MAM
HUL, Star end 3 months of ad negotiations
MUMBAI: Hindustan Unilever (HUL), India‘s largest advertiser on television, has returned to Star Network after three months of absence and hard negotiations from either sides.
The exact nature of the deal could not be ascertained as both Star and HUL were not ready to disclose the details.
Star India president ad sales Kevin Vaz confirmed the news to Indiantelevision.com but said the terms were confidential. “Yes, Hindustan Unilever is on,” he said.
In a slowdown environment, FMCG companies have been increasing their ad spends as their sales have increased. Other high-spending sectors like telecom and financial services have softened their marketing expenses, thus allowing room for the FMCG companies to look for better rates on television channels who depend largely on advertising revenues.
For the fiscal ended 31 March 2012, HUL had actually reduced its spend on advertising and promotions by 3.58 per cent compared to the year-ago period. The FMCG major had spent Rs 26.97 billion on promotions, down from Rs 27.97 billion.
“Both HUL and Star needed each other. Star has powerful channels in Hindi GEC, Hindi movies, English entertainment, infotainment and regional-language genres. HUL is the largest advertiser and has increased its spends this fiscal,” a media analyst said.
In the fiscal-first quarter, HUL has upped its ad and promotional spends by 29.5 per cent to Rs 8.2 billion.
HUL is present on the other entertainment networks like Zee, Sony and Viacom18.
“This neutralises the upside possibility that the other major networks could have had if HUL had stayed out of Star for a longer period,” a media analyst at a broking firm said.
Zee Entertainment Enterprises Ltd chief sales officer Ashish Sehgal does not believe that an upside opportunity existed for the company. “We have already done a deal with HUL and got an upside as our flagship channel Zee TV‘s ratings have seen an improvement. HUL is also increasing its overall ad spends this fiscal. There was no scope for a further upside as we have got other advertisers on board and our inventory is full for our major network channels. There is some inventory left on our smaller channels and HUL is not a spender on those,” he said.
For the first quarter of this fiscal, Zeel reported 18 per cent rise in its ad revenue to Rs 4.47 billion.
The second half of this fiscal is crucial for the television networks as the previous six-month period had seen a slowdown. This also coincides with the festive season during which spread brands tend to free their wallets to promote their products.
The advertising expenditure on television is estimated to grow at 5.6 per cent to gross Rs 148.12 billion in calendar year 2012, according to a GroupM revised forecast.
“The Telecom category cut down spends substantially in the first half of the year. Financial services have been adversely affected by poorer economic conditions here as elsewhere in the world. Even consumer durables spent less in the first half of 2012 than the prior year period. Occupancy of premium inventory has decreased with advertisers choosing to stay with safer tried-and-tested formats,” the WPP agency explained in its report.
The Indian economy has seen a new energy after the government‘s series of reform policies including higher FDI in retail, broadcast-carriage services sector and aviation. The stock market has rallied recently and touched a 17-month high.
Advertisers, however, are still cautious and will wait longer before becoming extravagant on their marketing spends.
MAM
India’s experience economy grows as live events market hits Rs 17,000 crore
EY-Parthenon and BookMyShow report finds 78 per cent Indians prefer experiences over products
MUMBAI: India’s live entertainment scene is no longer just about music, comedy or festivals. It is increasingly becoming a powerful stage for brands seeking deeper connections with consumers.
A new report titled Beyond Attention, Into Immersion by EY-Parthenon and BookMyShow suggests that India’s experience economy is entering a strong growth phase, driven by consumers who are choosing memorable moments over material purchases.
According to the study, the country’s live events ecosystem, which includes concerts, comedy tours, festivals and immersive exhibitions, is estimated to reach around Rs 17,000 crore in 2025. The growth reflects a broader cultural shift in how Indians spend their time and money.
The report finds that 78 per cent of Indian consumers now prefer spending on experiences rather than physical products. From attending concerts and festivals to participating in interactive brand installations, audiences are increasingly seeking engagement, community and shareable moments.
This change in consumer behaviour is particularly evident among younger audiences who want to participate rather than simply watch. Instead of passively consuming entertainment, many now look for experiences that allow them to interact, express themselves and connect with like minded communities.
For marketers, this shift has turned experiential marketing into a strategic priority rather than a promotional add on. Brands are moving away from interruption driven advertising and towards immersive formats that allow consumers to discover, test and emotionally connect with products.
The report suggests that experiential marketing now plays a role across the entire consumer journey. It can spark brand discovery, strengthen storytelling, encourage product trials and ultimately influence purchase decisions and loyalty.
The impact is already visible. Post event surveys conducted among 7,450 attendees at major events including Lollapalooza India and concerts by Ed Sheeran and Guns N’ Roses highlight the effectiveness of these experiences.
Around 59 per cent of attendees recalled brands they interacted with during the events, while 55 per cent said those interactions increased their likelihood of purchasing from the brand. A further 63 per cent reported that brand activations actually enhanced their event experience rather than distracting from it. Nearly 29 per cent also said the interaction improved their perception of the brand.
Brands are also changing the way they approach events. Instead of simply putting logos on stages or banners, companies are building experiences into the fabric of the event itself.
Financial services brands, for example, are offering early ticket access, exclusive lounges and curated event experiences for cardholders. Fashion and beauty companies are using festivals to showcase products through pop ups, interactive installations and social media friendly spaces that encourage visitors to share their experiences online.
The scope of experiential marketing now stretches far beyond live entertainment. Retailers are designing experiential stores where customers can explore products in lifelike environments. Entertainment platforms are extending popular intellectual properties into immersive exhibitions and fan events. Technology is also playing a growing role through augmented reality and virtual try on tools that blend digital discovery with physical interaction.
Cultural festivals remain one of the most powerful platforms for such engagement in India. Celebrations such as Navratri and Holi bring together large communities, emotional participation and heightened consumer spending. For brands, these moments offer an opportunity to become part of the celebration rather than simply advertise around it.
Despite the momentum, the report notes that some companies still hesitate to adopt experiential marketing at scale. Budget constraints, limited expertise and uncertainty around measuring return on investment remain common concerns.
However, the growing body of data around consumer engagement and brand impact is gradually addressing these challenges. More marketers are expected to allocate a larger share of their budgets to experiential formats over the coming years.
Taken together, the findings point to a clear trend. As consumers seek meaning, memories and moments worth sharing, live experiences are emerging as one of the most powerful ways for brands to stay relevant in a crowded media landscape.
