While media consumption has increased for 20% of Indians, TV is still the medium where brand advertising is noticed the most, as per Axis My India’s Consumer Sentiment Index.
As per the survey, the brand advertising digital is next in the list of the mediums where brand advertisement is noticed.
Axis My India has released its latest findings of the India CSI, a monthly analysis of consumer perception on a wide range of issues.
The survey’s findings further emphasises the significance of 5G and enhanced telecom connectivity for speeding up India's digitisation.
The pre-budget report highlighted that reduction in price of essentials is the biggest expectation from the 2023 budget. One of the major requests which comes out in this survey is reduction in income tax rates, which will give consumers more money in hand.
The Pre-Budget net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +10, from +08 last month reflecting an increase by 02 points.
The sentiment analysis delves into five sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, entertainment and tourism trends.
The key findings of the survey on topics of current national interest ahead are:
· According to Axis My India’s Pre-Budget CSI Survey, 38% notice brand advertisements on TV while 32% notice ads on digital medium. In addition of those surveyed, 51% have noticed advertisements at least once (or more) on digital medium.
· The survey also threw light on factors that will help digitisation in the Indian economy. Better banking network (view of 32%), better spread of telecom connectivity and 5G (view of 19%) and better internet security (view of 18%) are considered important pillars of digitisation.
· Deep diving deeper to understand citizens’ sentiments towards the Indian economy, the survey found out that 22% consider ‘oil prices’ to significantly impact the Indian economy this year. Moreover 16% each consider ‘inflation’ and ‘upcoming 2024 elections’ to also have a bearing this year on the economy. Government policies and Russia-Ukraine war continue to be the concern for 14% and 11% respectively.
· The CSI survey also attempted to demystify consumer expectations from the budget. It revealed top issues that the upcoming budget needs to address:
o A majority of 73% feels that the budget needs to address ‘reduction in prices of essential items like soap, detergent, cooking oil’.
o 54% believe that it should also look into GST exemption on essential items.
o 44% wants reduction in GST %.
o 32% wants housing loan exemption limits to be re-looked at.
· The survey also highlighted that 26% believe that Finance Minister should lower personal income tax rates in the upcoming budget by 5%. In addition, 25% want the exemption limit to be raised beyond 2.5 lacs.
Some key CSI findings are:
· Consumption of media (TV, Internet, Radio etc.) has increased for 20% of the families, which reflects a decrease by 1% from last four months where it has been consistent at 21%.
· Mobility has increased for 9% of the families, which reflects an increase by 2% from last month.
· Overall household spending has increased for 59% of families, increased by 4% compared to last month.
· Spends on essentials like personal care and household items has increased for 40% of the families, which reflects a dip by 1% from last month.
· Spends on non-essential and discretionary products like AC, Car, and Refrigerator has increased for 5% of families, which reflects a decrease by 2% from last month. Sentiment towards discretionary spends highlight the lowest percentage increase in the last four months.
· Expenses towards health-related items such as vitamins, tests, healthy food has surged for 33% of the families. This reflects a decrease in consumption by 6% from last month. Sentiment towards health spends also showcase the lowest percentage increase in the last four months.
Pradeep Gupta, Chairman and MD, Axis My India, said, “Consumers are looking forward to various measures taken by the government towards fuelling a digital India. As per 22% of those surveyed, penetration of ‘all things digital’ (better digital banking, better internet security, 5G) is important for Indian economy. This is because more and more people are adopting the digital way of life. The gap between ads noticed in digital over television is also reducing even though TV continues its dominance when it comes to advertising recall. It is thus important for marketers to take note of the respective strengths of the new vs old forms of advertising while designing their overall media mix.”