Patanjali to significantly increase ad spends in 2017
Industry insiders speculate that the FMCG disruptor’s intensive marketing initiatives will result in an increase in ad spends
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The Patanjali Ayurved juggernaut shows no indications of slowing down even as the FMCG market is absorbing the impact of the implementation of GST. Industry insiders speculate that the company, which was the third largest TV advertiser in 2016, will significantly increase its advertising expenditure in 2017. A few insiders hinted that Patanjali may just double its ad spend by the end of this year.
The company that has been branded as a disruptor in the FMCG space is now preparing to launch an apparel line by April 2018. In addition, the man behind the brand - Baba Ramdev - is all set to appear as a judge on a spiritual reality TV show titled Om Shanti Om on Life OK (to be rebranded as Star Bharat). It is worth noting that the company has already outdone itself this year with respect to television advertising. According to media reports, Broadcast Audience Research Council of India (BARC India) data shows that Patanjali’s TV advertising is up 34 per cent in the first 23 weeks of 2017 as against a year ago.
The high-intensity developments that are stemming from Patanjali indicate that the firm, headquartered in Haridwar, might now be stepping up its advertising expenditure. Patanjali’s advertisements until last financial year covered all the products under the company’s umbrella. “But now Baba Ramdev seems to have figured out the specific products that need to be advertised individually and is focussing on those brands alone,” said a Senior Account Group Head (Sales) of a leading business news channel. This sales executive added that establishing brands individually takes a lot of time and consequently a proportional amount of money. “Now the frequency, reach, etc of Patanjali’s TVCs are all bound to increase. That translates to just one thing - increase in ad spends. Patanjali will at the very least double its (ad) expenditure this year.”
“Until 2016 Patanjali had a very limited presence on regional channels. In 2017 they are very active in the regional channel space. They will be adding more channels to their kitty this year,” said a senior sales executive at a leading GEC who prefers to remain anonymous. The sales executive who closely follows the advertising strategy of large FMCG companies believes that Patanjali is bound to increase its ad spends significantly in 2017.
According to highly placed sources, Patanjali is known to be a hard negotiator when it comes to TV advertising rates. The firm extracts maximum bang per buck from TV channels. It is for this reason that the company has managed to deliver maximum impact from its advertising budget (Rs 300-400 cr).
SK Tijarawala, spokesperson for Patanjali Ayurved, declined to comment to on the firm’s ad spends for now.
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