Q3 infuses a fresh wave of optimism in South India print industry
Print sector in the south reaps the benefits of a diverse festive season
The festive season has increased revenues from ad spends in the print industry. The print sector in South India is optimistic about the change in the government and feels that the action will start in the next quarter. We speak to print players to gauge how the sector has fared with the onset of festive season in the third quarter of this financial year.
Commenting on the last quarter, I Venkat, Director, Eenadu said, “The third quarter is always good as it is Diwali season. Historically, in the last quarter the market is quiet dull. Having said that, each state in the South works differently. For instance, in Kerala it doesn’t make a difference as Onam is their Diwali. For Tamil Nadu, Pongal is big and so they will do good. For us it will be reasonable during Pongal. But the Diwali quarter could not be matched with the next one. Post Diwali, the growth percentage is generally less and it will be a single digit number.”
Martin King, GM & Head- Marketing, Dinamalar said, “With Diwali in the quarter three there was a bit of buoyancy in the market and we were able to forget the extreme lull of quarter two. As the market sentiments say that 2015 is going to be good so the Q-4 is expected to be good and help us take off to fantastic 2015-16.”
He feels that the overall low market performance gives them an opportunity to do corrections and also helps gearing up to meet challenges. Having seen the worst, the industry only hopes for better times ahead.
In South India except Kerala, Christmas is not big and New Year also isn’t that big when compared to the Diwali season. So, print players have a hope for Pongal season in Tamil Nadu and some parts of Andhra Pradesh, where Pongal is celebrated in a big way. During Diwali the highest spender on the print medium was automobile and telecom. But with optimism in the market, other sectors are also expected to do well.
Narendra Kumar Alambara, COO, Sovereign Media Marketing remarked, “Typically, the third quarter is the best quarter with Diwali in this period. In the South, up to mid-Jan is good, but post that it is fairly muted with only perfunctory spends from most brands. Fourth quarter tends to be low, unless there are unseasonal events and opportunities. Though the third quarter has seen a marginal growth in single digits, we expect the coming year to have double digit growth, given the positive sentiments all around.”
While Varghese Chandy, Chief GM- Marketing & Advertising Sales, Malayala Manorama feels generalising south is not fair as festival seasons differ in each region. For instance Onam, the biggest season for Keralites was in September. Assessing the post festival season, he said, “It hasn’t been all that good. Quarter to quarter comparison is also not a fair comparison due to the cyclical nature of business. We missed the double digit growth in the post festival period. Christmas and New Year coincide with the NRI visits and also the Grand Kerala Shopping festival. Therefore we are expecting a spike during this period particularly because Christmas and New Year is the second biggest Shopping season after Onam.”
He expects a 10 per cent growth in the next quarter. He also said that automobile has been the strongest advertiser for print.
Experts feel that E-Commerce has been spending reasonably well and expect it to increase its volume of advertising in the coming year.
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