By Arun Fernandes
The pandemic has significantly altered the modern consumers’ consumption patterns. Their likes, preferences and spending habits changed drastically which forced companies to rethink their marketing strategies to stay in line with shifting consumer demands. A recent report suggests that India’s digital ad market is expected to grow 10X in 10 years. With an increased adoption of digital services in the wake of COVID, it isn’t surprising that digital platforms are gaining more traction. However, this isn’t the only outcome of the pandemic. There are notable differences in consumers’ perception of brands.
The Indian advertising industry survived the blows of the pandemic to register a 14% growth. Going forward, we can expect the industry to adapt to a few new trends that are emerging as a consequence of pandemic. Let’s have a look at the 6 ways consumption patterns are influencing the advertising industry.
Ecommerce rises to prominence
The same consumers who were once skeptical about online shopping have now switched to e-commerce to buy everything from essentials to luxury products. This change in consumer mentality has compelled brands to adopt an Omni channel approach so as to make their offerings more accessible. Evidently, there’s a tailwind effect on digital ad spend growth as companies turn to digital platforms to capitalize on the consumer’s growing preference for brands with an Omni channel presence. As people try to avoid physical contact during this COVID era, brands are expected to align their resources for ad spends on ecommerce sites and apps.
Brands’ social values are under scrutiny
Consumers are no longer making brand choices solely based on price benefits. A brand’s social responsibility is now taken into account before a consumer proceeds with a purchase decision. While social values have been in focus in recent years, this shift in consumer behaviour is set to accelerate now with the ongoing pandemic crisis. Brands’ response during crisis situations play a major role in shaping consumer perceptions. They are not viewed merely as product-sellers today. Consumers expect brands to be socially responsible which means brands are now moving towards responsible advertising that reflects their core values.
Content becomes more important than ever
As people got locked inside their houses, time originally spent on travelling and commuting was reallocated to digital content consumption. Social media emerged as a major advertising vehicle and brands felt the need to be creative and flexible with their content more than ever. As consumers started engaging with content creators to beat the pandemic-induced stress and boredom, brands capitalized on influencer marketing. Collaborations with content creators emerged as a feasible option for brands to capture attention from the right audience. Consumers today are more likely to buy from brands who put out creative, fun and engaging content through ads than those that take the conventional route.
Consumers yearn for localized experiences
The pandemic united people from diverse backgrounds in their collective fight against the virus. Community groups for different neighbourhoods were created on social media for mutual help during COVID-19 and consumers naturally developed a sense of togetherness. Realizing this, brands started localizing experiences and tailoring marketing messages for community networks as it was found to be the most ideal way to stay connected with consumers. Consumers are more likely to support brands that are more connected with the audience on a granular level. Advertising trends shifted in response to changing consumer sensibilities as localized experiences become more important than ever.
Inclination towards sustainability increases
Consumers are now more conscious of the impact of their spending habits on society and refrain themselves from reckless buying. They want to associate with brands that are responsible for their actions. Eco-friendly products are gaining more attention and advertising practices likewise are shifting towards being more environmentally friendly. With growing preference for sustainable products, we can see that brands are trying hard to center their messages around sustainability.
Online security is top priority
People are more security conscious and want to know they can trust the brand with their information. There is a growing concern among consumers as brands collect data to personalize their marketing which sometimes translates into an encroachment on privacy. Amidst rising security concerns, brands are adapting to cookie less advertising. Consumer awareness with respect to security and privacy is higher than before and brands must be prepared to adapt their strategies with security on top of the mind.
COVID-19 outbreak saw brands becoming more agile and flexible to cope with the fast changing consumer habits. With brands vying for digital supremacy and consumption patterns undergoing significant changes, the Indian internet advertising market is reported to be the fastest growing in the world with a CAGR of 18.8%. The newly emerging consumption patterns discussed above is an insight into the advertising trends that will drive the industry’s growth in the coming years. And brands must identify opportunities and quickly act on it to stay relevant and competitive.
The author is founder-CEO of Hotstuff Medialabs
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