to get in on the Diwali sales with the ‘The Great Indian Diwali Sale’ campaign for their sale from October 26-28. The ecommerce giant had a high decibel campaign which was mainly on TV, print, digital and radio and began a few days prior to October 26. Although its Diwali sale will come to end today media planners expect the company to continue its festive spending till the end of Diwali. Amazon last year in Q3’15 (October – December) saw its ad volume grow by 275% when compared to volumes during Q1’14 according to S-Group Insights.   

Askmebazaar will today be starting their ‘Diwali Deal Walon Ki’ sale campaign and is also running the Daily Jackpot Sale which started from October 13 to November 13. The festive sales includes upto 80% off on select products as well as daily offers like buy one get one free. The company is already running ad campaigns on TV and digital.

Furniture and home products ecommerce players Pepperfry too has began campaigning for the Diwali period. It has launched their latest campaign ‘Iss Diwali Kuch Badal Ke Dekhiye’. The campaign has been mainly focused on TV, digital and social media. The TV campaign is extensive with the TVC playing on English infotainment, Entertainment, Movies, Lifestyle and select HD channels/properties and regional channels. The campaign is expected to intensify closer to the Diwali period.

Jabong too has also launched its own TV ad campaign for Diwali which is a continuation of the ‘Be You’ campaign. We can expect the brand to promote its clothing and apparel products heavily in days leading up to Diwali.

Snapdeal is expected to continue its Monday sale till Diwali and will promote the sale heavily on digital and print. Apart from this media planners expect the ecommerce giant to have plans closer to Diwali and also increase their ad spends during this period. Similarly, the same is expected of Flipkart during the Diwali period.

P M Balakrishna, CEO, Allied Media said, “With Amazon, Snapdeal and Flipkart are the ones that are really going all out to get sales. It is tough to estimate what the spends are now but it is going to be significant. There are many players and Amazon is trying to rake in the sales in a big way. I think there will be significant spends on both TV and print as typical tactical spends to get eyeballs.”

Anand Chakravarthy, Managing Partner, Maxus, “Amazon has got its Diwali (campaign) right now. Snapdeal is doing something around Diwali right now. It is very likely during Diwali they will be active and so will some of the other brands. If you look at most of the projections last month that talked about Diwali, I think most of the projections are coming through and brands spending significantly in and around Diwali. The first two week of November which is the two weeks before Diwali one should expect to see a fairly high amount of spends coming from ecommerce companies.”

“I can’t say whether there will be another similar sale or not, but I am sure ecommerce spends will stay up till Diwali. In some cases they will come back during the Christmas and New Year period,” said Debraj Tripathy, M D, MediaCom. 

With Amazon, Flipkart and Snapdeal reporting several times higher sales than last year through their sales and marketing campaigns, it is expected that they will spend more during the last leg of the festive period. 

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