Happy days may be here again, for adspends

24 Aug,2021

 


Indrani Sen
By Indrani Sen

 

Two months back on June 22, 2021 I reviewed here the TYNY Midyear report for 2021 and commented: “It seems though the pandemic may not disappear from our lives in 2021, the dark shadow of the pandemic will be lifted from our advertising Industry.” Today, when two months of the second half of 2021 are almost over, it looks like Indian advertising industry is well set on the path of recovery in 2021 H2 with prediction of increased advertising spends during the festive seasons and during the forthcoming back-to-back sporting events.

 

Onam ushers in the festive period in India. In Kerala, Onam sales account for more than 50 per cent of the annual sales of the businesses. Advertising during Onam festival accounts for 30-60 per cent of the total turnover of the various media houses in Kerala. This year, Onam (August 12 to August 23, 2021) has been celebrated in Kerala with cautious optimism, the run up to the festival was below the expectations as the number of Covid cases in Kerala again went up. However, going by the latest reports coming out from Kerala, it seems that both sales and advertising spends picked up with the approach of the festival and have performed better than last year.

 

The next big festivals are Ganesh Charurthi in Maharashtra (September) and Durga Puja in West Bengal (October) and in both the states, the marketing and advertising industries are feeling upbeat as Indians are learning to live with Covid-19 and its variants. In spite of the predictions that the third wave of the pandemic will hit India during September and October 2021, marketers are expecting good return on advertising investments during the national festival Diwali scheduled on November 4, 2021. The GEC channels are also gearing up for the festive season with properties like Kaun Banega Crorepati (KBC) and Bigg Boss in different regional languages. Print, which saw a bonanza of full page ads with the Independence Day offers, is expecting a repeat of similar advertising with festive offers.

 

The Dentsu Global Ad Spends Forecast June 2021 estimated India will be one of the top five markets in terms of advertising growth rate in 2021 which also supports the growth of advertising spends in 2021 H2.

 

As per the above report in India, the ad market is “forecast to grow by a further 12.4% in 2022, recovering to pre-pandemic levels, particularly led by Digital and TV versus a longer recovery for Print, Cinema, OOH and Radio.”

 

The back-to-back sporting events in 2021 H2 has raised the level of expectations for advertising spends, particularly among the sports broadcasters. It is estimated that Star Sports may earn INR 2500 crore plus between second half of IPL and T20 WC. The Olympics saw a fair number of advertisers and the advertising inventory for the India-Sri Lanka cricket series in last month was fully sold out. Industry experts estimate that the total advertising spends on various sporting properties like Olympics, India-Sri Lanka series, India-England series and UEFA Euro 2020 will contribute another INR 2000 crores taking the total advertising spends on sporting properties to INR 4500 crores on TV alone. It is expected that there will be a good advertising investment in digital media also for a total coverage of the sports fans.

 

To sum up, unless another disaster like the second wave of the pandemic hits us during the next two months, the advertising industry is well set on the path of recovery in 2021 H2. The chances of an intensive attack of the pandemic during the third wave is estimated to be less as around 50% to 60% of our total population has already got COVID 19 during the first and the second waves and have developed some immunity. However, a lot depends on the success rate of the vaccination drives currently being untaken by the central as well as the state governments and we are running sadly behind many other countries with only 13% of the eligible population fully vaccinated till now (https://www.bbc.com/news/world-asia-india-56345591).

 

 

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