In today’s ExchangeWire news digest: India’s biggest brands gear up to resume advertising after COVID disruption; News Corp Australia confirms it will close over 100 of its print publications, with most moving online; and a recent survey finds that US Gen Zers could provide hope to luxury brands.
India’s biggest brands get ready to recommence advertising
India’s top brands are reportedly preparing to restart their advertising campaigns. Retailers across home, personal care, grocery, smartphone, and electronics are believed to be forging ahead with their ad plans after the outbreak of coronavirus put many on an unexpected hiatus.
Marketers have asserted that some of the country’s leading brands are already showing signs of revival, with advertising spend for essential goods experiencing noticeable growth. Holdings company ITC has stated that its ad spend on staple foods brands and sanitation products, which it increased last month, is fast approaching pre-pandemic levels.
Electronics and smartphone brands are also gearing up for a restart after reportedly seeing pent-up demand for their products, but are expected to keep their ad spend modest until major festive seasons.
As the world’s third-largest economy, the return of ad spend will have a large role to play in the global recovery from the disastrous impact of COVID-19. What will be interesting to see is how India’s consumers respond to this new advertising drive, particularly as the government’s handling of the crisis remains unclear.
News Corp says goodbye to over 100 print papers in move to digital
More than 100 of News Corp Australia’s local and regional newspapers are to become digital-only or be scrapped entirely. The move follows News Corp’s decision to suspend publication of 60 newspapers last April in response to the economic fallout of the coronavirus.
Of the 112 publications affected by the decision, around a third will go out of print, with 36 shutting up shop entirely. 76 newspapers will continue to be published online, and an additional 3 Sydney-based papers are set to avoid the digital exodus due to their strong real-estate advertising revenue.
Executive chairman of News Corp Australasia, Michael Miller, asserted that an increase in digital news consumption means that cutting its number of print publications is the most logical step to protect the business during this period of uncertainty. He stated “we are reshaping News Corp Australia to focus on where consumers and businesses are moving and to strengthen our position as Australia’s leading digital news media company.”
The media union, who claimed that staff only became aware of the closures through press leaks, have stated that they are ‘gutted’ by the move, which is expected to see a substantial number of job losses.
Gen Z could be the key to luxury brands’ COVID survival
The US luxury goods market is struggling amidst COVID-19, with some forecasting a decline of 35% by the end of 2020. Despite this, a recent Adobe Advertising Cloud survey has found that there is still a demand, particularly amongst Gen Z consumers, for luxury goods, and a desire to see more advertising of high-end products.
The survey, conducted last month, revealed that more than half of respondents aged 25 or under are continuing to spend on luxury items in spite of the economic uncertainty caused by the pandemic. Furthermore, 40% of the same group admitted that they want to see more advertising from “non-essential” brands.
These sentiments differ starkly to older consumers, with 76% of Boomers and 75% of Millennials reporting that they are currently reluctant to shell out for pricier goods. Whilst 20% of the total respondents stated that they would consider any advertising for luxury goods during the crisis wholly inappropriate, high end brands, including Chanel, Rolex, and Christian Dior have maintained their presence.
With theories differing over the reason behind these polar general reactions, the survey emphasises the value of tailored ad campaigns, and could point to an avenue for recovery as brands continue to weather the COVID storm.