Marketers must resist the temptation to focus only on short-term performance: Sam Balsara

In an insightful keynote at FICCI Frames 2025, Sam Balsara, Chairman of Madison World, questioned whether marketers are losing sight of the fundamentals of branding in the rush toward performance-driven advertising. “While performance media has a larger role today, marketers under pressure are over-relying on it, and as a result, long-term ROI on advertising is sharply declining,” he said.

Balsara noted that urban consumption in India has been falling for five consecutive quarters, though rural demand shows green shoots. Under these pressures, marketers increasingly allocate budgets to performance channels such as search, e-commerce, promotions, and sampling. While these channels are important for immediate results, he stressed that they cannot replace the value of branding.

“Branding is the process of creating a unique identity, shaping perceptions, building trust, and establishing an emotional connection with consumers,” Balsara explained. “Effective branding drives recognition, loyalty, and long-term value. Many campaigns today spend mega-bucks but fail to establish that lasting bond.”

Globally, advertising expenditure is expected to reach $1 trillion this year, with 70% going to digital platforms. Yet digital consumption habits — characterised by “snacking” or quick, in-and-out attention — often limit emotional engagement. Balsara highlighted research showing that longer emotional ads (20–30 seconds) with a storyline work best for building connections.

Connected TV (CTV) presents a solution, offering a TV-like viewing experience in a digital environment. In India, CTV currently reaches 60-65 million homes and is expanding rapidly. “CTV allows brands to expose their ads digitally while retaining a lean-back, immersive experience that drives brand recall and emotional engagement,” Balsara said.

He cited a US study by Comcast and Media Science comparing mobile digital ads with TV and CTV placements. The research found that:

• TV ads delivered 3.4x better recall for new brands versus digital mobile ads.
  

• Even for established brands, recall was 2.3x higher on TV.
  

• Launching a campaign on TV before digital increased both unassisted recall and purchase intent by 30% compared with two digital exposures.
  

“New brands benefit from TV advertising due to the brand-building power of the medium, which also supports digital efforts,” he said. “Consumers’ media habits are changing, but to improve creative impact on digital, we must replicate the elements that work on TV — large screens, lean-back viewing, co-viewing, and minimal distractions.”

On budget allocation, Balsara recommended a 60:40 split in favour of branding, citing research by two renowned scientists. “Branding helps recruit new users and grow the market, while performance media helps close sales. As brands scale, performance alone begins to under-deliver on ROI,” he said.

In conclusion, Balsara emphasised that branding remains essential for long-term success and sustainable profit. “Branding works best with emotional messaging in a TV-like environment, whether linear TV or CTV. Marketers must resist the temptation to focus only on short-term performance,” said Balsara.