In-depth Part 2: How Digital is transforming ad landscape in the East and adding scale

The East and North-East have a thriving ecosystem of their own – rich culture, tradition, lifestyle, language, consumer trends, content consumption, buying behaviour and more. The advertising industry here has evolved to embrace the diversity of this region and has been formulating a highly hyper-local strategy, perhaps long before national brands caught on to this strategy.

In this three-part In-Depth series, Adgully speaks to leading industry names to decipher the East and North East markets, how advertising has evolved in these markets, the key trends dominating these markets, how brands engage with their consumers, and much more.

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In-depth Part 1: The changing face of Advertising in East and North-East markets

Tracking the growth story

Angad Singh Manchanda, CEO & Co-founder, Chimp&z Inc shared his views on how Chimp&z has observed the advertising scenario to evolve specially in the East market, saying, “The advertising landscape in India has showcased remarkable growth, expanding at a rate of approximately 12%, surpassing the global average of 4.5%. Traditional media spending in India stands at a substantial $5 billion, with advertisers allocating over $5 per capita on adverts, indicative of a robust market with promising growth prospects. We have indeed come a long way from iconic campaigns like Amul’s ‘Amul doodh pita hai India,’ Cadbury’s ‘Umeedowali dhoop’, or Surf Excel’s ‘Daag achhe hain’, as the industry shifts its focus towards an automated advertising approach. This transition enables precise targeting and heightened efficiency, propelled by the widespread adoption of smartphones and internet connectivity across the nation.”

Vandana Ramkrishna, Chief Operating Officer, Madison Media Ace, observed, “From being a largely safe and traditional market, East has moved towards a huge transformation of adoption of latest media trends to elevate their marketing quotient. Not just large corporates, but even homegrown, owner-driven companies have seen a significant shift in the adoption of digital as part of their regular branding campaigns. All this, without losing out to the distinct linguistic and cultural nuances of the markets. Regional content has grown at least by 2X and both local as well as national marketers lap up the association opportunity.”

Yousuf Rangoonwala, Founder, Kakkoii International, added here, “The advertising landscape in Eastern India has witnessed a gradual evolution, presenting both challenges and opportunities for brands. While our brand has observed limited project opportunities in the region over the past four years, we have recognized the abundance of talent available, both locally and from neighbouring areas. However, the visibility of significant projects and innovative briefs remains relatively low, indicative of the ongoing challenges associated with the Eastern market.”

He further noted, “Kolkata, serving as the focal point of the Eastern market, presents unique dynamics characterized by its historical background and economic profile. Despite being India's least prosperous metropolitan city, Kolkata continues to play a significant role in the regional advertising scene, with traditional mediums such as outdoor advertising retaining prominence. However, there persists a lack of diversity in advertising content and brand engagement, primarily driven by established categories like innerwear, real estate, and jewellery. While the Eastern market shows signs of improvement, particularly with the rise of local agencies, it still lags behind other regions in terms of attracting large-scale investments and strategic moves from national brands. The need for a more progressive mindset among traditional businesses and entrepreneurs is evident, coupled with a shift towards embracing modern advertising strategies to stimulate market growth and brand engagement.”

Meanwhile, Rajni Daswani, Director - Digital Marketing, SoCheers, acknowledged that the East has always been the last focus market, especially for pan-India players. With multiple different regions, but all with very different regional nuances of their own, a lot of brands try to enter the market only when they feel confident enough across the nation. “Regional brands that understand regional nuances better have always taken a higher market share. However, with saturation across other markets and the East presenting such ample opportunities, brands have entered the market strongly even with a strong digital approach. Through hyper-local based targeting that can be based on location, interests, and demographics, brands can now easily craft and make them reach messages that resonate with specific communities,” she added.

Kritika Arora, Director - Performance and Acquisitions, Globale Media, noted, “The advertising landscape in East India has witnessed a remarkable transformation fueled by various influential factors. The region’s rich cultural heritage and linguistic diversity have sparked a surge in demand for localized content that resonates with specific audience preferences. As a result, brands are strategically tailoring their campaigns to cater to the unique linguistic and cultural nuances of the region, effectively engaging with their target audiences.”

The Digital transformation

In the past few decades, spending on digital advertising has increased to a great extent and now is in alignment with traditional media channels. There is a rise in more targeted, personalized, mobile advertising because of a growing mobile-first consumer base. Digital media consumption has surpassed traditional media in the East as well.

Mohit Anand, Co-Founder & CEO, Secure Connection, noted, “It is fascinating how the advertising scenario, especially in the East market, has been evolving, especially post-COVID. We have seen a major shift towards digital platforms across the board. From social media marketing to in-app advertising and digital media campaigns, everything seems to be going digital. One notable shift is the decline in organic reach on social media platforms. This shift is pushing brands to concentrate more on paid advertising to effectively reach their target audience. Additionally, there's a burgeoning interest in performance-based marketing, particularly in the realm of in-app ads. Everyone's craving measurable results these days.”

Speaking about Amazon, Anand said that it has transcended its role as merely a shopping platform and has now become a colossal advertising powerhouse. Brands can now directly target consumers based on keywords, leading to increased sales opportunities and precise audience engagement.  Focusing on East India, the narrative follows a similar trajectory. Digital advertising is asserting its dominance here as well. More and more brands are waking up to the potential of digital platforms in connecting with their audience. It is fast becoming the preferred avenue for establishing brand presence and driving sales.

Mehernosh Pithawalla, EVP - Brand & Strategic Insights, Godrej & Boyce, too, stated that digital transformation in the East has revolutionized the advertising landscape. “Consumers in this region have enthusiastically adopted mobile and social platforms, prompting us to develop culturally relevant and personalized campaigns across these channels. We harness the power of data, influencers, and interactive experiences to captivate our audiences. Our strategy has evolved from traditional media to a digital-first approach, focusing on targeted online campaigns and leveraging CTV for premium audiences. This shift mirrors the evolving consumer journey and underscores the influence of online channels. The East, previously underrepresented in media, has experienced remarkable digital growth, with ample opportunities for further expansion. While national ad spending is projected to increase by 12% in 2024, the East is poised for a 6-7% growth. By maintaining agility and embracing innovation, Godrej & Boyce is poised to thrive in this dynamic market,” Pithawalla added.

According to Delphin Varghese, Co-founder & Chief Revenue Officer, AdCounty Media, “There is an increasing need for digital agencies looking to establish themselves in the East to adapt to the dynamic and evolving landscape. Eastern consumers are increasingly more brand-aware and tech-savvy. The Middle East also has a very high mobile phone penetration. Marketers need to ensure that their website and marketing collaterals are optimized for mobile viewing and user experience. We at AdCounty Media adapted our marketing strategies to resonate with the local audiences in the East. To begin with, we developed a brand identity that aligns with the region's cultural preferences and language.”

He further added, “We also believe in creating high-quality content that caters to the specific needs and interests of our East Asian audiences. We have developed targeted social media campaigns for our clients in the East and partnered with Middle Eastern influencers to promote some services and ensure a wider reach. Our cultural sensitivity, localized marketing strategies, and strong local presence are some crucial factors that have contributed to our success. Our campaigns such as “Pushing Digital Boundaries” or “Tested Strategies for Success” highlight our dedication to innovation and delivering desired results.”

AdCounty Media has harnessed the power of programmatic platforms to cater to a precise audience segment through geo-targeting. Its programmatic platforms have also augmented engagement and brand recall via contextual targeting. Alongside this, the platforms also offer features of creative optimization that help the company craft campaigns that resonate with East Asian audiences. “Besides these, robust performance tracking available on these platforms has helped us improve campaign performance through assessing metrics like brand lift, ad recall, engagement rates, etc.,” Varghese added.

Rajni Daswani of SoCheers noted that the East markets have gotten a lot more accessible due to digital penetration; however, there’s still a lot to learn about each city’s cultural preferences and nuances that help brands and agencies connect with them better. “However, with regional language content creation, we have been able to break some barriers and see effective reach numbers. Localized ads in digital and print; sponsoring local events; key regional celebrity and influencer endorsements are some of the ways we have looked at approaching the East markets.”

Globale Media’s Kritika Arora shared, “We leverage digital channels to reach and engage with the target audiences of our clients more effectively. This includes strategies such as content marketing, social media advertising, influencer partnerships, and search engine optimization (SEO). Additionally, there is a growing emphasis on personalization and data-driven advertising, where brands use consumer data to deliver more relevant and targeted messages. Our brand communication is currently focused on creating authentic and relatable content that resonates with the Eastern market culture and values. A good understanding of regional dialects and cultural quirks can be crucial in developing marketing strategies. We are also focused on driving lower funnel metrics for our brands by adopting multiple approaches that include retargeting and sealing the deal.”

“From traditional mediums like print and television to the explosion of digital platforms and social media, the options for reaching audiences have expanded exponentially,” pointed out Shivansh Tripathi, Business Development Manager, Mrig Sight Media, adding, “However, navigating this diverse and complex market requires more than just adopting new channels – it demands a deep understanding of local preferences, values, and communication styles. By embracing innovation while respecting cultural sensitivities, businesses can unlock immense opportunities for growth and engagement in East markets. As we continue to explore this ever-changing advertising scenario, business development strategies must remain agile, adaptive, and culturally attuned to effectively capture the attention and loyalty of East market consumers.”

Adoption of emerging tech like AI, ChatGPT, ML, AR

Vandana Ramkrishna of Madison Media Ace noted, “There are brands who want to keep the audience engaged, so along with building the Top Funnel, brands use GPT-enabled Chatbots. These help them keep the audience engaged along with collecting the PII data. Google and Meta themselves provide AI-enabled options like AI-powered Ad Copies, AI enabled dynamic creatives. These reduce TAT, and human intervention, thereby saving budgets.”