Why Brands Are Betting Big On Digital Ads This Festive Season?

With the festive season kicking in, consumers are increasingly flocking to digital platforms for their festive shopping and entertainment. Despite the resurgence of traditional media in recent years, digital ads continue to be the primary focus for marketers, especially during the festive season.

Numbers Don’t Lie
As digital ad spends are skyrocketing, brands across India are pouring more of their marketing budgets into online advertising to capture the mindshare. The numbers speak for themselves - according to the Magna Global Ad Forecast report, digital ad spending in India is set to grow by 15.9 per cent in 2024, reaching Rs 580 billion (US$6.9 billion).

Rajneesh Bhatia, CEO of mytrident explains the rationale behind this shift stating, "Our strategy is to run our festive campaigns across a wide range of digital platforms. We're focusing on Meta, Google, performance ads, social media amplifications and partnerships with OTT platforms. These platforms allow us to target a broad audience, ensuring we reach different segments while maximising engagement across various touchpoints." He stresses the use of multi-platform approach to help cut through the festive noise and capture attention where consumers are most active.

The shift towards digital is driven by a storm of factors, from the continued shift of consumer attention online to the need for cost-effective, data-driven targeting strategies.

Creativity In Clutter
As consumers spend more time online, the allure of digital advertising lies in its ability to precisely target consumers and deliver personalised experiences. Mihir Jain, Sales and Marketing Director at Insight Cosmetics notes, "The ability to reach a larger, more targeted audience based on their interests and behaviours is a critical factor. Additionally, the cost efficiency of digital ads, particularly the lower cost per conversion (CPC), makes them highly appealing."

However, the driving forces behind this digital advertising boom are manifold. Shitu Patil, Joint National Creative Director at Publicis India emphasises the need for brands to push the boundaries of creativity to stand out in the crowded festive clutter. "The idea remains the hero and has to work harder for the communication to stand out. Is it memorable? Is it telling a different story? Or sometimes the same story but told in a refreshing way. Does it surprise you? Does it engage or sometimes visually entice you? Makes you smile, laugh or ponder?", she asserts highlighting the core principles that guide effective festive campaigns in the digital space.

The Festive Shopper
According to the Disney+ Hotstar Festive Sentiment Survey Report 2024, online ads will be the primary source of product knowledge for 58 per cent of shoppers this festive season.

"We are using a multi-channel approach, but social media and influencer marketing are our focused channels for digital ad spending this festive season. These platforms including Instagram, Facebook and YouTube are most relevant for our target group in the beauty industry. These platforms also offer precise targeting capabilities, enabling us to reach a highly relevant audience," reveals Jain.

He also highlights the effectiveness of influencer marketing for the beauty industry as consumers often seek recommendations from trusted voices. Partnering with influencers builds authenticity and trust while formats like reels, stories and tutorials allow creative product showcases.

Social media and influencer marketing have emerged as the prime channels for digital ad spending, with social platforms accounting for 34 per cent of the digital pie and video ads contributing 14 per cent, as per the Magna Global Ad Forecast report.

Battling 'Ad Fatigue' With Creativity
As consumers become increasingly aware of 'ad fatigue,' brands are implementing creative strategies to ensure their digital ads feel fresh, engaging and less intrusive during the festive clutter.

Bhatia describes their approach of prioritising creativity and relevance that keep the ads fresh and ensure that they contribute positively to the consumer's digital experience.

"To combat 'ad fatigue' and stand out amidst the festive clutter, we are focusing on creating content that feels immersive and engaging rather than pushing direct sales pitches. Our ads are designed to resonate emotionally with our target audience, offering value through storytelling and entertainment", he comments.

Gupta echoes the importance of striking the right balance. "Our creative strategy centres around delivering fresh and engaging content that resonates with our audience amidst the festive season. By focusing on storytelling, innovation and the unique value proposition of our products, we aim to cut through the noise and make meaningful connections", he expresses.  

Personalisation Meets AI & Privacy
The increased focus on digital ad spends has also heightened the need for personalisation. Brands are leveraging AI and data analytics to deliver tailored festive experiences without compromising on privacy concerns.

Nikhil Gupta, Head of Marketing, Strategy, Govt. Affairs & CSR - Signify, Greater India stresses a digital-first strategy to target specific customer segments with personalised content, especially for the festive season.

"Our marketing efforts continue to align with what we see as trends in the market. This shift is driven by the increased effectiveness and targeting capabilities of digital media, aligning with our goal of reaching the right audience with the right message", he explains.

Jain echoes the sentiment stating, "With the use of AI and data analytics, we curate content based on consumer preferences and tailor product recommendations to meet their individual needs and interests. Our advanced algorithms analyse purchase history, browsing patterns and engagement metrics to offer personalised festive shopping experiences. At the same time, we maintain strict data privacy protocols, ensuring that all customer information is handled with care and in compliance with privacy regulations, balancing personalisation with trust and security."

Hyperlocal Hits
Amidst the diversity of the Indian market and the countless regional festivities, brands are also adopting hyperlocal digital ad strategies to ensure cultural relevance while maintaining brand consistency.

Jain underscores the importance of cultural relevance and brand consistency by adopting a hyperlocal digital ad strategy, delivering content in regional languages. "Different festivals like Ganpati in the West and Durga Puja in the East are concentrated across various regions, and this approach allows us to connect with consumers on a deeper, more personal level", he notes. By blending localised content with a cohesive brand identity, the brand effectively engages diverse cultural segments across India while maintaining its core brand identity.

Patil emphasises the importance of finding the right balance asserting, "Regional relevance is supremely important for any festive communication as this is the time where people get into their most traditional avatar. While cultural and traditional relevance is important, brands cannot lose their core essence and identity to be able to chime into festivities." She further explains that finding a space where the brand, culture and consumers' festive mindset intersect is key to resonating effectively.

Reema Bhaduri

BW Reporters The author is the Editorial Lead at BW Businessworld. Majorly writes on marketing, advertising, experiential marketing and retail. She closely looks upon the vertical of BW Marketing World and BW Retail World.