by Ashwin Shekhar
With multiple factors in its favour, India’s Direct to Consumer (D2C) brands are reaching greater and greater heights. By 2025, this industry segment is expected to be worth $100 billion (source: Modor Intelligence report). The affordability and economic viability of smartphones will only continue to improve. Moreover, with the number of internet users expected to reach 1.1 billion (with almost 30% of them expected to be online shoppers), D2C brands are anticipated to accrue $50 billion in sales over the next two years (source- Kalaari Capital report: Beyond Ecommerce 3.0).
Moreover, things are looking good for the Indian D2C businesses. According to the Confederation of Indian Industry (CII), between last year and 2027, the market in India is expected to enjoy a compound annual growth rate (CAGR) of 40%. In turn, the overall revenue is predicted to increase from $12 billion to $60 billion during the same period.
Unsurprisingly, D2C brands have been seizing this opportunity by strengthening customer relations, elevating brand stature, and attempting to ensure flawless sales channels. What’s more, with India’s festive season approaching, a period stretching from October to November this year, these attempts to maximize profits are even more important. During this time of the year, consumption reaches annual highs not only in tier I but tier II and III cities alike, where shopping appetites now compete with those in larger metropolitan cities. No wonder, D2C brands are striving to drive sales during this period via performance marketing, as the special promotions that run throughout the celebrations are proven to generate business.
The rise of Tier II and III cities amid festive sales
Over last year’s festive season, e-commerce players and D2C brands made sales worth Rs 76,000 crore—a phenomenal rise from the 2019 figure of Rs 40,000 crore (source: ‘Looking Back at India’s Internet Economy in 2022’ report by Redseer Strategy Consultants). What’s more, tier II and III cities performed spectacularly, accounting for the majority of sales made via digital devices and smartphones. As such, while price sensitivity is always a consideration, D2C brands are poised to invest more in ad spending this season to maximize growth.
App marketing is helping D2C brands acquire loyal customers
Omnichannel marketing, which includes digital out-of-home (DOOH), TV, digital ads using search and social, and print, is empowering D2C brands to thrive. While estimating the success of traditional marketing methods continues to be difficult, performance marketing via mobile OEM (Original Equipment Manufacturer) app marketing is helping these brands measure their return on ad spend (ROAS).
For the 2023 festive season, OEM app marketing can enable D2C brands to attain lucrative ROAS and incremental user engagement and tap new audiences, unlocking a new and more efficient revenue stream.
By partnering with mobile OEMs including Xiaomi, Huawei, Oppo, and Vivo, among others, D2C brands can leverage advertising solutions featuring a range of benefits. These include:
App discoverability via topographic targeting: Appographic targeting empowers D2C brands to assess which apps users are interested in—beyond categories—and which ones they’re familiar with before the festive season. For app marketers, this strategy is especially useful when targeting high-value users.
Heightened visibility: During both the run-up to the festive season as well as the period itself where special promotions flourish, the ‘App Store Featuring’ section in app stores, which usually features display formats such as Splash and Interstitial ads, helps D2C mobile apps increase ad visibility. In addition to this, D2C brands can use mobile OEM’s unique ad placements to entice prospects with offers and discounts.
Better re-engagement: Throughout October and November, m-commerce apps by D2C brands can benefit from mobile OEMs by using their down-the-funnel re-engagement option that features special ad placements. Doing so allows D2C brands to re-engage with static users, those who may have been inactive on the app, as well as boost brand awareness. One of the mobile OEMs’ many strengths is their consulting teams, which closely work with D2C brands to strategise on creatives that achieve reach and engagement—an invaluable advantage during these annual celebrations.
Dynamic Preloads: D2C brands can get ahead of the competition by being one of the first apps during the heightened mobile phone sale period during the festive season this year. Smartphone sales tend to witness a spike during this time and a Dynamic Preload campaign capitalizing on this season gives brands an edge by being one of the first apps on a new device. This in turn gives them a chance to eventually convert those users into loyal customers.
Ace your app marketing game and let your brand shine in the 2023 festive season
Today, D2C app marketers ignore advertising hygiene at their peril—and during the festive period, the risks are even higher. For instance, producing creatives for display ads that aren’t aligned with the brand’s colour scheme and fonts will confuse potential customers at a time when they are being bombarded with offers.
To this extent, thinking ahead is also vital. Every year, the festive period witnesses a spike in bidding from app advertisers for mobile media buying inventories, which is why D2C marketers need to book high-impact branding placements ahead of schedule. In addition, D2C brands should also create a media-buying plan of action before prices increase.
Finally, if D2C brands want to prosper, they must partner with mobile OEMs who can help them scout for private marketplace (PMP) advertising deals. In these auctions, app marketers can bid on high-performance-based suggested inventories, giving them the ability to stand out from their competition during periods of peak consumption.
What’s clear, then, is that by including mobile OEM advertising in their wider marketing mix, D2C brands can redefine their relationship with existing users, acquire new ones, and improve engagement and retention. With the countdown to the festive season having already started, the time to act is now!
The author is the co-founder and CRO of AVOW