Print Media witnesses return of Advertisers

Good news for print media is on the way,  as advertisers are making a come- back with their trust in the age-old media for their advertisements. The turmoil caused by COVID 19 has made Print media suffer a loss for the last few months, things are now coming back to track with a good number of advertisers returning to print in the last one month. Out of the total set of advertisers who are making their return journey towards print, 75% of them belong in the category of Hindi and English language as per the data released by Tam AdEx. Surprisingly major players in the country have witnessed a good demand in non- metro cities compared to metro cities.

The comeback journey of the Advertisers

Satyajit Sen Gupta, Chief Corporate Sales and Marketing officer at DB Corp said  “The market is showing distinct signs of recovery. As expected, the pace of recovery is much faster in Tier 2, 3, and beyond markets as compared to the metros. The automobile category comprising 4 wheelers and 2 wheelers, which is our largest category, has been the first to recover and most vehicles are seeing robust sales. They were the first to resume advertising from May-end. Other categories like FMCG and Healthcare, Education, Durables, and Home Appliances started in June and are aggressive right now. Lifestyle, personal accessories, jewelry, etc. have also started advertising in July and are building volumes.”

Uttar Pradesh makes to the top of the list when it comes to the ad volumes with 17% , Maharashtra comes after that with 10% whereas states like Karnataka and Tamil Nadu records their position as third and fourth .

According to Sivakumar Sundaram, Chairman, Executive Committee (CEC), Bennett Coleman & Co. Ltd, “Multiple researches have shown that this is not the time for brands to stay silent.”

This gives a clear picture of the data released by TAM which showed that in the period between April-June there are in a total of 189 categories, 28,000+ advertisers and 31,300+ brands who have exclusively advertised on print.

Sundaram said, “Inventory movement is surely growing month on month. Today, if you see our newspapers, advertising vibrancy is back. The jackets are back and we have published several special features and supplements. The path to full recovery is all set. The growing thickness of the newspaper is a positive reflection on the economy and has a direct positive impact on the consumer mindset.”

In terms of categories, Sundaram has the same views as that of Sen Gupta. “It’s a direct function of categories that are being able to build or alter their business faster and those focused on-demand generations. Consumption categories like FMCG, mobile phones, and healthcare are back and the categories that cater to the needs of the New Normal i.e. Consumer Durables, Auto, and Real Estate are also growing. We are seeing early signs of the return of discretionary spending like jewelry. I must admit that all categories are active,” he said.

Publishers are looking forward towards the festive season for a good business

Reinforcing that business is coming back, Varghese Chandy, VP, Marketing, Advertising Sales, Malayala Manorama, said: “Relatively, month on month, post Covid, business has been picking up. However, it is not comparable to the pre-Covid days. Brands are active and if we look at Kerala specifically, Onam is also around and that tempts clients to be active.”

The south market has also seen new entrants in terms of advertiser category bringing in the much need cheer to the industry. “Cleaning/washing and hygiene brands, which were not that active in print have now become regular advertisers,” said Mathrubhumi Managing Director M V Shreyams Kumar.

What brand needs?

According to the information released by TAM , brands from 220 classes who went for sales promotion and in print discount promotion, snatched practically 32% of the share which is followed by 29% of multiple promotions

Sundaram believes advertisers are primarily looking for two things. “A credible environment where their brands can be showcased in the right context and a sense of positivity that augurs a return of consumer confidence and vibrancy in the economy,” he said.

Advertisers are now in need of a discount , so that they can make their comeback, information from sources reveal that there was at least 50-60% of discount in the first phase of lockdown, however with the situation returning back to normal, newspapers are not in a mood to give any more discounts to their ad clients. The scenario is such that most of the newspapers have come down with their discount percentage and some of them pondering to completely do away with any discounts as India steps in Unlock 2.0.

“In order to help advertisers reach their consumers to again pick up and regain sales volume, we did offer some schemes till July. However, with more and more advertisers regaining their sales, we are getting out of all schemes from August,” Sen Gupta pointed out.

For Sundaram, it is more of a ‘fresh start’ from April 2020. “Doubling rate is not a good word in COVID times, but in the context of the economy and revenue, we are seeing doubling of revenues and volumes month after month. July is no exception. Pricing in our case has always been determined by a robust pricing engine, which is AI and ML-based, and optimizes pricing for each advertiser based on several factors. We have always been in the value game and aim to consistently deliver value for our customers,” he said.

The situation is similar down south where discounts are being done away with. “Thankfully, the Kerala market is insulated from this discount pandemic. During the lockdown period, we accommodated our regular clients’ interests by offering rate markdown but now the tariff is back to previous operating levels. We were able to overcome this market turbulence since the state bounced back quickly from the lockdown due to strict observance of health protocols enforced by a proactive government. And now, mercifully, the Onam season is on. Though we might not experience a great festive spree in line with previous years, the season will definitely be upbeat,” said Kumar.

 Offerings from the newspapers.

The primary focus of most newspapers in the present times is to enhance reader interest and affinity. Covid has changed people’s expectations from a newspaper, making it the most dependable source of facts. “We are ensuring that we maintain a balance of utility and reading pleasure. In our category, reader affinity plays a critical role and we try to ensure that by reading the newspaper, our readers can navigate better through these times,” Sundaram said.

Sen Gupta, on the market feedback, said: “All our efforts are towards helping advertisers get back their consumers. Integrated plans, performance-oriented advertising are being offered to many advertisers. The good part is that the results are evident. Market feedback is that print advertising is directly driving sales unlike TV and digital advertising. As more categories get back on track, our market-based solutions approach will be driving growth.”

While advertisers are coming back to print, experts have their doubts on whether the business this season will match up to that of last year. The struggle might have eased out for the sector but not over said media agencies. “During the lockdown, print suffered the most, to be precise newspapers were almost dying due to absolutely ‘no sale’ in the market. While their e-paper was still grabbing the viewers’ attention, but their overall revenue saw a huge dip. With things gradually moving, it feels that the festive season may help in seeing a slight uphill in the print industry. But yet we cannot predict that the business during July 2020 would match to what it was in July 2019, as the COVID-19 impacts on this industry have been worse/unimaginable in the last few months,” said Jai Lala, COO, at Publicis Group-owned media agency Zenith.

“To put an eye on, even the Auto industry is now slowly and progressively coming back. But I believe that the Airline, Luxury and Retail to name a few, would definitely take longer to make a comeback because of the obvious current situations,” he added