Guest Column: It is an optimistic festive season for ad spends: Umang Mathur, i Media Networks

An ET report states that FMCG companies have seen their customer base shrink due to demonetisation and increased love for herbal products. To counter that, major FMCG companies have decided to invest more money in advertisements to woo customers.

by Umang Mathur
Published - Sep 28, 2017 7:46 AM Updated: Sep 28, 2017 7:46 AM

Digital advertising spends have become an integral part of the corporate world today and it is expected to grow at a CAGR (Compound Annual Growth Rate) of 33 per cent by December 2017. Post 2015, digital advertising spend has grown at an unimaginable speed of 40 per cent.

A report by IAMAI (Internet & Mobile Association of India) and IMRB Kantar suggests that the Digital Advertising Spend might be as high as 14 per cent of total advertising spend in the country. Out of these spends, video ads have gained immense popularity and thus account for 19 per cent of ad spends.

It is a well-known fact that e-commerce leads the digital advertising spend but following them closely are Fast Moving Consumer Goods companies (FMCG,) consumer durables, banking sector, financial services and insurance.

An ET report states that FMCG companies have seen their customer base shrink owing to demonetisation and increased love for herbal products. To counter that, major FMCG companies have decided to invest more money in advertisements to woo their customers. This was the result of a report which suggested that the customers tend to increase their spending on FMCG goods in festive months.

FMCG giants including PepsiCo, Marico, Dabur and Parle have high hopes for this festive season and are set to increase their ad spends in the coming weeks. This quarter of October to December approximately accounts for 40 per cent ad spends in a year.

The festive season also gives companies a good time to launch new products. Companies spend 25 per cent of ad spends on them. Also, a strong festive season is expected due to a lethargic June and July.

This year, good monsoon and exposure to technology in rural markets, predict higher sales numbers, which would hence result in more ad spends that reach these areas.

With the numerous reasons stated above, we can affirmatively say that a strong festive season can be expected in terms of ad spends.

(The author is CEO and Founder at i Media Networks)

Disclaimer: The views expressed here are solely those of the author and do not in any way represent the views of exchange4media.com.

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