Festive times to bring double-digit ad growth for Tamil Nadu: Experts

Ahead of the festival-filled second half, experts are optimistic about Tamil Nadu's advertising outcome. A higher move on digital, continued strength in television as a medium in the region and startups looking at the state for higher consumer interest will be the driving factors for H2 2023, say experts.

Tina Garg, CEO and Chief Creative Storyteller of Pink Lemonade says that despite the effects of the U.S. recession on some industries, she is hopeful that the digital ad industry in TN will grow by at least 10-20% in H2 if not more. Sharing similar thoughts, Nigel Mathew, Executive Director of Disha Communication said that a CAGR of around 10% for the second half might be a reasonable estimate for the growth of advertising in the southern state.

As per Indian Brand Equity Foundation’s recent surveys, Tamil Nadu’s gross state domestic product (GSDP) for 2022-23 is estimated to be Rs 24.85 trillion (US$ 320.27 billion). TAM data shows how TV ad ex indexed growth volumes have shown resilience in the month of May in Tamil Nadu, while print and radio have struggled to get their volumes back up to the same level as in January.

“Considering the historical growth rate and the recovery trends from the pandemic, we can expect a steady growth rate for the Tamil Nadu ad market in the second half. The driving force behind this growth could be the continuous popularity of television as the primary entertainment medium, reaching over 95% of the population in South India. The rise in digital platforms, which is recording a 30% growth, could also contribute to the expansion. Additionally, the increase in advertising spends on digital indicates a shift towards digital advertising, presenting new opportunities for the ad market,” Mathew opines.

From a brand perspective, Mark Titus, Assistant Vice President (Marketing), Nippon Paint India (Decorative division) believes that as the year progresses, there will be an increase in consumer spending as the festive season commences. “Utilizing personalized messages and custom promotions can have a long-lasting effect on consumers, proving to be more successful than brands that solely focus on discounts and promotions. Furthermore, the evolving advertising landscape is placing greater importance on digital media and below-the-line (BTL) advertising to enhance consumer engagement. Additionally, experiential marketing, events and activations are being employed to craft immersive brand experiences and foster consumer participation.

The positive consumer sentiment prevailing in this market (Tamil Nadu) has been a key driver of the brand growth, prompting us to further expand our investment in this sector. Our marketing approaches prioritize smart spending and precise targeting, ensuring maximum impact and returns on our investments, Moreover, we eagerly look forward to embracing new media opportunities and emerging advertising platforms, as we have always done, to effectively reach the right audience at the right time.”

Managing Partner, Vummidi Bangaru Jewellers of Amarendra Vummidi, believes that since the second half of the year is filled with festivals, jewellery buying is bound to happen, thus pushing the brand toward more campaigns and higher consumer engagement. 

“We have a well-defined path for each of our processes and the same applies to ad spending as well.  As is the case every year, we will strike a balance between the traditional way of advertising and digital advertising. For the remaining part of the year, we have planned many user engagement activities through social media posts and events. After the Sengol made by VBJ was placed in the new parliament building by Prime Minister Narendra Modi on May 28, our brand has gained more prominence not just in India but worldwide.”  

Speaking about what she believes is the reason for Tamil Nadu’s success in the second half, Garg says “I believe traditional industries have started to see the potential of digital too - to counter recession effects, there will be a foray into digital and an effort to grow markets and garner audiences from beyond TN too. Startups like Meesho and Freshworks have proven that already in the past.  

Then again some of the biggest groups like Sriram and others are based out of TN and tier 2 hubs like Salem, Trichy, Coimbatore etc. are home to multiple healthcare, automobiles, agri brands that are looking to launch their D2C brands which would need a significant digital boost.”