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If 5G is on time, ad spends of telcos may skyrocket in the FY23

5G

India’s top three telecom service providers Bharti Airtel, Reliance Jio, and Vodafone Idea are expected to spend a combined Rs 700 crore or more this fiscal year, a more than two-fold increase from a year ago to market the rollout of their respective 5G services. 

This is subject to the auctions taking place as proposed in June-July, and the telcos rolling out their services by the end of the calendar, experts said. 

Rammohan Sundaram, Country Head, Integrated Media of DDB Mudra Group, said once the telcos buy the 5G spectrum, they will need to advertise heavily to inform people about their services. “This will result in a massive surge (in spending). Since the (telecom) service providers will look for reach and continuity, they will once again look at cricket, especially the IPL.

This could mean the return of major advertisers and sponsors on cricketing properties like the IPL, and maybe even some ICC tourneys, said experts. In the past, telecom service providers have been known to spend heavily on sports sponsorships and advertising. 

“Telcos will have to harness the power of 5G to demonstrate the new experience to their subscribers,” said Chandrashekar Mantha, Partner, Deloitte India. “I believe partnerships (on content, bundling, gaming, and immersive experiences) will not only help them exhibit their capabilities to explore the true potential of 5G but also enable them to differentiate themselves when they plan their marketing initiatives.” 

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