Social media platforms are attracting significant festive ad spends: Manas Gulati

This time of the year marks one of the most crucial periods for businesses. Consumer sentiment is at its highest, and spending patterns reflect the festive spirit. From offers and discounts to large-scale campaigns and personalized engagement, brands explore every avenue to stand out in a highly competitive marketplace. The rise of digital marketing and the increasing role of e-commerce has also intensified the focus on omnichannel strategies, ensuring that consumers are met with consistent messaging across both online and offline platforms.

Adgully’s special annual column, FESTIVE MOOD, delves deep into the intricacies of these marketing activities, offering a holistic perspective on the trends that define this season. From ad spend projections to consumer behaviour analyses, the column covers all aspects of the festive landscape. It highlights how brands are planning to position themselves, what marketing strategies are being adopted, and how consumer sentiment is shaping the promotional and communication tactics being deployed.

In conversation with Adgully, Manas Gulati, Co-founder and CEO, #ARM Worldwide, shares his insights on the festive season’s advertising trends and strategies. He highlights the significant boost in consumer sentiment, driven by increased online spending and optimistic market conditions. Gulati discusses how advertisers are adapting to fragmented media consumption by employing omnichannel strategies, data-driven personalization, and innovative formats like gamification and emotional storytelling. He also examines the resurgence of print media and the growing emphasis on integrating various platforms to maximize festive season impact.

What are your observations on the overall consumer and market sentiment during the festive season this year?

This year, consumer purchasing habits have seen a noticeable boost, especially during the festive season. E-commerce sales alone have already crossed $6.5 billion in just a week, thanks to big players like Amazon, Flipkart, and Meesho. With Diwali and Dhanteras still on the horizon, these figures are expected to grow even further, possibly setting new records.

Moreover, research also states that 71% of shoppers plan to make online purchases, with half of them intending to spend more than last year, signalling an upward trend in consumer spending.

Looking at the industries benefiting from this, electronics are leading the charge, which also increases demand for financial products like EMI cards and personal loans. The clothing and apparel segment is also experiencing growth, especially with the wedding season approaching. The hospitality sector, particularly travel, is similarly seeing a boost as people embrace the festive spirit and plan trips. Overall, it’s a highly optimistic market across various sectors.

Given the increasing fragmentation of media consumption, how do you see advertisers allocating festive ad budgets across different platforms?

With media consumption becoming more fragmented, advertisers are taking a more strategic approach to their festive ad budgets. Instead of relying on a single platform, they’re opting for omnichannel marketing, spreading their efforts through integrated campaigns that span multiple channels to maximise reach and engagement. Additionally, they are actively leveraging data analytics to better understand consumer behaviour across platforms and tailor their messages accordingly for greater impact.

Different industries are showing distinct preferences when it comes to their ad spending, with the majority leaning heavily towards digital platforms. FMCG brands, for example, still prioritise TV, particularly in Tier 2 and 3 cities, where prime-time slots offer broad reach. Meanwhile, e-commerce giants, for instance, are leading this shift, dedicating 61% of their total ad budget to digital channels. Platforms like Mini TV, Prime Video, and Fire TV are becoming key choices for brands like Amazon and Flipkart, especially for categories like electronics and fashion.

Further, social media platforms like Instagram, YouTube, and Facebook are attracting significant ad spend, given their ability to target specific audiences and generate high engagement through interactive and visual content. When it comes to print, retail and media & entertainment sectors are leading the charge, with over half of their ad budgets allocated to this medium. Moreover, brands are also tapping into the impact of influencer marketing to create relatable, authentic content and leverage the high engagement these platforms offer.

Finally, advertisers are also experimenting with immersive formats like 3D ads and interactive features such as click-to-WhatsApp to deepen engagement. It’s no longer just about visibility; the goal is to create meaningful connections with consumers through a well-rounded, omnichannel approach.

How do you look at Print media’s performance during the festive season this year? What kind of festive ad spend do you see Print garnering?

Print media is set for an exciting festive season this year, with ad spending projected to rise by 25% compared to last year. This period is crucial for print, as studies suggest it could account for 35% to 45% of total ad sales, indicating a temporary resurgence during the season.

Several sectors are fuelling this growth, including retailers, consumer durables, BFSI, automotive, and even jewellery. Retailers, in particular, see print as a fantastic way to achieve immediate returns. Plus, e-commerce giants like Amazon and Flipkart are turning to print to draw high-impact, clutter-free ad spaces that grab attention compared to digital ads.

This year, we’re also seeing print get a bit more creative. Many publications are offering bundled packages that combine print and digital advertising, making the ads feel more relevant and engaging. There’s also a big demand for larger ad formats and prime placements, like jackets and full pages, which enhances print’s appeal even further.

Overall, print media is gearing up for a strong performance this festive season, with brands recognising its unique ability to connect with audiences effectively and engage them on a local level.

What kind of increase is expected in the overall festive adex? Which categories are seen as big spenders, and which mediums are they preferring more?

The festive advertising expenditure is set to see a big boost this season, with expectations of growth between 20% and 25% compared to last year. This surge shows that brands are eager to connect with consumers during this crucial shopping period, ramping up their spending across various media platforms.

When it comes to spending categories, e-commerce giants like Amazon and Flipkart are leading the pack, while traditional retailers are also using print to drive immediate sales. The automotive sector is increasing its ad budgets with new launches, and brands in consumer durables and FMCG are gearing up for festive campaigns as well.

Advertisers are getting creative with their strategies this year. Television remains popular for reaching a wide audience, while digital platforms, particularly OTT services, are also on the rise. Out-of-home (OOH) advertising is in the mix too. Plus, brands are experimenting with immersive formats like 3D ads to enhance engagement, making this festive season an exciting time for brands to connect with consumers.

What are the trends and innovative strategies that advertisers are adopting in their media planning for the festive season this year?

This festive season, advertisers are getting creative with their media planning, and it’s exciting to see what’s trending! One big focus we have been seeing so far is omnichannel marketing and personalisation. Thanks to AI and data analytics, brands can create tailored promotions that really resonate with individual customers based on their shopping habits. And make ads feel relevant and engaging, ensuring they catch your eye amid all the holiday buzz.

Brands are also leveraging User-Generated Content (UGC) to build authenticity and community engagement. By encouraging customers to share their festive experiences with their products, brands can create a sense of connection and trust. And let’s not overlook influencer collaborations! Brands are teaming up with influencers to showcase products in relatable, festive contexts, which helps boost visibility and engagement on social media.

Moreover, emotional storytelling is making a strong comeback, with many campaigns tapping into nostalgia and the warm feelings that the holidays bring. For instance, Vivo’s #JoyofHomecoming emphasizes the emotional connection of returning home for the holidays, showcasing families reuniting and sharing joyous moments. Further, some brands are even incorporating gamified elements into their marketing, like quizzes and contests, to make the shopping experience more interactive and fun.

With these innovative strategies, advertisers are finding new ways to connect with consumers and drive sales this festive season, making it one to remember!

Also Read: Print ad spends to see marginal rise this festive season: Naresh Gupta