Festive forecast: Auto and finance lead the way in digital advertising, says Zenith's Jai Lala
Digital is increasing at a rate of around 50 percent. says Jai Lala, CEO, Zenith India, the media agency of Publicis Groupe.
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As a digital platform offering a large-screen experience, Connected TV (CTV) is becoming critical, with an audience of 30-40 million. Rise in CTV spends are more prominent with brands that are catering to metros and affluent audiences, according to Jai Lala, CEO, Zenith India, the media agency of Publicis Groupe.
Digital advertising is increasing at a rate of around 50 percent this festive season as well, says Lala.
While addressing which industries will be heavy advertisers during the current festive period, Lala shares, "Auto will definitely increase, as will consumer durables due to auspicious buying. There are other adjacent categories, like clothing, which will have high spending. FMCG will be more or less consistent."
In an exclusive chat with Storyboard18, Jai Lala, CEO, Zenith India, the media agency of Publicis Groupe, shares that this festive season, categories like auto and finance will have a higher skew toward digital in comparison to FMCG categories.
Edited excerpts:
Given the increasing fragmentation of media, how are advertisers allocating festive ad budgets across different platforms? Can you provide a breakdown of the percentage of spend on TV, digital, including CTV, OTT, and other channels?
It’s dependent on the category. If you look at categories like auto and finance, they will have a higher skew, as high as 60-70 percent on digital, but if you look at FMCG categories, the skew would be around 30-40 percent digital. It varies from category to category in terms of spending.
Within the categories, there will be brands, and it differs based on brand strategies and life cycles. There is no clear mathematical number I can give, but I can say that with everything becoming digital, the spending on digital is increasing. Digital is increasing at a rate of around 50 percent.
Within that, CTV is also growing phenomenally well. While the CTV audience is around 30-40 million, it is becoming extremely important as it is digital and on a big screen. The CTV increase is more prominent with brands that are catering to metros and affluent audiences.
What is the projected growth rate for OTT advertising during this festive season compared to the previous year? Please quantify the increase in ad spend and identify the key drivers behind this growth?
Last year, we had the World Cup, and a lot of money specifically on OTT went to the World Cup. This year we have the Women’s World Cup, but the scale is completely different. A lot of it is dependent on scale. It may be flat or experiencing degrowth because of the event. If we remove the event from the equation, then we see a growth of 15-20 percent.
When comparing news channels and GECs, which platform has seen a higher increase in ad rates for the festive season? Which one is the best bet for advertisers?
News is very topical; it depends on the flavor and event. GECs are consistent throughout the year, but during festivities, ad spends go up because of the demand. There is no specific preference; it is a lot of demand and category-led.
Which categories will be big spenders and which won't be spending much?
Auto will definitely increase, as will consumer durables due to auspicious buying. There are other adjacent categories like clothing, which will have high spending. FMCG will be more or less consistent.
What are the emerging trends and innovative strategies that advertisers are adopting in their media planning for the festive season?
CTV is seeing the maximum growth, and it seems this will continue to grow for some time. Data-led planning is also seeing growth to better reach audiences.
How are advancements in technology, such as AI and machine learning, impacting media planning and measurement during festive seasons? How are these tools are being used to optimize campaigns and track ROI?
We have our own automated tool in India called iTitan, which we use effectively for forecasting and dashboarding. It’s built with a layer of AI. What will happen during the festive season is that you will need results much quicker than before, and that is where this tool will help you make faster and more informed decisions.
