Economy

E-tailers seen leading Rs 20,000-cr ad blitzkrieg this festival season

Amrita Nair-Ghaswalla Mumbai | Updated on October 11, 2019 Published on October 11, 2019

Representative image

All eyes are on the ongoing festival season sales despite slowdown in the automobile and real estate sectors. Although GDP growth at 5 per cent, the macro-economic slowdown, series of floods across the country and weak consumer sentiment are likely to impact sales, marketers and e-tailers continue to gear up for the mega festival season, according to advertisers and media planners.

With brands planning a ₹20,000-crore advertising blitzkrieg this festival season, which commenced in September, the hard push over the next few weeks is expected to contribute over 25 per cent to the overall advertising media spends this year.

Navin Khemka, CEO, MediaCom South Asia, told BusinessLine, “Given the increasing clutter and fragmentation due to media proliferation (especially with digital), most brands are planning focussed campaigns within their budgets.”

MediaCom is a key part of GroupM, WPP’s global media operations arm.

Noting that the days are gone when brands could do a long duration festival campaign, Khemka said, “It is now critical to time the campaign that is best suited to their objectives in the market and make an impact over a shorter period of time.”

But given the current slowdown, are companies actually spending money?

Khemka points out that the advertisers spend money during this period, “given that it is a critical period for their sales, targets etc. There is some cautious consumer sentiment due to the economic slowdown and volatile financial markets, which is impacting a few categories”.

He added that a delayed, yet good monsoon will ensure that most categories see growth in demand in the coming weeks.

Buoyed by the recent swell in sales, with e-tailers led by Amazon and Flipkart achieving a record $3 billion (nearly ₹19,000 crore) of Gross Merchandise Value (GMV) in the six days festival sale from September 29 to October 4, e-commerce players and corporates are rolling out massive discounts.

Amazon’s ‘Great Indian Festival’ sale, which concluded on October 4, ensured the retailer clocked the highest share of transacting customers at 51 per cent, order share of 42 per cent, and value share of 45 per cent across all marketplaces in the country.

Published on October 11, 2019
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