In April and May, most states had enforced lockdowns, curfew and other restrictions to contain the surge in COVID-19 cases. (Image: Reuters)
Major companies will likely increase marketing and advertising spend from July, ahead of the festive season, amid expectations that demand might pick up as COVID-19 cases decline and lockdown restrictions ease.
Consumer electronics, telecom, fast-moving consumer goods (FMCG), auto and ecommerce sectors will lead the revival in ad spend, by raising their expenditure by up to 20 percent compared with pre-COVID levels, industry executives told The Economic Times.
In April and May, most states had enforced lockdowns, curfew and other restrictions to contain the surge in COVID-19 cases. Malls and most shops were closed in several parts of the country, with a gradual easing of restrictions beginning in June.
Appliances maker LG India said the company is increasing its marketing spend for the next two quarters.
"Since pent up sales have started on a positive note, we will reinforce our marketing investment to drive demand," LG India vice-president (corporate planning) Deepak Bansal told the paper.
Advertising agency Dentsu India chairman Ashish Bhasi expects a gradual pick up in advertising. He said that if there is a good monsoon, rural demand will also see an uptick.
"Monsoon will lead into the festive quarter. The IPL or a part of it will also be played in the festive season, so here onwards things should get better," said Bhasin told The Economic Times.
During the January-March quarter of 2021, Britannia, ITC, Emami and Parle Products had raised their advertisement spending to pre-COVID levels.
"July-September will be a better quarter for advertising
as every brand will try to gain back business," Parle Products senior category head Mayank Shah told the paper.