In-depth Part 3: Identifying the key performance indicators of boom in East markets

The East and North-East have a thriving ecosystem of their own – rich culture, tradition, lifestyle, language, consumer trends, content consumption, buying behaviour and more. The advertising industry here has evolved to embrace the diversity of this region and has been formulating a highly hyper-local strategy, perhaps long before national brands caught on to this strategy.

In this three-part In-Depth series, Adgully speaks to leading industry names to decipher the East and North East markets, how advertising has evolved in these markets, the key trends dominating these markets, how brands engage with their consumers, and much more.

Also read:

In-depth Part 1: The changing face of Advertising in East and North-East markets

In-depth Part 2: How Digital is transforming ad landscape in the East and adding scale

Brands in the East such as Social Pill, a digital marketing agency, are increasingly relying on transparency, and value-driven messaging including themes of social responsibility and sustainability while delivering content catering to the demand for the consumers for authenticity. “This approach is supported by data from Nielsen, which indicates that 66% of consumers in the Asia-Pacific region are willing to pay more for products from brands committed to positive social and environmental impact,” said Neelesh Pednekar, Co-Founder & Head Of Digital Media, Social Pill.

As per recent reports by Madison, GroupM, and FICCI EY, the advertising industry in regions like India has seen double-digit growth in 2023, with digital ad spending growing by over 30%. This growth is driven by several factors, including increased internet penetration, the proliferation of smartphones, and the booming e-commerce sector. For instance, India’s digital ad spend is projected to reach $3.8 billion in 2023, according to GroupM.

According to Pednekar, the key reasons for the surge in digital advertising include the digital transformation of businesses, consumer preference for online shopping, and the effectiveness of digital ads in driving engagement and conversions. The East market’s young, tech-savvy population is also a significant driver, with over 60% of the population under 35, making digital channels the most effective way to reach this demographic.”

In the context of mobile advertising, Angad Singh Manchanda, CEO & Co-founder, Chimp&zInc, pointed out that it has experienced exponential growth in India, fueled by the escalating penetration of smartphones and accessible internet services. Pioneering companies such as Flipkart and Cadbury India have adeptly capitalized on mobile advertising and video marketing, respectively, to tap into India’s expanding smartphone user base and captivate audiences through innovative campaigns. The emergence of hyperlocal advertising also stands out as a notable trend, catering to India’s rich cultural diversity and vast geographical spread.

“Platforms like Zomato have effectively utilized hyperlocal advertising strategies to establish a formidable presence across numerous cities nationwide. Influencer marketing has emerged as another prominent trend in India, offering brands a compelling avenue to connect with their target demographic through credible voices. Brands like Nykaa and Myntra have successfully executed influencer marketing initiatives to promote their products and foster meaningful engagement with consumers. As brands continue to embrace innovative strategies like automated advertising, mobile marketing, hyperlocal targeting, and influencer collaborations, the future of advertising in India holds immense promise for further growth and creativity,” Manchanda added.

Saijal Jain, Media Buying Manager, Adbuffs, added here, “In the context of the Indian market, our brand has observed a fascinating evolution in the advertising scenario, particularly through the lens of digital performance marketing for D2C brands. Initially, the market was dominated by traditional advertising channels such as television, print, and outdoor hoardings. However, the digital revolution has significantly altered the landscape, introducing a more data-driven, customer-centric approach to advertising. Firstly, the surge in internet penetration and mobile device usage across India has paved the way for digital platforms to emerge as the primary channels for consumer engagement. This shift has allowed brands, especially in the DTC space, to leverage social media platforms, search engines, and e-commerce marketplaces for targeted advertising. Platforms like Meta (Facebook and Instagram) and Google Ads have become instrumental in facilitating new customer acquisition through sophisticated targeting and retargeting capabilities, enabling brands to reach specific demographic and psychographic segments with precision.”

Harnessing AI, Data Analytics

Adding further, Jain said, “Moreover, the advent of data analytics and AI technologies has empowered us to adopt a more nuanced, creative strategy in our advertising efforts. A crucial development in our advertising strategy has been adapting to the emergence of short-form video content, notably through platforms like TikTok and Instagram Reels. These platforms have revolutionized creative strategy by emphasizing authentic, engaging, and snackable content that resonates with the audience's preferences and lifestyle. The visual and interactive nature of short-form video has not only enabled us to capture the audience’s attention more effectively, but also encouraged a more immersive brand experience. This shift underscores the importance of innovation in content creation, leveraging the power of storytelling and visual appeal to foster deeper connections with the audience.”

Another noteworthy trend in the Indian market is the emphasis on customer retention alongside acquisition. With the increasing cost of acquiring new customers, D2C brands have shifted focus towards retention marketing strategies such as personalized email campaigns, loyalty programs, and exclusive offers. This shift underscores the understanding that retaining an existing customer is more cost-effective than acquiring a new one and is crucial for long-term profitability.

“The Indian market has also witnessed a rise in the integration of e-commerce functionalities directly within advertising platforms. This has streamlined the customer journey from discovery to purchase, further enhancing the effectiveness of digital ads in driving sales. In summary, the advertising scenario in India has evolved from a broad, channel-centric approach to a more nuanced, data-driven, and customer-focused strategy. As a performance marketing manager working with leading DTC and e-commerce brands, staying at the forefront of these trends and continuously adapting our strategies has been key to our success in the dynamic Indian market,” Jain added.

The widespread adoption of mobile devices as the primary means of internet access has propelled the growth of mobile advertising. Brands are seizing this opportunity by leveraging mobile apps, SMS marketing, and mobile-optimized websites to connect with consumers on the go, ensuring maximum reach and impact. Furthermore, the market has wholeheartedly embraced technological advancements such as programmatic advertising, artificial intelligence, and data analytics to drive more personalized and targeted advertising campaigns.

“By harnessing data-driven insights, brands are gaining a deeper understanding of consumer behaviour and preferences, leading to more effective advertising strategies,” pointed out Kritika Arora, Director - Performance and Acquisitions, Globale Media. She further said, “Additionally, the region’s increasing appetite for video content has reshaped advertising strategies, with brands incorporating captivating video content across platforms like YouTube, Sharechat, Moj, Instagram, and regional OTT platforms to enthrall audiences and deliver compelling storytelling experiences. As East India continues to embrace these evolving trends, the advertising landscape is poised for further innovation and growth. Overall, the advertising scenario in the East Indian market has evolved to become more dynamic, diverse, and digitally-driven, presenting brands with new opportunities to connect with consumers in meaningful ways.”

Evolution in Approach to Advertising

Su Piow Ko, VP, AET Displays, elaborated, “Our advertising approach has evolved significantly over the years in tandem with advancements in technology and changes in consumer behaviour. Initially, we focused on traditional marketing channels such as print ads and trade shows to showcase our LED display solutions. However, as digital media became more prevalent, we transitioned towards online advertising and social media marketing to reach a wider audience and engage with customers in real time. Additionally, we have placed a greater emphasis on creating immersive brand experiences through interactive content and experiential marketing campaigns. Currently, our brand communication revolves around highlighting the transformative power of visual technology and emphasizing our commitment to innovation, quality, and customer satisfaction. We aim to convey our brand message of pushing the boundaries of visual communication to inspire awe and elevate experiences across various industries and applications.”

Mohit Anand, Co–Founder & CEO Secure Connection, shared, “In the past, our strategy was more diversified, with a mix of traditional avenues like television and print, alongside digital efforts. But as the digital revolution gained momentum, we have adapted. Nowadays, we have increasingly shifted our focus to digital platforms where people spend a significant amount of their time. Digital channels offer unique opportunities for engagement, so we have invested more in areas like social media and targeted online campaigns with this trend. While digital platforms have become increasingly prominent, traditional mediums such as print and television still hold relevance, especially for creating brand recall and reaching specific audience segments. Consequently, we maintain a presence in these traditional channels when appropriate, ensuring a balanced approach that effectively communicates with our audience.”

“AdCounty Media’s advertising approach has transitioned from traditional methods to a comprehensive digital strategy. We now prioritize online platforms like search engines and social media, using search engine marketing (SEM) for targeted reach and engaging users on platforms like Facebook and Twitter,” said Delphin Varghese, Co-founder & Chief Revenue Officer, AdCounty Media.

Recognizing the importance of mobile, AdCounty Media has optimized campaigns for handheld devices, ensuring seamless user experiences. Partnering with local advertising agencies has given the agency specialized expertise, enhancing the effectiveness of its campaigns. “Our evolution reflects a commitment to staying relevant in an ever-changing digital landscape, continually adapting strategies to connect with audiences meaningfully, and leveraging emerging technologies for maximum impact,” Varghese added.

He also pointed out, “Currently, AdCounty Media is prioritizing brand communication that underscores its dedication to innovation and adaptability in digital marketing strategies, particularly tailored to the dynamic Eastern market. By highlighting these qualities, the company aims to demonstrate its commitment to staying ahead of the curve and effectively meeting clients’ evolving needs and preferences in this market.”

Meanwhile, Yasin Hamidani, Director, Media Care Brand Solutions, shared, “Cadiveu as a brand has witnessed a significant evolution in the marketing scenario, particularly in the East Indian market. Traditionally, keratin treatments were perceived as exclusive salon services catering to a niche audience. However, with changing consumer preferences and increasing awareness about hair care, we have adapted our marketing strategies to cater to a wider demographic. One notable evolution is the emphasis on product diversity and accessibility. Cadiveu India as a brand has expanded their product lines to include a range of at-salon treatments, shampoos, conditioners, and styling products, making keratin treatments more accessible to consumers beyond salon visits. This shift has been particularly evident in the East Indian market, where consumers seek convenient and cost-effective solutions for their hair care needs.”

He further added, “Additionally, Cadiveu India has leveraged digital marketing channels to reach a broader audience and engage with consumers directly. Social media platforms, influencer collaborations, and online campaigns have played a crucial role in raising brand awareness and educating consumers about the benefits of the product. Furthermore, the brand has localized its marketing efforts to resonate with the cultural preferences and beauty standards prevalent in the East Indian market. Tailored messaging, regional partnerships, and culturally relevant content have contributed to the success of Cadiveu India in the region, driving growth and adoption among consumers.”