India will once again be able to freely celebrate its holidays this year after missing out on two festive seasons due to Covid19 and its associated limitations. And in India, celebrations would not be complete without the associated splurging on things like food, attire, decorations, and outings.
The advertising sector is eagerly anticipating this period. especially this year, when it almost seems like things are returning to how they were before the outbreak. At least 20 to 30 percent of the annual ad expenditures are anticipated to come from the season. Indians have a long number of holidays to enjoy, from Raksha Bandhan in August to Diwali in October. This season provides the advertising business much-needed cheer after a brief but boring rainstorm.
According to Krishnarao Buddha, senior category head at Parle Products, the industry is very upbeat this season and has a generally good attitude. The past two years’ holiday season has been troubled by several issues. This holiday season, however, will be much more jubilant and thrilling. There will probably be a lot of spending. Customers have grown accustomed to placing orders online, thus there is now a mix of both offline and online ordering. Because they anticipate significantly higher returns at this time, advertisers are particularly eager to spend, he claims.
Since everything is operating at maximum capacity this season, according to FoxyMoron’s national head of client partnerships Prachi Bali, marketers have realized the necessity to increase their investment. The emphasis is on the “must haves” rather than the “nice to haves,” she adds, adding that the increased spending is being carried out with a dash of caution. Over 60% of the annual ad expenditure, according to Mihir Palan, VP-media at Kinnect, is anticipated during this holiday season.
The consumer electronics and automotive industries may be directly impacted by the chip shortage, and Indian brands may be under pressure to exercise caution due to the global economic downturn. However, the expansion of domestic and international travel, as well as NCCS A households’ greater savings over the past two years, would enhance spending “He claims. But with all the holiday pleasure, inflation’s gloomy outlook is also growing darker. At 7.79% in April, retail inflation reached an eight-year high.
In May, it dropped to 7.04 percent, and in June, it fell even more, to 7.01 percent. “Numerous studies have found that firms tend to gain market share over the long term if they keep spending money on advertising even when the economy is struggling. Instead of reducing ad spending, brands should continue to optimize their media mix and add more reliable measurement tools to justify every dollar they spend. When considering the solution, digital advertising stands out as the obvious choice over more conventional forms of non-targeted advertising “He adds.