Everyone’s in for something; some hunt for the hottest deals while others soak up the holiday spirit. Even after this difference, everyone shares a deep intent: to make the most of the season.
Over the years, this has become the season for brands to invest heavily. It's when every brand, including emerging ones, are trying to outbid each other, making the competition tougher than ever. This challenge makes every marketer look for new strategies and performance channels to stand out.
Are you a brand willing to promote your service or product during this festive season? If yes, then that article is for you.
And here’s what every brand needs to know: big potential but also higher prices for marketing
Internet use in India is rapidly increasing, presenting a significant opportunity for digital targeting due to the high volume of users. We’ve got over 821 million people online, and the number of non-active internet users has dropped by 100 million since 2021, leaving 665 million offline. Of those online, 427 million engage with e-commerce, with 294 million actively buying products. This includes 196 million urban shoppers and 48 million using social commerce.
That’s a lot of potential. It represents a goldmine for brands trying to strategically engage a thriving audience during this festive season.
But this festive season is not just like any other!
After cautious spending during the COVID years, the festive season in 2024 finally looks like it will be a big one. There’s a sense of optimism in the air—a real “glass half full” feeling. But this bounce-back comes after the Independence Day sale, which didn’t quite hit the mark. Sales were subdued, especially among low to medium-income families, which got brands thinking.
So, what’s the solution? Retailers decided to get a head start. They’re kicking off their campaigns as early as the end of September, hoping to build excitement well before the usual festive rush. But is it grading the attention needed?
While we’ll have to wait and see how it plays out, one thing’s for sure: brands are taking a new approach this year, which will be interesting to watch.
Moreover, brands are expanding beyond national events to embrace globally popular shopping festivals in India like:
- Singles Day (11/11)
- Thanksgiving (November)
- Black Friday (November)
- Cyber Monday (November)
- Boxing Day (December)
But the question remains: What is the best way to reach your audience amidst this festive frenzy? How can brands ensure their message resonates in a crowded digital landscape? And what strategies can emerging brands employ to navigate the rising costs of digital advertising?
The Impact of Rising Costs in Digital Advertising
Every year, key sales events see a sharp rise in CPCs and CPMs across platforms like Google, Meta, or any other biddable platforms like Programmatic, Microsoft Ads, and Q4 is no different. It is more fierce and might stretch over 3 months, depending on the industry the brand expertise in, as the demand for ad space intensifies across channels during the holiday season.
Emerging and small brands face unique challenges during this period, starting with the price of the campaigns
Search is unavoidable, especially during the festive season. Whether it is your long tail or branded keywords, every brand is trying to invest to be in the spotlight! In India, early trends for 2024 show a 10.43% increase in average CPC from 2023, driven by larger marketing budgets and intense competition. This rise pressures upcoming brands to find cost-effective ways to stay relevant.
Retailers, especially in consumer electronics and durables, often see CPC costs rise by 20-50%, with conversions increasing by 10-15%. However, heavy discounts lead to a dip in average order value (AOV).
Emerging brands struggle to compete with bigger players, so they keep exploring micro pockets to avoid locking horns.
On Google, rising CPCs force brands to refine their keyword strategies. Meta observes a CPM increase of 20-25% during festivity, particularly impacting sectors like Auto, Ecommerce, and ethnic apparel. To address this and offer a more level playing field, Meta developed various solutions, one of which is a 'reservation campaign,' which primarily boosts awareness and reach—great for building buzz, but not a cure-all.
On the other hand, programmatic advertising would provide a better solution with block deal options with different websites and aggregators. However, brands will need to invest for a 6 -12 months period to secure CPM, which is light on the brand’s pocket.
As competition intensifies, these biddable platforms become a battleground to survive during the long festive season for any emerging brands and might leave the warchest dry for any strategic pivots or product or service level modifications.
Brands are becoming increasingly savvy, doing their homework and laying solid groundwork by conducting thorough research to prepare for the festive season. Still, the dynamic nature of this period means that C-level executives and digital marketing superstars will inevitably find themselves burning the midnight oil during those critical 90+ days. After all, no amount of prep can completely shield you from a festive season surprise—or two! It’s like preparing for a crucial match, but keeping your mobile handy, just in case the cable cuts out or wifi stops working.
But there's a silver lining: Influencer Marketing
One channel has grown at a compound annual growth rate (CAGR) of 18% and now reaches 575 million people. What's most exciting about this channel isn't just its sheer scale, but its ability to serve as a launchpad for startups and direct-to-consumer brands, particularly in the beauty, fashion, health, and lifestyle sectors.
Yes, I am here talking about Influencer Marketing. It’s like the digital version of “Shark Tank”—a game changer for emerging and upcoming players with the potential to go from zero to hero.
By the end of 2024, it's set to be a $24 billion industry, with 60% of brands increasing their influencer marketing budgets. Why? Because shoppers, especially millennials, trust user-generated content 50% more than traditional ads. They crave authenticity, and that’s what influencers deliver.
That’s not all! Technology-driven campaigns are not optional anymore, and artificial intelligence is not a thing of the future anymore; it’s now and here to stay. Interestingly, 63% of brands use AI to enhance their campaigns, while 27% explore the synergy between AI and marketing strategies.
While there are some valuable learnings, what truly amazes me the most, and not in a good way, is that it’s 2024, and still more than half of the brands/agencies consider top-funnel metrics like views/reach/impressions as the key indicators of success for marketing success.
Frankly, it’s absurd!
Influencers are your new performance channel!
The synergy between technology and influencer marketing is taking the channel's capabilities to new heights where the influencers are being paid for key actions and not on a per video/publication. This is where we have DRIM - Performance-based influencer marketing platform. Powered by a proprietary AI/ML platform to analyze the plethora of data and introduces advanced metrics that were previously unknown to brands and agencies just a few years ago.
Started 7 years ago, DRIM has placed influencers at the core of its ecosystem and has developed an L&D team, in addition to an influencer management team, to enable the Nano and Micro influencers to upskill and monetize their authentic content while complying with the brand policies and guidelines. That’s just the tip of the iceberg!
This comprehensive approach has enabled DRIM to cultivate a robust creator network of 250,000 influencers. These influencers are engaged in performance-driven models that have generated 12 million results across diverse sectors, from Foodtech to BFSI.
Envision a force of influencers equipped with cutting-edge technology and expert guidance who educate and inform users about the brand and its offerings while also helping them drive performance. That too during the key festive season without competing in a bidding war with the House Lannister.
So, there you have it!
DRIM—Your performance-based influencer marketing platform to elevate your brand above the competition.