In the world of uncertainties, there is just one certainty that one needs to prepare for the future. And that’s what GroupM Nexus claims to have been doing. The data centric consulting firm from the house of WPP Group claims to have prepared for a world devoid of third party cookies, to be able to continue to drive performance marketing initiatives. In an interaction with BrandWagon Online, Priti Murthy, president, GroupM Nexus talks about how this one agency has an edge over its competitors. (Edited Excerpts)
How well is GroupM Nexus prepared to handle a digital marketing world driven by first-party data?
We maintain a highly specialised dataset that serves as a cornerstone of our service offering for numerous clients. From a Google ADH (Ads Data Hub) standpoint, GroupM is at the forefront of innovation in India. The adoption of best practices and the culture of testing and learning with data is a trend that India began embracing in 2022. Notably, this approach has been an integral part of our strategy for sometime and is deeply ingrained in our operations. In the near future, we will introduce Acceleration Jitsu a brand dedicated to data consulting and data technology, to the Indian market.
How well are you prepared as an agency to create targetted communication post the discontinuation of third-party cookies add to that the roll-out of Digital Personal Data Protection bill (DPDP)?
The discontinuation hasn’t taken place yet, but it’s a journey we embarked on several years ago. To be honest, the data protection bill will only fortify the practices we’ve long adhered to, aligning closely with the established GDPR (General Data Protection Regulation) norms in the Europe. These norms have been integral to GroupM’s operations for quite some time, and as a global company, we’ve consistently incubated governance principles at their core. Therefore, when it comes to data protection, we find ourselves well ahead of the curve. The data protection bill should pose minimal challenges for us since we’ve been fully prepared for a substantial portion of its requirements, with up to 90% of its provisions already in place, owing to our alignment with GDPR principles.
As the number of CTV households increase in India – what are the solutions you have devised to ensure that advertisers get their RoI? Besides the IPL, what are the other properties you think CTV will be used?
As we observed consumers transitioning to connected TV, our flagship product, Finecast, emerged as a solution tailored for our clients, specifically targeting the connected TV audience. Finecast operates at a level of granularity, down to postcode precision, harnessing the full potential of connected TVs alongside traditional linear TV and mobile platforms.
Notably, Finecast and a wide array of connected platforms, including Samsung TVs, besides other manufacturers of connected TVs, OTT (Over-The-Top) players, and other channels within the connected space. This comprehensive coverage ensures holistic visibility. Moreover, we anticipate that the landscape will increasingly embrace programmatic, fortified by audience and geographic planning strategies.
Whether it’s a retail client seeking geographic precision or a brand aiming for a broad-reaching campaign in the connected TV realm, we have solutions to accommodate these objectives. Additionally, we address frequency capping and other nuanced aspects within the connected TV space, all under the banner of Finecast.
In my perspective, content viewed within the linear ecosystem bears equal relevance and potential for the connected TV audience. Notably, initiatives like Jio’s decision to broadcast two seasons of Bigg Boss exclusively on OTT platforms are strategically geared towards engaging the connected TV consumer base. We anticipate an influx of such content from linear TV publishers, fostering a balanced ecosystem encompassing both OTT and linear TV content. The pricing of our product aligns with these evolving dynamics, reflecting the current and future landscape of connected TV.
So, by the end of this year, where do you see the CTV space?
According to the 2023 Global Mid-Year Forecast report published by GroupM, the connected TV adoption among consumers and advertisers is growing rapidly, adding 10.4% in ad revenue between 2023 and 2028 on a compound annual basis. I think we’re looking at 30-35 million people using it by the end of 2023.
Earlier it was Google and Facebook, that walked away with 70-80% of digital advertising spending and now e-commerce too has gained traction. With these many wall-gardened platforms – how do you manage user behaviour through data?
There are two primary avenues through which we gain insights. Firstly, when we oversee campaigns across various commerce platforms, we leverage their native insights tools to gain a comprehensive understanding of ongoing activities. Secondly, because we actively manage these campaigns, we have direct visibility into their performance and traction. This vantage point enables us to derive valuable insights, linking consumer behaviour to final sales outcomes.
To further enhance our capabilities, we’re actively developing our proprietary tools and solutions. One such tool, which we’ll be introducing in the coming months, is called Fusion. As the name suggests, Fusion is designed to blend insights, shedding light on consumer behaviour and preferences in a more comprehensive manner.
What are the current challenges the industry is facing today?
I think the whole transformation or the transition from linear to a connected world is one challenge that the industry facing. As this connected world is getting more and more blended and connected, the ability to manage the marketing narrative with those key performance indicators (KPI) of the past is going to be tough.
We’re collectively tackling another challenge within our industry – the evolving market landscape. As progress continues to accelerate, brands born in the digital era exhibit distinct behaviours compared to its legacy counterparts. Consequently, brands often embark on journeys centred around the buzzwords of digital transformation or tech transformation.These initiatives involve crucial roles, as they ultimately shape the future of these organisations. Notably, newer elements within these entities may not align with established business models. Given the imperative of meeting viability, scalability, and margin objectives, this has emerged as a significant struggle this year. To address this, our focus has extended into the realm of marketing solutioning and consulting, aimed at bridging the gap between vision and implementation. This endeavour, at times, becomes the deciding factor for our clients. These are the two prominent challenges that we continually engage with the wider ecosystem to address effectively.
What are the unique opportunities which lie ahead?
Talking about opportunities, I believe these narratives are rapidly transitioning towards the dynamic realm of social commerce, a burgeoning space that’s evolving at an astonishing pace. Another noteworthy transformation is the diminishing demarcation between the traditional TV era and the non-TV era, primarily due to the advent of connected TV. Even well-established TV brands, which have been around for over a decade, are undergoing automatic adaptations to fit into the contemporary landscape of connected TVs. Consequently, the way we access and consume content is poised for further evolution. The pandemic served as a remarkable catalyst for altering consumption patterns, often referred to as a black swanevent. However, it’s becoming evident that this transformation was not a one-time occurrence but rather a harbinger of significant shifts in consumption behaviour. Today children or teenagers between 10-15 years old have grown up with different media habits, and are poised to become tomorrow’s consumers. In the next five years, as they enter the workforce or attend college, their purchasing behaviour is expected to undergo substantial changes, marking a pivotal shift in the landscape.
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