Amidst the festive buzz, creative agencies prepare for a revenue boost

New Delhi: ‘Lights, camera, and action,’ tis the season of jingles, creative TV commercials, and good business for creative agencies. Traditions and festivals hold a special place in every Indian’s heart and their significance is often reflected in the festive marketing campaigns curated by advertising, creative, and marketing agencies.

During the festive season, creative agencies ramp up their efforts to craft impactful marketing campaigns, and the folks working at these agencies experience a high workload during the festive season.

Explaining the significance of the OND (October-November-December) quarter for creative agencies, Neha Singh, VP and Group Business Head, Enormous Brands, said, “The festive season in India has consistently been the busiest and most lucrative quarter for marketers and advertisers. Recent studies and reports suggest that businesses experience the highest peaks during two key periods: end-of-season sales and festive occasions. 

The surge typically begins around mid-August, coinciding with Independence Day, and lasts through mid-February, culminating in Valentine’s Day. However, the OND quarter remains the most significant period of campaigns, share of voice (SOV) & growth.”

Mentioning a shift in advertising, Singh commented on how even low-engagement categories such as cement and wires, seeking to capitalise on the festive wave leading to an increased demand for advertising services, driving revenue growth by 15-20% during the festive quarter, creating opportunities for project-based collaborations to deliver impactful festive campaigns.

Comparing 2024 to last year, which was marked by reported slowdowns across the globe, Amit Wadhwa, CEO at Dentsu Creative India, said, “The festive season consistently boosts business, and this year is no exception. Compared to last year, which faced global slowdowns, we see fewer headwinds now. While challenges remain, the situation has improved. This year has been busier and more positive than the last, reflecting a slight uptick in activity and optimism.

Inspiring confidence in the Indian economy for sailing through hard times, Wadhwa added, “Despite last year’s recession and slowdown, the festive season remained a lucrative period for marketers and advertisers. While challenges persist this year, the outlook is brighter. It could be because of India’s buoyant position in the global market.”

While project-based work zooms during the festive period, pre-planning allows creative agencies to anticipate needs, mitigate risks, and maintain a steady workflow, even during peak periods, according to Hirol Gandhi, President and Head of Office Mumbai and Kolkata, Ogilvy India.

He said, “Project work can surge unexpectedly due to various triggers like market dynamics, competitive activity, or unforeseen opportunities. However, we are fortunate because most of our client work is pre-planned and integrated into Annual Operating Plans (AOPs). This pre-planning allows us to manage workloads efficiently. This pre-planning allows us to anticipate needs, mitigate risks, and maintain a steady workflow, even during peak periods. This strategic approach helps us stay organized and responsive, ensuring high-quality outcomes for our clients throughout the year—festive or otherwise." 

With consumers being bombarded with so many campaigns around festive, every brand’s ambition is to make the most of the opportunity, and in their pursuit to do so, some brands are breaking the conventions too. 

Sharing his thoughts on the matter, Anadi Sah, National Creative Director, Foundering partner, and Chief Innovation Officer at tgthr, said, “Every brand hopes that its communication stands out from the clutter and has a lasting impression that reflects on their sales graph. Hence, it pushes them beyond the conventions, taking their best foot forward, and that may even be exploring creative talent and agencies that go beyond their roster. This trend has been noticed for a while and is expected to go beyond seasonality.”

The concept of demand and supply is simple: when demand increases and supply is limited, prices go up in the market. However, pricing is not subject to demand and supply when it comes to creative agencies making their business model different from other business entities.

Providing a perspective into the business of creative agencies, Wadhwa said, “The festive period, spanning four months, accounts for approximately 40-45% of our annual revenue so we don’t adjust prices based on demand; our pricing reflects the effort involved. During the festive season, the workload increases along with an increase in revenue.” 

Adding more to the bandwagon of thoughts, Sah said, “A creative agency is a talent-based market, unlike commodities that work over demand and supply or an e-commerce/retail ecosystem that announces a flash sale seasonally. It’s not a VC-funded start-up ecosystem that changes its pricing model based on the demands of investors or the board. Agencies value their talent and clients’ commitment, believing that the pricing should be fair and shouldn’t change based on demand or supply.”

Diving deeper, Gandhi highlighted that while clients allocate an annual budget for each brand, the way this budget is utilised throughout the year varies based on the brand’s specific needs. The environment and dynamics of each category are constantly evolving. Interestingly, the festive season, despite being a significant period for many brands, is not always the primary focus of marketing spend. 

Sah called 2024 an anomaly, as the year has been an exceptional year for brand interventions and placement opportunities due to several major events. From the horse’s lips itself, he said, “The year kicked off with the Indian general elections and the Indian Premier League (IPL) in April. Both events drew massive public attention, providing brands with prime opportunities for advertising and engagement. Following the IPL, the T20 World Cup kept the momentum going, allowing brands to capitalise on the cricket fever. 

Additionally, the Olympics added another layer of global attention, offering brands a platform to reach a diverse and extensive audience. These events kept agencies busy throughout the year, rolling out continuous campaigns to leverage the high engagement periods. This unique combination of events made 2024 a standout year for marketing and advertising activities.”

While focusing on the business aspect of creative agencies, it is important to consider the workload of employees as well, because the workload for employees increases significantly during the festive season.

Offering his take on how employees manage their workload, Gandhi said, “Our workforce is structured to respond to high and low tides in our business. Yes, sometimes it does get challenging, but that is not any different from any other business or industry.  As a practice, we always celebrate every festival in our offices in Ogilvy across India. Yes, people are granted leave during festivals, but nothing changes. There is no compromise on work and deliverables and the show goes on.”

To wrap it up in the words of Sah, “Strategically plotting product releases and allocating budgets to roll out briefs is what makes brands keep their agency engaged during the festive period. Almost 40–50% of sales are driven at this time, and so is the quantum of work that typically kicks off in July or August. 

Some seasoned advertisers do it way ahead, like we received a brief in April itself for the festive. We have also seen some brands, primarily start-ups, who have come up with a brief to us just weeks ahead of an occasion. Therefore, any agency needs to be fluid and all geared up to accommodate such unpredictable and unplanned requests.”