Saturday, November 26, 2022
HomeUS NEWSq3 budget: Advertisers raise Q3 budget by 15-20% amid surging festive demand

q3 budget: Advertisers raise Q3 budget by 15-20% amid surging festive demand

The surging demand amid festive season after two years of pandemic has compelled the advertisers to raise their advertising budget by nearly 15-20% for the October-December (Q3) quarter.

As per industry executives, the demand across categories such as e-commerce, fashion and apparel and premium electronics are exceeding sales targets this festive season.

“Sectors such as e-commerce, apparel and fashion, premium electronics, mobile phones, beauty and wellness, entertainment and jewellery have revised ad budgets by about 15-20% higher for the October-December quarter. This is in sync with festive demand, which, so far, for these categories has exceeded sales targets,” said Ashish Bhasin, co-founder and chairman at advertising and media technology start-up RD&X Network.

“However, some other categories, such as financial services, continue to remain cautious with their ad spending budgets,” said Bhasin, former chairman at Dentsu India.

The festive sales surge is expected to continue through Diwali, followed by the wedding season, and executives said they are betting on the momentum with higher returns on ad spends.

“We are offering a wide range of products along with enhanced retail experiences and consumer offers this festive season,” said Deepak Bansal, vice president, home appliances and air conditioners, LG India. Bansal said the durables and electronics maker is seeing good demand, especially in upgraded capacity and superior technology-led products, and is backing its portfolio with extensive marketing campaigns across mediums.

“Our ad spends are proportionately higher this season compared with last year across our jewellery brands, including Tanishq, Mia, Zoya and CaratLane,” said Ajoy Chawla, chief executive, jewellery division, at the Tata group-backed Titan, though he declined to divulge specific ad spend numbers.

“We see a lot more consumer interest in the category in the upper-middle and premium segments, so we are focused on aggressive growth, new customer acquisitions and repeat buyers,” Chawla added.

While inflationary pressures and the global recession remain potential downside risks, executives said demand pickup has been robust so far, especially in discretionary segments. That explains significantly higher ad and marketing spends.

“We have increased our marketing spends by 25% after witnessing good return on investments for both Dussehra and Durga Puja. For digital marketing, we have defined the key performance indicators clearly like new customer acquisition, conversion and average order value, and are quite satisfied with the returns on investment,” said Satyen Momaya, chief executive officer at Celio, a French apparel brand.

E-commerce platforms Amazon and Flipkart, ethnic apparel maker Fabindia, and premium chocolate maker Ferrero are among those that have launched high-visibility festive campaigns for the season.

“We believe our new digital campaign will help in strengthening our positioning of being a premium brand,” said Zoher Kapuswala, marketing head at Ferrero India, which has roped in Hrithik Roshan for its festive campaign this year.

Others said their ad spends this season are significantly higher than pre-Covid levels.

(With inputs from Ratna Bhushan and Sagar Malviya)

Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular