New Delhi: Corporate are gearing up to spend about 25-30 per cent more this year on advertising and firms selling consumer durables, electronics and automobiles are expected to take the lead in the busy season that starts with Navratri, according to an Assocham study.
“The feedback from corporate suggest that the marketing teams of the companies engaged in the business-to-consumer (B2C) have already lined up plans for their ad campaigns which will begin from Navratri and run through Durga Puja, Diwali and right up to Christmas,” said associated chamber of commerce and industry in India (Assocham).
It said that the period is also considered the busy season for the Indian economy with the policy makers and the Reserve Bank of India expecting a pickup in consumer spending to rev up the overall GDP growth in the current financial year to 5.5-6 pert cent.
“Though the corporate are facing higher cost pressure due to high interest rates, rising raw material costs and wages, marketing expenses mainly through advertisements on television and in newspapers and the social media have become unavoidable with the companies in the media sector becoming the main beneficiaries,” said the Assocham survey.
By increasing their ad spend by upto 30 per cent this festive season, the corporate are hoping for a commensurate rise in their sales hoping that the consumer confidence will return with the Narendra Modi government taking incremental measures to boost the economy, said the chamber.
It said that at least 40 per cent of the ad budget of the corporate is typically earmarked for the busy season which coincides with the change of weather and several festivals.
The rural market also remains in focus, though the response this year may not be encouraging because of scanty rainfall.
Nearly 69 per cent of the marketing heads said that companies see in the festive season a perfect time to advertise their products, the study said.
