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In 2024, marketing budgets will take into account technology and hyper-personalization

In 2024, marketing budgets will take into account technology and hyper-personalization

We chat with marketing leaders from several industries about their projected marketing budgets, the media and trends that will impact the allotments, and their advice on navigating the budgeting process.

According to GroupM India’s This Year Next Year (TYNY) study, total Indian ad revenue is predicted to reach INR 1,55,386 crore in 2024, up INR 14,423 crores from 2023 and expanding at an approximate rate of 10.2%.

According to experts, marketing budgets should prioritize technology and hyper-personalization in this regard. 

This year, forward-thinking marketers are set to embark on a year of unprecedented experimentation, exploring tech-oriented, hyperlocal, and hyper-personalized approaches that will be critical to fostering stronger loyalty, deeper connections, and delivering breakthrough growth. These progressive marketers, according to Ayaesha Gooptu, Head of Domestic Brown Spirits, Bacardi India, will go beyond conventional strategies that are usually quantified in hard measures like return on investment.

Gooptu goes on, “Marketers are set to make a deeper foray into crafting immersive experiences using AI, AR, and VR technologies – strategically driving investments in realms that are bound to capture the attention of modern consumers this year.” This is in line with India’s growing appetite for these unique and immersive experiences.

She also notes that companies who are already using experiential marketing are reporting notable increases in revenue as a result of their efforts.

We also talk to marketing executives from various industries about their projected marketing budgets, including the media and trends that will influence the allotments, and they offer advice on navigating the budgeting process.

Marketing Spending Cap

Automakers such as Maruti Suzuki base their marketing expenditures on a funnel model that is painstakingly crafted to maximize the brand’s marketing synergy.

Maruti Suzuki India Limited’s Senior Executive Officer, 

Shashank Srivastava,says,

                              “Our advertising budget is INR 1000+ crore overall, which is spread across these different funnel stages.” 

There is probably going to be a 15% hike. 

According to Srivastava, almost 45% of the brand’s total sales come from rural regions. This emphasizes how critical it is to customize marketing campaigns for rural consumers by utilizing the appropriate platforms.

Srivastava continues by mentioning that the brand first focuses its efforts on launching new items and developing its brand. A focused initiative to keep our present product portfolio moving forward comes next. They oversee the management of the corporate brand narrative, making sure that it is in line with the strategic goals. Tactical support is the emphasis of the last stage.

“The industry spends will continue to over-index on digital media in 2024, with eCommerce platforms and video-led platforms taking a larger share of the pie compared to previous years,” predicts Shivam Ranjan, Marketing Head, Motorola APAC.

According to Ranjan, there is a significant double-digit expansion in the electronics brand’s market share in India, and this growth is expected to translate into increased marketing expenditures.

“There will be a preference for new age digital media and formats, like influencer content, short format video content, live commerce, eCommerce display & search investments, along with hybrid media like DOOH that offer better targeting and return on investment compared to traditional media,” says Ranjan. 

The IPL and the elections, which are high-impact events this year with overlapping schedules, will also be major areas of focus for the brand, along with AI-led marketing investments from a communication development and media viewpoint.

A recent analysis by Goldman Sachs predicts that by 2027, 100 million Indians—up from the present 60 million—would be considered “affluent,” meaning they will earn more than $10,000 annually. By 2027, the nation’s consumer market is expected to rank third in the globe.

The marketing landscape is set to undergo significant changes in 2024, led by a strategic combination of data-driven insights and evolving consumer trends, according to Deepa Krishnan, Head of Marketing, Hyatt India Consultancy Pvt Ltd., with reference to this.

“Marketing budgets will rise significantly, reflecting the nation’s increasing affluence, robust GDP growth, and expanding Gen Z and Millennial population, along with strong mobile and social penetration,” says Krishnan.

Media schedule

Travel as a category is seeing a transition in tandem with the hospitality industry. Reaching Gen Z through the channels they use most frequently is crucial, since they now have the purchasing power.

The online travel company Cleartrip has always positioned itself as a digital-first brand, according to Kunal Dubey, CMO.

Thus, this medium will continue to be our key channel, receiving more than 70% of our expenditure, according to Dubey. Even in the case of television, where screen size matters but only in a digital environment, Connected TV (CTV) becomes our top option.

He remarks that the brand would continue to use print for targeted markets and important campaigns in an efficient manner, as well as using television as a conventional approach during moments of high demand.

In a similar vein, Godrej Capital’s CMO, Nalin Jain, predicts that digital channels will account for the majority of marketing spending going forward, especially on platforms like social media, search engine advertising, and online content promotion. The unquestionable reach and power these media provide in the present era is what is driving this change.

According to Jain, “Social media is a powerhouse for brand visibility with its vast user base, targeted advertising options, and interactive features. Additionally, search engine advertising guarantees that companies reach intent-driven consumers who are actively looking for goods or services. Moreover, spending money to promote material online increases engagement. 

Even if digital is leading, Jain thinks that conventional media, such as print and radio, still have a place since they appeal to a variety of consumer demographics. Due to their widespread appeal, traditional media still play a crucial role in promoting brands widely and continuing to be relevant for certain demographics and niche markets.

According to Shashank Srivastava of Maruti Suzuki, the company uses an omnichannel approach to provide a consistent brand experience for customers across all media, including print, OTT, TV, digital, OOH, and radio.

“To enhance the top end of our marketing funnel, we want to raise spending across TV and OTT platforms. We successfully introduced a number of new items to the market last year, and we already have a number of products in the works for this year.

Furthermore, he claims that advertisers are drawn to cinema and OOH and DOOH advertising.

This is mostly because of the marketing and promotion trends that will shape the auto industry in 2024. With Maruti Suzuki investing more on TV platforms and OTT as the brand focuses on growing the upper-end funnel and creating the ideal brand impression and imagery, Srivastava anticipates an increase in OTT and digital spending.

Themes that will impact financial plans

About the newest developments in technology and trends such as AI, AR, and VR Kunal Dubey of Cleartrip states, “We invest new-age tech stack and trend tests with 5% to 10% of our whole budget as a basic practice. We plan to grow the platform in proportion to any successful outcomes we see.

Furthermore, as stated by Deepa Krishnan of Hyatt India Consultancy, “We anticipate generative and predictive AI to play a pivotal role in delivering hyper-customized experiences across unique yet meaningful touchpoints, particularly with the emergence of trends such as ‘Segment-of-One’ Marketing.” Better media targeting as well as increased efficiency in search and digital spends are also expected to be priorities this year. 

63% of marketing executives have either invested in AI or plan to do so within the next 24 months, according to Gartner. Ninety percent of marketers think AI and automation allow them to spend less time doing manual labor. According to the survey, among other corporate operations, artificial intelligence has the biggest financial influence on marketing and sales.

According to Shashank Srivastava of Maruti Suzuki, marketing messaging will emphasize sustainability and encourage consumers to choose greener modes of transportation like EVs, hybrids, flex-fuel vehicles, and compressed natural gas (CNG). 

Noteworthy advice

“Beyond digital strategies, tapping into the emboldening ‘vocal-for-local’ sentiment will be critical in resonating with Indian consumers,” notes Bacardi India’s Ayaesha Gooptu.

In an effort to gain a competitive advantage, Gooptu predicts that more marketers will spend money on regional ads this year that align their products with the national sentiment.

Nalin Jain of Godrej Capital offers some advice on overcoming obstacles related to marketing expenditure. He advises companies to take a diverse strategy.

“First, give data-driven choices top priority. Use analytics to pinpoint high-performing channels. Adopt a comprehensive approach and distribute funds according to the special advantages of each media. Thirdly, make an investment in imaginative content to guarantee a consistent marketing message across channels. 

Finally, Jain asserts that maintaining flexibility and adjusting to new developments are essential for long-term success in the dynamic marketing industry.

“Prioritize tentpole activities and focus on investments that maximize brand SOV,” advises Shivam Ranjan of Motorola APAC. It is advisable to allocate resources towards contemporary video and engagement-focused formats that align with evolving consumer trends and content consumption styles.

To optimize expenditure in real-time, Kunal Dubey of Cleartrip advises keeping an experimental mentality and conducting continuous testing in both control and test markets.

He also talks about how accurate preparation of additional audience groups is necessary for a successful campaign. In addition, keep an eye on the efficacy of your creative work and have a backup plan ready. This keeps a lot of money away from underperforming creatives.

Finally, using full-funnel material consistently across platforms even when the audience is the same.

Conclusion

In addition to increasing consumer engagement through immersive experiences, businesses in a variety of industries, including the automotive and hospitality sectors, are preparing to devote larger budgets to digital platforms, AI, AR, and VR technologies. This is being done to maximize marketing efforts and reach India’s expanding affluent class and digitally savvy generations.

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