Economic slowdown impacted ad spend in H2 2019

Brands and media agencies seek third party data on TV audience ratings.

MUMBAI: Economic slowdown in 2019 brought the country, as well as the media industry, to a standstill. It visibly impacted advertising spends. This view was shared by advertisers present during the sixteenth edition of the Video and Broadband Summit 2019 that took place on 11 December in Mumbai.

The panel was moderated by founder, CEO and editor-in-chief Anil Wanvari, with panellists ITC Ltd head media and PR Jaikishin Chhaproo, Havas Media Group managing partner west and south Kunal Jamuar, Godrej Consumers Pvt Ltd VP and head of media services Subha Sreenivasan Iyer and Madison Media vice president Vandana Ramkrishna.

Chhaproo, in his opening statement, said, “There has been a yo-yo syndrome since January 2019 and the only two media-mela events (Indian Premier League and World Cup) in the first half of the financial year saw some advertisement growth.”

He further added that since June people have been quite cautious about advertisement spend.

Agreeing to Chhaproo’s perspective, Jamuar said, “2019 has been something like that of 2008 double dip. And, with respect to advertisement spend on television is as similar as of last year.” Many of Havas Media Group’s clients are from the auto and finance sectors.

All of the four panellists were of the view that along with other sectors, the advertisement spends on television has also been slow and has hardly seen any growth this year.

Accepting the slowdown in the market, Iyer said, “This year had made us re-look at all our advertising plans due to lack of resources and we have been far more prudent in terms of evaluating the need for further spend with quantifiable ROI."

Meanwhile, Ramkrishna believes that one of the reasons for the slowdown could be because of the poor performance of world economies.

According to Ramkrishna, her agency being associated with retail brands, the festive season has not turned up to be a happening one. Adding further, she said people are very cautious on spends and there’s a fear that the economy is going to crash.

However, despite facing a slowdown, Iyer said that in terms of volume, the company’s growth is very strong, which is a positive sign. This goes with competitors as well, especially, in the FMCG sector.

She added, “Consumers are not completely cutting down on their basic essentials, especially in segments where value for money is core.”

In the same context, ITC’s PR head said, “Consumers seek value for money and this is what is happening in the current economic situation. Moreover, there have been steady volumes all over.”

Ramkrishna, talking about NTO’s impact on advertising spend, said, “GEC and movie channels continue to be there and the new order has hardly affected the brands' television spends.” However, she pointed out that the smaller set of channels will certainly have an adverse effect.

GPCL’s media head said there has been a vast difference between DTH and cable networks in data capturing granularity and that helps brands to decide on advertising spends on television.

Havas Media’s managing partner questioned the importance of a proper measurement of audiences’ rating that has seen improvement after DTH’s existence. He said, “Today, niche channels are offering niche content, making the existing eco-system a bit difficult.”

Iyer said that companies are ready to test any medium, just that accurate third party data is needed.

Latest Reads
Brands celebrate Durga Puja as the festival of resilience

Durga Puja is a time when people come together in joy and celebration. The streets are chock-a-block with revellers, the night glows with colourful light displays, and the very air thrums with excitement and gaiety.

MAM Marketing MAM
JSW Steel Q2 net profit falls 37% to Rs 1,595 crore

MUMBAI: JSW Steel reported a net profit of Rs 1,595 crore for second quarter (July-September) of FY21, down 37 percent against a net profit of Rs 2,536 during the same period last year. However, it’s a far cry from the performance in the June quarter when it had reported a net loss of Rs 582 crore...

MAM Marketing MAM
Nestle India clocks double digit growth on the back of in-home consumption

NEW DELHI: Nestle India has clocked total sales of Rs 3,525 crore in Q3 2020 ending on September 30, 2020. Domestic sales as well as total sales grew at 10.2 per cent and the total profit during this period was Rs 587 crore. As a result, the company has announced an interim dividend of Rs 135 per...

MAM Marketing MAM
Dia Mirza and Ranveer Brar endorse Emami Healthy & Tasty‘s new cooking oil

NEW DELHI: Emami Healthy & Tasty has roped in actor Dia Mirza and celebrity chef Ranveer Brar for the digital campaign Ab Har Nivala Immunity Wala (Now every bite is rich in immunity) of their new cooking oil ‘Smart Balance.’ Zoo Media worked on the campaign, with FoxyMoron overseeing its...

MAM Marketing MAM
Flipkart acquires 7.8% stake in Aditya Birla Fashion

New Delhi: Flipkart Group has acquired a 7.8 per cent stake in Aditya Birla Fashion and Retail (ABFRL) for Rs 1500 crore. ABFRL has approved the raising of Rs. 1500 crore by way of preferential issue to Flipkart Group. The equity capital will be raised at Rs 205 per share. The promoter and promoter...

MAM Marketing MAM
Lifestyle celebrates Dil Se Diwali

NEW DELHI: Lifestyle has launched its festive campaign #DilSeDiwali, which encourages people to celebrate the festival of lights in their own way. Conceptualised by Wunderman Thompson South Asia, the campaign is particularly relevant in today’s context where everyone is looking forward to dressing...

MAM Marketing MAM
NortonLifeLock launches first communication campaign in India with Havas Group

MUMBAI: Cybersecurity company NortonLifeLock has launched its first communications campaign in India with the aim to create awareness amongst consumers to help protect their personal data.  The communication pivots on the fact that our data is now even more vulnerable than ever and ‘prying eyes’...

MAM Marketing MAM
Snapdeal targets low-end value shoppers in strategic shift

KOLKATA: It has been more than six months since the onset of the pandemic. While most businesses have taken a major hit, e-commerce has been have a rollicking time with a further boost projected during this festive season.

MAM Marketing MAM
Great Learning places a great bet on the IPL

NEW DELHI: The outbreak of Covid2019 has turned out to be a watershed moment for the ed-tech sector, encouraging brands to acquire new subscribers and expand their business verticals. Both professional and school-level courses have witnessed a spurt in takers during the lockdown period.

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required