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Flipkart, Amazon and Snapdeal expected to burn Rs 2,000 crore in months leading to Diwali

With Diwali approaching,ecommerce companies are getting ready for a big round of fireworks. Cash-rich biggies such as Flipkart, Amazon and Snapdeal, as well as smaller startups, are expected to together burn Rs 2,000 crore in the four months around Diwali as they try to wean away more consumers from traditional stores to online marketplaces during the all-important festival season. Shah Rukh Khan and Aamir Khan will join a bevy of celebrities promoting ecommerce companies in the multimedia blitz that, media planners say, will shift significantly towards print and digital this Diwali from television.Last year, ecommerce companies had spent as much as Rs 1,300 crore on marketing and promotion during the September-December period, these people said.1-1 While last year top companies such as Flipkart, Amazon, Snapdeal and Quikr were the big spenders and most visible brands during Diwali, this year even small startups are going to be active, said a media planner. “Therefore, there will be a huge shift of ecommerce advertising money from television to digital and print,” he said. Until last year, ecommerce companies spent 60% of their marketing budget for the festival season on television marketing, media buyers said. This year, just about 35% is expected to go to television.1-3Ashish Jhalani, founder at eTailing India & Indian School of eBusiness (ISeB), said his company tracked around 700 ecommerce companies of some scale and size in 2014. This year, the number has grown to more than 1,700, including small and big players, he said, which points to market expansion. A growing number of startups are also advertising to showcase their offerings and leave an impact on consumers. According to top media buying firms, the heavily funded online startups are the ones splurging without watching returns on investment.

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