MAM
Ad spend to remain bullish this festive season
Mumbai: After two Covid-impacted years, the mood among consumers and advertisers for the festive season is a lot better. Media agencies expect a decent uptick in ad spends.
The overall sentiment is positive. iProspect India executive vice president Kaushik Chakraborty explains, “Unlike the last two years, this festive season will be far more exciting. We can expect brands to encash on the positive sentiment. While media spends will be primarily driven by TV and digital, print and OOH spends will also grow,” he tells Indiantelevision.com.
He explains further that there has been a robust growth in ad spends during festive seasons in the last three years. “In 2021, the growth was more than 20 per cent as compared to the previous year. Although the inflationary pressure will impact overall consumer sentiments, we can expect a 10 per cent plus growth in media spend this festive season.”
The key categories that will witness a strong push in demand are e-commerce, automobiles, e-wallets, BFSI, and retail.
“Normally, festivities contribute around 40 per cent of AdEx. A similar trend will continue this year. The bulk of the spending will happen till Diwali, and post that, advertisers will rationalise spending,” he says.
When asked about the impact of startups being under pressure to conserve cash, he points out that startups contribute less than 13 per cent of overall AdEx. “Traditional advertising players will contribute during the festive seasons, while seasonal advertisers will continue their spending.”
IPG Mediabrands chief investment officer Hema Malik says that ad spend growth will be 10-15 per cent. Print, radio, cinema and out-to-home (OOH) are bouncing back. She expects the print media’s festive season ad spend growth to be over 50 per cent. “This will be the first festive season in three years without restrictions. The festive season will be celebrated in full-swing on-ground. Earlier, there were issues with masks, fewer places to visit and timings. The market should see a good pick-up currently.”
However, Malik highlights that television ad spends during the festive season will be flat due to the Indian Premier League (IPL) that happened last year. The annual advertising budget was diverted to IPL promotions. Also, the upcoming Twenty20 World Cup in Australia will take place after Diwali, which is an appropriate time and cooling-off period for advertisers. Hopefully, things will pick up in the advertising market and advertisers will likely increase their spending.
“Companies discontinue campaigns after Diwali and take a break. There will also be a struggle due to the disappointing IPL viewership recently and also the mediocre performance of India in the Asia Cup. It will be difficult to watch the Twenty20 World Cup on television. The challenge for television is that viewership has been steadily declining. The numbers are unexplainable. It is becoming a deterrent to price revisions. This has been a perennial issue for a couple of months now,” Malik tells Indiantelevision.com.
Elucidating further on the startup situation, she says, “Startups are facing a slowdown that is another challenge for television and digital media. Big sports properties will come under pressure. Other categories will fill up the gap, and selling inventory will not be an issue. The issue is whether those companies would be willing to spend as much as startups who have a target reach.”
Filling up inventory is never an issue for television, Malik explains further. It is yield maximisation that will be the challenge. The startup issue will also have an impact digitally. “The dampener is the startups and new-age companies that are under a slowdown this year. That is impacting the advertising mood and AdEx growth, she adds.
She adds that a few categories are firing, but not all. She expects categories like confectionery, paint, and jewellery to do well. “They will come back in full force. Retail is expanding into more areas. E-commerce will also be there,” she concludes.
Brands
Primus Partners appoints Akasa Air co-founder Neelu Khatri as independent director
Veteran aviation and defence professional joins as independent director
NEW DELHI: Primus Partners has appointed Neelu Khatri, a founding member of Akasa Air, as an independent director, strengthening the consulting firm’s board as it prepares for its next phase of growth.
Khatri brings more than three decades of experience across defence, aviation, aerospace technology and consulting. She was part of the core team that helped build Akasa Air from concept to launch, contributing to what has been widely described as one of the fastest airline scale ups in recent aviation history.
At Primus Partners, she will provide strategic guidance on corporate governance and help steer the firm’s long term growth plans. Her experience of building a start up into a full scale organisation is expected to support the consulting firm as it expands its footprint.
Primus Partners co-founder and chairperson Davinder Sandhu, said the appointment brings valuable expertise to the board. “Neelu’s journey across defence, aviation and consulting brings a rare blend of operational insight and strategic thinking. Her experience in rapidly scaling Akasa Air will be invaluable as we continue to grow while maintaining a strong focus on corporate governance,” he said.
Primus Partners, an India headquartered management consulting and solutions firm, has emphasised governance and board oversight since its early days. The company has also taken an unconventional approach by inviting its Gen Z employees to attend board meetings so that younger perspectives can contribute to discussions.
Speaking on her appointment, Khatri said the consulting sector is entering a transformative period shaped by emerging technologies. “The industry is evolving rapidly with the rise of AI. This is an exciting moment for an Indian origin consulting firm like Primus Partners to expand its product offerings and strengthen its presence globally,” she said.
She added that as the firm pursues ambitious expansion plans, her focus will be on ensuring strong governance frameworks and effective risk management as the organisation scales.
