Specials

Economic slump - time to introspect marketing function?

With all the economic downturn, advertising was bound to be depressed.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/12/19/ds.jpg?itok=P8VEMHFh

Let's face it. Asian Tiger China's GDP growth rate has hit a 27-year low and is likely to end 2019 under 6 per cent. And GDP growth rate of India - the other Asian tiger has also hit a six year low and is expected to fall to 6 per cent in this fiscal year, according to the World Bank. Both these big cats are however, above the Asia Pacific GDP growth rate which is expected to be below 4 per cent. 

2019 - year of the falling economies?

While a steep fall in demand, direct trade disputes with the USA & political churn in Hong Kong is responsible for the 27 year low in GDP growth rate of China, to make matters worse, the Chinese government has not yet recovered from the after effects of providing stimulus to the Chinese economy for nearly a decade.  

Back home, the real estate industry is still struggling & factory output is slowing down, resulting in slow growth in employment. However, considering the situation in our neighbouring country, while the government has taken a slew of measures - steep cut in corporate tax rate (22 per cent from 30 per cent) and an even lower tax rate for new manufacturing companies (15 per cent) to attract new foreign direct investments (FDI), the same is yet to translate into meaningful outcome and spur growth. 

Economy in advertising

With all this economic downturn, advertising was bound to be depressed. And it did, especially in the last two quarters. The Indian advertising industry's estimated worth was Rs 62,000 crore in 2018. Most predictions of Indian ad spend growth hovered between 10 per cent & 12 per cent riding on the wave of ad spends during the 2019 General Elections & the ICC Cricket World Cup. However, the actual growth may be lower at around 9 per cent - 10 per cent (including inflation), taking the total annual ad spend to Rs 67,000 crore. (By the way, the Asia Pacific ad spend growth rate for 2019 is predicted at 4 per cent.) 

So what worked & what didn't? 

Television medium growth is estimated between 9 per cent and 10 per cent in 2019. Digital medium growth is estimated between 25 per cent and 30 per cent in 2019. Print medium growth is expected to range between 5 per cent and 7 per cent and all the other media growth being under 6 per cent. So while television managed to hold its fort, print medium was marginalised in a real sense.  Meanwhile, digital medium hopscotched to pole position from where it is poised to overtake print & challenge television. And the other media chugged along.

Role of marketing dept in slowdown

It's all very well to acknowledge the economic slowdown, demand slump and the marketing slack. Question is, with a full team strength, what should marketing focus on during this slack period?

For one, marketing can start adopting technology seriously. This is a challenging task for the CMO & his team, but if successful, this is the surest way of boosting marketing ROI. How? Because you can only improve what you can measure. And bringing IT into marketing is the first step towards measurement.  The objective itself is deceptively simple: bring information technology closer to marketing strategy as well as marketing operations.

The first step can be total process automation for Marketing Depts., where every activity is included. Apart from bringing discipline, process automation will also bring uniformity & transparency.

. Once marketing processes are automated, a central marketing database is automatically created and populated in real time.

. This bridges the "data chasm" between Marketing, Finance & Sales, bringing data transparency.

. This "data transparency" will result in immediate cuts in unnecessary marketing expenditure - as managers will start to spend with more caution. This itself can result in 10% to 15% immediate savings.

. The central marketing database will also provide real time dashboard reporting to Marketing Managers for quick reviews.

. This data can be clubbed with sales, research, share of voice ... to get ROI statistics.

. And the clubbed data can be further used for conducting analytics exercises & generating deep marketing insights.

Marketing departments must adopt information technology. And for this, the CMO must lead & exert his influence on his team. And this is the perfect time to solemnise marketing department's marriage with information technology & contribute to the company’s savings for now & the future!
(The author is founder, Brandintelle Services. The views expressed are his own and Indiantelevision.com may not subscribe to them.)

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/20/itv-nt-awards-3.jpg?itok=5i_c8aDu
NT Awards announces its jury

NEW DELHI:Indiantelevision.com’s unique summit and award property that honours the crème de la crème of the television news industry is all geared up for its 2020 edition. Scheduled to be held over two days – 29-30 October 2020 – the News Television (NT) summit will focus on the overall industry...

Specials Event Coverage News Television Summit
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/15/tv.jpg?itok=SAYrFUFf
TV viewership up in European market, existing formats adapt to new normal

With shelter-at-place directives in effect, TV consumption has gone up globally. Along with an uptick in the number of viewers, viewing time has also increased during the Covid2019 crisis.

Specials Event Coverage Mipcom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/10/14/mipcom.jpg?itok=ztmvpgYu
Mipcom Online Plus attracts sizeable Indian presence

Mipcom began its virtual edition of the annual content syndication get together on 12 October. Titled Mipcom Online+, it is based on a high end artificial intelligence driven platform called Grip, developed by a sister tech firm under Relx group, of which organiser Reed Midem is a part.

Specials Event Coverage Mipcom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/auto-desk.jpg?itok=eDxaqPUg
Industry leaders to discuss tips on enhancing virtual shopping experience in new normal

NEW DELHI: It’s no new news that the impact of Covid2019 has been massive on digitisation and virtual properties. With people stuck at home, everything from studies to work, to shopping has moved online and this has given the e-commerce industry a once-in-a-lifetime opportunity to get new consumers...

Specials Event Coverage Occasions
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/05/07/ficci.jpg?itok=DCBtJjhj
FICCI - Cyril Amarchand Mangaldas releases FICCI Frames ‘Entertainment Law Book 2020’ Report

Federation of Indian Chambers of Commerce and Industry (FICCI) and Cyril Amarchand Mangaldas, today released ‘Entertainment Law Book 2020’ report. The report highlights regulatory developments in the field of TV broadcasting and distribution, music, radio, filmed entertainment, and other segments...

Specials Event Coverage Ficci Frames
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/03/23/nepa.jpg?itok=RoQ0G9Yv
Research is important while creating content: Nepa India

MUMBAI: Research is a key ingredient before the launch of any product or brand. And creating content is nothing without appropriate research about the audience and their choices, explains Nepa India managing director Esha Nagar while giving a presentation at the fourth edition of The Content Hub...

Specials Event Coverage Content Hub
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/03/19/content.jpg?itok=4mbPkOgp
Spontaneity, gut feeling are fundamentals of my direction: Badhaai Ho director Amit Sharma

MUMBAI: The director is like the manager of a film who brings talent under one roof and extracts it to create good content, said film director and producer Amit Sharma while addressing fellow and budding content creators at the fourth edition of The Content Hub 2020 organised by indiantelevision....

Specials Event Coverage Content Hub
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/03/16/mrinal.jpg?itok=i2CPPY0K
Supernatural genre gives writers most creative liberty

Writers of the popular TV show Naagin, Mukta Dhond and  Mrinal Jha, explored the scope of the supernatural genre at The Content Hub 2020 organised by indiantelevision.com. Dhond said that the most exciting thing about fantasy is that it gives creative liberty to writers. As they say, anything is...

Specials Event Coverage Content Hub
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/03/16/sameer-nair.jpg?itok=2JzVVlne
Applause Entertainment’s Sameer Nair on digital content creation, self-regulation and creative freedom

Creativity, freedom of expression, self-regulation and content quality are some of the factors that come into play for digital platforms. These topics were addressed in a fireside chat between House of Cheer founder and CEO Raj Nayak and Applause Entertainment CEO Sameer Nair, at Indiantelevision....

Specials Event Coverage Content Hub

Sign up for our Newsletter

subscribe for latest stories

* indicates required