Marketer’s on planning budget and media investments

The fourth panel discussion at The Pulse Marketing Summit titled ‘The Marketer's Guide to Plan Media Investments’ featured marketing leaders conversing on the trends shaping brands’ approach and media spending and how consumer behaviour is driving this change. 

Moderator: Deepak Sonpar, Managing Partner at EssenceMediacom India

Panelists:

Argho Bhattacharya, Head of Marketing, PayU 

Geetanjali Sachwani, VP & Head of Marketing, Franklin Templeton, India

Nikhil Davda, AVP (Head - Marketing & Product), Mahindra Lifespace Developers Ltd. 

Surabhi Kanjilal, Head - Marketing & Retail PMO, Reliance General Insurance

Beginning the session with the question of effectiveness across traditional and digital touch points, Deepak Sonpar opened the floor to the panellists. 

Sharing his thoughts, Nikhil Davda commented, “Digital today allows you to look at your click-through rates, measure your cost per lead, follow the measure of cost per acquisition, and assess return on ad spend. With so many metrics available, it's crucial for each business to identify which metric is suitable for them, and this may change with each campaign. For example, on Instagram, many brands today measure how many people are saving their posts, which has become an important metric. Similarly, on YouTube, people measure how many users save videos to watch later. It's not just about clicks or purchases; different measures are becoming effective for targeting audiences in various ways.”

Sonpar further followed up on the question of effectiveness to Surabhi Kanjilal on its evolution with digital technologies. Kanjilal said, “Traditional media has always been prominent, like television, which you see every day when you turn on your channel. Digital, however, is more personalized, reaching individuals at the right place, time, and opportune moment, often triggering an impulse action. In the traditional context, digital's impact has mainly been in terms of measurability and engaging audiences who also consume digital content. When we release a print ad today, we also start a Facebook, Meta, or Google campaign, capturing audiences from multiple directions. The 360-degree ecosystem, including platforms like Instagram, helps with measurability. For example, if someone watches an Amazon ad on TV, beacons identify and correlate that with searches or display campaigns, leading to funded or correlated attribution.”

Adding to it Argho Bhattacharya expounded, “Traditionally, metrics in India have been probabilistic, whereas digital metrics are more deterministic. For example, traditional media KPIs and metrics are limited, but digital allows businesses to define their own metrics. The number of metrics in traditional media is limited, but digital offers a plethora of outcomes. However, a common mistake marketers make is not differentiating between KPIs and outcomes. KPIs measure delivery, while outcomes measure business impact. Understanding this difference is crucial for effective marketing strategy.”

On balancing brand and performance marketing, Davda observed, “Balancing brand and performance is essential. For example, Nike's shift towards a digitalized B2C model showed the need for harmony between all media channels. Brands need to generate demand rather than just relying on existing market demand. Flexibility and experimentation are key to finding the right balance.”

Commenting on the ratio between brand and performance marketing, Bhattacharya remarked, “A common ratio is 25% on performance and 75% on brand, but this varies by industry and business type. For rational decision-making processes, performance marketing is emphasised, while subscription-type businesses lean more towards brand marketing.”

Talking about the common challenge faced in attribution, particularly in a multi-channel environment, Kanjilal, noted, “Attribution challenges arise from the multitude of touchpoints where customers can interact with a brand. Whether through TV, OTT, news channels, or mobile platforms, it's difficult to accurately attribute conversions to specific touchpoints. Intuitiveness in media planning plays a significant role in generating business outcomes, as KPIs alone may not provide the full picture. “

Sharing an anecdote on attribution, Sonpar said, “I gave a similar answer to a very senior CMO. She provided a perspective on attribution, mentioning how she decided to buy a certain brand of car at age 10 but only bought it at age 40. She asked me an interesting question: "Deepak, I've known this since childhood, but tell me, which model works better?" She asked how to evaluate concepts when there are two specific plans—one heavy on X touchpoint and one heavy on Y touchpoint.” 

Kanjilal followed it up and said, “For example, if I'm targeting someone between 25 to 35 years old and release a campaign targeting middle-aged individuals, I believe they are more evolved and prone to convert to an insurance sale. A 25-year-old might look at my campaign on Instagram and think, "I need to buy insurance," but might delay or not consider it because their parents handle it. My question is: if I have to choose a model, I need to consider where the consumer is today, whether 25 or 45. The attention span has reduced significantly, and I have about 6 seconds for a consumer to notice my campaign. When looking at attribution or models to choose, I need to consider the modern consumer's mindset. Whether I expect an outcome is a different, elaborate response. Today, if I need to sell a personal accident policy, I'll target someone at a car showroom, as they are more likely to convert. This knowledge was applicable even 10 years ago due to its intuitive nature related to modern science.”

On how AI helps you personalise for different cohorts, Geetanjali Sachwani said, “I'll give you an example from the mutual fund industry. Even at a restaurant, if you call the waiter by name, it makes a dramatic difference in service. Extending this personalization to digital and other communication modes helps build brand love because you're addressing the individual, not a generic pool. AI facilitates this personalisation.” 

She added, “For example, we used YouTube's Vogon model. If I'm a fan of AR Rahman and searching for his music, we can display an ad like, "Listening to your favourite music playlist? What about your investment playlist?" Or if I'm googling the cost of the latest Royal Enfield bike, we can show an ad like, "Wish to ride the market volatility wave better? Invest in an SIP." This customization resulted in high click-through rates and business success. Additionally, for our distributor partners, we used AI to personalise video messages with correct name pronunciations, resulting in a heartwarming response. AI allows for scalable and cost-effective solutions.”

Sharing advice for young industry professionals to stay ahead of the curve, Sachwani remarked, “Media platforms are no longer competing; they're blending. Previously, we had separate mainline and digital marketing agencies, but now it's all integrated. My advice is to keep it simple and blend everything.”

On the final question of how shifts in consumer behaviour are influencing media investment strategies and choices, Sachwani said, “As an old-school marketer, I've seen marketing evolve from selling products to selling emotions and now to performance marketing. Today's era focuses on experiences, with all departments and systems communicating seamlessly. For example, OTT platforms must ensure they don't repeatedly show the same ad to a consumer across different platforms.”

“Consumer trust in brands is declining, so marketing must address this. Authenticity is crucial, and attention spans are decreasing, requiring shorter videos. Consumers now initiate contact with brands, so marketing must be prepared for incoming queries,” said Bhattacharya. 

On the same thread, Davda concluded, “Hyper-personalization is key. Consumers rely on recommendations from platforms like Netflix, Airbnb, and influencers. While attention spans are shorter, good content can still hold attention for longer periods. Balance is essential.”

“Content and messaging are critical. Beautiful storytelling can engage consumers for long periods, while poor content will be skipped instantly. Predicting consumer behaviour is challenging, but being present where the consumer needs you is vital,” remarked Kanjilal.