Kerala’s biggest festival is fast approaching. Brands national and regional spend 20 to 50 pc over their normal marketing spends during Onam season, say media owners and brand custodians, expecting a bountiful harvest from the consumer wallet.
This Onam season, there is an uptick in the spending sentiment of consumers over the last year, they add. Brands and advertisers are hence going all out with their marketing efforts.
Kerala’s media is also set for the biggest festival of the state and is looking at higher yields. A few of them have increased the ad rates and expect ad revenue growth of 15 to 20 pc over the 2022 season.
“Onam season is one time of the year wherein inventories run to the fullest and to optimise the yield, we have to increase rates and yes we have increased depending on the budgets, spend and relationship the clients have with us, the percentage hovers from 10 to 25 pc,” said, Unnikrishnan BK, Senior Vice President, Asianet News.
“There is clearly higher demand for advertising during the Onam season and inventory does get choked and requires a premium,” noted Naveen S, Head Media Solutions (TV, radio and digital), Mathrubhumi Group.
“Optimisation of inventory vis-à-vis the demand is very critical to our goals and is a dynamic process which is closely monitored. We surely look at higher yields during the Onam season,” he added.
“At Malayala Manorama, we do not increase ad rates during Onam or during any other festival periods. We normally increase our rates at the beginning of the financial year. This year our effort is to improve on the rate realisation,” explained Varghese Chandy, Vice President of Marketing, Ad Sales, Malayala Manorama.
Growth expectations over last year
“There were a couple of interesting things about Onam last year – it was the first time after the onset of Covid that people were able to interact and travel freely without any apprehensions. In addition, last year we had a long Onam window and an extended Onam shopping season as well. On the back of a strong Onam adex last year, we are expecting a good growth this year supported by a strong consumer sentiment. Like most businesses, our target is to cross the 2019 revenue this year,” said Chandy.
Asianet News is looking at a 20 pc growth in ad revenue this Onam season, over last season.
However, there is reason for worry. Unnikrishnan notes that the market sentiments are not favourable as very many clients have cut the spends drastically. “Yet the market is optimistic in outlook for those clients who are daring to go to the fullest,” he added.
“Mathrubhumi Group had a good comeback and a good festive season last year. Continuing the trend, we are looking at a growth of 15 to 20 pc, varying depending on the vertical and markets,” noted Naveen.
Onam Sales 2022 and Covid
According to Naveen, the 2022 Onam was good for the Mathrubhumi Group, and they have recovered from the Covid slump.
“We had even surpassed pre-Covid numbers in many of our verticals/markets,” he said.
“Covid is more or less an excuse, even pre-Covid seasons were not that lucrative. I feel we should keep demonetisation as a yardstick,” observed Unnikrishnan.
“Covid was just one of the few setbacks the market faced, such as the floods of 2018 and 2019. But nevertheless market post Covid is trying all possibilities to revive the old glory,” he added.
“Digital has not experienced any strains on growth in the last few Onam seasons which were amidst Covid onslaught and the growth pattern continues for this Onam too,” observed Boby Paul, Senior General Manager, Manorama Online.
Paul notes that there is no noticeable difference in the digital growth pattern as it is keeping up with the overall trend.
Categories
Speaking on the product categories that are expected to contribute largely this year, Chandy said, “Retail as a whole is looking very strong. Along with it, consumer durables, Auto, textiles and jewellery should be doing well. The NRI homecoming season which coincides with the festival will give a boost to Onam spends.”
“As far as news channels are concerned, main contributors are white goods and retailers. Stiff competition is seen this season,” noted Unnikrishnan.
“Offers and product upgrades are the main mantras this Onam season. Many are still on their planning boards and the next week would be super critical as far as Onam season is concerned,” he added.
According to Paul, while usual suspects automotive, fashion and consumer durables continue to lead the pack, there is a new focus on electric cars and bikes this Onam.
“Onam is always a season where consumer durables, personal tech, automobiles, retail, etc perform strongly, and this Onam is no different. The local markets are responding strongly, which is an indication of a good festival season for everyone,” concluded Naveen.
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