With sentiments high, digital players expect bumper growth during Diwali
With Dussehra/ Durga Puja just over, brands and marketers are now looking at a bumper time during Diwali, just a couple of weeks away. At Adgully, we have been tracking the industry sentiments around festive season this year. After scanning the broadcast, print and radio sectors, we now turn the spotlight on digital and the spends and sentiments around the festive season.
Despite challenges around standards, measurement and supply chain integrity, digital advertising continues to grow rapidly as marketers follow consumers to the media destinations where they spend their time, and increasingly transact for goods and services. As per GroupM’s ‘This Year, Next Year’ report, digital investment has already surpassed TV in 10 markets (Australia, Canada, China, Denmark, Finland, the Netherlands, New Zealand, Norway, Sweden, UK) and another five will cross this bar in 2017 (France, Germany, Ireland, Hong Kong and Taiwan).
“Google and Facebook attracted the vast majority of incremental digital ad investment growth in 2016,” said Adam Smith, Futures Director. “In 2017, the industry will be watching closely to see how Snapchat or Amazon may creep into Facebook’s and Google’s value chain.”
According to a joint report by the Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau (IMRB) Kantar, India’s digital advertising expenses is expected to reach Rs 9,700 crore by the end of 2017. With businesses, especially in the e-commerce sector, relying heavily on ads to acquire customers, the segment is expected to grow at a compound annual growth rate (CAGR) of 33 per cent.
The big boys of e-commerce – Amazon, Flipkart, Shopclues, Snapdeal; even newcomer Paytm Mall; fashion portals Myntra, Ajio, et al, have gone for the festive season with all guns blazing.
Amazon is now all set for the Big Indian Sale starting October 4, 2017. Bullish about the festive road ahead, Desai said, “We expect more customers joining the digital ecosystem and shopping with us during this festive season. With expanded selections and a robust logistical support system, we are ready to handle the massive customer traffic that we are bound to receive this season.”
Burgeoning Ad Spends
For this festive season, Dell is reaching out to consumers with its diverse consumer offerings via print, outdoor, digital advertising and activations. “We are very excited to be unveiling a brand new range of devices for consumers at the onset of the season, giving our consumers a wider range of products to choose from,” said Gupta.
As a prelude to the festive season, Tata Cliq launched the Autumn-Winter 2017 collection of some of the best brands. Titled ‘Cook the Look’, the collection showcases cross-brand curate looks that are ‘ready to buy’. “We have planned more such initiatives that will lead to the grand festive celebration,” informed Mardikar.
The Revenue Factor
This festive season, Tata Cliq is working towards sustainable profitable growth and its spends are in line with consumers’ demands.
Amazon, too, is aiming to increase its reach and serve more customers across the country, while making online shopping a daily habit for Indians. Desai said, “We are not metro-focused. We go where our customers are and hence, have ventured even to the hinterlands of the country – widely covering Tier 2, 3 and below geographies through advertising.”
Dell India’s Gupta observed that the scope for festive buying has evolved with technology becoming an indispensable part of consumers’ lives. Now more than ever, consumers look at the auspicious buying season as the right occasion to bring home the gift of technology, as people use personal technology to bridge distances and make celebrations special. “Additionally, as the environment becomes increasingly digitalised, consumers see PCs as the ideal gift in the form of a tool that aids and individual’s growth and productivity, and acts as a digital companion,” she added.
He further added, “Google (+YouTube) and Facebook (+Instagram) will command a lion’s share of spends as brands fight it out for maximum share of voice in a cluttered environment. YouTube usage for the quarter ended June 2017 grew by 150 per cent from the same time last year. Times Internet, with their impressive array of lifestyle properties, will sell high impact properties. Mass platforms such as UC Browser and regional content players such as Dailyhunt will benefit from the massive number of new users on the internet thanks to Jio.”