Covid-19 impact: Media auditing grows as firms scrutinise budgets

Deloitte enters fray; others strengthen expertise

The Covid-19 pandemic has disrupted the world of advertising and marketing, forcing companies to take a long hard look at their overall budgets. While the demand by marketers for greater return on their investments has always been there, scrutiny levels have never been this high.

A report by TAM Adex last week shows that average ad volumes per day in July of 2020 grew by 9 per cent compared to June. But, in value terms, the growth wasn't substantial, say experts, as companies increasingly pushed for more discounts on advertisement rates.

The situation has been particularly challenging on television and digital that have recovered since June from an ad volume perspective, but remain flat from a value point of view. In other words, companies may be putting more ads on TV and digital, but the ticket size remains small. Discounts on television are estimated to be in the region of 30-40 per cent depending on the time slot and property.

Media owners argue that they are being squeezed by marketers, while companies insist that budgets remain tight and outcomes require scrutiny.

The resultant flashpoint between the two has prompted firms to seek the help of experts in the matter.

Last week, consultancy Deloitte acquired media audit firm Spatial Access to foray into the space and help companies in the area. Industry experts say that Deloitte isn't the only one here. Rivals such as PwC and EY are also strengthening their expertise in the segment, as brand spends come under the scanner by companies.

"Many of the regular audit firms have a strong media and entertainment practice, helping clients on a wide variety of issues," says Alpana Parida, an entrepreneur and media expert, who sits on the boards of many companies. "For many of these firms, media auditing is one more dimension they are adding to their practice," she says.

This point is endorsed by Chandrashekar Mantha, partner, media and entertainment industry lead, risk advisory, Deloitte.

"The question is about enhancing the effectiveness of marketing spends and ensuring they are aligned with a marketer's objectives," Mantha says. "The need of the hour is to have someone have an independent eye on spends and help firms optimise it," he says.

The need for optimising budgets also acquires significance as companies enter the festive season, where advertising and marketing activity will increase, experts say. 

The Pitch-Madison Mid-Year Advertising Review, released last week, said it expected a V-shaped recovery in the digital medium during the second half of the 2020 calendar year (H2), leading to a full-year growth ranging from 12 per cent to 18 per cent in the category.

Television will also recover in H2, but will still report a decline to the tune of 17 per cent for the full year, the report said.

Overall, advertising expenditure will increase by six to 13 per cent in the second half of the year as compared to the corresponding period last year, the report added. 

Already, online players such as Dream11, Unacademy and Byju's have displayed significant aggression when bidding for the title rights of the 2020 edition of the Indian Premier League. Digital companies are expected to make their presence felt on other high-impact properties such as Big Boss and Kaun Banega Crorepati, which are likely to be launched in September on Colors and Sony Entertainment Television respectively, media industry sources said.

In addition, traditional advertisers in fast-moving consumer goods (FMCG), automotive, telecom, electronics and handsets will also make their presence felt on big television properties to draw the attention of consumers during the festive season.