[ad_1]
The overall ad spend in India is expected to reach INR 1,55,386 crore in 2024, an incremental INR 14,423 crore compared to 2023, according to GroupM India‘s annual This Year Next Year (TYNY) report.
The report cites phenomenal momentum in the space of addressable TV over the last few years. By the end of 2023, there were 34 million addressable TV homes streaming on connected TV in India.
According to the report, in 2024, this growth is expected to be reaching 45 million homes with a YoY growth of 21 per cent.
Besides the rapid increase in broadband connection at home and all new TVs sold being smart; content has played a key role in driving this growth. Major sporting events have accelerated eyeballs on addressable TV.
In the last year, markets like Uttar Pradesh, Bihar, Madhya Pradesh, Uttarakhand and Haryana impressions on CTV have grown by at least 4.5 times, the report added.
The report highlighted that the shift in content on FAST channels is also one of the reasons for people to cut the chords.
Prasanth Kumar, chief executive officer, GroupM South Asia said, “Despite facing macroeconomic challenges, we remain optimistic about the industry. At 10.2 per cent India will be the fastest growing top market. 2024 will also see an upside from the spends leading to the General Elections.”
“Digital, particularly retail media and digital extensions of TV are expected to drive growth. SME continues to fuel the growth. Linear TV is at a point of inflection and needs to be enabled with rapid deployment of technology to stay relevant,” he added.
Ashwin Padmanabhan, president – investments, trading, and partnerships, GroupM – India said, “The advertising landscape is evolving with the fragmentation of search, rapid rise of influencer marketing and retail media. Reflecting this, at INR 88,502 crore, digital will contribute to 57 per cent of all ad spends.”
“Within digital ad spends, search contributes 22 per cent, retail media 18 per cent and the rest 60 per cent. Sectors like auto, realty and offline retail are expected to power the overall advertising growth,” he added.
Parveen Sheik, head of business intelligence, GroupM India said, “Global advertising presents a steady picture: a projected 5.3 per cent global growth in ad revenue for 2024, reaching USD 936 billion, with digital leading the charge at a commanding 79 per cent share of all ad spends.”
“India continues to be ranked eighth globally and its ad spends growth among its peers is a testament to its potential and resilience. Adaptability is key to navigating an evolving advertising landscape amidst inflation and geopolitical tensions,” Sheik added.
The GroupM TYNY report also unveiled several evolving trends for 2024:
Key trends include:
1. Increasing influence of gen-alpha will drive distinctive marketing strategies: If the earlier generation replaced pen and paper with screens, this cohort is voice and visual first, with even typing, rapidly reducing. They are also far more inclusive and socially aware. Marketers will create significantly different strategies to appeal to this critical cohort. The key driver will be engagement powered by technology. Focus on voice and video-based discovery, interactive brand experiences, gamification and a focused influencer strategy will be critical to appeal to them.
2. Attention Planning – customising insights for actionability: More attention is being given by marketers to decode and better the targeting outcomes. With a generation coming up whose attention span ranges from few seconds (snap) to few hours (gaming), it is becoming imperative to test and frame up the question of how to garner better ROI from media – to – how to optimise ROI of media for attention. Importance of understanding the nuances of attention and tailoring attention strategies based on brand size to achieve optimal business results and campaign success.
3. 21 per cent of television homes to be addressable in 2024: TV advertising is becoming more and more programmatic. All DSPs and SSPs are working on CTV solutions as they see demand growth rising on their platforms. Impact for advertisers have come in the way of opportunities. It is becoming increasingly critical to adopt Total TV planning. Because of addressable TV, we have seen more advertisers get entry points to advertise on television. The power and impact of TV; the levers of digital audience discovery and audience targeting becomes a channel of choice for marketers to make impactful TV ads for personalised and localised experience.
4. Sports to focus on immersive experience journeys: Sports will enable marketers to innovate and engage their audience through the funnel – from driving awareness to enhancing perception and trials. The advancement in tech will help capture data, build richer profiles, and track behaviour. The advancements in data and technology will also enable brands to capitalise on Fluid moments in sports and create personalised content and promotions for consumers.
5. Brand marketing becomes more accountable on performance, breaking silos: Brands need the short-term impact as well as making the brand live longer in consumer life. The entry and exit points might differ, but the end outcome drives ending growth. With this focus, we see the narrative and measurement shifting to full funnel which is not just the immediate brands need, but they are topped with brand emotions.
6. Step-up on search: Marketers must navigate a more complex landscape, understanding the nuances of each
platform to craft effective strategies. Success requires a broader range of skills, including SEO, video production, content marketing, and platform-specific optimisation techniques. Gathering and interpreting data across platforms to gain insights into consumer behaviour and campaign performance is more challenging but also more crucial than ever. The diversity of platforms offers opportunities for more targeted and personalised marketing
efforts, which can lead to higher engagement and conversion rates.
7. Ecommerce drives deeper into organisations: Over the years, we witnessed brands expanding their share of ecommerce on their total brand GMV across all channels, expectedly taking the current ecommerce ~five per cent share of total retail to ~seven per cent. Few categories like FMCG, beauty and personal care, groceries, daily needs and fashion will index much higher. Marketplaces, vertical commerce sites and quick commerce platforms are more than just point of sales; today they operate like product discovery platforms as today the digital shelf holds more in market insights than ever, before making it an open market managed by the algos of these platforms.
8. India’s general and modern trade getting digitised leading to rise of omni channel commerce: In 2024 ecommerce share is expected to be seven per cent of overall retail trade, but marketers today are spending over 70 per cent time decoding the best strategies on ecommerce. However, the real big transformative opportunity is the area of brick becoming click. Lines between eCommerce and General Trade and Modern Retail are blurring.
9. Rapid developments in AI will transform media, messaging and measurement: While the transformative potential of AI is beyond imagination, the most tangible and immediate impact in 2024 will be in three broad spaces – messaging, media and measurement. The interplay between medium and message will grow stronger, with AI at the forefront. While a lot of discussion has been on creative powered by Gen AI and deepfakes, the larger power will be for real-time signal-based creative versioning across text, image and video to create meaningful personalized messages at scale for brands.
10. AI and technology dominate the content landscape and creator economy: The integration of AI in content creation is dynamic and evolving faster than our imagination. It is playing a role in every stage of the creative process – be it identifying consumer habits and preferences, helping ideation, speeding up the production and
enhancing post-production. The ethical debate on AI-generated content, which is already heated, will play a significant role in how marketers leverage this in 2024.
11. Importance of niche consumer segments will power the growth of micromarketing: There has been a progressive shift from the one-size fits all approach based on economies of scale to a sharp focus on marketing to the many Indias. This has translated to the evolution of many “Micro” strategies which will all gain strength in 2024 with increased availability of data, artificial intelligence and communication platforms.
12. With consent becoming critical, zero party data will empower various areas of marketing: While the term “Zero party Data” was coined over five years ago, it is not a new concept. Marketers have always been obtaining information from consumers through surveys, quizzes, and interviews in exchange for some reward. With data privacy regulations getting more stringent and the demise of the cookie more imminent in 2024, this information – willingly provided by consumers with full consent for a meaningful value exchange – has now attained more importance than ever before.
The personalised and interactive nature of social commerce is fast reshaping consumer behaviour, and helping small businesses to grow fast.
In a hyper-connected world that we are in today, we all expect personalised and relevant experiences from brands. Digital marketing enables brands to deliver tailored messages and offers based on consumer preferences, behaviours, and demographics. As businesses continue to prioritise data-driven decision-making, professionals with expertise in digital marketing analytics are poised to thrive in the job market.
[ad_2]
Source link