Advertising on OTTs to see significant growth in 2024 festive season: Havas Media Network

Sustainability-themed campaigns are gaining traction and there’s growing focus on Tier 2 and Tier 3 markets, where digital penetration and rising incomes are driving localized campaigns in regional languages.

By
  • Indrani Bose,
| October 3, 2024 , 8:32 am
During festive seasons, the primary objective is to boost sales by enhancing consumer consideration. To achieve this goal, a multi-faceted approach leveraging various media channels is essential. While traditional mass mediums such as television remain influential, digital platforms will continue to play a crucial role in shaping consumer perceptions and driving consideration.
During festive seasons, the primary objective is to boost sales by enhancing consumer consideration. To achieve this goal, a multi-faceted approach leveraging various media channels is essential. While traditional mass mediums such as television remain influential, digital platforms will continue to play a crucial role in shaping consumer perceptions and driving consideration.

Advertisers are embracing several innovative strategies for media planning this festive season. Personalization is key, with data-driven campaigns enabling tailored ads across platforms such as Connected TV (CTV), mobile, and social media. Advertisers are also leveraging immersive formats such as 3D breakout ads and click-to-WhatsApp features to enhance user engagement, according to Manish Sharma, Managing Partner & Head, Arena India (part of Havas Media Network).

Sharma highlights that there is a growing focus on Tier 2 and Tier 3 markets, where digital penetration and rising incomes are driving localized campaigns in regional languages. Influencer marketing and content integration are also on the rise, allowing brands to connect authentically with consumers.

Sustainability-themed campaigns are gaining traction as well, with brands emphasizing eco-friendly messaging to attract socially conscious buyers. These trends highlight the shift towards personalization, regional focus, and purpose-driven marketing.

In a chat with Storyboard18, Manish Sharma, Managing Partner & Head, Arena India (part of Havas Media Network) explains how, despite the reach of digital channels, print media retains its significance during this festive period, particularly in executing tactical, offer-led advertising initiatives aimed at driving immediate sales.

Edited excerpts:

Given the increasing fragmentation of media consumption, how are advertisers allocating festive ad budgets across different platforms? Can you provide a breakdown of the percentage of spend on TV, digital, including CTV, OTT, and other channels?

During festive seasons, the primary objective is to boost sales by enhancing consumer consideration. To achieve this goal, a multi-faceted approach leveraging various media channels is essential. While traditional mass mediums such as television remain influential, digital platforms will continue to play a crucial role in shaping consumer perceptions and driving consideration.

Digital channels offer unparalleled reach and targeting capabilities, enabling brands to engage with their audience in personalized and interactive ways. Through digital marketing strategies such as social media campaigns, search engine optimization (SEO), and targeted digital ads, brands can effectively build awareness, influence consumer decisions, and nurture consideration.

Parallelly, print media retains its significance, particularly in executing tactical, offer-led advertising initiatives aimed at driving immediate sales. Print advertisements can effectively communicate special promotions, discounts, and exclusive offers to a broad audience, complementing digital efforts.

By integrating these mediums strategically, brands can orchestrate a cohesive marketing mix that maximizes reach, impact, and engagement throughout the festive period. This integrated approach ensures that campaigns not only build awareness and consideration through digital channels but also drive conversion and sales through targeted and impactful print advertising.

To put things to perspective, approximately, TV will have spends close to 35% followed by Digital with close to 25% including CTV, OTT and rest of spends will rely on other mediums like Print, OOH and Cinema.

What is the projected growth rate for OTT advertising during this festive season compared to the previous year? Please quantify the increase in ad spend and identify the key drivers behind this growth?

OTT advertising in India is expected to see significant growth during the 2024 festive season, with a projected increase in ad spend of approximately 20-25% compared to the previous year.

Key drivers for this surge include the increasing popularity of digital content consumption, particularly in categories such as clothing, food, mobile phones, and beauty products.

This festive season boost is also supported by higher rural investment.

When comparing news channels and GECs, which platform has seen a higher increase in ad rates for the festive season? Which one is the best bet for advertisers? Can you quantify the percentage difference in ad rates between the two types of channels?

Festivals are all about entertainment. The audience would like to watch impact properties like Big Boss/ KBC/ Indian Idol etc., apart from regular programmes. Hence, most of the advertisers wanted to be seen in GECs and movie channels to ensure maximum reach and want to be in the right environment. During festival time, news channels work as frequency builders.

All channels have limited inventory and most of the brands advertise during festivals, directly resulting in high-demand on channel inventory. GEC channels are known to increase their rates to the maximum compared to news channels as festive period is an opportunity for GEC channels to maximise their revenue, just like News channels increase their rates to the maximum during Election/ budget / any special government events. Usually, GEC channels increase their rates up to 15-25% depending on demand and supply of inventory.

What are the emerging trends and innovative strategies that advertisers are adopting in their media planning for the festive season?

Advertisers are embracing several innovative strategies for media planning this festive season. Personalization is key, with data-driven campaigns enabling tailored ads across platforms such as Connected TV (CTV), mobile, and social media. Advertisers are also leveraging immersive formats such as 3D breakout ads and click-to-WhatsApp features to enhance user engagement.

There’s a growing focus on Tier 2 and Tier 3 markets, where digital penetration and rising incomes are driving localized campaigns in regional languages. Influencer marketing and content integration are also on the rise, allowing brands to connect authentically with consumers.

Sustainability-themed campaigns are gaining traction as well, with brands emphasizing eco-friendly messaging to attract socially conscious buyers. These trends highlight the shift towards personalization, regional focus, and purpose-driven marketing.

How much will adex go up, which categories will be big spenders and which won’t be spending much?

Consumer durables, paints, auto, and quick commerce are some of the categories that would continue to spend during this festive season. Telecom and the Real Estate sectors might see a drop in their spends.

Reasons for Continued Spending

Seasonal Demand: Each of these categories experience seasonal peaks during festive periods due to increased consumer spending habits and purchasing motivations.

Competitive Landscape: Businesses in these sectors often face stiff competition, particularly during festive seasons when consumers are more inclined to spend. Maintaining visibility through advertising and promotions helps capture a larger share of the market.

Consumer Behavior: Festive seasons often coincide with cultural and social occasions where spending on gifts, home improvements, or personal indulgences is common. Businesses leverage this consumer behavior to drive sales and revenue growth.

Strategic Marketing: Companies in consumer durables, paints, auto, and ecommerce sectors strategically plan their marketing campaigns around festive seasons to maximize brand visibility, customer engagement, and sales conversions.

How are advancements in technology, such as AI and machine learning, impacting media planning and measurement during festive seasons? How are these tools being used to optimize campaigns and track ROI?

Advancements in AI and machine learning are significantly impacting media planning and measurement during festive seasons. AI enables precise audience segmentation and personalized targeting by analysing consumer behaviour and preferences in real time.

Predictive analytics, powered by machine learning, helps optimize ad placements, predicting consumer engagement based on historical data and market trends. These technologies enable real-time optimization of campaigns, allowing dynamic adjustments to creatives, budgets, and targeting as performance data is gathered.

Additionally, AI tools enhance ROI tracking by integrating data from multiple platforms, providing advertisers with deeper insights into campaign effectiveness and enabling more informed media-spend decisions.

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