Focus East: The M&E and Advertising possibilities for brands to expand consumer base

As in the case of the rest of the country, the East markets – comprising West Bengal, Sikkim, the North East states and Odisha – is undergoing rapid digital transformation. The global pandemic proved to be the catalyst for greater digital adoption.

However, along with digital and social media, traditional media – Television, Print, Radio and Out of Home – are equally strong media preferences for brands in the East markets when it comes to consumer engagement and increasing reach with brand communication.

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Media & Entertainment

As per the FICCI EY M&E 2022 report, the Indian M&E sector grew 20% in 2022 to reach Rs 2.1 trillion. While television remained the largest segment, digital media cemented its position as a strong No. 2 segment, followed by a resurgent print. The share of traditional media (television, print, filmed entertainment, OOH, music, radio) stood at 58% of the M&E sector revenues in 2022, down from 71% in 2019.

The FICCI EY expects the M&E sector to grow 11.5% in 2023 to reach Rs 2.34 trillion in 2023, then grow at a CAGR of 10% to reach Rs 2.83 trillion by 2025.

The M&E sector in the East markets, too, has shown strong growth. While brands are incorporating Digital into their media mix, the skew still remains strong towards traditional media. The East markets have always had a strong preference for Print and Television as their primary choice of media. Thus, brand presence has been heavy on these to media platforms. OOH, too, has a significant share of media spends by brands.

Automobile, FMCG, Food & Beverage, Jewellery, Agri-based industry, Oil industry, Steel industry, leather industry, Construction, Cement, as well as local brands are among the heavy spenders on traditional media.

At the same time, there is also a shift towards digital adoption, the true impact of which will be known in the next two years.

There is a sizeable young population in the East market, who have a stronger affinity for Digital. They have a strong presence on social media, their content consumption is more on digital media and they have very high aspirational levels.

Brands targeting the GenZ and Gen Alpha in the East cannot afford to overlook Digital.

The OTT space is gathering momentum in the East market, with new players entering this space. HoiChoi in West Bengal has become a major player in the regional space today. Besides catering to the audience base in Bengal, it also targets the Bengali Diaspora, as well as the Bangladesh market.

Similarly, along with Netflix, Amazon Prime, Disney+ Hotstar, ZEE5, SonyLIV, local OTT platforms such as Niri9, Prag Play, Pride Plex, are also high in the content consumption game. Regional content has an edge here over other content and this has opened up huge opportunities for local content creators, writers, production houses, artistes and more.

Advertising

Indian advertising grew 19% and crossed Rs 1 trillion for the first time in 2022, as per the FICCI EY report. While traditional media comprised 52% of the total advertising, digital media had the balance 48%. The report estimates advertising to grow a further 12% in 2023.

When it comes to share of the overall ad spends in India, the East market lags behind the bigger, North, West and South markets. The major spends happen during the Durga Puja and Diwali festive period. Every brand – national or local – is seen active during this period. Additionally, in Assam, Magh Bihu in January and Bohag Bihu in April are also heaving spending periods. In Odisha, the Puri Jagannath Yatra also marks a heavy brand presence. Christmas and New Year is a more preferred marketing period for brands in the other North Eastern states.

Apparel brands to consumer electronic brands, household goods, jewellery, fashion accessory, automobile, construction, cement brands spend heavily during the festive periods.

E-commerce brands also up the game during their numerous sale periods throughout the year. Online buying has seen an uptake in recent years, even as retail buying continues to be strong.

While trying to engage with the GenZ and Gen Alpha TG, brands are increasingly taking to digital media, such as meme marketing, social media marketing, use of influencers, and more.

While it may lack the scale right now, but the East market can be a formidable part of brands’ regional plans as it offers a highly aspirational TG open to experimentation and increasing spends. Brand awareness is high and the East has now got better connectivity and exposure to the latest national and international trends. Media dark areas are shrinking rapidly. The East offers a high growth proposition to brands that needs to be tapped at the earliest.