Despite Wayanad tragedy dampening Onam festivities, ad spends risen by 10-15%

The harvest festival is the biggest retail season in the state, fuelled by higher consumer spending from festive bonuses and a substantial influx of NRIs.

On July 30, 2024, many villages in Kerala’s Wayanad district witnessed landslides due to heavy rains. One of the deadliest disasters in Kerala's history, it caused over 336 fatalities, 397 injuries, and 78 people are still missing. The scale of the tragedy shook people across the globe, who came forward to extend help in all forms. The state government not only declared mourning for two days but also called off the state’s week-long celebrations in light of the tragedy.

However, as celebrations to welcome the state’s favourite king Mahabali began for Onam, people seemed to have overcome the grief. Brands have also opened their purse strings to urge people to spend for the harvest festival. 

Onam is the biggest retail season in the state, fuelled by higher consumer spending from festive bonuses and a substantial influx of NRIs. This creates an ideal environment for advertising, making it a pivotal opportunity for brands to engage with their audience.

According to industry experts, despite the tragedy casting a gloom on the celebrations, the ad spend this Onam has seen a rise of 10-15%. 

Devika MS, director-operations, Mathrubhumi Group, says the Wayanad tragedy caused a temporary dip in advertising spends as the initial focus shifted towards relief efforts. There were some delays in launching campaigns, but these disruptions were short-lived. As Onam approached, advertising activities quickly resumed. 

“Kerala has shown tremendous resilience, with strong support from various stakeholders, including our associates, contributing to Wayanad’s recovery. While there was a brief pause, the overall advertising spend remained unaffected, with the market regaining its momentum as we moved into the festive period,” she says.

Varghese Chandy, VP-marketing and advertising sales, Malayala Manorama, says, some of the retail giants like My G, Gopu Nandileth, Oxygen, Bismi, Lulu, etc have booked all the available jackets during this period.

“Kerala is a very strong retail market and a very brand conscious market. The proliferation of brands is very high so every single brand is present in Kerala and has special plans for Onam,” he says.

Mathrubhumi has also seen strong interest from brands this season.

“At Mathrubhumi, we’ve leveraged this opportunity by executing a wide range of successful Onam-related events and activations across Kerala and even in markets outside the state. Our multi-platform presence, spanning print, TV, radio, digital, and on-ground initiatives, offers brands a comprehensive and impactful way to engage with consumers, making their association with us even more valuable during this festive period,” she says.

Smitha Narayanan, head of sales and marketing, MM TV, says though the Wayanad tragedy has been a dampener, Onam urges people to overcome tragedy. The ad spends are slightly higher than those of last year. Retail is the pillar for advertising in Kerala. “Categories like textiles and jewellery generally show a lot of interest in advertising during this season. That has continued this year,” she says.

The normal Onam window for shopping begins with the beginning of the first month of the Malayalam calendar Chingam. This year, it fell on August 17. Chingam’s early start has extended the Onam campaign window this year.

“Normally, Onam festivities begin 30 days prior to the actual festival. This year it is spread for a longer period, as Onam is spread across August and September. So we can see a significant jump in revenue,” explains Chandy.

“The early start gave brands more time for activations and advertisements, which has further contributed to the overall growth in ad spend,” adds Devika.

Devika says the consumer durables segment, particularly air conditioners and refrigerators, has experienced notable growth. She attributes the rise to the intense summer and changing consumer preferences post-pandemic, where home comfort and convenience have taken precedence. 

“Additionally, we've observed new players in this category becoming more active, launching strong campaigns to capture consumer interest. With Kerala’s high demand for durable goods during festive seasons, these brands have capitalised on the extended Onam period to drive engagement and sales,” she says.

There has also been a surge in interest from national brands this Onam. Major players, like Amazon and Flipkart, who had scaled back their print advertising in recent years, are returning this season.

“Being the first major festival of the financial year, Onam sets the stage for future brand engagements, making it a key period for national advertisers as well. This renewed interest reflects the overall strength and significance of Onam as a strategic advertising opportunity for both regional and national brands,” she adds.

Chandy says most of the national retailers like Reliance Smart, Trends, Croma, and most of the automobile brands are also strongly present.

Narayanan also reports a rising interest from national brands. However, she says brands are increasingly using advertising for more tactical purposes than for brand building.

“There is more call to action type advertising, driven by offers and rewards,” she says. 

While the Onam ad spend has increased compared to last year, there has been a significant drop in government spending.

Devika says this has presented some challenges. However, to counter this, Mathrubhumi has strategically partnered with a broader range of clients, offering creative solutions and on-ground activities to drive engagement. 

Chandy says the Kerala Government has stopped the Onam festivities due to the Wayanad disaster. “But it has given Onam bonuses to the staff and pensioners. Therefore there is no let up in what the consumer spends,” he says.