Governance now Roundtable on Current Advertising Trends

It is time for digital media to convert impressions to GRP’s (gross rating points) to get measurement numbers. An advertiser is entitled to know the content where their ad is placed.

Discussions were held at Governance Now Roundtable on Current Trends in Advertising with advertising industry titans Shashi Sinha, CEO,IPG Mediabrands India, Vikram Sakhuja, Group CEO, Madison Media &OOH and Avinash Pandey, CEO, ABP Network. The session was moderated by Governance Now, MD, Kailashnath Adhikari.

Should digital media go for geo targeted advertising? Shashi Sinha, CEO,IPG Mediabrands India said  that unlike TV, Print and outdoor mediums, digital is opaque and based on search, discovery and performance-based marketing.

Avinash Pandey, CEO, ABP Network said the problem is in entire eco system. In digital you are not choosing a medium and only choosing a targeted age group, geography etc. ‘‘This is dangerous for businesses and democracy.” Sinha concurred with this view.

Vikram Sakhuja, Group CEO, Madison Media&OOH said that building blocks of media learnt through media planning should be extended to digital. In digital we are only talking of impressions which is another form of GRP’s . They are not converting that into GRP’s which is two minutes job. Reach is given only in terms of percentage and not numbers which will help reach out to both digital and video audience.   

“The big problem on digital video is that you have a much longer tail than TV so to build reach on high frequency is very difficult on digital.  As an advertiser I should be completely entitled to know in which content my ad is placed’ he said.

While discussing the topic on majority digital adex happening in Google and Meta and if this will continue , Shashi Sinha, CEO,IPG Mediabrands India said in future market will open up. “As MSME’s grow, growth will happen and automatically monopoly will break.”

Sakhuja felt that currently digital emphasis has been on performance at the cost of branding. “With focus on branding, digital will continue to grow’’ he said.  He called for integrated marketing between TV and digital.

Adding, he said, “Out of the total video, we projected about 30,000Cr of TV advertising and 10,000 Cr of video advertising. Today 25% of total video is on digital. Going further, integrated set up will  be a roll for both and very interesting to watch.” Sakhuja for having industry led cross media studies to study entire digital eco- system and an industry body driving audience measurement to make it more democratic.

On if viewers still prefer to watch news on TV screens, Pandey said digital platforms like Twitter, Facebook are enablers of news, getting more people to come on TV to watch news . “More and more TV sets being sold in country. Signal delivery medium of news consumption is changing and people are watching live news including GEC.”  

Pandey said that media owners should invent engaging content in a way that recognizes search media as enablers  for people to come to TV. “More and more people are watching TV and news on TV which is not reflecting in data” he observed. As a case in point he said there is no state government or political party  that is not investing heavily in television. They are in touch with their voters on a daily basis and know their consumption habits.

Here Sakhuja added that credibility and role of  news anchors holds the attention of news audience and said that it is time newspapers made heroes out of their editors.

With huge layoffs taking place in e- commerce companies and if e -commerce and e- tech companies will sail out of red and continue to contribute to advertising, Sinha felt that  global headwinds impact can last slightly  longer and slow down inflow of funds whereas Sakhuja said they expected  funds to keep coming.

Pandey said that many media companies that witnessed spreadsheet based business (alluding to e- commerce companies) either no longer exist or forced to sell their companies at far cheaper prices than what they could have for otherwise. “We have seen such windfalls every once  in 2-3 years. Thankfully with IBF we have a robust system of getting money on time.” He added that as media owners if they feel business is not very sound they should collect money in advance.. “They spike our adex .”

With India a bright spot amidst global scenario and if discretionary spends by consumers will rise, the experts said that barring a few product lines there is double digit growth in CPG (consumer packaged goods)in both volume and value across categories specially food.

Pandey said that this year they expect  growth in FMCG’s, telecom, media companies, advertising , and subdued growth so far in automobile, two wheeler and small cars  all of which will need advertising.  More foreign investment in real manufacturing sector will lead to growth in advertising, he said.  

Sinha also said that that connected TV will grow and potentially deliver content to a large no. of people as he added that brands are very bullish on TV and print as trusted mediums that add immense value to advertising.