People can now choose to consume ads only when they feel the desire to: Industry Experts

Advertising industry experts spill the tea on whether OTT platforms and their premium service paywall pose a challenge for advertisers or not

e4m by Noel Dsouza
Published: Apr 1, 2019 9:13 AM  | 5 min read
OTT Premium Service

In India, there has been a rise of users opting for OTT platforms like Netflix, Amazon Prime and Hotstar and the trend of prime time television is slowly deteriorating. Even music streaming services like Spotify and Saavan are gaining momentum and possess a large number of subscribers. 

According to the Boston Consulting Group, the Indian OTT industry will unlock its potential and reach a market size of $5 billion i.e. Rs 35,730 crores by 2030. 

A research firm Deloitte and Indian Music industry body IMI has recorded that there are 150 million subscribers for music streaming services in the country. These platforms are gaining popularity and have become more accessible to audiences in Tier 2 and Tier 3 cities as well. The access to these services has grown due to cheap data provided by services like Jio. These OTT platforms and music streaming services are user-generated and allow the user to take control of what they want to consume. They also give users the liberty to block ads on these platforms so they can consume uninterrupted content. 

exchange4media had a chat with advertising industry experts about the premium service paywall on OTT platforms and music streaming services; and whether they pose a threat to advertisers.

Change in consumer behaviour 

Anand Chakravarthy, MD, India, Essence, comments, “Consumers are becoming a lot more demanding of service providers and are willing to pay a price for the more relevant experience. Across online platforms we see the rise of premium services be it OTT, Music, Food Delivery, Travel bookings, etc. There is a growing segment of consumers who will pay an extra cost to ensure they get a more customised experience which includes exclusivity, ads free and additional services.” 

Ankit Nalotia, Founder, Mo Mantra, shares his views saying, “The year 2018 has seen tremendous growth in these platforms along with the level of variations they are offering. Subscription-based on-demand OTT platforms like Netflix, Amazon Prime and music streaming have risen in popularity over the past couple of years and are on the path of displacing the traditional TV programming which was once upon a time preferred as a medium of entertainment for modern Indians.”

Consumers don't hate ads, they hate irrelevant ads. “There can be times when the consumer doesn't want to see ads. Advertisers need to understand and acknowledge this instead of getting paranoid. Just because a consumer is online doesn't mean he is available. Every human being needs 'space' and moments of ad-free privacy,” remarked Raghu Bhat, Founder & Copywriter, Scarecrow M&C Saatchi.

Conventional advertising relies hugely on latent desire, building a desire for products and services even if they did not actively exist. Agnello Dias, Co-founder, CCO, Taproot Dentsu stated, “With the rise of OTT platforms, people can now choose to consume ads only when they feel the desire to purchase, not when the advertiser wishes to. This will, therefore, be a huge challenge.”

Will this be an issue for the Indian market?

Commenting on this Chakravarthy said, “This does not mean that 100% of consumers will go down this route, especially in a market like India and its vast digital population. That leaves ample opportunity for advertisers to talk to consumers across other digital platforms. What may happen over a period of time is that a limited segment of high-income individuals may become more inaccessible as they opt for premium digital services across digital touch points and reaching these individuals may become a challenge. But this will take a while to happen in India.”

“Most of these platforms have a very small market share. Most users don't have paid subscriptions and allow ads,” remarked Nalotia. 

How will advertisers deal with this emerging issue in the long run?

Sumanto Chattopadhyay, Chairman & Chief Creative Officer, 82.5 Communications, The Ogilvy Group shares how to curb this issue, “When ads aren't allowed in a particular medium, brands rise to the challenge and find innovative ways to make their presence felt. For example, on Netflix, it is through product placements that brands compensate for the lack of ads. Flaming Hot Cheetos has a prominent role in the prison drama ‘Orange Is the New Black’. One of the episodes actually has the brand name in the title and the snack plays an integral part in the story. In another Netflix show, House of Cards, a plethora of brands, including Chevrolet cars, Apple computers, Samsung phones and the news channel CNN make an appearance.”

Bhat says that the solution lies in making less annoying ads. He remarked, “Do branded content and avoid the digital advertising overkill mindset.” 

This shift in viewer sensibilities also reflects in the growth projections for the country’s OTT industry. “This is actually a bigger opportunity due to the possibility of personalisation. This will remain an ad-driven-supported model. However, it will only increase over time. Hence, newer avenues for advertising will have to be discovered. Apart from this, there would be always a window for content based marketing and in-film advertising on these platforms,” stated Nalotia.
 

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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