The 21st of November 2024 was celebrated as the World Television Day. The question is, how many were aware? How things change…how times change…
Once upon a time advertising was about television commercials, print ads in newspapers, and billboards…and of course the always aging yet always necessary…radio jingles. Campaign budgets would be distributed according to duration of visibility for billboards, subscription size for print, and TRPs for television commercials.
This was till the time internet came along. Even then these media ruled…Youtube notwithstanding.
With the coming of algorithm analytics determining target customers, the landscape seems to have simply turned on its head.
In the year gone by large tech and e-commerce companies–Google, Meta, Amazon, and Flipkart collectively reported advertising revenues exceeding Rs 60,000 crore. This marks a 9 per cent increase from Rs 55,053 crore in the previous financial year, according to filings from the Registrar of Companies.
For the first time, the Indian divisions of Google and Meta achieved a combined gross revenue surpassing Rs 50,000 crore. Additionally, the advertising arms of Flipkart and Amazon accumulated over Rs 10,000 crore in total ad revenue, with Flipkart Internet alone generating close to Rs 5,000 crore, according to a report by The Economic Times.
To put things in some perspective, for the financial year 2024, Google India and Facebook India ad revenues grew to 31,221 crore rupees and 22,731 crore rupees respectively, while the ad revenues of HT Media stood at 1,070 crore, that of Star India at 10,737 crore, and that of Zee at 4,058 crore rupees. That’s not a simple difference.
Amazon Seller Services has yet to disclose its results, but in the financial year 2023, the company posted 5,380 crore rupees in ad-revenue.
WHERE IS THE GROWTH IN DIGITAL ADVERTISING COMING FROM?
Apart from everything that algorithm manipulation can do for digital advertising, the growth is largely due to increased smartphone usage, broader internet access, and a rise in the time users spend online on activities such as online entertainment and online shopping.
Google and Meta, in particular, are capitalising on their extensive reach and targeting capabilities (where algorithm analytics kicks in), attracting diverse advertisers. Meanwhile, e-commerce platforms are boosting brand sales and providing higher returns on investment.
Quick commerce platforms–currently holding a smaller market share–are, however, expected to see significant gains as digital ad spending continues to rise. Industry forecasts estimate that the quick commerce sector could find itself earning anything between 2,500 crore and 3,000 crore rupees annually only from advertising.
THE TREND DRIVERS
It is no secret that online advertising allows for more active interaction with the consumer when compared to a television commercial or a print ad in a newspaper. Research and marketing advisory firm Forrester.com’s data suggests that younger buyers–millennials and the like–seem to be getting more into the buying-decision-making process.
The reason for this could be attributed to the fact that younger buyers appear more habituated to expressing themselves naturally and spontaneously when sharing information, pushing some providers to non-conventional channels of engagement. Therefore app stores.
There’s little argument that the platform story has completely changed with customer journey-driving-ads. The story today is all about discovery for consumers. Ad strategies today are compelled to not just focus on traditional versus new media alone. It’s all about what marketeers call the ‘360 degree ad’ strategies.
During Google I/O Connect in July, the company has expressed its desires to collaborate with the Open Network for Digital Commerce (ONDC)–another initiative of the government of India. Similarly, Amazon India has aired plans to enter the quick commerce race with its new service, Tez. Amazon India and Zomato have reported 4,691 crore and 1,432 crore rupees in ad revenues, respectively, for the financial year 2024.
It’s the time of direct contact with the consumer, where each and every bit of information about each and every human being is recorded, studied, categorised and then feeding into an algorithm for marketeers of each and every product and service category to feed on. Capturing consumer attention with a ‘roadblock’ on television? That’s distant memory!
Once upon a time advertising was about television commercials, print ads in newspapers, and billboards…and of course the always aging yet always necessary…radio jingles. Campaign budgets would be distributed according to duration of visibility for billboards, subscription size for print, and TRPs for television commercials. With the coming of algorithm analytics determining target customers, the landscape seems to have simply turned on its head. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
