Marketing: The Good, The Bad & The Costly
Marketing, an integral part of every industry, has transcended its traditional role of generating sales and acquiring new customers. It has evolved in the connected space of the internet. Consequently, advertising, a significant component of marketing, has also undergone significant transformations. The Pitch Madison Report (PMAR) 2024 reveals that India's advertising expenditure (ADEX) in 2023 reached an astounding Rs 99,038 crore, surpassing the figures of 2021 (Rs 74,231 crore) and 2022 (Rs 89,803 crore). This remarkable surge sparks interest in the state of the marketing landscape: its positives, negatives and the potential expenses associated with it.
The Good
Marketing plays a crucial role in every aspect of a business strategy to convert potential customers into content and fulfilled buyers. Regarding this Shantanu Khosla, Executive Vice Chairman, Crompton Greaves Consumer Electricals said, “The marketing industry will continue its expansion, propelled by artificial intelligence (AI) and other cutting-edge technologies, fostering profits.”
Khosla added that the expansion in the marketing world is also instrumental in enabling brands to establish a crucial presence in the lives of consumers.
Rob Norman, Global Digital Expert and Advisor at Madison Media highlighted the advantage which AI brings to the field of marketing. He said it has benefited local and international brands, as they have gained wider exposure and attention due to the fragmentation of audiences and increased accessibility.
Moreover, the IBEF report highlights the marketing edge in India. It says the advertising-based video-on-demand (AVoD) segment is anticipated to rise at a compound annual growth rate (CAGR) of 24 per cent to reach USD 2.6 billion by 2025.
The Bad
Speaking about the drawbacks Khosla said that even though the integration of technology and innovation has propelled in marketing, this progress has inadvertently impacted the consumer base negatively.
These days consumers are constantly bombarded with marketing communication, which often leads to their distraction and even diminishes the trust among potential purchasers, added Khosla.
Despite these limitations, the field of marketing is currently riding on the crest of tech advancements worldwide. However, the Pitch Madison Report 2024 sheds light on a different perspective of digital marketing in India. According to the study, the Indian market continues to be apart from the global industry, which is dominated by digital with a share of 73 per cent versus India's 40 per cent.
Additionally, Norman echoed on the negatives. He said that the lack of transparency was found in four distinct areas, brand and social safety, information and measurement.
This undermines the effectiveness of the media planning and buying process, he concluded.
The Costly Affair
Sam Balsara, the Chairman of Madison World, provided key insights from the PMAR report mentioned earlier. He stressed the report's findings showed that last year the established players sustained ADEX by maintaining or even increasing their expenditures amidst the challenges.
Based on the report, the leading Indian advertisers in 2023 include Hindustan Lever, Reckitt Benckiser, Reliance Industries, Amazon Online India, Godrej Consumer Products, Cadburys India, Procter & Gamble, Coca Cola India, Maruti Suzuki India and Dream 11.
Source: The Pitch Madison Report (PMAR) 2024
