313Blog - This Onam, ad spends likely to bloom as shopping window extends

This Onam, ad spends likely to bloom as shopping window extends

Posted on 22nd Aug 2024

Industry watchers share that despite the recent Wayanad tragedy the Kerala market is expected to show resilience, contributing to robust advertising growth across TV, print and digital platforms

source : e4m

 

 

 

Onam's less than a month away and expectations from the festival are running high. The harvest festival is likely to see significant consumer engagement and spending across Kerala, thanks to an extended shopping window starting from August 17, with Onam falling on September 15. 

Industry experts say while sectors such as retail, automobiles, and technology are gearing up for increased advertising, challenges in the wake of the recent Wayanad tragedy and the FMCG slowdown may impact growth. Nevertheless, the resilience of Kerala’s market and the strategic allocation of marketing budgets promise a vibrant and prosperous Onam season for the industry this year. 

She said, “For many categories, this festive season accounts for a substantial portion of annual sales. This year, the Onam season is expected to witness robust advertising growth across TV, print, and digital platforms, likely reflecting double-digit growth overall, compared to last year.”

 

Adding to the above point, Varghese Chandy, VP of Marketing and Advertising Sales at Malayalam Manorama, expects a significant increase in activity — approximately double the usual levels seen in a normal month. He stated, “Growth will be more than 100% of the normal month.” However, he noted that the actual growth numbers compared to the previous year will only be available after Onam concludes. He also shared that this boost in activity will likely be reflected across all media channels. Brands are anticipated to ramp up their advertising spends to leverage this extended period, ensuring they reach consumers effectively throughout the month.

“Since Onam falls on September 15 this year, compared to last year's closer timing to Chingam, the Malayalam New Year on August 17, we have almost a month of shopping opportunities. This extended window is advantageous for brands and retailers, allowing for more extensive promotion and increased consumer engagement,” said Chandy. 

MS also noted that several factors contribute to this optimistic outlook. “The early start of Chingam has extended the Onam campaign period, allowing for more activations and advertisements. Despite the temporary disruptions caused by the recent landslides and flash floods in Wayanad, Kerala's market has shown resilience, is quickly recovering and resuming advertising activities.”

Growth Drivers

Industry observers shared that during Onam retail outlets usually spend a big chunk of their budgets on advertising. However, stakeholders are witnessing demands across categories such as consumer durable, textiles and jewellery. 

“Key sectors driving this growth include consumer durables, retail, textiles, jewellery, and automobiles, with FMCG brands also showing heightened interest in on-ground activations. Additionally, the BFSI and entertainment sectors are expected to play a more prominent role this year. The return of expatriates to Kerala for Onam further enhances the market's potential, providing brands with a unique opportunity to launch special offers and promotions aimed at this audience,” Devika MS.

She added, overall, the 2024 Onam season is shaping up to be a vibrant period for brand engagement, with advertisers capitalising on the extended festival timeline and the state's resilient market dynamics.

Chandy too shared that various sectors are contributing to this surge. Jewellers, automobile companies, and major retailers like Oxygen Group and Reliance Retail are all expected to be highly active. “Additionally, retail giants such as Lulu Hypermarket and Lulu Electronics will play a significant role. The tech industry, including makers of laptops, smartphones, and mobile phones, along with the entertainment sector, which will see a variety of film releases both in theatres and on OTT platforms, will also drive substantial business,” said Chandy. 

Some of the brands have already started their campaign for Onam. For instance, Kerala’s home grown brand Duroflex has already launched its Onam campaign where the brand encourages gifting restful sleep and comfort as a meaningful gesture of care and affection for your loved ones. Duroflex is also offering exciting deals on their products and a chance to win gold coins, exclusively for the people of Kerala, to enhance the joy of the festivities.

Sridhar Balakrishnan, CEO, Duroflex Group said, “Kerala happens to be our home ground and also one of our key markets. We have invested significantly, it takes roughly 20% of our quarterly budget.” The brand has utilized a balanced mix of traditional and digital media, however, spending slightly heavier on the digital side.

 “We want the audience to see a good mattress as an investment for good health rather than just a sleep surface and that gifting good quality research-backed sleep essentials to their loved ones can actually help them embark on a journey to long term health,” said Balakrishnan. 

Wayanad landslide & FMCG slowdown 

According to reports, the FMCG sector was expected to slow down until September 2024 due to weak demand in both rural and urban markets. However, post-election, the situation has improved for the category. Despite this, experts note that there is still an impact on spending also because of the Wayanad landslide tragedy. 

Reflecting on the challenges, Samir Chaudhary, co-founder of The Media Ant, stated, “We are expecting muted growth this year, primarily due to the FMCG slowdown and the impact of the Wayanad landslides.” These factors could dampen the overall advertising spend, making it challenging for brands to achieve the robust growth they might have anticipated during the Onam season.

On the other hand, Anil Solanki, Senior Director, Media Lead, Dentsu X noted that Onam is poised to witness a significant uptick in advertising expenditure across various media platforms.

"Based on current market trends, we can expect a growth of approximately 15-20% in AdEx compared to the previous year. This surge is driven by several macroeconomic and market-specific factors aligning to make this Onam season particularly promising for advertisers."

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