Experts anticipate at least 15-20% jump in Onam ad spends; traditional channels to gain a larger share

This Onam, brands and agencies predict a higher growth rate in digital, while TV, OOH and print will see a bigger chunk of the pie. Experts predict Onam ad spends and further share consumer patterns, ideal media mix, and tips to stand out during the annual harvest event of Kerala. 

Time-honored festival Onam brings the Southern markets of India to life. Largely, Malayali-speaking folks across the country celebrate the annual event. Onam pookalams (floral rangoli), traditional music and dance, and the aroma of the Onam feast sadya waft from homes as Southern India transitions into a place filled with celebrations during Onam. Amidst this, tall billboards in orange, blue, or green featuring King Mahabali or Kerala’s popular boat races and other local rituals take over the advertising canvas. 

With this, consumer sentiment also improves, and brands across categories increase their focus on the southern belt with full gusto. This year, according to experts, the advertising spends are expected to rise by at least 15% owning to the harvest festival of Kerala.  

Amyn Ghadiali, President - Business & Integration, GOZOOP Group, said, “This year, we anticipate Southern advertising expenditure to achieve nearly 30 percent growth in the ecosystem. Compared to the previous year's Onam spending, it is projected that this year's figure will touch the Rs 400 crore mark.”

Sarfaraz Ansari, Senior Vice President – Integrated Media, DDB MudraMax said, “2023 Onam will see an estimated Adex spends rise anywhere between 15%-20% YoY.”

Anticipated Media Mix for Onam

During the festive season, leaving no stone unturned, brands leverage the unique strengths of each medium to reach their audience. Apart from TV, print, and digital, Out of Home (OOH) step into the spotlight, showcasing not only products and offers but also weaving in the essence of Onam's cultural importance.

Amarjeet Hudda, COO, Laqshya Solutions, said, “Out of Home (OOH), Print, and Television stand out as the medium that typically secures the largest share of the advertising budget during the Onam festival in South India. This allocation constitutes approximately 70-75% of ad budgets, highlighting the region's enduring popularity and extensive reach of OOH & other mediums.”

Vinay Hegde, Chief Buying Officer, Madison Media also expects to see a higher percentage of this spends going on traditional mediums. 

“While Print continues to be strong in Kerala, TV is not far behind and digital too has begun to have the share of the pie. Digital has opened up frontiers beyond Kerala as well. But TV and print will continue to garner the larger share,” said Hegde.

For jewellery brand Malabar Gold & Diamonds too, television takes lead in its media plan for the key annual event Onam.  

“For us TV will be the lead medium supported by print, social media, paid digital media, OTT, OOH, PR and in store visual merchandising. TV remains the best media vehicle to reach out to the largest audience in the most impactful manner,” shared Vipin Nair, Chief Marketing Officer, Malabar Gold & Diamonds with Social Samosa. 

Nair further added that digital penertration has gone up significantly in Kerala in the last few years. 

This year, Namrata Soni, Associate Director – Media Planning & Buying, DENTSU CREATIVE India, anticipates a higher growth in digital.

We can expect a rise in AdSpends by 20-25% on Digital channels. While traditional media spends is expected to grow within a range of 10-15%. 

Namrata Soni

Ghadiali mentioned how there could be an experimentation with digital and traditional.

“The preferred mix, I believe that this year would be a year of experimentation between TV & Print and TV & Digital. Expecting a few brands to use a mix of all, but the objective would be to understand the impact beyond awareness,” he said. 

Ghadiali also added that brands have started questioning the impact of brand promotion during the festive season because it tends to be a cluttered space. “While we may see a spike in the spends, one has to keep in mind that the intent is to understand how quickly salience can lead to sales,” said Ghadiali.

Ansari shared a percentage divide that he is expecting to see in the advertising industry.

With local retail occupying the print and radio space largely, national advertisers are expected to evenly spread the advertising budget between Print, TV, and other mediums. This means Print, TV, Radio, and Digital will have 25:25:25:25 share.

Sarfaraz Ansari

Also Read: Motorola’s Shivam Ranjan on making product innovation a central tenet of marketing 

Anticipated Themes

As Southern India comes alive with color, tradition, and the spirit of togetherness, brands seize the opportunity to align their messaging with the festival's core values.

As per Hudda, during the Onam, advertisements commonly revolve around themes such as tradition, unity, abundance, and joy. He further highlighted the approaches that help brands stand out and form deeper connections with their target audience during the festive season. 

He said, “Brands can distinguish themselves through innovative creative and media strategies by crafting innovative Media campaigns that reach out to audiences, tailoring messaging to local customs and traditions, and employing storytelling that resonates with social responsibility.” 

Hegde believes that many brands align their campaigns to the festive cultural theme and largely the opportunities available will be the usual in the form of special Onam sponsorship packages, movie premieres, some innovations and integrations to the extent possible on TV and so on. 

He said, “In Print, we may see jackets and full-page ads and some innovation. In digital, there may be more creative options. Anticipated themes would be common to a great extent with limited scope for differentiation but adspends will definitely see an upside during this period.”

On the digital front, Mithun Cotha – SVP – Data & Insights, GREY group India, said that the evolution of immersive experiences such as AR has gained exposure, and video and static continue to be the prominent modes of creative delivery. 

While AI-based creative formats are the flavour of the day, Cotha believes that digital media techniques like sequencing and re-targeting are readily available, and other executions like DCO (dynamic creative optimization), and virtual experiences need real planning. 

He said, “Themes like home-coming, family bonding, new-year new things, are popularly featured while finding newer execution formats. Pookalam (Flower Rangoli), Boat Race, Onam Sadya (feast), Kathakali (dance) are prominently featured in many KVs (key visuals). Brands must continue to explore local stories, bring out culture and regional pride in their narratives; must be the undercurrent for every story told, irrespective of execution techniques.”

High Consumer Sentiment and Marketing Spirit

In India, Onam marks the beginning of the festive season. When it arrives, Soni said that it’s not only the time of cultural celebrations but a period of heightened demand for cherished commodities.

“In the southern belt, the onset of this festival sees surge in demand for jewellery, ethnic wear, consumer durables and gifting materials. Consumers are expected to react and respond positively to brands that reach out to them with lucrative offers and discounts. Revenue from festive shopping in India is best milked by Masstige brands,” said Soni. 

As the convergence of culture and commerce takes center stage, it becomes imperative for brands to navigate this landscape with extreme care. 

Cotha highlighted the delicate equilibrium that must be maintained while blending local culture into brand narratives as it could take a toll on a brand's reputation. 

He said, “Brands should also tread with caution while imbibing local culture in their creatives. Errors in execution can cause dearly to the brand’s reputation. Well-researched and vetted creatives are a must these days.”

The transformation in consumer mindset is not only an intrinsic part of the Onam experience but also a strategic opportunity that brands leverage to resonate with the celebratory fervor.

Nair of Malabar Gold & Diamonds pointed out that during this festive time, people are more interested in buying jewellery. And to capture this sentiment, the brand has launched an Onam-specific campaign that brings alive the festive camaraderie and joy of gifting.

He said, “Consumer predisposition for jewellery purchase goes up substantially in the period between mid-August and mid-September owing to regionally important festivals such as Onam and Varamahalakshmi Vratam.” 

During the harvest festival, Nair mentioned that there’s an interplay between cultural festivities, wedding season dynamics, and consumer preferences, all of which contribute to this distinctive shopping surge.

“We have already seen good uplift in sales during the first three weeks of August and expect the momentum to gather further speed in the coming weeks. This is a period with a good number of wedding dates as well which has a direct bearing on jewellery sales,” he added.

As the festivities begin in Kerala and across Malayali households, experts are approaching Onam with optimism, advising brands to experiment with different advertising mediums and incorporate festive themes as this combination presents an opportunity for brands to creatively connect with their audience and make a lasting impact during this festive season.