The Diwali season brought some cheer for media companies as advertising expenditure saw a solid growth of 12% over last year across all major platforms.
Media agencies predict that brands, across segments, are likely to spend Rs 25,000 crore as adex during the ongoing festive season, which started with Ganesh Chaturthi and ends around New Year.
“The adex grew by 10-12% in the festive season. Roughly, 40% of the ad spend happens from Ganpati to New Year, which is about Rs 25,000 crore according to our estimates,” said Ashish Bhasin, Chairman and CEO, South Asia, Dentsu Aegis Network.
Bhasin said there has been a robust growth in digital and outdoor.
Various segments such as auto, FMCG, mobile handsets, consumer durables and e-commerce loosened their purse strings to run full-fledged media campaigns during the Diwali season.
“The online shopping category has been leading the season. The growth has been pretty strong,” said Anita Nayyar, CEO, Havas Media.
Priti Murthy, CEO, OMD India, said that automobile, mobile handsets, consumer durables, retail and e-commerce took a larger share and the growth was spread out across media platforms.
Murthy noted an interesting trend that a certain category of brands were using a specific medium to advertise to reach out to consumers.
“Auto is largely driven by print, e-commerce is driven by digital. Each category has its own role to play,” she said.
The actual spending started coming with the kicking in of regional festivals such as Ganesh Chaturthi, which continued till New Year.
The media companies are now hoping that the growth would continue given that the political and government advertising would see a major uptick because of upcoming elections.
“Overall, we expect 10% growth in advertising during the calendar year,” Bhasin said.
Given that there are elections coming and monies from political advertising are likely to flow in, both newspapers and news channels may revise their card upwards, which would give a major boost to their bottom lines.