Big Brands, Make Way For The Niche In 2024: Harish Bijoor

On India’s marketing and advertising outlook

The Indian advertising industry will inch its way forward in terms of a growth trajectory for sure, but this is not going to be a quantum jump. The AdEx 2023 data does indicate that the share of FMCG (fast-moving consumer goods) in total ad expenditure is 33 per cent. This means Rs 31,000 crore comes from FMCG. Consumers are shifting to niche offerings, oftentimes non-advertised options as well. The appetite of big companies such as Tata Consumer Products to buy into niche brands in literally every category is an indication of this emerging future.

In terms of expenditures within FMCG, the percentage of advertising and sales promotion expenditure on turnover is already touching the glass-ceiling. Depending on the category this percentage stands between 7-12 per cent. The only way to go is down. Also, media inflation is only on the rate-card of media organisations. In reality, television is stagnant in its rates and print is woefully down y-o-y. Add the fact that digital is growing – it takes as much as 47 per cent of expenditure and has equalled television value shares – even as print hobbles at five per cent.

On what is driving the sector forward

I am bullish on the ‘other two-thirds’ of expenditure from every other category that will grow and hold ground with new launches. But even this is threatened as the big-spend categories such as

ecommerce and OTT contemplate and promote themselves as mediums of advertising in the near future. These mediums will not only advertise within themselves, but will also lure in advertising from categories physical. The future of advertising is in new launches in every category.

On opportunities and challenges that lie ahead for marketers

The biggest opportunities will come from the smallest brands. Niche brands from the FMCG category, luxury, education, hand-held and wearables technology, white-labels and more.

Marketers will need to get off the pomposity pedestal. Those who reign with big market shares will be challenged by smaller brands. Audio-listening device categories with Harman JBL will be challenged by a boAt and white-labels beneath that category even. Marketers need to start thinking beyond piggy-backing on big events such as IPL etc. Big events make marketers lazy as most bucks are parked in them, making marketing and the marketers appeal that much more seasonal than ever before.