Local TV Advertising to receive highest share of marketing budget in Q3 2023: TRA Report

The TRA Report also stated that the marketing budgets in Q3 2023 are set to increase and digital spends are predicted to be lower.

TRA’s Marketing Decision Index (MDI) Q2 2023 is a quarterly benchmark report, the second in its series, and a global first that provides leading indicators through primary research conducted with 757 Marketing Decision Makers (MDMs) across 16 Indian cities between January to March 2023. In Q2 2023, India's Business Optimism improves and remains Significantly Positive with TRA's MDI improving slightly to 89.37 in Q2 2023 from 88.2 in Q1 2023. Marketing Budgets for the next quarter are set to increase considerably, from 80.5 in Q1 2023 to 85.1 in Q2 2023, a jump of 5.7%, reiterating the optimism in the quarter. 

In Q2 2023, Radio Advertising showed the highest improvement (ranked 11th in Q1), with a strength of 68.60, followed by National TV (61.94) moving up three positions, Social Media (60.59) rising by one rank, and Digital Search (60.47) maintaining its fourth place. Digital Advertising dropped four ranks (60.09) to fifth place, Public Relations saw a significant decline in ranking (46.39) from Q1 to Q2, Local TV Advertising had a slight decline (44.67) to seventh place, and OOH witnessed a small decrease (40.08) to eighth place.

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In comparing marketing medium strengths across four zones, Radio Advertising and Digital Advertising have shown higher levels of strength gains across all zones, while National TV Advertising has shown mixed results with higher strength in the West zone and lower strength in the South zone. Local TV Advertising has experienced lower levels of strength, particularly in the South zone. Fluctuations in strength have also been observed in Print Advertising, Out-of-Home (OOH), and Public Relations across different zones. The trends emphasize the need for companies to regularly modify their marketing approaches to maintain a competitive edge.

The report is meant to provide MDMs with timely, relevant, factual data to help in applied marketing spend decisions using national, zonal and city benchmarks. 

Key points of TRA’s Marketing Decision Index Q2 2023:

• India's Business Optimism remains significantly positive with TRA's Marketing Decision Index (MDI) improving slightly to 89.37 in Q2 2023 from 88.2 in Q1 2023.
• Online mediums lose strength with Radio Advertising (68.60) being the strongest medium in Q2, followed by National TV (61.94), Social Media Advertising (60.59), Digital Search (60.47), and Digital Advertising (60.09).
• Local TV Advertising (14%) is set to receive the highest share of marketing budget in Q3 2023, followed by Regional Print Advertising (11%), Public Relations and Radio Advertising (10% each), while Social Media is indicated to receive the smallest allocation at 6%.
• Radio Advertising showed the highest strength (68.60) among all mediums in Q2, while social media (60.59) maintained the third position, and national TV (61.94) took the second slot.