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Tag: ad spends

  • Global ad market to be hit by trade wars, tariffs, and turmoil, says Warc

    Global ad market to be hit by trade wars, tariffs, and turmoil, says Warc

    MUMBAI: The global advertising industry is set for a bumpier ride than expected thanks to Donald Trump’s recent trade pronouncements and the retaliatory measures by the countries  affected and the continuing conflicts in certain parts of the world. 

    With this background in mind, Warc has slashed its ad spend growth forecast for 2025 by almost a percentage point to 6.7 per cent. The revised estimate pegs global ad spend at $1.15 trillion, down $20 billion over the next two years, thanks to economic stagnation, trade tariffs, and regulatory upheaval. The outlook for 2026 has also taken a hit, with growth now expected at 6.3 per cent.

    Warc director of data, intelligence & forecasting James Mcdonald put it bluntly: “The ad market is feeling the squeeze from tariffs, economic stagnation, and regulatory crackdowns, prompting brands to rein in budgets. Despite the volatility, digital ad spend remains robust, with Alphabet, Amazon and Meta set to control over half the market by 2029.”

    Automakers are slamming the brakes on ad budgets, cutting spend by 7.4 per cent as manufacturing stalls and supply chain woes deepen. Key players like General Motors and Ford have already slashed marketing budgets, focusing more on digital and social channels over traditional TV spots. Meanwhile, tariffs on Mexican, Canadian, and Chinese car imports threaten to worsen the crunch, with 40.7 per cent of the industry at risk, per the European Automobile Manufacturers Association.

    Retailers, too, are tightening belts. The sector, the biggest spender in global advertising, is set to cut ad budgets by 5.3 per cent this year, as rising costs and trade barriers squeeze margins. Chinese disruptors like Temu and Shein, which fuelled a retail ad boom in 2024, are expected to dial back their spending due to new trade restrictions.

    Tech brands, once the ad market’s golden child, are now facing a slowdown. The sector’s projected growth has been halved, down to 6.2 per cent, as new tariffs on semiconductors hit supply chains. Warc had previously forecast a 13.9 per cent jump in tech ad spend—now it’s looking at a much cooler landscape.

    Despite the broader slowdown, digital advertising remains a money-spinner. Search advertising will grab 21.7 per cent of global ad spend this year, rising eight per cent to $250 billion. Social media, the biggest single advertising channel, will rake in $286.2 billion—almost a quarter of all ad spend—powered by TikTok (+23.6 per cent), Instagram (+17 per cent) and Facebook (+8.6 per cent).

    Retail media, the rising star, is set to be one of the fastest-growing advertising formats, with a 15.4 per cent surge this year. However, trade barriers could dent ad receipts from consumer goods brands that rely on global supply chains. 

    Yet, there are storm clouds ahead. The EU has slapped Apple and Google with Digital Markets Act violations, putting billions in ad revenues at risk. UK courts could soon allow consumers to opt out of personalised ads, threatening the backbone of search and social media advertising.

    The US remains a bright spot, with ad spend expected to rise 5.7 per cent to $451.9 billion. But that’s a far cry from the 13.1 per cent growth seen in 2024. Warc predicts a stronger 2026, with a 6.5 per cent uptick, thanks to the FIFA World Cup and US midterms.

    China’s ad market, however, is losing steam. Growth is slowing to 5.3 per cent this year to $205.5 billion – compared to growth of 7.1 per cent recorded in 2024 – as weak domestic demand takes its toll. This year’s growth rate equates to a 3.5 per cent rise in real terms.

    Europe’s major economies, meanwhile, are teetering. The UK’s ad market is still growing—up 7.1 per cent to $52.6 billion—but inflation-adjusted figures tell a less rosy story, with real growth at just 5 per cent. Germany, bogged down by economic sluggishness, is heading for a 2.1 per cent decline in ad spend, while Japan is bracing for a 2 per cent drop. Japan’s market is set to grow 3.3 per cent this year when measured in local currency, demonstrating the current strength of the greenback against the yen.

    Trade wars, tariffs, and economic turmoil are reshaping global ad spend, forcing brands to rethink strategies. The digital giants remain dominant, but regulatory pressures are mounting. In a market full of uncertainty, one thing’s clear—advertisers will need to stay agile to keep ahead of the curve.

  • Budget boost to ad industry: WRM’s Shrenik Gandhi foretells the future

    Budget boost to ad industry: WRM’s Shrenik Gandhi foretells the future

    MUMBAI: Like many others before him,  Shrenik Gandhi, co-founder &  CEO of White Rivers Media (WRM), has predicted a significant uptick in advertising expenditure across consumption-driven sectors following the latest Union Budget announcement. With the government providing income tax relief up to Rs 12 lakh, Gandhi anticipates a ripple effect benefiting both brands and advertisers.

    He remarked, “With more disposable income in the hands of consumers, ad spends are expected to see a positive uptick, particularly in consumption-driven sectors from the salaried class.”

    Sectoral Impact on Ad Spends

    The overall advertising market is projected to witness a 10 per cent growth, driven by increased discretionary spending. Gandhi highlighted key sectors likely to ramp up marketing investments:
    * Retail & E-commerce: Boosted by increased purchasing power, aggressive online and offline campaigns are anticipated.
    * Automobiles: Higher disposable incomes often translate into greater car and two-wheeler sales, prompting auto brands to invest more in promotions.
    * Real Estate: With improved affordability, developers are expected to push marketing efforts for mid-income housing projects.
    * Consumer Electronics & Smartphones: This segment is poised for heightened promotional activity.
    * Travel & Hospitality: Financial ease could drive a surge in both domestic and international travel advertisements.
    * Fintech & BFSI: Additional savings may lead to increased interest in investments and insurance products, encouraging BFSI companies to up their advertising budgets.

    Digital advertising, already experiencing robust growth, is expected to accelerate further as brands seek to capture positive consumer sentiment. Gandhi concluded that the budget’s impact on the advertising landscape signals a promising year ahead for the industry.

  • Hindi news tops news genre’s ad volumes in H1 FY’22: TAM Media report

    Hindi news tops news genre’s ad volumes in H1 FY’22: TAM Media report

    Mumbai: TAM media research’s subdivision AdEx India has released the half-yearly report for advertising in the new genre. According to recent data, Hindi news tops with more than 20 per cent share for ad volumes in H1 FY ’22, and observed indexed growth of 33 per cent.

    As per the data recorded last year for the same period, ad volumes grew by 33 per cent as compared to H1 FY ’20 and five per cent growth was reported as compared to H1 FY 2021. The month of March 2022 saw the highest ad volume share of 19.5 per cent.

    H1 FY ’20 saw the highest share of ad volumes, that is, 31 per cent followed by H1 FY’22 and H1 FY ’21 with 28 per cent share each.

    The prime time slot is the most preferred band, followed by the afternoon and morning in the news genre, and during H1 FY ’21 and H1 FY ’22, for each slot Hindi news topped with a 20 per cent share of ad volumes.

    Three out of the top five subgenres, which include Hindi news, Bengali news, Tamil news, Telugu news, and others, have retained their ranks in H1 FY ’22. During H1 FY ’21 and H1 FY ’22, the top five subgenres accounted for more than 55 per cent of the ad volume.

    The number of news genre categories increased by four per cent in H1 FY ’22 as compared to H1 FY ’21. The spices category led with a three per cent share of ad volume in H1 FY ’22.

    The top ten list included two categories each from the food & beverage, building, industrial, and land materials/equipment industries.

    Corporate/brand image, range of OTC products, building materials/systems, and pan masala were the new entrants among the top 10, out of which seven categories observed positive rank shifts.

    The service industry topped with a 17 per cent share of the news genre’s ad volumes, followed by F&B with 14 per cent.

    Corporate/brand image saw the highest increase in ad seconds with 74 per cent, followed by ecom-gaming three times during H1 FY ’22 as compared to H1 FY ’21.

    In terms of growth per cent among the top 10 categories, vocational training institutes topped with the highest growth of 3.9 times, followed by face wash with 3.2 growth.

    Reckitt Benckiser, GCMMF (Amul), and LIC were the top three advertisers in H1 FY’22. Ultratech Cement, Mahashiya Di Hatti, and Think & Learn were the new entrants among the top 10. Ultratech Cement moved up by 24 positions to achieve the seventh rank.

    Roop Mantra cucumber herbal face wash and Lizol All-in-One are the latest brands in the list, with Hari Bhoomi Communications being the top exclusive advertiser, followed by ITV Network.

    The report further mentioned that in H1 FY ’22, 20 to 40 seconds witnessed a 10 per cent growth in ad volumes compared to H1 FY ’21. Advertising commercials of 20 to 40 seconds were most preferred for advertising on news channels during both periods.

    More than 3,200 advertisers advertised exclusively in the news genre from H1 FY ’22. 2,800 plus advertisers & 4.5K+ brands exclusively advertised in the news genre during Jan-Jun’22. Playgames 24×7 and Roop Mantra Cucumber Herbal Face Wash were the top exclusive advertisers and brands, respectively, during H1 FY ’22 compared to H1 FY ’21.

  • GUEST ARTICLE: Connected TV is emerging as an opportunity for entertainment brands in India

    GUEST ARTICLE: Connected TV is emerging as an opportunity for entertainment brands in India

    Mumbai: Connected TV (CTV) viewing has been gaining momentum in the western part of the world and is now on an escalating curve in India with 12–14 million monthly active CTV users, according to the FICCI-EY report of March 2022. The advancing new trends in the media and entertainment (M&E) industry have led to a noticeable change in the TV viewing habits of Indian audiences, leading to connected TV making a strong appearance in India. The exponentially growing CTV, which was earlier incomparable to linear TV, has now loomed out of the shadows and is considered a potent alternative for brands to advertise on. In the current digitally evolving ecosystem, affordable prices of smart televisions, increasing data penetration, and the availability of global content have aided in the medium’s rapid growth, making it a prominent mover and shaker in the M&E space. According to the March 2022 FICCI-EY report, by 2025, this number is expected to hit 40 million, highlighting its explosive growth as a medium in the country.

    A revenue stream within digital:

    For many years, traditional TV was the only platform for media buying. As users move towards connected TV, the medium is creating an opportunity to grow business revenues. In today’s time, content dissemination and consumption are platform-agnostic, giving brands an opportunity to generate visibility for themselves on the big screen. With CTVs ushering in the next big revolution, the ecosystem holds the potential for greater returns. As a new revenue stream within the digital landscape, CTV has grown to become an impactful channel that provides targeting capabilities and measurability. In a digital-forward world, measurement capabilities make the medium a must for any brand to push forth its marketing strategies and capitalise on the same.

    A powerful addition to the marketer’s toolbox:

    Connected TV, which has recorded notable growth in the past few years, is becoming a paradise for advertisers. In today’s data-rich world, consumers are increasingly demanding brands to deliver focused and relevant messaging. With more eyes on the big screen, CTV helps brands reach out to new and hard-to-reach audiences and form deeper connections with them. It has surfaced as a successful growth opportunity for advertisers who want access to a highly engaged, affluent audience. Advertisers, globally and in India, are lapping up the connected TV opportunity as it continues to grow as an exciting medium.

    With the widespread adoption of digital, CTV as a medium appears to be very promising for both consumers and advertisers. The growing adoption of streaming content through connected devices makes the medium an important and new touchpoint for advertisers. According to the IAB 2021 Video Ad Spend & 2022 Outlook report, globally, ad spending on connected TV grew 57 per cent in 2021 to $15.2 billion and will grow another 39 per cent in 2022 to $21.2 billion. In India, while CTV advertising spends are yet to fully catch up with growing smart TV subscriptions and consumers spending more time on these devices, ad spends will eventually move in a positive direction, making connected TV advertising the next big frontier.

    Towards a promising future:

    Presently, growing at a burgeoning pace, the connected TV market seems to have a propitious future. In our approach to reaching out to our digital audiences, CTV acts as a significant contributor. Needless to say, the medium will further prosper as a result of increasing attention from advertisers as they look to leverage the potential of digital advertising to reach their target customers in an innovative and effective manner. The overall ecosystem of connected devices, driven by technological advancements, will provide enormous headroom for growth in the future of media and entertainment. For a progressive future, it will become imperative for all stakeholders to strategically cater to this exponentially rising consumer growth trend.

    The author of this article is QYOU Media India COO Krishna Menon.

  • Marketers underspending in media campaigns affecting ROI: Nielsen report

    Marketers underspending in media campaigns affecting ROI: Nielsen report

    Mumbai: Nielsen released its first-ever ROI report, which identified gaps in marketers’ budgets, channels and media strategies that are compromising returns on investment (ROI) on media plans. The global report reveals data and delivers insights on what drives returns on ad spends, how to measure the returns, and how to improve on the metrics brands already have, with content unique to advertiser, agency, and publisher audiences.

    According to the report, about half of marketers are not spending enough in a channel to get maximum ROI. While a poor ROI might cause brands to pull back on spending, Nielsen found that spend often needs to be higher to break through and drive returns. Nielsen’s “50-50-50 gap” states that while 50 per cent of media plans are underinvested by a median of 50 per cent, ROI can be improved 50 per cent with the ideal budget.

    Beyond budgeting, the ROI report delivers key insights and recommendations to deliver higher ROI across multiple marketing areas including:

    ● Full funnel marketing: It’s rare for channels to deliver above average returns for both brand and sales outcomes, with 36 per cent of media channels faring above average on both revenue and brand metrics. To grow ROI, brands should pursue a balanced strategy for both upper and lower funnel initiatives. Nielsen found that adding upper funnel marketing to existing lower and mid funnel marketing can grow overall ROI by 13-70 per cent.

    ● Emerging media: It’s difficult for brands to spend big amounts without proof that the new media works, but spending small amounts can make it hard to see if the media is working. Nielsen found that podcast ads, influencer marketing and branded content can deliver over 70 per cent in aided brand recall, and that influencer marketing ROI is comparable to ROI from mainstream media.

    ● Ad sales growth strategy: Ultimately, ROI will inform publisher pricing power. Publishers are not just competing against others in their channel, but also against other channels, so comparing channel ROIs can help set pricing strategy. The ROI report uncovered that social media delivers 1.7x the ROI of TV, yet social gets less than one-third of TV ad budgets.

    ● Audience measurement: Campaigns with strong on-target reach deliver better sales outcomes. However, only 63 per cent of ads across desktop and mobile are on-target for age and gender in the US, meaning that on the channels with the most exhaustive data coverage and quality, over one third of ad spend is off-target. To capitalise on opportunity and drive impact, advertisers should prioritise measurement solutions that cover all platforms and devices, with near-real-time insights. 

    “Nielsen’s 2022 ROI report serves as a guide for brands, agencies and publishers. In a time when there are more channels than ever to reach desired audiences, it’s critical that insights on ROI are attainable and easy to understand,” said Nielsen vice president, media & advertiser analytics Imran Hirani. “Brands can’t afford to waste valuable ads on the wrong audiences. By investing wisely and having a balanced strategy of both upper-funnel and lower-funnel initiatives, brands can reach the right audiences and maximise their ROI.” 

    This is the first ROI report produced by Nielsen. The ROI report findings were generated by Nielsen using a wide range of measurement methods including marketing mix models, brand impact studies, marketing plans and expenditure data, attribution studies, and Ad ratings collected in recent years. In most cases, Nielsen’s findings were organised into normative databases or meta-analyses across a sample of studies to produce insights that are representative of Nielsen’s experience, providing marketers, agencies and media sellers a more complete view of media effectiveness compared to a single company drawing from its own experience.

    Check the Full Report here: https://global.nielsen.com/insights/2022/roi-report/

  • Viacom18 eyes a bumper festive season, with new show ‘The Big Picture’ set for launch

    Viacom18 eyes a bumper festive season, with new show ‘The Big Picture’ set for launch

    Mumbai: Viacom18’s portfolio of entertainment channels is targeting double digital growth this festive season. According to Viacom18, head – network sales, Mahesh Shetty, the broadcaster expects to beat 2019 festive revenues with two marquee properties to capitalise on.

    2020 was an outlier for the media industry because of the impact that Covid-19 had on the industry. Advertising spends that are closely correlated to the GDP and the business economy was depressed for several quarters. “The way the industry bounced back after the second wave was phenomenal. The last quarter results of most companies have been good and that has had a positive impact on ad spends. As we enter the festive period it is just getting better. Most broadcasters are dealing with a problem of plenty i.e., we’re full up on inventory,” remarked Shetty.

    The volume of advertisers is yet to recover to the 2019 levels but the values have significantly increased over the past two years. The recovery of ad rates has been driven by the strong demand that the media industry is seeing during the festive period. This is having a positive impact on pricing, observed Shetty.

    The broadcaster has invested in big-ticket properties to take advantage of the traction from advertisers. This year its mainline Hindi general entertainment channel (GEC) Colors will telecast two marquee shows during the festive season namely – ‘Bigg Boss 15’ and ‘The Big Picture’.

    “Bigg Boss 15 has signed 18 brands and 75 per cent inventory filled at the time of launch” noted Shetty. “We’ve already signed six brands for ‘The Big Picture’ whose launch is two weeks down the line and are confident that this number will go up.”

    Hosted by actor Ranveer Singh, the quiz show is all set to hit the airwaves on 16 October and will be aired on weekends at 8 p.m.

     

     
     
     

     
     
     
     
     

     
     

     
     
     

     
     

    A post shared by ColorsTV (@colorstv)

     

    The network has roped TRESemme, Lotus White Glow, Dabur Red Toothpaste, Knorr, Jeevansaathi.com, JK Smart Tyre, Hershey’s Kisses, Garnier Men, Wow Skin Science, Spotify, Moj App, Fogg Deodorant, and Haier Washing Machine for ‘Bigg Boss 15’ on TV and additional five exclusive sponsors on their OTT platform Voot.

    For ‘The Big Picture’ the sponsors include BYJU’S, Bikaji, LIC, and Haier Refrigerator on TV and two exclusive sponsors for Voot.

    New category advertisers who have become active post-Covid-19 are driving ad volumes and spends, according to Shetty. These advertisers have changed the advertiser mix for entertainment channels and have significantly grown in terms of contribution.

    “Looking at a three-year horizon (2019-2021), FMCG which used to contribute 72 per cent to the total ad revenue pie for mainstream entertainment channels, has come down slightly to 70 per cent. Categories like telecom, handsets, apparel have also dropped from about two per cent to one per cent,” said Shetty.

    The e-commerce marketplaces which used to be two per cent have grown to four per cent. The contribution of social media apps and OTT platforms which used to be around one to three per cent has jumped to six per cent. “Ed-tech which is a new category that has emerged post-pandemic and now contributes about one per cent to revenues. E-wallets also contribute one per cent. The entire contribution for internet brands which used to be around 12 per cent has now grown to 18 per cent. That’s where the advertising mix has seen a change,” he added.

    New categories like e-commerce, fintech, crypto, and ed-tech are investing heavily on TV to change consumer behaviour and drive adoption of their brands. The festive period is the best time to drive preference for their brands when the consumer is usually in a buying mindset and wants to engage with brands.

    Apart from GEC, the network’s portfolio of movies, music, youth, and regional channels are also performing well, shared Shetty.

    The movie genre is seeing advertising traction with inventories filling up. Restrictions on cinema exhibition halls have been relaxed in several states including Maharashtra and producers have announced the release slate for the next six months. “This will also add to the bank of our movie channels,” he added.

    Similarly, the broadcaster has made critical investments in its regional portfolio of channels that will drive growth during the festive period. Apart from Kannada, Tamil, and Bangla channels, the kid’s genre has been going steady and youth and music channels under MTV brand have attracted interest by offering bespoke solutions to advertisers.

    The broadcaster is also poised to ride the enthusiasm for fresh sports content with its upcoming Abu Dhabi T10 that will telecast on its movie channel COLORS Cineplex towards the third week of November.

  • Durga Puja: Advertisers optimistic as demand returns

    Durga Puja: Advertisers optimistic as demand returns

    MUMBAI: By now it’s evident that the Covid2019 pandemic is not going away anytime soon. After spiralling caseloads – ravaged the economy, and played spoilsport with travel plans – scary ol' Corona seems to be on the wane in time for the festive season, though it’s too early to celebrate outright. But with the markets rallying and consumer sentiments surging, brands and advertisers are sniffing the air hopefully, even as they tread with caution. 

    Every year, several categories like FMCGs, apparel, auto, e-commerce and consumer durables become the biggest spenders during the Durga Puja-Diwali stretch. The query their marketing teams puts up is not ‘how much?’ but ‘why not?’ This time around, the question is: how brands plan to advertise in the year of Corona.

    However, the Tata group owned fashion and lifestyle chain Westside has braced to make the most out of the circumstances. The brand’s ‘What’s Your Festive’ campaign focuses on all the products, right from clothing, cosmetics, footwear to  home décor. For the campaign, Westside has created four festive installations, each of which spans 15 seconds in which viewers can catch a glimpse of everything that it offers.

    Westside customer head Umashan Naidoo explained, “The films are directed by the very talented Devang Desai and the cast consists of Westside employees, customers and designers from the ethnic wear brand. After all, who better to advocate style and share the joy of their products but the creators themselves? We believe that these are real people with the aspirations of the brand at heart.”

    Read more news on Durga Puja 

    The films are meant to uplift spirits and have nothing to do with hard selling, said Naidoo, adding in an aside that the sparkling diyas featured in the video are part of a CSR project started in 2003 by Simone Naval Tata herself.

    As the options for big outdoor displays and activities are limited, brands are shifting to the digital space to keep their connect with customers alive. For instance, Fortune the Adani Wilmar group's Fortune brand has been running a digital campaign called Pet Pujo for the last three years to engage consumers. The brand’s media & strategy head Sanjay Adesara said: “This year, we have given it a twist keeping the current Covid situation in mind. From the last 3-4 years, we were doing a separate digital activity outside. This year also we are keeping it digital.”

    Adesara also shared that the trends in the West Bengal market during the pre-Puja period are similar to last year’s: there’s been no dip in additional grocery buying and shopping for clothes and personal care products.

    Kolkata is a major market for RSH Global-owned Joy Personal Care. CMO Poulomi Roy is of the view that from November onwards, things are going to pick-up in the northern part of the country, especially before Diwali. The skincare maker has launched a new campaign ahead of Durga Puja in West Bengal. As part of the campaign, the brand released the peppy, upbeat music video Dugga Elo featuring ten popular Bengali celebrities which captures vivid moments that highlight the vibe of pujo. Intended to create a festive mood and keep the spirit alive, the campaign song will be played out on television, radio, OTT platform and social media platforms of SVF Brands.

    Observing that while the personal care segment such as hand wash, soap, sunscreen segments had gone down during the initial phase of the lockdown, Roy said one category that witnessed a boost was luxury products.

    “People have stayed back at home and instead of spending outside, they have actively been indulging and taking care of themselves by using  personal care  products,” she added. The disruption that happened at the outset of the pandemic affected the company's supply chain but as things are getting back to normal, the demand is steadily returning.

    Experts echoed the sentiment, saying consumer demand has definitely picked up in the past 15 days. Experimental and cross-shopping is on the rise, especially for categories such as cosmetics, lingerie and home décor. They project that brands which have the best style, value, availability, and experience will surely witness growth.

    Tata CLiQ CMO Kishore Mardikar noted that since people are still on guard against contracting the virus, there’s been a lull in out-of-doors puja activity, especially shopping. Instead, they’ve switched to online to purchase their discretionary needs along with daily essentials. Broadly, there’s been an accelerated digital adoption this year,  with increased exploration and buying in all the categories including fashion and electronics.

    Looking to capitalise on this shift, the primary focus of Tata CLiQ is on audiences that have higher intent/consideration to purchase and thereby engage with them to catapult traffic to the platform. The company's marketing plan during the season is positioned around the theme of gifting.

    “This year our focus is to drive transactional efficiencies and hence our marketing choices are dictated mainly by digital media complimented with engagements via our social platforms,” Mardikar added.

    Even after Covid and government-mandated guidelines to check it, brands have improvised, adapted and are desperately trying to overcome all the challenges. Will they get to have the last laugh? Or will the Calcutta High Court's direction to make all pujo pandals in the state 'no-entry zones' prove to be their undoing?

    MediaCom chief growth officer Soumak Banik paints a not-so-rosy picture of the situation. “When you talk about Durga Puja or event festivities, the maximum of the money goes on ground. This time that is itself cut down, taking a huge hit. Even if the entire outdoor budget is lesser, it will impact advertising fundamentals at the end of the day,” he said.

    The festive season is an auspicious time in terms of sales for businesses across the board and marketers leverage this opportunity with promotions galore. This year, the festivities may be subdued and the volume of ads may be low, but brands are not down and out for the count. They're trying to reach out to customers in new ways and formats.

    “There is cautious optimism in the air. Brands are planning activities and are expecting offtakes to happen,” summed up Havas Media Group MD India Mohit Joshi.

  • Lockdown blues prompt brands, agencies to rethink strategies

    Lockdown blues prompt brands, agencies to rethink strategies

    MUMBAI: Even in a lockdown, the show must go on, even if it means cutting down your exenses. With cash crunch being a problem across the world, brands and agencies are figuring out how to optimise communication at the lowest cost.

    Indiantelevision.com reached out to a cross section of brands and agencies to get their perspectives on this.

    According to FCB Ulka ECD Anindya Banerjee, this is the period of hand-holding both the client and the consumer. “While the sentiments and the bottom-line have taken a hit, we can’t disappear from the lives of our consumers. Also, some businesses like financial services and banks haven’t stopped. The idea is to tailor-make messages for the consumer.”

    Giving a helping hand to clients, Marcom Avenue director Divanshi Gupta says that it is curating more personal content and strategies such as industry opinions, post-pandemic come-back strategy presentations, blogs, articles, that can help its clientele to establish themselves once Covid2019 is under control.

    Brands have been figuring out how to get through this difficult phase as well. For Liberty Shoes, the months from March to June are key for business. Says its retail executive director Anupam Bansal: “New season’s merchandise was placed in the shops, sales teams were geared up, marketing campaigns for ‘back to school’ or ‘marriage season’ was all set, but unfortunately the pandemic hit at the same time. It was difficult to quickly act on the situation and with social distancing and lockdown, mindsets are cash-conservative.”

    Without demand and revenue, Liberty’s marketing expenses also took a hit. It had to safeguard finances for rainy days, deducting the ad expenses, which, according to Bansal, was an articulated decision. The company is looking at consumer behaviour staying constant for another two quarters.

    The challenge before brands and agencies is to balance their economic losses while staying present among consumers. DigitalKites senior VP Amit Lall says that brands are reluctant to allow their focus to dilute and wish to stay relevant to the consumers. This is where digital comes into the picture with its ability to provide faster reports on investment.

    Barco India head of marketing Vijayant Khattry feels that it is only natural that most of its current campaigns revolve around remote meeting as well as virtual learning products like ClickShare Conference and weConnect as it expects their demand to increase substantially even after people go back to the office post-pandemic.

    The lockdown has seen digital spends shoot up. Banerjee says: “The pandemic has forced all companies to go digital. Fortunately, at FCB, we’ve been aligning ourselves to not work as a traditional agency for quite some time and that has helped us during these times.”

    In order to maintain the balance, Marcom Avenue has shifted its focus to branding and community building rather than sales/lead generation activities. Gupta adds, “Some of our clients have introduced new product lines during the pandemic like masks/hazmat suits/infra-thermometer, etc., looking to make available medical products to the health industry and further requiring us to create end-to-end marketing for these essential products in demand. Further, we took an initiative to analyse and tap into different industries that are booming like e-learning and pharma, so that we can help them increase their revenue and RoI.” 

    Apart from shifting focus from OOH and print to TV and digital, brands are looking at other options as well. Liberty Shoes is improving the UI/UX of its website to give a better customer experience. The company is also improving the website SEO to future-proof itself. It is also looking at strengthening its social media/influencer marketing tools to stay relevant. “Personalised communication with consumers is also taking place using the CRM database,” says Bansal.

    MediaTek marketing and communication deputy director Anuj Sidharth says, “We are also trying to increase our focus on offline public relations activities such as virtual roundtable conferences, webinar sessions, etc. MediaTek is maintaining consumers’ focus on the interesting mix of technologies that we power, especially products like mobile phones, tablets, smart TVs, wi-fi routers and voice assistant devices, which have become even more vital. We are also devising marketing mix strategies for mobile and non-mobile segments.”

    While brand building and marketing is a difficult thing for most brands to undertake simultaneously right now, communication is still essential in some way or the other.

  • Covid2019 might push traditional advertising towards negative growth

    Covid2019 might push traditional advertising towards negative growth

    NEW DELHI: The world economy has been brought to its knees by a medical crisis called COVID-19. The pandemic has battered the situation for even the most developed nations, and India, which was already dealing with a bruised economy for the past few quarters has found itself in a bigger soup. The ongoing lockdown has desisted liquidity across industries translating into a tough time for the media and advertising world, which has slowed down the business greatly mid-March onwards.

    DAN India CEO Anand Bhadkamkar tells Indiantelevision.com, “The pandemic has impacted the entire economy and the effects of it are being felt across all businesses. Manufacturing and other core businesses have been affected the most. People have stopped interacting in physical spaces. They are not moving out of their homes. Consequently, the entire economic activity has slowed down considerably. Advertising and communications tend to fuel the growth of commerce massively, thereby, accelerating its growth forward. Now, given that commerce has been badly hit, advertising is suffering equally.”

    DDB Mudra Group CEO and MD Aditya Kanthy shares that advertising reflects and shapes the economy and there has been a slump in the work opportunities because of the situation. “The demand side problems are obvious. Even in categories where there is demand, there are huge supply-side/ supply chain and distribution issues. Liquidity and credit is a challenge. Advertising is dependent on all of these factors. The industry depends on marketers who have the appetite and the means to invest. That is compromised in the current market scenario. It cannot operate in isolation.”

    While there has been a great surge in media consumption, both on digital and television, it is not resulting in ad monies for the platforms, given the market uncertainty. As per BARC-Nielsen data, weekly viewing minutes in week 15 of 2020, starting 11 April, grew by 40 per cent to reach 1,239 billion, as compared to 887 billion during the time period between 11 and 31 January, however, the number of advertisers dropped to 1,021, as compared to 1,378.

    If Madison Media and OOH group CEO Vikram Sakhuja is to be believed, the advertising growth, which was pinned by his firm at around 10 per cent at the beginning of the year,  will take a big hit in this calendar year. “We were expecting around a six per cent growth for traditional and around 28-30 per cent for digital media. However, looking at the current scenario, traditional media might observe a negative growth, while digital will also shrink considerably. We will be lucky if we can see a 1-2 per cent growth this year.”

    He elaborates, “The January-March quarter was already difficult for TV because of the NTO-2.0 and the second quarter is hit by COVID impact. Third-quarter might see a rise if we have a good Diwali season but it will depend largely on the market sentiments then.”

    Bhadkamkar notes, “We were hoping that advertising spends would grow by 10-10.5 per cent in 2020 as per industry estimates. Now, however, this growth is expected to be half of that. And, if the impact continues, the ill-effects would be much larger on the calendar year.”

    “The first quarter has been severely impacted, and recovery might start after h2. Q3 should return with recovery but again, that is only an assumption at the current stage and depends on how COVID 19 situation improves. Certain economists are predicting that the GDP growth (that was estimated at about 4.5 per cent) by May dip up to 1.5-1.9 per cent. If that happens, we will be slipping down by more than half almost. We just have to wait and watch how things pan out. For now, everything seems very tricky. However, from a long term perspective, the outlook for India is definitely positive, once the country starts getting out of COVID 19 downturn.”

    The industry insiders are hoping for some relief and support from the Indian government to pad the losses advertising industry is facing. Recently, AAAI chairman Ashish Bhasin had written to union minister of information & broadcasting Prakash Javadekar detailing a set of recommendations to support the industry.

    Bhadkamkar supports the decision as he says, “The government intervention is necessary for the current situation because the pandemic has affected the advertising industry severely. The letter stresses on how the Government can help in providing the stimulus to the advertising industry and not for any add-on benefits or expecting any specific fiscal measures. At present, the liquidity is getting tighter and there is a lot of slackness in the market. Hence, we need to protect the businesses by providing more liquidity as well.”

    He adds, “Right now, what is needed, is to protect the entire ecosystem because as an industry, advertising generates a lot of employment and more importantly acts as a catalyst for the growth of businesses. In my view, the letter is trying to address this and seek action towards this more so in this immediate period. Once, this lock-down ends and hopefully, we get ahead of the COVID-19 challenge at the earliest, things will come back to normal. But till then, the industry would need that additional support.”

    Kanthy also believes that the government will have to extend support to the whole ecosystem. “The government’s intervention in all parts of the economy is necessary at this time, whether it is on the stimulus or on the tax side. There is a need to put some extra cash in the hands of consumers as well to stimulate some demand. From an industry perspective, it will help us in access to liquidity and credit.”

    Sakhuja adds, “Government support will be really helpful right now so that brands treat advertising as an investment. Also, the government owes a lot of money to media and advertising companies. They need to pay that back as well.”

  • Brands shift ad spends to digital platforms to tide over COVID-19 crisis

    Brands shift ad spends to digital platforms to tide over COVID-19 crisis

    MUMBAI/NEW DELHI: The emergence of COVID-19 has thrown the near-to-mid-term strategies of businesses off-track. Global media ad spending has been hit as well. According to industry experts, the long-term impact will be positive. However, the next quarter is going to be very crucial for the advertising world.

    Indiantelevision.com spoke to industry stakeholders to get their feedback.

    Havas Media Group CEO India and South East Asia Anita Nayyar says, “In the short-term, only the most necessary, topical and critical advertising will see the light of the day. There will be brands that will look at the situation positively and continue building in a comparatively non-cluttered environment.”

    Brands have to be sensitive to people’s worries as well as that of manufacturers. The consumer is wary of buying, at the same time the manufacturer can’t produce and supply goods. Advertising, then, has to take into account these factors, too.

    Lionsgate South Asia MD Rohit Jain believes that the impact is likely to last two to three quarters before returning to normalcy. “Unfortunately, for most advertisers at this point, it does not make sense to advertise when they can’t deliver or make available on the shelf. Outliers at this point are perhaps the personal hygiene industry and the media and entertainment industry where consumption has shot up.”

    Dentsu Aegis Network India CEO Anand Bhadkamkar says that the advertising plans, which were under execution before the pandemic broke out, are consistently being evaluated by clients before execution. But, it is a wait-and-watch situation till 14 April when the lockdown is likely to be lifted and things can get back to normal. He feels that it would be a slow walk back to growth. However, he is sanguine about the long-term outlook. “As far as the Indian market is concerned it will bounce back. According to me, the long-term impact will be positive,” he says.

    Even as the world practices social distancing, people are still connected through social media and that gives brands and agencies hope. 82.5 Communications chairman and chief creative officer Sumanto Chattopadhyay says, “Social media is helping brands work around media and production limitations and still reach out to consumers. This is a temporary surge for the medium, which will also have a long-term impact as brands get used to communicating this way.”

    On the consumer front, people are locked down at home with genuine concerns about their health, safety, and even livelihood. In such a case, they do not wish to be bombarded with ads. Chattopadhyay adds, “In today’s time, a lot of regular advertising is irrelevant. Add to that the shutdown of newspaper printing and severe challenges in video production. Yes, media plans have to be rejigged.”

    The advertising industry is quickly evaluating what is doing well and what is falling flat. In the wake of the pandemic, advertising firms are introducing swift changes in their media plans.

    According to Bhadkamkar, clients are reviewing and revising media plans as the market situation unfolds. The evolving COVID-19 situation is compelling businesses to consistently evaluate their strategies. "Media plans which were conceptualised prior to the virus outbreak would not be relevant and effective in today’s uncertainty. The coming three weeks will be crucial for brands," he notes.

    BARC India and Nielsen's data has revealed that a lot of viewing is taking place both on TV and OTT platforms. This opens up opportunities for ad spends in the digital medium. Bhadkamkar says, “People are getting used to more digital markets in terms of ad spends. The digital market will grow much faster as compared to what it was earlier.”

    Lionsgate had plans for an OOH campaign but the pandemic has caused it to realign its focus by upping digital investments to engage with consumers and inform them about the latest offerings. “While we have a big release in April, John Wick 3, the first digital premiere, we are trying to optimise our creative and spend on digital to increase our reach and create top-of-mind recall. OOH would have further helped us widen the reach but, in such times, we are looking at higher impact properties on digital and strong showcasing on the partner apps,” says Jain.

    The fraternity believes that this pandemic has also given an opportunity to rethink how various industries want to conduct the business. In every adversity, there is an opportunity. The 2008 recession taught marketers to find efficiencies with much lower spending. Today’s situation may relook at the need for physical movement in favour of online interactions. Warming up to ad spends on digital could be the long-term positive impact of COVID-19.