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Tag: tech brands

  • Global ad market to be hit by trade wars, tariffs, and turmoil, says Warc

    Global ad market to be hit by trade wars, tariffs, and turmoil, says Warc

    MUMBAI: The global advertising industry is set for a bumpier ride than expected thanks to Donald Trump’s recent trade pronouncements and the retaliatory measures by the countries  affected and the continuing conflicts in certain parts of the world. 

    With this background in mind, Warc has slashed its ad spend growth forecast for 2025 by almost a percentage point to 6.7 per cent. The revised estimate pegs global ad spend at $1.15 trillion, down $20 billion over the next two years, thanks to economic stagnation, trade tariffs, and regulatory upheaval. The outlook for 2026 has also taken a hit, with growth now expected at 6.3 per cent.

    Warc director of data, intelligence & forecasting James Mcdonald put it bluntly: “The ad market is feeling the squeeze from tariffs, economic stagnation, and regulatory crackdowns, prompting brands to rein in budgets. Despite the volatility, digital ad spend remains robust, with Alphabet, Amazon and Meta set to control over half the market by 2029.”

    Automakers are slamming the brakes on ad budgets, cutting spend by 7.4 per cent as manufacturing stalls and supply chain woes deepen. Key players like General Motors and Ford have already slashed marketing budgets, focusing more on digital and social channels over traditional TV spots. Meanwhile, tariffs on Mexican, Canadian, and Chinese car imports threaten to worsen the crunch, with 40.7 per cent of the industry at risk, per the European Automobile Manufacturers Association.

    Retailers, too, are tightening belts. The sector, the biggest spender in global advertising, is set to cut ad budgets by 5.3 per cent this year, as rising costs and trade barriers squeeze margins. Chinese disruptors like Temu and Shein, which fuelled a retail ad boom in 2024, are expected to dial back their spending due to new trade restrictions.

    Tech brands, once the ad market’s golden child, are now facing a slowdown. The sector’s projected growth has been halved, down to 6.2 per cent, as new tariffs on semiconductors hit supply chains. Warc had previously forecast a 13.9 per cent jump in tech ad spend—now it’s looking at a much cooler landscape.

    Despite the broader slowdown, digital advertising remains a money-spinner. Search advertising will grab 21.7 per cent of global ad spend this year, rising eight per cent to $250 billion. Social media, the biggest single advertising channel, will rake in $286.2 billion—almost a quarter of all ad spend—powered by TikTok (+23.6 per cent), Instagram (+17 per cent) and Facebook (+8.6 per cent).

    Retail media, the rising star, is set to be one of the fastest-growing advertising formats, with a 15.4 per cent surge this year. However, trade barriers could dent ad receipts from consumer goods brands that rely on global supply chains. 

    Yet, there are storm clouds ahead. The EU has slapped Apple and Google with Digital Markets Act violations, putting billions in ad revenues at risk. UK courts could soon allow consumers to opt out of personalised ads, threatening the backbone of search and social media advertising.

    The US remains a bright spot, with ad spend expected to rise 5.7 per cent to $451.9 billion. But that’s a far cry from the 13.1 per cent growth seen in 2024. Warc predicts a stronger 2026, with a 6.5 per cent uptick, thanks to the FIFA World Cup and US midterms.

    China’s ad market, however, is losing steam. Growth is slowing to 5.3 per cent this year to $205.5 billion – compared to growth of 7.1 per cent recorded in 2024 – as weak domestic demand takes its toll. This year’s growth rate equates to a 3.5 per cent rise in real terms.

    Europe’s major economies, meanwhile, are teetering. The UK’s ad market is still growing—up 7.1 per cent to $52.6 billion—but inflation-adjusted figures tell a less rosy story, with real growth at just 5 per cent. Germany, bogged down by economic sluggishness, is heading for a 2.1 per cent decline in ad spend, while Japan is bracing for a 2 per cent drop. Japan’s market is set to grow 3.3 per cent this year when measured in local currency, demonstrating the current strength of the greenback against the yen.

    Trade wars, tariffs, and economic turmoil are reshaping global ad spend, forcing brands to rethink strategies. The digital giants remain dominant, but regulatory pressures are mounting. In a market full of uncertainty, one thing’s clear—advertisers will need to stay agile to keep ahead of the curve.

  • Tata Consultancy Services is India’s ‘Most Valuable Brand’: Kantar BrandZ report

    Tata Consultancy Services is India’s ‘Most Valuable Brand’: Kantar BrandZ report

    Mumbai: Tata Consultancy Services ($45.5 billion) is the new number one ‘most valuable Indian brand,’ claiming the top spot from HDFC Bank (number two, $ 32.7billlion) which had held the position since the first ranking was unveiled in 2014, as per the latest Kantar BrandZ report on ‘Top 75 Most Valuable Indian Brands.’ TCS’s brand value has been accelerated by global demand for automation and digital transformation following the pandemic.

    India’s strongest brands have bounced back from the pandemic to increase their brand value by a massive 35 per cent CAGR (compound annual growth rate) since 2020, when Covid -19 hit the country, according to the report.

    India’s top 75 brands are worth a combined $393 billion, equivalent to 11 per cent of India’s national GDP. Moreover, the growth rate of the ‘Kantar BrandZ Top 75 Most Valuable Indian Brands’ outpaces the rate of growth being posted in other major markets around the world.

    ‘The Top 10 Most Valuable Indian Brands’ together contribute just over half of the ranking’s total value. There has been significant movement at the top, in addition to the two most valuable brands switching positions. There are two new entrants – Infosys ($29.2 billion) which has rocketed up to the third spot from the 12th position, and ICICI Bank ($11 billion) which has climbed two places to number nine. State Bank of India ($13.6 billion) has also risen four places to sixth position.

    There are brands from 23 different categories in the 2022 Indian Top 75. There are a total of 14 newcomers, from 11 categories – including online gaming, education, apparel and real estate, reflecting the diversity and dynamism of the Indian economy.

    Technology and banking brands account for over half of the total value. Six B2B tech brands and 11 consumer tech brands contribute 35 per cent to the total value of the ranking, reflecting the rise of tech India. Overall, B2B brands (tech and payments) are on average almost three times as valuable as B2C brands, reflecting the fact that many of the B2B brands play on the global stage while B2C are more focused on the domestic market. Six banking brands deliver 19 per cent of the total value. Also notable for their performance are insurance brands, which have performed well as the pandemic increased consumers’ focus on the protection of life and health and telecom providers, led by Airtel (Number four; $17.4 billion) and Jio (Number ten; $10.7 billion), which took full advantage of growth opportunities as everything moved online, from education to work to parties.

    Key newcomers to the ranking include Vodafone Idea (VI) (No.15; $6.5 billion); formed from a merger between VI, Byju’s (No.19: $5.5 billion), the educational technology brand that has become India’s most valuable education brand and Adani Gas (No.21; $4.5 billion).

    Kantar – South Asia’s insights division executive managing director Deepender Rana says, “India’s leading brands have grown at an exceptional rate, despite global economic headwinds, putting the disruption from COVID-19 behind them. Indeed, they have both driven and benefited from the transformation in consumer and business behaviour as a result of Covid-19, especially where it relates to the use of technology. The challenge now is to sustain momentum as inflation bites worldwide and consumers and businesses adjust to the new normal. Brand owners will need to work harder to identify and build on what makes them worth paying for and ensure ROI on their marketing expenditure to avoid a margin squeeze.”

    The pillars of brand building in India

    Kantar BrandZ has identified four fundamentals responsible for powering brand growth: function, convenience, experience and exposure. India differs from other markets around the world, however, in that a brand’s sustainability credentials and purpose matter more.

    Overall, 65 per cent of Indians feel anxious about climate change, and 64 per cent believe businesses must play their part. The highest-ranking brands in the Top 75 are clear on purpose and have a relevant sustainability agenda. These include the services platform Zomato (No.30; $3.1 billion), which offsets the carbon footprint of its deliveries and packaging. Swiggy (No.20; $4.8 billion) elevates the quality of life of consumers with the speedy delivery of meals, groceries and healthy items, as does Flipkart (No.12; $8.9 billion), while also helping smaller local brands to connect with consumers via its platform.

    Kantar’s insights division managing director Soumya Mohanty says: “Purposeful and sustainable brands are rewarded. Indian consumers look further than the brand attributes that affect them personally – they want brands to improve people’s lives and have a positive impact on wider society. They vote with their wallets, choosing brands they see as ‘doing the right thing.’ Indian brands should have a clear view of their purpose, connect strongly with it by embedding it in their culture, talk about it in creative and powerful ways, and deliver on it – without fail.”

    Salience – the ability of brands to spring quickly to mind when a consumer has a need – is also vitally important. India’s Top 10 brands are far more salient than their counterparts in most other countries. However, for growth to be supercharged, brands must have a strong meaning. They should have functional meaning – doing a good job of fulfilling a need – but also a layer of emotional meaning. The Kantar BrandZ India Top 75 far exceeds other Indian brands on all of these vital predictors of success.

    Other key highlights from the analysis include:

    57 of the brands in 2022 Top 75 have been in the ranking since 2018, while 19 have moved up the league table.

    The share prices of companies behind strong brands are protected in a ‘bear’ market and recover more quickly. Between August 2014 and June 2022, the sensex India Index gained 63.8 per cent, while a portfolio of the most valuable Indian brands rose 81.8 per cent.

    There are 11 consumer tech brands in the Top 75, reflecting the increasingly digital way Indian consumers live, which is 11 per cent of the total brand value. The four most valuable brands in this category are Flipkart (No. 12; $8.9 billion), Byju’s (No. 19; $5.5 billion), Swiggy (No. 20; $4.8 billion) and Nykaa (No. 25; $3.7billion).

    Kantar BrandZ Top 10 Most Valuable Indian Brands 2022

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  • IPL 2019: Tech brands optimise ad slots to drive digital interactions

    IPL 2019: Tech brands optimise ad slots to drive digital interactions

    The Indian Premier League (IPL) has been growing with every iteration from its inception in 2008 and has become one of the most celebrated Twenty20 match formats in India. With some of the biggest players in the world joining in with local up-and-coming talent, the IPL has garnered both Indian and international audiences. According to BARC data, the first three games of IPL 2019 witnessed a 31 per cent surge in viewership as compared to last year.

    This massive audience can be the perfect opportunity for brands to position themselves and maximize their reach. Since we’re in the age of analytics, it would be a crime to leave out social media stats as well. In the month building up to IPL 2019 (20 February – 21 March), there were a total of 73,400 mentions and in terms of pure mentions across platforms and engagement stands at a whopping 1.1 million according to Talkwalker, a prominent social media analytics company based in Luxembourg.

    So when it comes to India, one thing to keep in mind is that cricket has no language. It’s our nation's favourite and most popular sport. In terms of revenue generating potential, Star India Pvt Ltd understood the capabilities and won the rights to the IPL. Last year, Star India aired the IPL final in eight languages across 17 channels.

    According to the BARC data analysed by Insidesport.co, 22 per cent of the viewership for IPL has come from regional language feeds. These statistics establish how Star India has been able to expand into, and open regional markets well than previous IPL seasons on the Sony Pictures Network.

    In fact, it is such a big opportunity for advertisers that Star TV has requested permission from the BCCI to broadcast political advertisements during the telecast of the games. While the IPL takes place from 23 March to 19 May, Lok Sabha elections are scheduled between 11 April and 19 May. For many political parties, this is a one-of-a-kind opportunity to connect with voters all across India.

    Coming back to brands and advertising, another aspect to consider is the evolving arena. Consumers are now watching IPL content on OTT platforms such as Hotstar, SonyLiv, etc. Star India said it would offer targeted ads on its video streaming platform – Hotstar for IPL 2019.

    As the viewing experience has diversified, advertisers are also changing their focus by using analytics to reach their TG with more relevant content. Broadcasters are increasing their efforts to take advantage of regional markets by targeting demographics on different platforms with different content as well.

    But purchasing ad space during the IPL is not for every advertiser. Only the most successful and premium brands are able to buy the coveted space of 10-20 seconds. So in turn, the question doesn’t come down to national or local advertisers but rather tech brands and non-tech brands.

    A majority of ads during the IPL (more than 60 per cent ads) on TV and OTT platforms are tech ads. Companies like Swiggy, Paytm, Netmeds and Make My Trip utilise these ad slots on mainstream media to drive interaction their own digital platforms.  

    Another key factor when it comes to advertising is actually the year. The ICC World Cup will also take begin in May 2019 and hence ads on the IPL and World Cup 2019 may be seen as a double-edged sword. If well strategised, brands can take advantage of the opportunity to gain maximum traction during these mega events. On the other hand, if unplanned, ad budgets are likely to dwindle leaving sub-standard visibility during only a single event.

    For brands not considering a direct tie-up with broadcasters, IPL fever can still be used to your advantage. If budgets are low, consider piggybacking on hashtags and contests to increase visibility and engagement. If adequate budgets are available, on-ground activations at stadiums can be a gold mine creating buzz amongst the attendees and connecting with your audience on a one-to-one basis.

    Similar to the IPL teams competing against each other, brands are starting to compete against each other for ad slots. Being one of the biggest opportunities to reach audiences across the country, brands are likely to bid against one another for a coveted piece of the IPL pie.

    (The author is CEO and MD at NeoNiche. The views expressed are his own and Indiantelevision.com may not subscribe to them.)