How advertising industry is on the route to revival
While the last few months have severely impacted the media and advertising world, the likelihood of the sector returning back to normalcy has increased as brands look to allocate big budgets on marketing ahead of the festive season. “The onset of the festive season along with the on-going edition of the Indian Premier League has brought some respite to the media and advertising industry,” Anant Goenka, executive director, The Indian Express Group, said. He was speaking at the inaugural edition of the BrandWagon Conclave, held virtually.
He further stated that the recovery of the advertising industry is well underway as brands have started to advertise again and categories such as ed-tech, online gaming, e-commerce among others seems to have upped their ad spends. Further, companies have also begun to invest in creating customer data platforms in an effort to learn more about consumer behaviour. “In order to optimise marketing spends, artificial intelligence and machine learning is being used to map consumer journeys,” Goenka explained, adding that the scale of production and the might of distribution aren’t going to be enough for businesses. For brands, finding an authentic, responsible and credible voice is going to be just as critical for meaningful long term business success as any of the other core business processes. “One of the key learnings for brands has been to have a purpose and relevance in the life of consumers,” he added.
As per the EY-FICCI report, total advertising spend stood at Rs 76,600 crore in CY2019 – this is expected to decline by 26% to Rs 56,300 crore by end of CY 2020. While the ad spends on TV is expected to decline by 24%, print will witness a 35% drop. Compared to this digital will record just a 5% slump in ad spends this year. “The year, though a difficult one, has brought many new learnings for brands. For instance, messaging and communication has never been more important, while cause and reason to exist beyond the share of the customer’s wallets has never been more crucial for sustaining businesses,” Goenka elaborated.
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