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  • How Covid2019 is affecting outdoor media

    How Covid2019 is affecting outdoor media

    Outdoor advertising had a fantastic 2019. Defying predictions, India’s OOH (Out Of Home) industry, grew at over 15 per cent. Driven by IPL, elections and a huge increase in the OTT industry’s outdoor advertising, the industry saw a big increase, enabled adequately by digitization. The industry itself has been seeing radical positive transformation over the years. From the rather primitive static format, it has now become a dynamic audiovisual one, with all kinds of creativity made possible by technology. Global giants like Google Maps and LinkedIn have used OOH to create an impact, in addition to Netflix, Amazon Prime and Hotstar. Events are a big money spinner for OOH, and last year KumbhMela was proof of this. Witnessing audiences in crores, the promotion of brands on-site contributed significantly. In the financial year 2019, the revenue generated from out-of-home advertising across India amounted to over Rs 34 billion. This was estimated to reach up to Rs 52 billion by the financial year 2024, and Rs 38 billion in 2020.

    But all this has now been severely affected by the pandemic Covid2019. Many organizations have slashed their ad campaign budgets and have left the advertisers reeling for their incomes. OOH has been acutely affected in this scenario.

    Looking at history does not help, as during the previous instances of recession or pandemic, digital media or ambient advertising (a variation of outdoor) were not as developed as it is today. 1918 was the year when the Spanish Flu hit the world, and at that point mass television broadcast was at least 25 years away. Much later, in 2008, when the financial crisis hit the world, digital marketing was just fledgling.  But today, it is hard to find a single household that is not reached through digital and/or outdoor advertising.

    Lockdown has changed the way we live and the way in which we consume media. Urging people to stay indoors has resulted in streets and roads being empty. Halting public transport has created a vacuum in bus shelters and train stations and the busy shopping areas are deserted. The familiar red colour of Coca-Cola or the bright branding of Samsung is no longer visible while walking down the busy areas of metros in India. Many hoarding sites are empty as there are no consumers to view these.

    In-home media has been the gainer during this period. Whether it is TV, which has increased reach in terms of viewers and duration of viewership, or web streaming, which has seen a significant climb in the household watching time, or even video games (where playtime has gone up), people staying at home has resulted in a sharp increase in in-home entertainment and viewing.

    Out-of-home also includes ambient advertising i.e., advertising in unexpected areas. Aimed at evoking an emotional response, ambient advertising includes placing products, models etc. in attractive locations like malls and restaurants in order to catch the consumer’s attention. It is also called ‘creative guerilla advertising,’ and that has also hit a new low now. Reduction in public traffic has done away with the need for this kind of advertising, at least temporarily. Cancelling events has also had a bearing on this industry. With no immediate need to promote new products on a mass scale, clients are cancelling these events, leaving the advertisers high and dry.

    So, how can the outdoor media industry buck the trend?

    Outdoor medium is an integral part of our cityscapes and our lives. It has always had a place in building trust with local communities. Located in proximity to where people live and commute, it ensures a special bond with the citizens of that geography. And in times such as the current crisis, the medium is all the more relevant in garnering faith and educating the public. The medium, therefore, needs to play to its strengths. There have been cases where governments have recognized this and placed their confidence in this medium. According to the Ad Council of the US, ‘Out Of Home’ media plays a critical part in informing local communities and residents on how to stay safe during times of uncertainty. As part of their ongoing efforts to address the growing Covid2019 pandemic, the US department of health and human services (HHS) and centers for disease control and prevention (CDC), have convened (OOH) industry leaders, to bring critical Covid2019 safety messaging to the American public. From mall kiosks to airport TVs to Uber car tops and billboards, the industry is leveraging their extensive networks to help slow the spread of the virus. The scenario in India is no different. The advertising giants – Lintas, Ogilvy, JWT, etc. – are all focusing efforts on their outdoor advertising arm to bring more awareness to the public on Covid2019.

    Already known for its novel campaigns in the ambient format, the OOH industry needs further innovations. Take the case of Ro, an American digital health company, that has both men and women health products. Situated in New York, they decided to use outdoor medium and came up with a public utility message on safety on billboards, while also announcing their website-based tele-health assessments. This dual-purpose innovation helped them gain consumer mind share while also doing public good.

    Flexibility is the other aspect that will enable OOH to flourish. Media agency outfits that have a digital or TV component should allow clients to trade their outdoor budgets for digital or TV campaigns during this lockdown period, thereby retaining clientele. This will give them the much-needed revenues and allow them to get back on track once the current crisis is over.

    Making advertising trustworthy has always been a challenge. The metric for measuring trust in advertisements – the AD TRUST Scale – highlights the reliability of source as the topmost. Outdoor medium scores significantly on that front. Seeing China rebound from Covid2019 gives hope to outdoor marketers that all will be well soon. Coincidentally, the Beijing Olympics of 2008 was one of the pioneer outdoor events which showcased what OOH was capable of, through spectacular creativity (and technology). Given that outdoor advertising touches people in a personal, topical way, it is important that the industry adopts a combination of the above-mentioned strategies of playing to its strengths, practicing innovation and retaining flexibility.

    (The author is senior associate professor (marketing), Great Lakes Institute of Management, Chennai.)

  • “3-day India Mobile Congress 2018 concludes; showcasing the latest and the best in digital communications technologies, products, services, and applications; and establishing the future horizons for the digital communications sector in the country”: Manoj

    “3-day India Mobile Congress 2018 concludes; showcasing the latest and the best in digital communications technologies, products, services, and applications; and establishing the future horizons for the digital communications sector in the country”: Manoj

    India Mobile Congress(IMC) 2018 – a marquee event which provided a peep into the exciting future in the rapidly evolving area of digital communications – ended today, with participants and organisers promising to be back next year. This year’s event, with its’ theme of “New Digital Horizons – Connect. Create. Innovate.”, established the IMC as a regular platform for global and local stakeholders in the sector to collaborate in the cause of exploring opportunities and leveraging possibilities, with specific focus on South and South-East Asia.

    Addressing members of the press and media on the last day of IMC 2018, Minister of State (Independent Charge) for Communications, Shri Manoj Sinha said – “Having participated in the World Mobile Congress in Barcelona earlier this year, I can assure you that IMC 2018 was no less – in terms of substance, scale, and style. The IMC is just a two-year old baby, and it has already acquired a personality of its’ own. It will now be an important annual event on everyone’s calendar.”

    The mega 3-day event was inaugurated on October 25 by Shri Manoj Sinha,Minister of State (Independent Charge) for Communications, in the august presence ofShri Suresh Prabhu, Minister for Commerce & Industry and Civil Aviation; Shri Ravi Shankar Prasad, Minister for Electronics & Information Technology and Law & Justice, and Shri Hardeep Singh Puri, Minister of State (Independent Charge) for Housing & Urban Affairs. Also gracing the inaugural function were captains of the telecom industry – Shri Mukesh Ambani, Chairman, Reliance Industries; Shri Kumar Mangalam Birla, Chairman, Aditya Birla Group; and Shri Sunil Bharti Mittal, Chairman, Bharti Enterprises.

    The IMC 2018 conference and exhibition was held over a total area of more than 50,000 square-metres, with more than 5,000 delegates in attendance. Delegations from 20 countriesparticipated in the event, which saw more than 300 companies showcasing their latest and best technologies, products, services, and applications. According to the organisers, more than 50,000 curious visitors attended the various sessions and viewed the futuristic solutions on display at the exhibition stalls.

    An extremely relevant addition at this edition of the IMC was the presence of high-level ministerial delegations from several BIMSTEC and ASEAN countries. Hon’ble Ministers from the European Commission, Cambodia, Myanmar, Nepal, and Lao PDR led their respective delegations, and participated in plenary sessions which were focused on the specific needs, challenges, and opportunities applicable to member countries of these regional forums. The presence of the high-level delegations also offered them an opportunity for bilateral meetings with their Indian counterparts, where topics of mutual interest were discussed, and possibilities of strengthening cooperation were explored.

    Among the companies whose participationcontributed to the success of IMC 2018 were global and local giants such as Samsung, Intel, Ericsson, Nokia, Cisco, NEC, Accenture, KPMG, E&Y, Facebook, Huawei, Sterlite, Vodafone Idea, Reliance Jio, Airtel, and BSNL. Several exhibition stalls set up by these companies attracted crowds of interested visitors, while leaders from the companies enriched the discourse through their participation in the various plenary sessions. The exhibition stalls covered a variety of interesting possibilities, hinged around 5G, Internet of Things, Augmented and Virtual Reality,Artificial Intelligence, Robotics, Smart City Solutions, Fintech, Health-Tech, Autonomous Cars, and Cyber Security, amongst others.

    An interesting feature of this edition of the IMC was the focused attention on the critical Start-ups ecosystem. More than 200 start-ups marked their presence at the event, with their booths displaying ideas and innovations which seek to leverage the potential of digital communications to create and meet ever-changing consumer needs – in areas such as artificial intelligence, integrated services, healthcare, pharma, security, safety, food, sports, social networking, travel, education, and disaster management, among others. As Shri Manoj Sinha, while inaugurating the simultaneous release of 250 start-up applications at the IMC 2018 today, said – “The sheer volume and quality of what I see here is amazing. Who knows, we may right now be releasing the WhatsApp and Google Maps of tomorrow!”

    The event was also noteworthy for some very remarkable announcements which clearly established the direction of the Indian digital communications industry over the next several years. The Government of India announced the commitment of the industry to rollout One Million WiFiHotspots in the Country by December 2019. The National Frequency Allocation Plan (NFAP) 2018 was also unveiled at the event. NFAP 2018 frees up a total of 605 MHz spectrum in the 5-GHz band for Wi-Fi services. Several spectrum bands for Short Range Devices and Ultra WideBand Devices have been made license exempt, benefitting the public as well as industry. As Smt.Aruna Sundararajan, Secretary (Telecom) and Chairman, Telecom Commission, Government of India said – “These initiatives provide an excellent launchpad for achieving the goals such as Broadband for All, which are outlined in our recently released National Digital Communications Policy (NDCP) 2018.”

    In his concluding remarks, the Minister added – “Our Government, under the leadership of the Hon’ble Prime Minister Shri Narendra Modi, remains committed to make the digital communications sector a core part of our national infrastructure. The initiatives and reforms we have announced here will provide a strong boost to employment generation and digital economic activity – especially in the rural and semi-rural areas of the country. We are determined to succeed in our endeavours, in partnership with industry, academia, regulators, and startups.”

    Shri Sinha thanked the Department of Telecommunications and the Cellular Operators Association of India for designing and successfully organising a best-in-class event.

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  • Brands, agencies to rewire approaches using data: CVL Srinivas, WPP

    Brands, agencies to rewire approaches using data: CVL Srinivas, WPP

    MUMBAI: Data. A four letter word that has even the senior most executives sweating and scratching their heads. While it is a small little word, understanding how to use it, is actually very complicated. That’s why  all we’ve been hearing about in the last year is how can brands and agencies leverage the most of data and more importantly, understanding the basics of data. 

    Data is not restricted to using it only in advertising (for data-driven advertising), it can essentially be a very function of every brand. With all the buzz around data and using it to reach the consumer effectively and efficiently, marketers and agencies must know how to make the most of data for better ROI and consumer engagement.

    Google Maps, Instagram, Facebook, Twitter, Snapchat, Google, YouTube, Netflix have all changed our world, and for good! Technology has changed the way we connect with brands and things around us. You like something, you hit a ‘heart’, something makes you furious, you reply via an angry emoji on Facebook. All this consumer behaviour is Data for marketers. And with a consumer’s likes, dislikes, hearts, tweets and browsing history available readily, a brand maps the consumer behaviour and reaches to them with targeted advertising and content. That’s why you only get a message or pop up to shop or buy your favourite pair of clothes, lipstick, car or mobile that you’ve been eyeing for long.

    However, with brands being able to map your behaviour by scrutinising you and using your data, it also violates a consumer right to privacy. To address this, the Government of India is currently considering sweeping a data privacy law –  Personal Data Protection Bill of 2018 , which states that privacy is a "fundamental right" under the Indian Constitution. 

    The bill is closely modelled after the European Union's General Data Protection Regulation (GDPR). It broadly applies to all personal data defined as any data of a person which allows direct or indirect identifiability; and envisions a regime where individual consent is the cornerstone of data-sharing. If the bill is passed, it may change the way on when, where and how much data can brands actually use. 

    Maybe eventually brands will have to pay their users in some form to be able to use their data in the new framework of guidelines. It could be in the form of money, virtual money, coupons or discounts.

    To understand the current scenario and future of data driven marketing, in a quick chat with Indiantelevision.com, WPP country manager CVL Srinivas gave us insights about creating the balance between using data and human insights, future of advertising with data, WPP’s plan for 2019 and more. Excerpts: 

    The importance of data in advertising today is more than ever. How do you see the future of advertising along with data?

    Data is a critical part of every business today. We have a lot more data available to us than we ever had before. Today, every business is looking at transforming itself – by smartly leveraging data, businesses can fast track their growth in numerous ways. Advertising is becoming a lot more data-led. Not just in targeting the right audience or deciding the best 

    medium, data is inspiring creative thinking on brands. We saw numerous examples of data-inspired creativity at our summit today. Going forward, we will see brands and agencies adapting to this new data world by rewiring their approaches. This is not to say that all the

    traditional methods will go out of the window. We need as much of the marketing gut as we need data.

    Having too much data can often become complex. What’s the way out?

    A data strategy needs to start with a purpose. The end uses of data need to be defined. Else there is a tendency to try and boil the ocean. Like we heard from a lot of our panellists that day, that the best approach is to start small, test a few hypotheses and then scale up. 

    Somewhere along the way one learns what kind of data is most valuable for a particular business/brand.

    While brands and agencies have a lot of rich data available today, we don’t know what to do with it. Do we still need time to get there where we understand the data and can leverage it to the best?

    Most businesses are on the journey to get better at harnessing the power of data. There is no one defined method. Some of them have made more progress while others are starting off from scratch. While there is an abundance of data, what we really need is a more 

    balanced approach to putting it to good use. By ‘balanced’, I mean combining data points across different sources to paint a broader picture. That’s where we need to see more progress generally speaking. 

    Focus point for agencies and brands in 2019?

    Data-centricity will be a key priority going forward, but it must go hand in hand with creativity. 

    Do you think brands and agencies need to take a step back, pause and say, “I think we are pushing it too much!” How can we as an industry skip being ad-blocked?

    I think we will soon get to a point where most, if not all advertisers will realise the need to move from a completely push-based advertising approach to a more balanced way of engaging with their consumers. Data and technology are making it easier to identify consumer tastes and preferences more sharply. This will reduce the bombardment. On top of that, if one knows what kind of content engages the consumer, it can result in more relevant messaging being served.