Auto brands hit the fast lane this festive season, revving up adex by 15% over last year

New Delhi: Tis the festive season, and auto brands have already shifted into high gear as Indians worldwide splurge on automobiles, with many considering it an auspicious time to buy new vehicles.

Navin Kathuria, Executive Vice-President, Mudramax, said, “Approximately 40% of annual sales for the automobile sector come during the festive months, making this period extremely significant for manufacturers. This year is also supposed to follow the same trend.”

As a result, the festive period is when automotive brands go all out, pouring significant budgets into marketing and advertising. They roll out massive discounts, launch larger-than-life campaigns, and introduce retail innovations, making the 2024 festive season a prime time for consumers and brands alike.

Showing confidence in their outreach to customers this festive season, Abbey Thomas, Head of Marketing & PR, Volkswagen Passenger Cars India said, "With this festive period, we will continue to build brand affinity in the market for our German-engineered products and build awareness through both mainline and digital mediums. We are optimistic on utilizing this mix, as to help us define a targeted approach to meet specific business objectives, while also ensuring maximum awareness and volumes. We will also be present across India in key customer touchpoints such as malls, etc. through the festive period, thereby bringing the brand closer to where the customers are.”

Neeraj Bassi, Chief Growth Officer, Cheil X, highlighted that with several new launches being planned by key players, there are going to be plenty of options for consumers to choose from, leading to a rise in ad spending. “While macro conversations are happening around a looming recession, individual consumer confidence at a micro level has not been shaken yet. I feel consumers would still be open to some indulgences this festive season,” he said. 

An industry expert who prefers maintaining anonymity said, “Auto brands dominate the festive season with a significant chunk of their advertising expenditure. “Depending on new launches, around 20–25% of auto brands’ ad spend is allocated to the festive period. 

Auto brands ramp up their advertising efforts in October and November, aiming to capitalise on the festive period before the quieter December month. This period sees a surge in spending, with around 25% of their Q4 investment concentrated in these two months due to most vehicle launches occurring before November.”

Citing economic recovery and new model launches as the key drivers for ad spends, Sandeep Patwardhan, Sr. VP of Enormous Brands, said, “The Indian economy has been gradually recovering from the pandemic’s impact. As per our agency’s understanding given the reported 2-3 month inventory build-up at dealerships, the festive period would see at least a 10% points increase in advertising spending over last year. 

Add to this the new Model launches, which on average see spends around Rs 50-75 crore in 2 months by leading original equipment manufacturers (OEM), the festive ad spends in automotive will surely see a jump of 15% one can safely presume.”

Also, several manufacturers have already announced plans to introduce new or upgraded models in the coming weeks, which typically stimulates consumer interest and spending.”

Coming onto the anticipated media mix for brands to get the maximum bang for their buck, Vivek Srivastava, Founder and Director of Integrated Brand Heuristics LLP advised brands to employ their advertising such that they step out of the “wallpaper syndrome purely at a storytelling level.”

In other words, the wallpaper syndrome refers to advertising that blends into the background, becoming part of the “wallpaper” and failing to capture attention. To avoid this, automotive ads need to stand out through compelling storytelling.

Expanding his thought, Srivastava said, “Traditional TV and print ads, along with standard digital ads, remain vital for broad reach. However, they often lack the engagement needed to stand out. The real opportunity for creativity lies in content collaborations, such as partnerships with influencers and content creators. These collaborations can produce engaging, authentic content that resonates more deeply with audiences, as seen in successful campaigns worldwide.”

Speaking of which key mediums and properties brands will prioritise this festive season, Kathuria said, “With consumer fragmentation increasing every minute, automobile marketers cannot rely solely on a particular medium; hence multi-media campaigns are the norm. 

Automobile presence in non-fiction genres/impact properties is not new and in the festive season, a plethora of them are on-air.” 

Continuing his chain of thoughts, Kathuria said, “Apart from the top of the funnel, automobiles as a category thrust a lot on the bottom of the funnel, and hence, along with the regular branding and awareness promotions, the scope for performance marketing, be it in the form of leads, walk-ins, test drives, etc., will increase significantly as well.”

Patwardhan said, “Auto brands in India will prioritise TV for mass reach, especially during prime time and sports events since it’s effective for brand building. Digital and social media platforms like YouTube, Facebook, and Instagram will be key for targeted digital engagement, especially with younger audiences. 

As for print media, it will continue to remain influential in Tier 2 and 3 cities, while radio will be used to reach commuters and rural areas. Out-of-home (OOH) advertising too will continue to capture consumer attention and additionally, experiential marketing and online auto portals will be leveraged for direct consumer engagement and driving leads during the festive season.”

According to Shradha Agarwal, co-founder and CEO of Grapes Worldwide, CTV will play an important role in targeting the premium audience. 

From the horse’s lips itself, “CTV comes with the ability to reach a wider audience base and can give lucrative results with the effective targeting of the ads. Therefore, for driving optimal output, CTV emerges as the prominent option among auto brands to capitalise on. Following this, programmatic advertising can also bring significant results as it allows the flexibility to optimise campaigns based on performance. However, CTV is expected to top the preference list of auto brands as compared to other options in advertising in the digital space this festive season.”

Patwardhan suggests that auto brands will increasingly leverage data analytics and AI to create highly personalised digital experiences. This includes tailored ad campaigns, product recommendations, and interactive content that resonates with individual consumer preferences, enhancing engagement and conversion rates.