IPL and elections combined could result in 20-30 percent higher Adex quarter-on-quarter: IPG Mediabrands' Hema Malik

India is currently in the midst of two major events, especially from an advertising and marketing standpoint - the Indian Premier League (IPL) and the Lok Sabha Elections. With these two events coinciding, brands have been spending either more on advertising or are allocating their spends on what they think will be the optimal option for them to gain reach. Either way, media agencies have their work cut out for them during this period. Storyboard18 caught up with Hema Malik, Chief Investment Officer, IPG Mediabrands India to understand what sort of shift there has been in ad spends in the last two months, the top spending categories, major reasons behind the AdEx surge and more.

Edited excerpts.

What is the kind of increase in ad spends that you are noticing this April due to the combined impact of IPL and elections?

We've observed a notable increase in ad spends, influenced by the concurrent occurrence of the IPL and the Lok Sabha Elections. While the IPL is an annual event, the simultaneous timing of both events is a unique phenomenon in over five years. However, both events captivate a similar audience, generating nationwide excitement. Comparatively, the IPL has shown better performance and increased advertiser participation compared to the previous year. Similarly, the upcoming elections have opened up a positive trend for advertisers. Our estimations suggest that the combined effect of both events could result in a 20-30 percent higher Adex quarter-on-quarter.

What are the top ad spending categories experiencing the biggest surge in AdeX due to the combined effect of IPL and the upcoming elections?

The upcoming elections have witnessed significant participation from various sectors such as Infrastructure, Banking and Finance, Consumer Durables, Automotive, and Retail. Similarly, the IPL has attracted considerable attention from traditional categories like Automotive, Consumer Packaged Goods (CPG), Beverages, and Gaming.

What are the specific goals that brands are looking to achieve with their advertising campaigns during this period of heightened viewership?

Brands aim to capitalize on the increased viewership during this period to achieve broad reach and build awareness, especially through election-related specials. The IPL offers sophisticated advertising options that address brand objectives beyond the top funnel.

Can you tell us which genres of programming are performing best in terms of ad viewership during the IPL and election season?

GECs consistently perform well during this period due to their loyal family audience base. Additionally, there has been an increase in Pay homes, indicating significant contributions from Tier 2/3 cities across all three genres: News, Sports, and Entertainment.

How significant is the ad rate growth compared to usual periods, (or, this time last year) considering both IPL and election?

While the ad rates for the IPL have remained relatively flat, the expectations for news channel pricing, especially on critical polling and counting days, have surged. Bundled options combining election and non-election packages during this period are experiencing double-digit price increases.

Besides IPL and elections, are there any other upcoming events or trends that you anticipate will impact media buying strategies?

Anticipating future trends, we have our eyes on the upcoming ICC T20 World Cup, set to take place in the USA. However, the scheduling of India games at 8 pm is a crucial factor to consider. Additionally, prominent properties such as Khatron Ke Khiladi, Bigg Boss, and Kaun Banega Crorepati (KBC) are also on the radar for festive planning.