MediAvataar's News Desk
Omnicom Media Group India Shares Top 10 Digital Trends
Omnicom Media Group India in collaboration with MICA (formerly Mudra Institute of Communications), Ahmedabad has released a report titled What’s Next in 2016 - Top 10 Digital Trends in India. The report prepared by Omnicom Media Group India’s Innovation team covers the top 10 trends for India in 2016, the implications for brands as well as predictions from platform providers like Google and Outbrain.
The top 10 trends revealed in the report are
1. India gets Mobile-ized
2. Commerce Everywhere
3. Story Rises Above the Medium
4. Moment Marketing breaks Silos
5. Rise of OTT Content
6. Social Moves into Walled Ecosystems
7. Internet scales up from Urban to Rural
8. Vernacular Content Rises
9. Internet of Me
10. Form vs Function in Wearables
Commenting on the report Avinash Jhangiani, Managing Director - Digital & Mobility, Omnicom Media Group India, said, “2015 saw consumers getting served up and spoilt by ecommerce start-ups with same-day delivery, 24/7 customer service and 365 days of mouthwatering discounts. This now leads to higher expectations in 2016 and requires brands to reimagine marketing for the new Indian consumer. While change is the DNA for start-ups, it is hard for well-established brands. To counter well-funded start-ups, established companies are being forced to let go of mass marketing channels and adopt digital for higher returns on investments. The trends report provides the necessary direction for brands across industries to invest in digital.”
Guy Hearn, Chief Innovation Officer, Omnicom Media Group Asia Pacific said, “There are now so many touchpoints that channel-centric planning makes diminishingly little sense. Instead, we need to better understand both the consumer journey and the consumer experience - and plan with a focus on consumer experience. The marketing department now needs to break down silos to create a focus on better customer experience and product innovation. We do hope that the report inspires the industry for the year ahead.”
"The future of media is about making impressions - not just buying them"
90-Second Executive Summary
2015 saw consumers getting served up and spoilt by start-ups with same-day delivery, 24/7 customer service and 365 days of mouth-watering discounts. These start-ups nailed customer experience and redefined marketing as we know it! This now leads to even higher expectations for 2016.
While change is in the DNA of start-ups, it is hard for well-established businesses. To counter well-funded start-ups, established companies are being forced to let go of mass marketing channels and adopt digital for higher returns on marketing investments.
Furthermore, as we continue to see consumers taking control of brands, companies now need to actively listen and engage with customers in moments that matter to them. Brands investing in content marketing are moving forward now, adopting an integrated media strategy with consistent, persuasive storytelling across channels.
Spends are therefore growing towards mobile, content, social and online video. Also with ecommerce now increasingly enabling the last mile transaction for brands, brands will now be able to develop more effective media and communication strategies for greater marketing funnel throughput.
These trends will lead to increased investments in programmatic media and data platforms for sustainable business benefits. In addition, as mobile internet penetrates further into rural markets, brands have opportunities to reach and engage consumers with OTT (over-the-top) and vernacular content.
It is time to put the customer at the center (not media) and his/her journey hast to be well understood. It is no more the responsibility of the CMO alone to drive customer centricity in a company. Marketing teams now need to break down enterprise silos and integrate functions for better customer experience and product innovation.
MEC Access,the branded entertainment division of MEC, in partnership with Brand New Media a production and content marketing agency, was awarded gold in the Best Digital Fiction and Non-Fiction Programme/Series category at the Asian Television Awards, held in Singapore last week. The awards, the Asian TV industry’s most important, recognise excellence in programming, production and performance.
The gold is a massive accolade for MEC Access at an award show normally dominated by entertainment giants like MediaCorp, HBO, FOX, BBC and Disney.
Mike Jackson, Managing Director, MEC Access in APAC, commented on the win, “Stretch or Splurge is a great example of short-form digital content that has both involved and excited consumers. It’s intensely gratifying that with Brand New Media, we’ve been recognised by the TV industry. To secure our clients continued growth in today’s media landscape, we must move away from traditional thinking, like the standard 30-second TV-spot, and instead be nimble and innovative to engage consumers with truly relevant and creative content.”
Joanne de Rozario, Head of Content and Production, Brand New Media, said, “It is an honour to be recognised for our efforts in co-creating Stretch or Splurge for Scoot among so many esteemed television networks. In a world of rapid change in both media content and technology, we continuously strive to bring innovation to digital branded content. It’s been wonderful working with the team at MEC Access, as they share our vision in bringing these ideas to life.”
The award was given for Stretch or Splurge, a bespoke travel series created for Scoot. In the series two regional celebrities, Dominic Lau and Paula Malai Ali, were given a number of surprising challenges that helped them to uncover authentic Sydney experiences. Complemented with deals and social activations, the campaign worked to inspire Singaporeans to explore Sydney.
Four essential questions for predicting whether an invention will really change our lives.
Nowadays hardly a week goes by without the announcement of yet another new technological development promising to make our lives easier, more exciting or at least healthier. Examples include Apple’s smart home technology for operating domestic appliances, Japanese robots able to read emotions for the elderly, wearable activity trackers like Fitbits and Fire, Amazon’s smart TV adapter for connecting TVs to the internet.
The big question for investors and venture capitalists as well as incumbent companies which might be threatened by these inventions is which of these is a real “game changer”? In other words, a technology like the iPad that rapidly comes into common use and changes our day-to-day lives. We’ve been hearing about smart home technology for at least ten years, but it still hasn’t really caught on. And, apart from the Furby, we humans just don’t seem to be able to get on so well with robots. However, more and more people are now linking their TVs to the internet.
So can we separate the wheat from the chaff and predict when our lives are set to be revolutionised by new technology? Who should we be listening to? To the overenthusiastic gurus, or to the cynics claiming ”It’ll never catch on”? For business, both are dangerous because being a first mover in the market can cost just as much as missing the boat altogether.
Asking the right questions
Based on my observations over the past ten years and the academic work of several colleagues, I would suggest that predicting whether a new invention is going to change the game means answering four fundamental questions.
1. Does the new technology meet a fundamental need?
2. Is it easy to use?
3. Is it affordable?
4. Is the right ecosystem in place?
Only if you answer “yes” to all four questions is there a good chance an invention is going to be a “game changer”. A good example of this is mobile internet, which had a difficult start, the first iteration of which was the WAP phone, which met a need but wasn’t easy to use, affordable or part of an ecosystem. Mobile internet only really took off after the launch of the intuitive iPhone, along with fixed, low mobile data tariffs and an open ecosystem for application developers. It is vital to make sure you get the right answer to each of these four questions.
When does something really meet a need? That’s where most technical whizzes go wrong as their needs aren’t necessarily the same as ours. As a general rule, the closer something comes to our basic instincts, the higher the chances it will really catch on.
The rule of thumb is…
A rule of thumb for me has always been to look and see what teenagers are doing in their leisure time. Anything that fits in well with their lives has a good chance of succeeding. Take, for example, easy communications (WhatsApp), showing yourself in a good light (Facebook), being the first to get the latest news (Twitter), looking things up easily (Google), and also being able to keep things secret (Snapchat). All things that we secretly also consider important, but that teenagers openly rave about.
People like automation and smart technologies so that they can free up their time, but delegating too much to machines can leave us feeling useless. A smart home system that can think for itself and replace us can often seem more of a threat than a temptation.
New technology also needs to be better than what’s already on the market. Otherwise it’s not worth learning how to use it. That’s why mobile payment systems haven’t really taken off in the developed world where we’re used to smoothly functioning debit and credit cards. They have, however, made huge inroads into many developing economies where the absence of a full service banking system and payment infrastructure makes the ability to pay by phone a real benefit.
Technical whizzes often also overlook the importance of simplicity (question 2): their love of gadgets can often result in products that are just too contrived for normal people. Sometimes the new technology only works properly when you stay within the universe of Apple, Microsoft or Google, which often isn’t possible or desirable in practice. And then there’s the question of affordability (question 3) as consumers don’t measure costs just in terms of cash, but also in time and, increasingly, privacy.
For all these reasons, psychologists and biologists are useful additions to the boards and teams of Silicon Valley startups if up and coming firms want the answer to all four questions to be yes. Such professionals can help new ventures better understand the very human needs they are trying to fill and provide guidance on the chances of success. Firms that have correctly positioned themselves in the minds of consumers for relevance, ease of use and simplicity have truly changed the game.
Authored by Annet Aris,Adjunct Professor of Strategy at INSEAD.
India the most dynamic economy among the BRICs is set to become the 7th biggest ad market by 2020
In its latest report on the global advertising marketplace, MAGNA GLOBAL estimates that media owner advertising revenues grew by +3.2% in 2015 to $503 billion. This is lower than the previous forecast (+3.9% in June 2015) and represents a slowdown compared to the 2014 growth (+4.9%).
In 2016, advertising revenues will be boosted by economic stabilization and the incremental spending generated around non-recurring even-year events (US Presidential and General elections, UEFA Football championship in Europe, Summer Olympics in Brazil). MAGNA GLOBAL is thus predicting ad sales to grow by +4.6%, marginally less than our previous forecast. Neutralizing the impact of non-recurring events (NREs) in 2014, 2015 and 2016 (generating approximately 0.9% of extra growth in even-numbered years), the global ad market would have grown by +4.1% in 2015 and +3.7% in 2016, which suggest no real 2016 acceleration in the underlying ad demand, beyond the cyclical drivers.
In terms of geographies, Asia-Pacific was the most dynamic region (+6.5%). Latin America and Central and Eastern Europe, once the fastest-growing regions, are both suffering from dramatic economic slowdown reflected in ad spend cuts (-3% in CEE, +3.8% in Latam). Meanwhile, Western Europe continues its recovery (+2.9%), while North America is slowing down (+2.0%).
Of the 73 countries analyzed by MAGNA GLOBAL in this update, 62 experienced ad revenue growth this year and eleven (incl. Russia, Finland, France, Greece, Peru, Singapore) suffered a decrease. The biggest contributors to the 2015 slowdown are the two BRICs countries affected by severe economic difficulties: Russia, where ad revenues are now expected to decrease by -12% (previously -11%), and Brazil (+4.4%, unchanged). On the other hand we have increased the 2015 growth estimate for China, India and the US. For 2016 we only expect four markets to remain in the red while 69 (including Russia) will experience some level of growth.
Asia-Pacific: this year +5.6%, Next Year +5.2%
Media owners ad revenues increased by an estimated +5.6% in 2015 to $146bn, making APAC the second largest region with nearly 30% of global spend. This is down slightly from previous expectations of +6.3%, despite the fact that growth was slightly stronger than expected in two of the region’s biggest markets (China +9.9%, India +16.3%).
Growth in 2016 is expected to be slightly weaker, at +5.2%, due to continuing slowing of the region’s economy. APAC is now the second largest global region, behind North America, having passed EMEA, with 29% of global ad revenues generated in the region. Given the high growth rates expected in APAC going forward compared to EMEA, the region will become increasingly critical to global advertising spend growth. APAC’s GDP growth is expected to be +6.5% in 2015 according to the IMF, down from +6.8% in 2014. Economicgrowth will again slowdown slightly in 2016 to +6.3% as China continues to transition to a consumer economy while India accelerates. Despite concerns about APAC growth weakness and the spillover to the global economy, it’s important to keep in perspective that it’s only modest slowdown and APAC growth remains significantly ahead of most of the western world.
As China is slowing down (slightly), India has become the most dynamic economy among BRICs and among all the large nations monitored by MAGNA. Real DGP grew by +7.3% in 2015 and will grow again by +7.5% in 2016 according to the IMF, with consumer price inflation at around 6% per year. In that context advertising spending grew by +16.3% in 2015 to 487 billion rupees (approx. $8 billion) allowing India to become the 12th biggest ad market in the world at the expense of Russia.
India: this year +16.3%, Next Year +18.4%
Advertising revenue increases by INR 68 billion to touch INR 487 billion in 2015.
Television revenue on the back of increased volume will add +18.5% (Dec 2014 +11.9%) to reach INR 200 billion.
While television market share is up by a percentage point (41%) Print goes down from 41% to 38% to touch INR 183 billion (growth of +7.7%). In 2016 Television is estimated to grow +15.1% and Print +8.2%.
Digital formats continue to grow the maximum at +49% to touch 57 billion rupees and thereby increase its market share to 12%. Ad sales generated from Video and Social increasingly will be through mobile impressions while Desktop in the near future will still be the domain for Search and Display. Share of mobile from 32% will be close to half the pie in 2016. Programmatic outside of Search will grow +5.7%.
Newer formats and revenue streams (Twitter and Instagram opening up new advertising and influencer management platforms), bandwidth expansion through 4G launch and traditional advertisers increasing their digital budgets will contribute to the growth of +67.3% in 2016.
Radio with a market share of 4% will grow +14% in 2015. Through the expansion of foot print and there by volume is estimated to add +16% in 2016. OOH will grow +11.9% in 2015 and by another +10.4% in 2016.
Magna Global estimates total advertising revenue to touch 576 billion rupees in 2016.
T20 World Cup, encouraging response from Audience to non-cricketing leagues, state elections, 4G launch are some of the drivers for the advertising economy in 2016. E-commerce will continue to pursue GMV’s, most action will be seen in the telecom sector followed by Auto and FMCG advertising.
Digital television and expansion of the measurement panel will allow advertisers to reach more consumers and broadcaster to better monetize their audience in 2016. While so far India is bucking the global trend of declining spends on Print by growing at a high single digit rate, Digital market shares are projected to equal Print by 2020.
Hope 2016 round of data will get the currency out of the data dark period and aid the category to fight market share erosion. Second round of the Phase III auction, commissioning of the new stations won in the first round of bidding will keep radio top of mind.
Marico has announced Bollywood heartthrob, Ranveer Singh as the new face and brand ambassador of Set Wet deodorants.
Set Wet, a brand synonymous with hair gels in India, had undergone a successful repositioning last year with the Sada Sexy Raho campaign. Following the success of the initiative, Marico has announced the signing of Ranveer Singh as the brand ambassador for the Set Wet deodorant portfolio who will now further drive the philosophy of ‘Sada Sexy Raho’.
The deodorants category in India is highly cluttered & witnesses some of the highest media to sales ratios across personal care category. The company believes signing Ranveer will help break the clutter & connect better with its young audience where Ranveer today has a very high appeal. The new campaign is slated to launch in February 2016.
On the introduction of the newest brand ambassador for Set Wet Deodorants, Ms. Anuradha Aggarwal, Chief Marketing Officer, Marico Limited said, “We are delighted to have Ranveer Singh as the face of our Set Wet range of deodorant range. Apart from being probably the most popular star in the brand target consumer, Ranveer also happens to live the brand philosophy of Sada Sexy Raho. Brand Set Wet extolls young men to give up inhibitions & let their charm & passion show in everything they do - a philosophy Ranveer himself lives by. I think Ranveer & Set Wet are a potent mix with which we can create magic.”