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S-Group Insights: Amazon top ecommerce advertiser in Q3'15 with 275% ad volume growth

27-October-2015
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S-Group Insights: Amazon top ecommerce advertiser in Q3'15 with 275% ad volume growth

exchange4media.com and Strategy Group, the Analytical Arm of TAM Media Research, jointly bring  you a weekly column 'S-Group Insights' on Advertising Trends of different Product Categories. This column will be published every Tuesday and aims to aid advertisers, and media agencies understand changes in Media Consumption patterns leading to Scientific Advertising Investments. In the current column, we take a look at the ecommerce sector.

In India, ecommerce sector is steering up the hill at an envious pace. In a very short span of time, business to consumer & online shopping has witnessed a prodigious growth with heterogeneous offerings.

This growth in online shopping advertisements volumes is seen across all the mediums (i.e. TV, Radio & Print).

Is-B2C & online shopping witnessed a rise of 78% on TV, 126% rise on Radio & 62% rise on Print medium when compared Jan-Sept period from Yr'14 to Yr'15.

Total number of Advertisers in Online Shopping product group have noticed a mount in number of players in all the mediums across years wherein maximum increase is noticeable in Print & Radio.

When compared to previous year new advertisers ads volumes contributes around 10% of total ads volumes on TV in Yr'15.

Amazon Online has garnered the leading position in Q3'15.

Even the exclusive product online shopping advertisers have grown their ads volumes (i.e. Lenskart, Urban Ladder, Payumoney & Askmebazaar)on TV in Yr'15 and are among the top advertisers.

In Q3'15, even though the Advertisement have witnessed  a minimal drop in Q3'15 compared to Q2'15 Amazon Online still garners leading position with a growth of 275% ads volumes when compared with Q1'14.

In recent period, Amazon is also targeting regional audiences by placing 40% share of its ads on Regional channels (i.e. majorly Telugu, Tamil followed by Kannada, Marathi, Bengali, Assamese, Oriya).

Big players among the online shopping advertising players are also following the similar trend by focusing more on Regional channels for their advertisement on TV.

New Niche advertisers(i.e. AskmeBazaar, Payumoney & ShopClues) contribute around 11% share of Ads volume on TV in Yr'15 and they are mounting up their position among top advertiser in Q3'15.

 Total ads in Print have seen a growth across period with a fall on Newspaper and a rise in ads volumes on Magazines.

Magazine ads volumes grew in Yr'2014 over Yr'2013 by 132% where the major advertisers Jade Eservices (Jabong.com) & Koovs.com.

Cosmopolitan & Femina are the most preferred magazine by the advertisers.

Naaptol was a leader among the advertisers in print which is replaced by Amazon & Flipkart in Q3'15.

Naaptol have reduced the ad volumes across the period whereas the new players have witnessed a rise in ads in recent period.

Indicart ads are placed exclusively in Print medium and is among the top 5 players in Print.

Indicart places its ads specifically targeting in UP region audiences and contributes around 50% of its ads volumes in UP across period. Hence, Indicart is the driver of advertisement trend for the online shopping product group in UP.

Top Advertisers on TV i.e. Amazon & Flipkart have also increased their ads volumes on Print whereas Snapdeal ads volumes notices a drop in Print medium in recent quarter.

Overall Even though the Olx Inc & BigBasket Ads volume have witnessed a drop in share from 61% in Q1'14 to 41% in Q3'15 among all the advertisers, Olx Inc & Big Basket  have maintained their leading positions.

Olx Inc & Big Basket have grown the ads volume by 172% & 503% in Q3'15 when compared to Q1'14.

Olx have launched a unique marketing strategy campaign on Radio ‘Kuch Keemat Bhi, Kuch Keemti Bhi’ on Big Fm 92.7 in Mumbai, Delhi & Kanpur which have led a rise in  Olx Ad durations in Mumbai & Delhi by 151% & 188%in 7-8pm slot whereas by 538% in 6-7pm slot in Kanpur in August'15 compared to last month. 

Top 6 players were contributing to around 90% of the ads volumes share on Radio in Q1'14 while in Q3'15 around 17 advertisers contribute to around 90% of ads volume on Radio. Fragmentation of shares is among the top advertisers include new advertisers (i.e. Grofers, Payumoney, Peppertap & Foodpanda) wherein Payumoney & Grofers, peppertap have high volume of ads on Radio in Q3'15.

Advent of the online players is seen to have heavily impacted the business of physical retailers. With the all year round sales and various mega sale events like Big Billion Day on various online platforms, the strategies to reach out to the masses are going to play a key role to sustain their businesses. The cut throat competition has led to a revolution in the way the marketing communication takes place on various medium like Print, TV and Radio. It would be interesting to see how advertisers harness these mediums to their benefit over the coming years.

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