Even though amidst a global economic slowdown, brands became a tad critical when it came to advertising spends, in India, digital remained immune to it. In fact, brands are shifting dollars from other mediums to the dot com world.
The dot com world was explored in great detail at theDigiPlus Fest.
In his welcome note, Amit Kumar Gupta, business head, Economic Times Verticals introduced the theme for the event - LeadWithDigital. Over the years, businesses have undergone massive transformation, broken departmental silos and even redefined various principles and strategies“Thousands of dollars are being spent to drive performance, secure automation, ensure efficiency and drive results. The country’s media, advertising and marketing ecosystem is not shy of experimenting, in fact, in many ways, India is setting global benchmarks,” said Gupta.The country’s scale lures global brands. However, there also come challenges with the same. Gupta addressed some of these challenges as well. “Sometimes these global brands find their international, automated approach falling short in this market where the language of communication changes every 100 kilometres,” he said. For instance, India isn’t a country where chocolates go out of stock once, at Halloween. Here, there are several celebrations where Cadbury is a gift. “To win India, brands have to win in India and that is where the challenges in this market become unique,” Gupta added, as he spoke about targeting such a heterogeneous cohort. “Personalising communication for them with content that is relatable and doing all of that real time, is what brands are thriving for and there are solution providers bridging the gap.”
There is a state of digital marketing.
ETBrandEquity along with Ipsos also unveiled a whitepaper at the DigiPlus Fest 2023, around the state of digital marketing in India. The report highlighted the share of digital advertising and other formats that comprise the total advertising industry in India. According to it, television holds the highest share of 40 per cent, followed by digital which is 30 per cent. Print holds 25 per cent, followed by OOH and radio hold two per cent share each, while cinema holds one percent. It also focused on the digital ad spends specifically. The report stated that maximum spends happen on social media (30 per cent), followed by online video (28 per cent). Paid search and display banners are considered by 22 per cent and 15 per cent respectively. The rest of the spends go on other digital channels. In India, majorly eight to ten sectors drive the contribution to digital advertising spends with FMCG (35 per cent) and e-commerce (15 per cent) at the top of the list, the report added. Among other sectors, consumer durables contribute to eight per cent of digital ad spends, auto and bfsi spend six per cent each, followed by edtech (five per cent), pharmaceuticals (four per cent) and telecom (three per cent).
There are insights and trends for the next few years.The report further shared the trends India is likely to see in the digital marketing space in 2023 and coming years.
There is a voice and visual search.There is an increasing trend of using voice and visual search in online shopping as well as online search. It’s important for marketers to tailor their content accordingly (search optimised videos - using conversational language and images of products and services) so that SEO and SEM can be used more effectively.
Virtual and augmented reality are part of extended reality tech.AR/VR have opened up new prospects for user engagement. Use of filters and interactive ads is encouraging users to participate. Increasingly, online shoppers are getting familiar with AR and VR experiences in online shopping which provides an enhanced experience. This phenomenon is set to be on a rise.Short Form Video content and Live VideoThe next few years will witness the majority of online content being video content. It may displace social media format to take first position in market share. As attention spans are getting shorter (average human attention span is 8.25 seconds), even visual content like videos need to be short, focused and engaging and this has to be incorporated in the video marketing strategies. The growth of bumper ads will witness an increasing trend and play an important role.Social media platforms have also incorporated this - Twitter introduced Fleets just as Snapchat introduced Snapchat Stories.Diversification and Decentralisation
Diversification is definitely happening. The smaller search engines are gaining popularity. Bing, Microsoft Advertising, and Amazon are some of the places that marketers are looking at.
Bing’s global visitor traffic and ad revenue steadily increased in 2023. Microsoft advertising can help reach out to 40 million desktop searches globally! Amazon offers a wide range of Ad types and better buyer intent.Decentralised social networks will become a viable alternative to mainstream social media platforms due to users’ lack of control and censorship.Artificial Intelligence (AI)AI will continue to grow. It’s used extensively in search engines, website design, content creation, predictive customer service, chatbots, speech recognition, ad targeting and dynamic pricing.Social Commerce2022 witnessed the steady rise of social media users to purchase products directly on social media platforms like Facebook and Instagram. Brands are increasingly setting up shops on social media and deploying tools to facilitate commerce through it. This trend will continue to increase in 2023. Facebook has already rolled out its Facebook shopFeature.Nano/Micro Influencer MarketingNano and micro-influencing will get a fillip as the big influencers on Instagram are highly priced and smaller brands find it difficult to afford them. Also, with consumers’ increasing awareness (about sponsored posts) there is propensity to gravitate towards brand authenticity, credibility, and easy reach. Connected TV and OTT – Fusion with Traditional MediaThe mediums of OTT and CTV help the marketers to reach their target audience over and above the reach of traditional linear TV (i.e. cable, satellite, and antenna). This target group (TG) includes the emergent community of cord-cutters. The rise of OTT and CTV viewership provides meaningful ways to engage at the right time with the right TG - fusing together the directive accuracy of digital marketing with the high impact of the traditional TV viewership.
The brand equity was published on Feb 4, 2023.