Average Indian’s digital video consumption has grown 2x in past two years: BCG-CII report
The report released by Boston Consulting Group & Confederation of Indian Industry sheds light on perspectives of leading advertisers who continue to believe in digital as a medium given its advantages
Boston Consulting Group (BCG) and Confederation of Indian Industry (CII) have released a report 'The trillion (and growing) touchpoint story – recognizing the monetization conundrum'.
The report seeks to build on last year’s publication and highlights that India’s unique multi-modal growth continues to play out. Sudhanshu Vats, Chairman, CII National Committee on Media & Entertainment and Group CEO and Managing Director, Viacom18 Media Pvt. Ltd., India said, "India is one of the unique markets, where nearly all forms of media consumption are growing. However, true disruption is being seen in digital video, which has grown at a staggering 46% CAGR over the past two years.” This pattern of growth suggests that the trillion touchpoints will only increase in the future.
According to the report, the average Indian’s digital video consumption has grown 2x in the past two years on the back of surging smartphone adoption and ubiquitous low-cost high-speed mobile internet, coupled with industry’s initiatives. The industry has invested significantly into making the experience a customer centric one – right from relevant content in the form of micro genres all the way up to different formats while ensuring easy availability. “The Indian consumer is becoming increasingly engaged with the stories being told. This is evident, given we are witnessing a rise in both, the number of sessions as well as the time spent per session. Content creation is increasingly leveraging the science of data to complement the art of storytelling,” says Kanchan Samtani, Managing Director & Partner, Boston Consulting Group India.
This investment and experience is being recognized by consumers as well who are increasingly subscribing to these digital applications. “The fundamental drivers of value for consumers are inherently different, ranging from an expansive breadth of content to just easier access”, observed Karishma Bhalla, Managing Director & Partner, Boston Consulting Group India. She added, “The SVOD base is truly democratized, having moved beyond the traditional 3M's (metro, male & millennials). The digital age of a consumer plays a far more pronounced role in SVOD adoption once the initial trials are induced”. The report further goes on to suggest that spend on media is expected to follow the "lipstick effect", with the spends remaining constant or even increasing in challenged environments.
The report also sheds light on perspectives of leading advertisers, who continue to believe in digital as a medium given its inherent advantages. Mandeep Kohli, Partner, Boston Consulting Group India elaborates, “While there are some all-pervasive advantages like sharper targeting etc., digital has a unique proposition for industries like FMCG, Auto & BFSI which require a deeper understanding of consumer intent and behavior at specific moments. This kind of psychometric targeting approach is made possible by the tracking of consumers online and offline activities ensuring a higher return on marketing investment for the advertisers”. The report also highlights some of the questions on effectiveness and efficacy, which the industry should look to address quickly.
Vats highlighted the call for action "There is a tremendous opportunity for our industry to reimagine itself yet again and reinforce our leadership position. We must look to translate the trillion touchpoints into a more sustainable and value accretive proposition for all stakeholders. We hope that this report helps create a dialogue on the imperatives for the same."
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