Tata Motors has finalized the pitch process for its Passenger Vehicles media planning and buying account, valued at approximately Rs 450 crore, according to industry sources. The automobile leader, which began the pitch earlier this year, has decided to consolidate its media mandate with Omnicom Media Group (OMG).
The account spans all aspects of media planning and buying, including above-the-line (ATL) advertising, digital campaigns for both electric vehicles (EVs) and internal combustion engine (ICE) vehicles, and outdoor advertising.
Previously, Tata Motors’ media requirements were distributed across multiple agencies, including Lodestar UM, OMD, Dentsu, and Madison. This consolidation marks a strategic move by the company to streamline its media operations and drive greater efficiency and cohesion across its campaigns.
The partnership with OMG is expected to bring innovative solutions and sharper media strategies to bolster Tata Motors’ presence in the highly competitive passenger vehicles market, which continues to see growing consumer interest in both traditional and electric mobility options.
As per the report, “OMG handled the Digital media mandate but now has won the entire Tata Motors media business.” None of the media agencies involved in the pitch have commented on the process.
In broader industry trends, the automotive sector’s TV advertising spend has seen a notable decline, with a 14% drop in advertising volumes during the first half of 2024 (January to June) compared to the same period last year, according to the latest TAM AdEx report. Conversely, the sector has experienced a surge in other media platforms, with a 25% increase in print advertising, a 14% rise in radio, and a remarkable 55% growth in digital media during the first half of 2024.
Meanwhile, media accounts worth over Rs 2,000 crore, including those for companies such as Dabur India, Tata Consumer Products, Hero MotoCorp, and Kotak Mahindra, are currently in play, with most of these deals expected to be finalized by year’s end.
In its latest sales report, Tata Motors revealed a slight decline in total sales for October 2024, totaling 82,682 units, compared to 82,954 units during the same month last year. The company noted a small uptick in domestic sales, which rose to 80,839 units from 80,825 units in October 2023.
Passenger vehicle sales, which include both electric and conventional models, saw a modest dip, with 48,423 units sold in October 2024, compared to 48,637 units in the previous year. Within the passenger vehicle category, domestic sales reached 48,131 units, down slightly from 48,337 units year-on-year.
