How AI is shaping creative campaign and marketing strategies this festive season

The great Indian festive season is the perfect opportunity for brands to connect more with the consumers and on a personal level. It allows brands to celebrate the joy of festivities together with the consumers, and at the same time have a higher revenue growth. In the post pandemic period, brands have become more aware and started to include more empathy elements in the ads they are coming up with, encouraging people to be more empathetic towards each other. This can be found in ad films such as #HumSabkiDiwali campaign by Jindal Steel and many others like Coca-Cola’s #MilkeHiManegiDiwali, which encouraged people to meet their family, friends during the festive period and not just greet via social media. Coca-Cola also collaborated with Glance, in order to help consumers to send personalised Diwali greetings to their loved ones, utilising the smart lockscreen feature of Glance.

Given the positive consumer and market trends, brands have increased their ad spends by as much as 15% this festive season, as per various reports. According to InMobi’s ‘The Marketer’s Guide to Festive Season Report’, mobile has emerged as a significant medium for consumers to indulge in festive shopping and for brands to advertise, with around 78% of consumers resorting to mobile-based shopping, encouraging brands to have a mobile-first approach while devising their marketing strategies and campaigns. Three distinctive shopper personas have emerged – the unplanned shoppers, the brand lovers, and the category explorers. As the name goes, unplanned shoppers are those who don’t plan ahead of their shopping and explore various options on their shopping journey, the category explorers are those who know what to buy, but have no specific brand name in mind, and lastly, the brand lovers are those who are brand conscious and brand loyal, resorting to making purchases from their preferred brands; these are high intent consumers. According to reports, around 58% of the brand lovers category of shoppers are expected to spend over Rs 50,000 this festive period, offering a fruitful opportunity for brands to engage with these consumers.

Brands have understood the importance of accurate audience targeting this festive period and are tapping into the opportunity of the growing inclination of consumers towards hybrid shopping. 54% of consumers prefer hybrid shopping, while 44% are more likely to make online purchases. 63% of shoppers are showing decreased price consciousness. Consumers are also showing a drive towards self-love, self-exploration and hybrid shopping this festive season, while 67% of women are finding themselves to be the primary decision maker for making festive purchases.

Factors driving festive spending this year

According to Himanshu Arora, Co-Founder of Social Panga, the factors driving festive spending this year are a mix of multiple factors like consumer behaviour, economic conditions, and evolving marketing strategies in the digital era. All the industries have come back to the pre-Covid days and festive spending is nothing new. Revenge buying is no more a factor, it is the value that everyone sees in the purchase. Overall, the confluence of consumer enthusiasm, the convenience of online shopping, targeted marketing efforts, the influence of social media, and attractive financing options are the key factors driving festive spending this year. With the rise of online shopping, consumers have greater access to a wide array of products, competitive prices, and the convenience of doorstep delivery. This has not only expanded the market but also encouraged more spending.

He further elaborated, “The festive ad spend scenario by brands on media platforms this year reflects the evolving landscape of advertising, with a notable shift toward digital channels and a heightened focus on customer engagement.Brands are increasingly allocating a significant portion of their festive ad budgets to digital platforms. This includes social media advertising, search engine marketing, programmatic advertising, and influencer partnerships.”

With D2C brands like MamaEarth, Souled Store, etc., turning into an omni-channel approach. Brands are adopting an omnichannel approach to reach consumers across multiple touchpoints, ensuring a consistent brand experience. This includes combining offline and online advertising efforts to create a seamless customer journey.

According to a spokesperson from RR Kabel, during this festive season, a notable trend has emerged – with 78% of consumers showing trust in online shopping. Half of these consumers express their intention to increase their online spending compared to previous festive periods. Additionally, a recent survey revealed that more than 77% of consumers believe that online festive shopping events enhance the convenience of their shopping experience, particularly due to options like faster delivery. Large Appliances (51%) such as coolers, fans, etc., Electronic devices (44%), and Consumer Electronics (43%) are the most favoured product categories. Some individuals may choose to upgrade their home and purchase new appliances like Lighting products, Fans and also potentially through this there will be a requirement of cables and wiring solutions. The survey further revealed that 3 out of 4 consumers wait for online festive shopping events to make purchases in the large appliance category. Overall product categories such as Lighting, DIY switches, Designer Fans, Air coolers, and Irons are increasingly gaining popularity as festive season calls for renovation and revamping the house.

Kunal Luhar, Co-Founder and Chief Business Officer, 5W1H, noted that festive spending is an important factor to consider since it is an exciting yet challenging time of year when firms commit big budgets for marketing efforts in order to capitalise on the festive enthusiasm and enhance sales. This year’s festive spending is being driven by a number of things. Increased consumer confidence is promoting more expenditure as economies recover from the pandemic. Pent-up demand is increasing as consumers who postponed festivities and purchases in past years are now engaging in holiday spending. Consumers are being enticed to open their wallets by the ongoing expansion of e-commerce and advances in marketing methods such as limited-time deals and personalised promos.

Meanwhile, Vinod Kunj, Founder and Chief Creative Officer, Thought Blurb Communication, felt that festive spending this year will be quite measured and astute this year. “While Deloitte has optimistically estimated more lavish spending, especially in luxury goods, it is back-to-back with reports of falling household savings and discrete spending on the part of consumers. Advertisers will do well to sharpen their focus to make customers dip into their wallets,” he added.

Agencies and brands during festive season

On being asked how Social Panga is gearing up for the festive season, Himanshu Arora said, “As Social Panga, we have already started executing our campaigns/ ideas with multiple touch points like video production, influencer outreach, social media campaign, etc. For this upcoming festive season, our primary emphasis is on harnessing the power of technology in conjunction with AI (Artificial Intelligence). This means utilising AI-driven analytics to glean deeper insights, and automate and further personalise our campaigns.”

While Social Panga is leveraging technology during festive season this year, RR Kabel is eagerly gearing up for the festive season this year by implementing a range of strategies to meet the unique needs and demands of our customers. A spokesperson said, “We are aware that over the festive period, there is a tendency for home improvement and renovation projects to expand, products like designer fans, switches and lighting solutions are in huge demand and they necessitate the use of wires and cables for various electrical and connectivity requirements. We aim in providing special discounts and promotions on our products to further enhance the festive season. As a result, customers will be able to maximise their purchases and savings and through this we are committed to making festive times brighter and more convenient for our consumers.”

Kunal Luhar added here, “5W1H is designing and implementing festive-themed marketing initiatives that harness creativity and engage with the holiday spirit. Creating visually engaging content, collaborating with influencers, optimising e-commerce methods, and utilising data analytics for real-time adjustments are all common examples. Furthermore, we are looking forward towards collaborating closely with clients to ensure that their marketing initiatives are consistent with their holiday goals and values.”

He further said, “This year, marketers are focusing their festive ads expenditure primarily on digital platforms, with a significant emphasis on social media advertising, e-commerce channels, and video marketing. Because of their vast reach and participatory capabilities, social media platforms such as Facebook and Instagram are garnering significant investments. E-commerce advertising is on the rise as online purchasing becomes more popular. Collaborations with influencers, programmatic advertising, and data-driven initiatives are also prominent. Traditional media outlets continue to play a role, although their budgets may be reduced as digital becomes more prominent. Personalisation, sustainability message, and localised campaigns are important trends that show firms’ efforts to engage various populations and fit with customer values.”

“We field a number of brands that are geared to the home, kitchen and individual. This means that the festive season is going to be quite busy. Fashion brands are expected to be quite active, as also, bed linen, furnishings, digital electronics and appliances,” remarked Vinod Kunj.

AI shaping creative marketing this festive season

For Himanshu Arora, AI is the buzzword, and the real power lies in leveraging it to the marketers’ and agencies’ advantage. “We are doing something super interesting, where we are going deep into consumer behaviour and patterns using AI tools, and giving that as input for my online ads. So, our research is not limited to agency or brand manager understanding, but to the whole internet. This enables us to create highly personalised and relevant content, such as product recommendations and tailored messaging. During the festive season, personalised marketing campaigns resonate better with consumers, driving higher engagement and conversion rates. Exciting times are ahead for us. The next 24 months are going to be game changers,” he affirmed.

Arora further added, “Artificial intelligence will need some human intelligence too, as quoted by Piyush Pandey. Few areas that have great engaging festive campaigns include:

Content & thought validation
Personalisation
Predictive analysis
Data-driven insights for cultural nuances
Ad targeting

I am not sure about global advantage, but leveraging personalised messaging will give some edge over competitors within the specific geography.”

The RR Kabel spokesperson said, “The use of AI has played a crucial role in empowering marketers to develop deeply personalised campaigns. Through the analysis of user data and behaviour, AI has the capability to customise content and offers to cater to individual preferences, thereby enhancing the relevance and effectiveness of marketing initiatives, particularly during the festive season. Regarding the impact of online advertisements on consumer spending, it is subject to notable fluctuations influenced by variables such as the industry, geographic location, and the precise tactics implemented by companies.”

Kunal Luhar noted that AI is influencing festive marketing by providing hyper-personalisation, content development, predictive analytics, targeted ad delivery, and improved customer service. AI algorithms are being used by brands to analyse customer data and develop highly personalised marketing content, ranging from product recommendations to messaging, resulting in more engaging campaigns. AI also speeds up content generation by creating ad copy, graphics, and even music. During the festive season, predictive analytics may help organisations anticipate customer behaviour and trends, directing inventory management and pricing strategies.

Audience segmentation powered by AI guarantees that adverts reach the right people at the right time, maximising ad spend. Additionally, AI-powered chatbots provide immediate consumer support and help, improving the whole purchasing experience. The amount to which online advertisements impact consumer purchasing over the holiday season depends on a variety of factors, including industry and campaign efficacy. “AI can increase this effect and produce better results for brands by delivering more relevant and interesting content,” Luhar added.

Meanwhile, Vinod Kunj felt that AI has not really been used to its best advantage yet. “I have every confidence that various AI applications will come to the fore and change the dynamic of targeted marketing. Consumers prefer to buy products and adhere to brands that speak to them in their own voice. This is important in ways that we have not leveraged so far. This is not just about letting people know what is available out there. It's about suggesting purchases that would be perfectly moulded for you.”

He further added, “AI has a long way to go before it can be used as a creative tool. But I assume it will learn eventually. As far as I can tell, AI has huge potential as a research tool. Perhaps, even as a collaborative tool. But then, it still needs human intelligence to look through its work and produce a solution. Maybe, in the years ahead, AI will learn enough to help with creative thinking as well.”

On being asked how the combination of AI and human creativity will help campaigns to be more effective, Kunal Luhar said, “The combination of AI capabilities and human creativity has the potential to dramatically improve the effectiveness and engagement of holiday promotions. AI excels in data-driven tasks like audience segmentation, personalisation, and predictive analytics. This frees up human creative teams to focus on campaign art and strategy. Then, using their knowledge, creatives may design emotionally engaging narratives, visually spectacular material, and intriguing storytelling that will attract people during the holiday season. AI also offers data-driven optimisation, which enables marketers to fine-tune campaigns based on real-time performance measurements. When artificial intelligence augments human creativity, brands can achieve a balance between data-driven decision-making and the emotional connection that only human brilliance can give. This synergy can result in efforts that are not only more effective in driving engagement but also in fostering long-term brand loyalty during the holiday season.”

Piyush Jalan Co – founder and COO, GOVO discussed on how AI is shaping festive marketing strategies by saying: "AI is playing an increasingly prominent role in shaping creative marketing strategies during this festive season, revolutionizing the way businesses and advertisers engage with consumers. One of its most compelling applications is AI-powered personalization. By sifting through extensive consumer data, AI allows businesses to gain profound insights into individual preferences and behaviours. AI's influence extends to improving the customer experience during the festive season as well. Chatbots and virtual assistants, powered by AI, deliver real-time customer support and information. This instant assistance enhances the shopping experience, helping consumers overcome queries or uncertainties, and nudging them toward making purchases."

He further added: "The exact extent to which consumer spending will be influenced by online ads can vary, influenced by factors such as the effectiveness of ad campaigns, the appeal of the products or services being advertised, and the prevailing economic conditions. However, it's clear that AI-driven creative marketing is now a pivotal force in capturing consumer attention, delivering personalized and relevant content, and optimizing ad campaigns to maximize their impact on consumer spending. As AI technology continues to advance, its role in shaping creative marketing and influencing consumer spending is expected to expand further, both during festive seasons and beyond."