Navin Khemka, CEO - South Asia, MediaCom shares that in this changing industry, clients do look beyond proven metrics like Reach and frequency depending on the consumer action they are keen to drive.
In convesation with Social Samosa, Navin Khemka further outlines consumer content consumption trends seen, the changing approach of consumers towards retail, and more. He sheds light on how the power of intent can be leveraged in this day and age.
Consumer behaviour has changed dramatically in the last two years. What are some of the consumer consumption trends that have emerged in the last two years?
Online Purchase has significantly increased post-COVID-19 (GWI Report)
In Q3 & Q2 of 2021, 66% more Indian consumers purchased medicine and healthcare online compared to that Q1 of 2020. Electronics, Beauty and Personal Care, Groceries, Clothing, etc. are some of the most frequently bought categories online and have also seen a huge spike in online purchases post COVID-19.
Everything needs to be now and at their doorstep – the rise of Quick service in the comfort of their own homes is the new customer experience expectation. 79% and 78% of the people want to continue getting their groceries delivered home and using wellness apps respectively. 77% of the people intent on continuing online personal training and fitness activities
According to worldwide trends, attitudes towards secondhand goods have significantly changed.
Global retailers like H&M, lululemon, and Levi’s have already launched secondhand clothing programs and make refurbished, repurposed, or reused goods available on their online platforms. (Could be because of income concerns – people downsizing and/or open to a more sustainable way of living)
- 32 % of the consumers are more likely to view a brand as high quality if the brand sells both secondhand and new clothes.
- 34% of the consumers are more likely to shop with a brand that offers secondhand clothing alongside new
- 43% of the consumer are more likely to shop with a brand that lets them trade in old clothes for brand credit
There has been an enhanced focus on self-care causing a shift in the nutrition, health, and beauty segments- (Statista- Consumer Trends Report 2022).
- Meat & milk alternatives market set to exceed 30bn USD in 2022
- The vitamins and minerals sector will surpass 22bn USD in 2022
- Organic and natural cosmetics market to grow 50 percent by 2025
With the changing consumption trends, how do brands need to realign their approach toward media spends?
The marketing and media objectives need to be very sharply defined. Media is getting very fragmented, and media spends needs to be targeted to meet the marketing objectives. Brands need to be clear on the ROI they expect as it is also becoming very measurable.
What are some of the AdSpends trends seen in this year? Which categories will be the biggest spenders?
Digital is estimated to be the biggest media in 2022. The overall AdSpends are estimated to reach INR 107,987crs in 2022. This represents the estimated growth of 22% for the calendar year 2022. India to be the fastest-growing market among the top 10 global markets and retains its 9th rank in 2022. India is also the 5th highest contributor to incremental AdSpends.
Digital is estimated to reach 45% media share in 2022.
- Global AdSpends to grow by 11% in 2022 to reach USD 850bn; Digital at 66% share
- India fastest growing market in the top 10; ranked 9 globally & ranked 5 on incremental ad spends for 2022
- Indian AdSpends is estimated to grow by 22% in 2022 vs 2021
- India: All media estimated to grow in 2022 vs 2021
- India: TV estimated to grow by 15% in 2022 vs 2021
- Digital is estimated to become the lead medium with an estimated share of 45%, driven by 33% growth
- Video leading growth
- SME segment driving digital
Also Read: Personalisation & measurability are the 2 big advantages of digital audio platforms – Shashwat Goswami
As consumers get more aware & digital savvy, the power of intent plays an even bigger role. As a marketing veteran, what is your opinion on the power of intent & how can it be used to drive full-funnel objectives?
With the availability of numerous options at our fingertip, as marketers, we have an opportunity to connect with people and potential consumers at exactly the right moment. Forms of intent marketing like Search, targeting using 1st PD signals, contextually & sequentially targeting cohorts, dynamic creative optimization, etc are all activities that every savvy marketer must test and learn from. Targeting basis intent has so far mostly been limited to B2B where qualified lead generation and conversion is the main marketing objective. However, B2C brands are waking up to the possibilities – Research conducted by Google found that video ads that were targeted based on intent had a 20% higher ad recall lift, and a 50% higher brand awareness lift when compared to campaigns using only demographic targeting.
How can the power of intent be better utilized for full-funnel objectives?
Premium brands with niche audiences or those that rely on repeat customers are best placed to replace all targeting with intent-based targeting which will make marketing more efficient at driving business goals. We can uncover new audiences if we replace narrow demo targeting with intent-based signals. For example, going by the common notion - video game shoppers are mostly young men. Ideally, someone marketing a video game would target men between the ages of 18 and 34, but only 31 % of mobile game searches are from men between the age of 18-34. They are still missing out on 69% of the potential users.
Or taking another example, 40% of the baby products are purchased by households without children (By Friends, Relatives, Colleagues) - A brand has to ensure being there when potential consumer turns to search engines or YouTube in their moments of need. This can be a deal maker for the brand. Research shows that 51% of smartphone users have purchased from a company/brand other than the one they intended to because the information provided was useful.
A brand can increase chances of conversion if they tap into intent by showing consumers how/when/where their product can be used:
- Provide local inventory information so people may know what's available in their area.
- Make ‘How To’ videos, Buyer guides, etc.
- Allow customers to easily check out using a "quick buy" button.