Addressable TV becoming mainstream and boom-time for sports business: GroupM's TYNY report

Addressable TV becoming mainstream is one of the most important trends for 2023, the others include the rise of advanced intelligence to counter digital fragmentation, as per GroupM’s TYNY report.

GroupM India released its TYNY report which highlights some of the key trends which are going to evolve in 2023. 

Here are the key evolving trends: 

Addressable TV becoming mainstream 

Out of the pandemic, Addressable TV emerged as the fastest growth channel as addressable TV homes grew from 10 million to 22 million households, as per the report. 

The growth was primarily because of three factors: 90% of TVs sold were smart TVs, increased broadband connections, content explosion on OTT and increased daily usage and MAUs.

FIFA viewership touching 11-12 million on CTV was an eye opener on adoption of CTV viewership. There was also the emergence of FAST channels- Samsung Ads and The Q witnessed, as per the report. 

Addressable TV offered clients the opportunity to complement Linear TV plans with reducing spill over, incremental reach and reaching niche audiences.

It was also effectively used for store launches and other hyperlocal targeting like point of interest and audience data from ACR devices and geo data partners.

"At GroupM we launched our geo-grid data platform FCAP, to target CTV ads on specific geo-keys fused with census, bureau, geo-spatial and point of interest data. We have over 70 clients using it," the report stated. 

“Addressable TV consumption has proliferated the TV landscape at scale especially in NCCS A and AB; we now have Chord Switchers, Chord Shavers and Cord Nevers as the new audience cohorts on TV.” 

How will it evolve in 2023?

As per the report, "In 2023 we expect connected TV households will increase from 22 million to 30 million households. This accelerates the need of integrating Connected TV planning with Linear TV. Emergence of household ID; unifying devices connected to a single network will be interesting data for marketers from an omni channel point of view."

Projects are underway to make linear television addressable. This will deliver use cases as broadcasters, distributors and tech platforms will come together.

A lot of FAST channels beyond the dominant players will emerge as OEM’s will source for more content on their native OS. This can lead to further chord-shaving or cord-cutting.

As Addressable TV households will have more choices to watch Live TV channels over the top. ACR Data will increase targeting capabilities and measurement. Addressable TV ad creatives will be more hyper-localised and personalised and create higher ad engagement with relevance.

Retail Media Advertising on CTV will become a highly effective channel for brands.

Boom-time for sports business 

IPL media rights set the ball rolling for multiple marquee rights acquisition – ICC Media Rights, which were monetised later in 2022, went for $3 billion (Rs 24,000 crore) till 2027.

The inaugural edition of Women’s IPL bagged Rs 951 crore for 2023-27 season. Further, IPL traditionally has been an indicator for the media weather and the readings indicate that digital media is one to keep an eye on with BCCI media rights.

How will it evolve in 2023?

The Government of India in the recent Union Budget for sports has increased the budget by 34% (from Rs 2462.59 to Rs 3397 crore). This is very encouraging for the sports business and many new initiatives will take place in the ecosystem of sports. Sports federations will invest at the grass root level, develop talent and premier leagues, the report stated. 

Talent wellbeing and training will get elevated with global standards.

"We see team owners increasing their footprint overseas to build their fan base, scout talent and build valuation for their team. Sports today is the only genre promising appointment viewing; hence we are seeing increased investing from TV and streaming platforms to acquire a sustained audience on the back of live sports. Lastly, first party data is becoming more important from the point of fan engagement hence we will see more thrust on acquisition and leverage of first party data from the stakeholders," the report stated. 

Advanced Intelligence to counter digital fragmentation 

The report stated, "In 2022, we predicted the rise of Advanced Intelligence to counter digital fragmentation as it was humanly impossible to process and act upon data points that were hitting marketing systems and use of AI/ML was critical."

2022 saw marketers adapt their strategies towards automation to drive efficiency and efficacy. Artificial Intelligence amplified media capabilities to bring a solution for the biggest challenge for marketers in digital – ‘Fragmentation’.

"We saw positive advertising results ranging from 5% to +30% across clients. GroupM’s proprietary technology CoPilot was the secret behind winning on display and video for over 130 clients. We also saw usage in areas of creative, leading to hyper personalisation and hyper localisation use cases," the report read. 

How will it evolve in 2023?

In 2023, the companies providing AI/ML services will compete with ad platform’s in-built AI functions. However, in the long run, both will need to co-exist as not one stack has all the data and computing logic required.

Addressable Advertising will be a focus area for marketers to win. With sunsetting of third-party cookies and privacy laws in India, AI will spearhead the data-driven marketing campaigns centralised around collection, activation and modelling of FPD while also automating previously manual marketing processes around creative analytics, cross media attribution models and data driven insight dashboards.

Furthermore, Cognitive Intelligence and Conversational AI will be an increasing trend across industry as AI capabilities evolve and marketer’s demand for end-to-end automation grows.

Privacy-first leveraging of data to build stronger consumer connections 

The acquisition, enrichment and deployment of First Party data emerged as priority for marketers across categories in 2022.

Google launched “PAIR” in Q4 of 2022, enabling advertisers to pair their data with publishers in a Data Clean Room environment. “Not Only” PII solutions like WPP Geograph were introduced, which leverages a multitude of aggregated hyperlocal data points to enable sharp segmentation and targeting at a Pin code level.

How will it evolve in 2023?

With the new Personal Data protection Bill introduced in Q4 of 2022, the need for privacy-first leveraging of data is even more important.

Data governance is the key. Acquisition of data needs to be done in a far more judicious manner. The individual will obtain far more control on their own data, with increasing power to access, edit or delete it. A well-defined Value exchange therefore becomes critical, with consumers having clarity of what they are giving for what benefit.

Companies will sharply scrutinise potential data partners, to ensure their data is fully compliant.

This will also result in a rise in Data Co-ops between companies, with technologies like decentralised Data Clean Rooms and blockchain getting deployed to ensure compliance. As companies get increased volumes of rich first party data, they will look to become publishers. This will fuel more opportunities for responsible Data Co-ops. 

Commerce becomes all-pervasive powered by persuasion

2022 saw the emergence of influencer marketing as a driver for commerce and growth for brands across both start-ups as well as established brands.

Multiple DTC brands have grown from start to multi-crore brands on the back of just influencer marketing. Similarly, many large legacy brands, especially in beauty and fashion categories, have adopted an always-on influencer marketing strategy to drive both consumer consideration as well as customers to their DTC sites or marketplaces. Community led buying is being explored by brands but it's still a nascent phenomenon.

How will it evolve in 2023?

Influencer marketing will move from a test-and-learn model to becoming an integral part of the marketing mix of large consumer brands. We are seeing this trend reflected in the alignment of consumer companies with influencer marketing AORs. 

Clients are expecting scientific planning as well as higher accountability and agencies like GroupM have led the investments into planning tools like Inca - that bring science and accountability in campaign planning as well as influencer selection. Inca is also collaborating with marketing science researchers to build a measurement model for campaign effectiveness.

The influencer content will be guided by the new guidelines from the Ministry of Corporate Affairs for influencers and celebrities which will also build transparency and credibility in the use of influencer marketing by brands.

Creators and influencers are moving from endorsing other brands to launching their own labels or brands, leveraging their connection with their followers.

As per the report, influencer marketing industry is leading to the growth of creators across different subjects like fashion, beauty, personal finance, current affairs, food, arts, entertainment, music and dance, emerging from across the country. Creators from smaller towns are building large audiences and brands are recognising their impact in connecting with the consumer in Tier 2 and 3 markets. 

The creator spends by brands is expected to cross Rs 1500 crores in 2023.

The next generation of digital experience will be driven by decentralisation

In 2022 a lot of brands rode on the metaverse and NFT bandwagon and created unique experiences in phygital spaces. Many clients got involved - from launching new cars to connecting people over food in the virtual world. GroupM created its own metaverse to aid in our recruitment process.

The scale of internet adoption in 2003 is similar to the adoption for Metaverse in 2022. For people to be authentic in the virtual world, Avatars emerged strongly in 2022. NFT awareness and deployment is gathering pace, but slower than elsewhere in the world. In 2022, India ranked 3rd in the number of NFT Firms.

Will it evolve in 2023?

As per the report, Web 3.0 will continue to advance and become more widely adopted, leading to new applications and use cases such as decentralised finance, digital collectibles, and virtual reality marketplaces.

However, the development and success of the web3 and metaverse ecosystem will also depend on overcoming challenges such as scalability, user experience, and regulatory hurdles. 5G technology will enable faster, low latency and more reliable data transmission that can facilitate the growth and widespread adoption of Metaverse technology.

The “novelty” value of NFTs and Metaverse is fading, and their true value is emerging as a means toward ownership and collaboration. 2023 will be all about meaningful experiences. Need to focus on creating value exchange for the customers and brands to make it effective.

Increased impact of consumer sensitivity and sustainability on brand marketing

Sustainability and inclusion did scale up significantly in 2022. This was seen across multiple dimensions.

Shifts in consumer preference - examples include: Surge in EV sales in 2022, with a YoY growth of 210% translating to over 1 million units sold, significant rise in consumption of organic products, in the feminine hygiene category washable pads grew at 20%, which is almost 3X of the overall category, the report stated. 

Significant corporate and brand actions across categories examples include: Launch of organic variants - Amul launching Organic Atta, McDonalds creating unique packaging for differently abled consumers, companies offering insurance coverage to include same-sex and live-in partners, including gender reaffirmation surgery, redefined maternity/paternity leaves for same-sex couples and companies set up inclusive infrastructure like gender-neutral washrooms.

Will it evolve in 2023?

This will continue to grow at an accelerated pace in 2023. It will become far more mainstream across brands and categories. The number of electric vehicles (EVs) on Indian roads in 2023 is expected to nearly double to 2.2 million. This exponential growth is expected to sustain through the near future, with a 68% CAGR predicted till 2027.

The move to organic will gain momentum. This is slated to grow at a CAGR of 22% till 2028. Green packaging will also grow significantly. Increasing consumer awareness around sustainability and preference towards eco-friendly solutions are expected to drive a CAGR of 27.5% through

to 2029.

The focus on DEI will further accelerate in 2023. Diversity will expand to include Age and Capabilities in addition to gender and sexuality. Inclusion will be critical in communications, be it internal or to consumers. And the power of data and analytics will be leveraged across companies to detect systematic patterns of bias.

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