Will tech industry ad reports make advertisers think over their marketing mix?
This earnings season saw tech companies report mixed results in terms of revenue recorded from advertisements, and that could ideally impact the way advertisers look at their marketing mix. Experts say that advertisers are trying to focus on bigger and more dynamic platforms for customer growth as the guarantee for success is larger. While Alphabet reported better-than-expected ad revenue and Meta’s ad impressions for the reported quarter grew by 26% year on year, smaller rivals Pinterest and SnapChat struggled to impress investors as ad growth did not meet their expectations. Deciding the marketing mix for a particular campaign or product has long been an important decision for brands, both creatively and financially. How do this quarter’s tech earnings affect brands and their marketing strategy for the future? We asked experts. Making the right choice As tech companies try to deploy new innovations to lure advertisers to their platforms, industry leaders feel that it is not about how much technology is used on that platform but about how dynamic it is. It’s important to be selective about where you are spending your money and how that might help in the future growth of the company. Siddharth Dabhade, Managing Director of MiQ India, China and SAARC believes companies need to invest where the target options are higher. “The success of Alphabet and Meta can be attributed to their ability to provide personalized advertising to their users. With the help of AI and machine learning algorithms, these companies are able to provide highly targeted ads to users based on their interests and behaviour. “Brands that can offer personalized advertising are likely to see better results. The drop in ad revenues for Snap and Pinterest highlights the challenges faced by niche platforms. These platforms may struggle to attract advertisers if they cannot provide the same level of targeting and audience reach as larger platforms like Google and Facebook. “Brands may need to be more selective in their choice of advertising platforms and invest in those that can offer better targeting options.” Speaking about the impact of economic slowdown on the choice advertisers are making right now, Kumar Awanish, Chief Growth officer, Cheil India says, “Every agency and every advertiser is thinking of economic slowdown and recession globally. Nobody is different in that regard. That has certainly impacted the advertising spend from an advertiser perspective as well because obviously, everyone tries to be future-ready. But why Google did not see that much of an impact is also because their search plays a critical role. That is an intent-driven platform. This means if an advertiser wants to cut down on the advertising budget, they will first go and cut down on the awareness part. But since Google search is intent-driven, that awareness is already there, which is why people are searching on that platform. “That is one area wherein advertisers will certainly not want to cut their budget until there is a very foreseeable and pressing concern. You will want to deploy 100% of your budget there because that is fetching revenue for you.” Shradha Agarwal, Co-Founder & CEO, Grapes says that the marketing mix for any brand varies on their message and the audience they’re targeting for that particular message. “For a more general message, this mix usually has a healthy combination of multiple digital and social media platforms, including Snapchat and Pinterest. But the latest numbers suggest that the two platforms don’t have anything new and innovative to offer to the brands and the audience. Snapchat, a pioneer of filters and the ‘story’ format, doesn't offer any value proposition today that sets it apart from other platforms, the effects of which are reflected in its dipping ad revenue.” Abhishek Banerjee, Director - National Sales, AdOnMo talks about how brands can move to newer mediums like DOOH to find innovative ways of engaging the customers. “The mixed quarterly results among tech companies have telling implications on the marketing mix among brands. It highlights the importance of diversifying marketing strategies and not relying solely on a single platform for advertising. Brands need to consider a multi-channel approach, leveraging different platforms and mediums to reach their target audience effectively. Google especially has been a champion of emerging channel as it added Digital out of home (DOOH) advertising into its Display and Video 360 ad planning tool, making it easier for planners to run multi-channel campaigns. Naturally, brands would also need to embrace newer digital channels of reaching out to the user like ambient DOOH, that amplifies brand impact by reaching consumers in real-world environments, enhancing the media multiplier effect.” Awanish from Cheil India further adds, “Advertisers right now are focusing on the key metrics and not vanity metrics. The vanity part is what Pinterest or Snapchat probably will drive and that is only good when you have enough money, when you have a good amount of marketing budget. But when you are squeezing that budget, then probably you will just go for what is important to you.” Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
Tags : Ad Revenue Kumar Awanish Shradha Agarwal Tech Siddharth Dabhade MiQ Chiel India Abhishek Banerjee Internet Advertising Internet Advertising India Digital Digital News Digital Ad Ad Campaign Campaign Digital Advertising Digital Ad Campaign Digital Campaign Digital India Digital Media