Commerce, attribution, content-tech are key investment areas for Wavemaker: Shekhar Banerjee

In an interview with BestMediaInfo.com, Shekhar Banerjee, Chief Client Officer & Office Head—Wavemaker India, discusses the 2025 AdEx outlook, key media trends, the JioStar impact, and the rise of gaming, esports, and CTV

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New Delhi: The Indian AdEx is poised for growth in 2025, driven by a renewed focus on top-line expansion after a year of margin management, said Shekhar Banerjee, Chief Client Officer & Office Head—Wavemaker India. 

In an interview with BestMediaInfo.com, Banerjee highlighted the growing importance of data strategy, omnichannel orchestration, advanced attribution, and ecosystem simplification.

This evolving landscape is also driving a surge in demand for new skills within agencies, including coders, content creators, and strategic consultants, reflecting a fundamental change in how brands connect with consumers in today's dynamic media environment. 

The media planning landscape has drastically changed, rendering traditional methods obsolete. "The tribe of Excel sheet planners has become redundant," said Shekhar Banerjee. 

In this wide-ranging interview, Banerjee delves into the challenges and opportunities facing the advertising industry, from the rise of CTV and the evolving role of television to the growing potential of esports and the need for brands to adapt to a rapidly changing consumer landscape.

Excerpts:

How do you see the Indian AdEx growth this year following a stressful 2024? What will be the major drivers?

Last year, we started seeing a softening in the market from Q3 onwards. Commodity price fluctuations forced advertisers to focus on margin management. This year, with prices stabilised, the emphasis has shifted to top-line growth.

Achieving top-line growth necessitates increased investment in demand creation, requiring more consumers to buy more. This implies a greater need for advertisers to invest in demand-generation activities. Current indicators suggest a positive outlook for 2025.

It's important to note that driving volume growth will require significant investment in advertising, as it's the primary lever for creating consumer demand. Advertising plays a crucial role in demand creation, essentially creating a "pull" effect in the market. This means advertisers will actively invest in advertising, especially in today's economic climate. 

Achieving top-line growth, particularly volume growth, requires significant investment in advertising. While price corrections have led to some price value growth, reviving volume growth necessitates leveraging the power of advertising.

What are your biggest learnings from 2024 as an advertiser? Which media strategies will dominate in 2025? 

Several key trends are impacting advertising strategies. Firstly, data strategy has become paramount. Leveraging data to move from "unknown" to "known" consumers, identified by IDs or PII, is crucial for maximising ROI and conversions.

Secondly, the traditional "branding vs. performance" dichotomy is evolving. Instead of focusing on distinct campaigns, advertisers are now prioritising omnichannel orchestration. This involves seamlessly integrating marketing efforts across various sales channels, including physical stores, e-commerce platforms, and social media, to create a unified customer experience.

Thirdly, advanced attribution is gaining prominence. Moving beyond basic cross-media attribution, advertisers are striving for real-time, cross-channel, and sales-driven attribution to understand which channels and media are driving the highest growth. This requires sophisticated data engines and analytics capabilities.

Finally, ecosystem simplification is a growing trend. Advertisers are seeking to reduce the complexity of their partner ecosystems by working with fewer, more integrated partners who can provide comprehensive solutions. This trend is driving consolidation within the advertising industry, leading to the emergence of new services and skill sets.

Today, at Wavemaker, we have a significant team of coders. Historically, our focus was primarily on media planners. However, the evolving landscape of advertising necessitates a different skill set. We now require coders proficient in working with online platforms and developing attribution models.

This shift reflects the growing importance of data-driven approaches. Many attribution projects involve working on platforms like clean rooms and cloud systems, which demand strong coding skills to write and implement the necessary scripts. Therefore, coders are becoming increasingly crucial in the modern advertising landscape.

With the increasing importance of coders in media agencies, what other new skill sets are becoming essential in this evolving landscape?

In addition to coding expertise, there's a strong demand for content professionals. Media agencies are actively hiring individuals specialising in content development, who can collaborate with creators. This emphasis on content is reflected in Wavemaker's substantial content team.

We are also hiring in the consulting domain. These professionals conduct in-depth audits of client ecosystems, develop strategic recommendations, and guide clients through complex implementations.

These three areas—coding, content creation, and strategic consulting—represent key areas of growth and talent development within the advertising industry, demonstrating a shift beyond mere service consolidation.

What are the focus areas for Wavemaker? 

Our focus is on strengthening our commerce capabilities to effectively navigate the evolving client landscape. This includes supporting clients in their omnichannel transformations. We are also advising clients on optimal organisational structures to maximise their commerce potential.

Furthermore, we have invested heavily in building robust attribution capabilities. This includes hiring data scientists, coders, and engineers to develop advanced attribution models that provide valuable insights into campaign performance. These investments have yielded significant results in recent years.

Finally, we are investing heavily in developing technology that enhances storytelling and content creation.

While tech is doing a very good job in terms of enabling creativity, there is an observable decline in truly simple, yet brilliant ideas. What are your thoughts on this apparent decline in simple creative ideas?

Consumer behaviour has drastically changed, demanding a new approach to content creation. If we persist with outdated methods, our brands may fail to resonate with the audience and remain unnoticed.

The effectiveness of past advertising strategies is no longer guaranteed in the current media environment. The way we communicate brand stories must evolve to adapt to the changing consumer journey.

For instance, the concept of capturing attention within a mere seven seconds is now widely accepted. While longer-form content still has its place, it's increasingly challenging to effectively convey a compelling brand story within a limited timeframe. While “simple” may be subjectively appealing, they don't necessarily translate to effective advertising in today's rapidly evolving media landscape.

A few days back, in an interview with BestMediaInfo.com, Maruti Suzuki said they are pulling out from print media. Do you think it is sustainable, especially for an automobile brand and then the print sector?

While the overall print advertising growth has been limited since COVID-19, certain sectors continue to invest heavily in this medium. The automotive sector presents a unique case. The evolving consumer journey in this sector is significantly impacting media spending. With the rise of digital channels, companies can now effectively generate leads through online platforms and build an omnichannel consumer experience. This omnichannel approach allows for seamless lead capture across various channels, including digital, print, television, and offline activities, and efficiently directs these leads to the nearest dealerships. 

However, the growth of digital advertising doesn't necessarily translate to a decline in print. Companies are likely to re-optimise their entire media mix, evaluating the most effective channels for lead generation. While digital plays a crucial role, other media channels, including print, may still be necessary to reach specific target audiences.

Any significant shifts in media spending by major players like Maruti Suzuki would require careful analysis of their data. While they may have implemented a new print advertising strategy, further investigation is needed to understand the specific changes and their rationale.

What’s your opinion on brands shifting their spending towards performance over brand-building? How will it impact the AdEx both positively and negatively?

Media fragmentation and the evolving consumer journey are forcing a critical reevaluation of marketing strategies across all categories. Companies are grappling with fundamental questions: Should they prioritise brand building, and if so, where and how? How much should be allocated to e-commerce and quick commerce, which are essentially performance-driven channels? These decisions are being made across the board.

Having said that, performance-driven brands often reach a saturation point and subsequently invest in brand building to acquire new customers. Conversely, brands built on strong brand equity are now incorporating performance marketing strategies to maintain market share in the face of increased competition and disruption. This shift is evident across sectors. 

Performance marketing can be likened to a daily 'steroid' for businesses, delivering immediate results but requiring consistent investment to maintain momentum. Conversely, brand building fosters long-term, sustainable growth and profitability. Therefore, a balanced approach that incorporates brand-building and performance marketing activities is crucial for long-term success.

How do you think the formation of JioStar will impact the buying of high-impact properties like Bigg Boss and IPL?

The pricing of high-impact properties like Big Boss and IPL is primarily driven by market demand, rather than mergers.

The fundamental question for advertisers is whether these properties align with their business objectives. If there is a genuine need for these platforms to reach their target audience, advertisers will be willing to invest.

The level of advertiser demand directly influences pricing. When demand is high, as it was during the peak of the startup boom, prices tend to increase due to competition among advertisers.

However, it's important to note that the supply of high-impact properties is limited. This scarcity further contributes to price fluctuations. Ultimately, the pricing of these properties is determined by the interplay of advertiser demand and the limited supply of such valuable platforms.

As an advertiser, what is your opinion on OTT platforms streaming big events (like the Coldplay concert streaming on Disney+ Hotstar), which was unheard of before?

My immediate reaction was that it is so obvious. Given the platform's successful history of live-streaming major sporting events, it seemed like a natural and obvious step. The concert, featuring a globally renowned band like Coldplay, was a highly anticipated event with widespread public interest.

Millions of fans across India were eager to attend, and many were unable to secure tickets. Live streaming would have provided an accessible alternative for those who couldn't attend in person, similar to past live streams of Filmfare and music festivals. The scale and popularity of the Coldplay concert, with its unprecedented demand and widespread public excitement, made it an ideal candidate for live streaming.

This event may signal the beginning of a trend, with other platforms potentially replicating the model. The success of such ventures will largely depend on the ability to effectively monetise live streams and generate revenue for both the platform and the event organisers. Brand interest in these properties is often driven by tactical considerations, with investment contingent on their relevance to current marketing needs.

What are the biggest challenges media agency leaders face today?

The primary challenge facing media agency leaders today is the need for reskilling. The industry landscape has fundamentally shifted.

Firstly, the go-to-market models have drastically changed. The rise of e-commerce, quick commerce, and on-demand delivery has disrupted traditional distribution channels.

Secondly, consumer behaviour and preferences have evolved significantly. Understanding what resonates with today's audience requires a deeper understanding of their evolving needs and desires, moving beyond traditional market research methods.

Thirdly, the increasing prevalence of paywalls limits access to a significant portion of the consumer audience.

Furthermore, the role of technology as an intermediary between brands and consumers has become paramount. In the past, mass media like television and print served as the primary bridge. Today, technology bridges that gap, necessitating a profound shift in how brands engage with their audiences.

This evolving landscape has increased the complexity of media planning. The reliance on simple Excel sheets has become obsolete in an era of data-driven decision-making. The tribe of Excel sheet planners has become redundant. Navigating this complex data environment, discerning valuable insights from noise, and making informed decisions beyond traditional planning methods require a new set of skills.

Therefore, reskilling the existing talent pool is crucial. By investing in training and development, media agencies can equip their teams with the necessary skills to thrive in this dynamic environment. This includes fostering a data-driven mindset, developing expertise in analysing complex data streams, and cultivating the ability to make informed decisions in a rapidly changing landscape.

This is not just a theoretical challenge; it's a reality that we are actively addressing at Wavemaker. We are constantly striving to upskill our team and prepare them for the demands of this evolving industry.

As CTV advertising grows, how are you handling the challenges of CTV measurement?

To effectively navigate this evolving landscape, GroupM has developed an "Advanced TV Solution" that aggregates inventory across multiple platforms. This solution enables advertisers to efficiently plan and execute campaigns across the fragmented CTV ecosystem while also providing robust measurement capabilities, including deduplication and cross-platform analysis.

This platform leverages the wealth of data available on CTV platforms, such as click-through rates and view-through rates, to provide valuable insights into campaign performance. These data-driven insights empower advertisers to optimise their campaigns and achieve better ROI.

The increasing adoption of CTV by urban Indian households underscores the urgency for advertisers to adapt their strategies. By leveraging advanced solutions like GroupM's Advanced TV Solution, advertisers can effectively reach their target audiences across the diverse CTV landscape and capitalise on the growing opportunities in this dynamic market.

Why are CTV ad spends currently concentrated in sports and entertainment, with other genres receiving minimal investment?

As of now, the dependency on live sports is significantly high and comes at a substantial cost. However, the adoption of other genres is rapidly increasing.

While live sports continue to command significant attention and investment, the rise of diverse content genres on CTV platforms is shifting advertisers' focus.

As younger audiences increasingly embrace CTV platforms, advertising spend is gradually diversifying beyond live sports. This trend is evident in the growing number of advertisers investing in non-sports content across various CTV platforms. As CTV consumption expands beyond live sports, pricing will readjust, leading to increased ad spending on CTV.

Is there anything left to do for TV to retain or grow its share of AdEx?

The discourse around television's decline often focuses excessively on market share percentages, overlooking the evolving nature of content creation and distribution.

While digital platforms are experiencing rapid growth, traditional television continues to hold significant influence, particularly in reaching mass audiences, especially in rural and semi-urban India.

Furthermore, it's crucial to recognise the evolution of media companies themselves. Many traditional media organisations, including broadcasters and publishers, are transitioning into multi-platform content companies. They are leveraging their strengths in content creation to produce high-quality programming for both traditional television and digital platforms.

Evidence of this transition is evident in the success of OTT platforms like Jio Cinema and Hotstar, which are often owned by the same entities as major television broadcasters. The most popular shows on television frequently find success on these OTT platforms, demonstrating the enduring value of high-quality content.

This shift in focus from solely relying on television distribution to embracing a multi-platform strategy can ultimately lead to increased profitability for media companies. By eliminating the need for intermediaries in the television distribution chain, they can potentially capture a larger share of the revenue generated from their content.

Moreover, the emergence of Connected TV (CTV) further reinforces this trend. As consumers increasingly shift their viewing habits to CTV, media companies can leverage this platform to monetise their content directly to consumers, potentially at higher prices compared to traditional television advertising.

In conclusion, while the media landscape is undeniably evolving, the focus should shift from simply comparing market share percentages to understanding the broader shifts in content creation, distribution, and consumption. By embracing these changes and leveraging their strengths in content production, media companies can navigate the evolving media ecosystem and ensure continued success.

How optimistic are you about advertising in esports and gaming? What should brands consider?

The gaming audience in India is substantial and comparable in size to the cricket audience. However, simply treating gaming as a media touchpoint for advertising is unlikely to be effective.

Gaming is not merely a platform; it's a deeply ingrained culture. To effectively engage with gamers, brands must develop strategies that resonate with this cultural aspect. Simply interrupting the gaming experience with intrusive ads will likely alienate players.

Instead, brands should focus on building authentic connections within the gaming ecosystem. This could involve sponsoring esports events, partnering with popular streamers, creating engaging in-game experiences, or developing their own gaming-related content.

Examples like Red Bull and Netflix demonstrate the importance of cultural integration. These brands have successfully integrated themselves into the gaming culture, becoming synonymous with gaming experiences in the minds of players.

Coming to e-sports, while it is still a growing phenomenon, its potential for significant growth is evident. As esports continues to evolve and gain mainstream acceptance, it will likely become an increasingly important platform for brands to reach and engage with target audiences.

brands CTV advertising Wavemaker Shekhar Banerjee Wavemaker India Coldplay JioStar
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