We expect a more positive second half compared to the previous year: Ashwin Padmanabhan

In a recent interview with Adgully, Ashwin Padmanabhan, President - Investments, Trading & Partnerships at GroupM, discussed various aspects of the evolving marketing landscape. He shared insights on staying updated with trends, the impact of ad-free streaming platforms, the significance of influencer marketing, and the future of online advertising. Padmanabhan emphasised the role of curiosity, observation, and technology in connecting with consumers effectively. He also highlighted GroupM Motion Entertainment’s passion for creating engaging content and their foray into movie production. Overall, the interview provides valuable perspectives on the industry's current dynamics and future prospects.

While speaking on how he stays updated on trends, Padmanabhan said, “You need to read a lot; you need to ask questions; you need to wonder, and most importantly, you need to observe what’s happening in your client’s business. You need to observe what’s happening in the media environment in terms of business models, what’s changing, and the way technology is impacting us. I think if you are curious, staying updated is not really difficult.”

Continuing further, he said, “It is the reality we are living in. Today, it is really difficult to get to a consumer, because as consumers our attention is extremely divided and fragmented. So, it is a big challenge for brands and agencies to find ways to connect with consumers in a meaningful manner.”

“More importantly, the way technology enables this connection is where trends are emerging. It is through the utilisation of AI and ML in algorithms that we can programmatically optimise audiences. Additionally, ad-tech aids in understanding consumers better, enabling us to target them more effectively. Furthermore, technology allows us to distribute content in various ways in real-time, making it highly contextual. Thus, the optimisation of digital content on the go exemplifies how technology has become an integral part of the marketing industry. Marketing and technology are now inseparable,” he added.

On how he views the future of online advertising, with an increased adoption of Ad-blocking software and the rise of Ad-free streaming platforms, he said, “The number of impressions available from a consumer content consumption perspective is unlimited on digital. So, it’s not really a threat. In fact, subscription-driven content platforms are a miniscule minority of all the audiences you can reach in the universe. There are different business models, different ways in which you connect with the audiences. The growth of either ad-blocking software on browsers or subscription models is really not stopping us from connecting with consumers because enough and more audiences are available in the digital ecosystem.”

Influencer marketing has become extremely popular. Padmanabhan shared his thoughts on this trend and discussed how brands can ensure authenticity and transparency in their influencer partnerships. According to him, an influencer is someone who can establish a genuine connection with the audiences. Typically, influencers who consistently connect with audiences create authentic and sustainable content. They are experts in their field, which adds to their authenticity and credibility. “Being an influencer is not just a title; I wouldn’t consider someone who simply creates videos without meaningful content as a true influencer,” Padmanabhan said.

Furthermore, he added, “When a brand collaborates with such influencers, it gains immensely because it leverages the influencers’ credibility and the trust they have built with their audiences. They are able to establish a similar connection with those audiences. Influencer marketing is, in my opinion, an incredibly vital and significant component in the overall marketing strategy. It is crucial for us to understand how to effectively utilise it, where to implement it, and with whom to collaborate. This is where a substantial investment is being made by entities like GroupM, as we are developing platforms that enable us to analyse influencers, predict their followers, determine their geographical origins, and identify their preferences and interests. By incorporating more data into the structuring of influencer campaigns, alongside the influencer’s creative input, the engagement becomes increasingly meaningful for brands participating in influencer marketing.”

Asked about the alignment of their predictions with the TYNY report, he explained, “On a broader scale, we witnessed approximately 15.5% overall market growth, with around 56% of total expenditures allocated to digital and roughly 30% to TV. As we approach the end of the first half of the calendar year, the results have been generally in line with our expectations, although the distribution across mediums has not necessarily followed the anticipated splits. Surprisingly, some mediums, such as print, have shown better growth than we initially anticipated. Television, on the other hand, has been on par with our projections. In terms of digital, it has exhibited slightly slower growth than what we had predicted. Thus, overall, I would say we are more or less on track with our projections, but we will have a clearer understanding by the end of June, once we have reconciled all the data. It appears to be a slight shift in the growth mix rather than a significant deviation at an overall level.”

Regarding the emerging trends for the second half of the year, he stated, “We are observing a growing interest from brands. Many of the funded start-ups that had temporarily scaled back on advertising are now re-exploring marketing and customer acquisition strategies. While we may not witness the same frenzy of outdoing each other in terms of spending, we can expect more practical and accountable marketing plans. Brands will prioritise connecting with consumers and measuring ROI effectively. It is encouraging to note that many brands that withdrew from the market in mid-2022 are planning to resume their spending in the second half of this year. Additionally, we anticipate a more prosperous festive season. There are several significant cricket events lined up, including the Asia Cup, the World Test Championship in June, and the World Cup taking place in India. The upcoming months promise a lot of excitement, and overall, we expect a more positive second half compared to the previous year.”

Speaking passionately about the notable work of GroupM Motion Entertainment, Padmanabhan expressed that this is something that he personally has a strong passion for.

He continued, “It has been a challenging journey for our small team of 4-5 individuals, who have been dedicated to building this business over the past five years. However, we take immense pride in the work we have accomplished. One of our most successful shows, ‘Number 1 Yaari’, was created almost five years ago. We also have a unique show that airs on Star Jalsha, focusing on entrepreneurship for women and small to medium businesses run by women. We have formed a partnership with Britannia, and the format we have developed has seamlessly integrated into Britannia’s own program, called My Startup. It has become an integral part of their in-house program and seamlessly aligns with our show.”

Padmanabhan further added that the company has just ventured this year into production of movies as well.

“We are producing seven Marathi movies and we’re in discussions to invest in two Tamil movies and one Hindi movie as well. These are early days for us as far as feature films are concerned. We will learn as we go by, but the ambition and charter of GroupM Motion Entertainment is that we should add value to the ecosystem. Which means the presence of GroupM should enable a platform to be able to create content by de-risking some of their content investment by enabling better monetization of that content. We are working with our creator partners to be able to give them and fund better opportunities for the creator partners. Finally, and perhaps most importantly, our brands have the exclusive opportunity to seamlessly engage with content as it is being scripted. These opportunities are exceptionally rare for brands to come across.”

“Usually, when a brand associates itself with content, it is limited to logo placement or integrations in reality shows. However, we have taken it a step further by integrating brands into movies and shows while they are still in the scriptwriting phase. We have successfully achieved this in multiple shows. Our investments also enable our clients and managed brands to access unique content experiences, facilitating seamless connections with their consumers. That’s the essence of GroupM Motion Entertainment. We work across various genres, including feature films spanning thrillers, humour, and drama. We have produced daily soaps for YouTube and drama-focused channels, docu-series, and a show called ‘Jai Ho India’, which delves into 2,000 years of India’s development and civilization. One of our initial projects was a collaboration with Mercedes, involving five short films that portrayed the stories of five adventurers. These films, titled "The Rushes," are available on YouTube. We are not confined to a specific format. Our focus is on meeting our objectives, and we remain open to different formats. By the end of this year, we hope to release our first show produced for an OTT platform in collaboration with one of our content partners,” he concluded.