According to a recent survey of more than 1,000 Indian adults conducted by global advertising technology leader The Trade Desk, the rising cost of living is beginning to affect consumers. According to the survey, 71 percent of adults in India are feeling the effects of rising living costs, and nearly half (48 percent) have switched to less expensive brands or stores to relieve pressure on their household budgets.
Consumer spending was near or above pre-pandemic levels for a brief period following the relaxation of Covid restrictions. This uptick was short-lived, as recent geopolitical developments drove a steady rise in inflation, raising fears of a global recession.
The research data also revealed that nearly half of Indians are now making fewer purchases than before, with one in three-putting discretionary purchases on hold, reflecting the current environment. Furthermore, nearly one in every two Indians now prefers to buy on sale or in bulk.
“The rising cost of living is affecting Indian households,” said Tejinder Gill, General Manager of the Trade Desk in India. Brand loyalty is under threat as consumers seek to reduce household budgets in the face of rising expenses. Rather than cutting back on advertising, marketers can strengthen brand loyalty by tailoring their offerings and ad campaigns to meet changing consumer needs. Marketers can use programmatic advertising to launch and pause campaigns in real-time, as well as change creatives on the fly. This adaptable approach can assist brands in remaining top-of-mind even in uncertain times.”
Despite rising inflation, Indians are optimistic about the future. According to the survey, 28% believe that inflation will remain at its current level, while 41% believe that it will begin to decline by next year. Almost half of those polled believe wages will rise between 2022 and 2023.
“Brands have stated that ad spend will most likely exceed pre-Covid levels.” However, we all know how quickly market conditions can change. Indeed, the inflationary environment has increased the pressure on brands to be deliberate and make every media dollar work as hard as possible. We anticipate that brands will continue to approach media planning with caution. Prioritizing measurable and comparable media is critical,” Gill says.