It is expected that by 2021, 85% of the content consumed will be video: Himanshu Arya
Arya, Founder and CEO, Grapes Digital shares insight on how today’s digital space has seen growth and has changed with smartphones penetration
Grapes Digital recently expanded their services to Mumbai. exchange4media spoke to Himanshu Arya, Founder and CEO, Grapes Digital about the impact of video content, programmatic advertisement with IPL this year, and smartphones like Jio's penetration into the digital world changing the market.
Talking about the spends by marketers on digital medium and if digital investments will see an upward trend in future as compared to the current market, Arya said, “Spends on digital has increased and is expected to reach approximately 14000 Crores in 2019. The growth from the previous year is approximately 30 per cent. The highest share of spends have come from BFSI and Consumer Durables sectors where they are spending approximately 35-40 per cent of their total advertising spends on digital.”
He continued, “With an audience of 560 million and another 200-300 million getting added in the coming years digital investments are definitely going to see a huge upward trend. This is not going to happen from digital first brands only but also from a lot of brands like FMCG who always have been offline oriented only.”
Speaking about how programmatic advertisement is faring with IPL season as compared to last year, Arya said, “Programmatic is only bigger this year with IPL, in fact with any brand who has been using and nurturing programmatic audiences. Because now you have a bigger audience base whose behaviour is known from the last year. We can interact with them with different creative and create new audience sets this year. Last year, OTT was able to target additional 20- 25 per cent people and this year we are looking at approximately the same.”
Hotstar became the major player on digital platform with Vivo IPL this year, would digital be bigger than television in terms of IPL? Arya believes that Hotstar has been able to sell the sponsorship for IPL every year and this year again it’s with Maruti Suzuki. “The number of brands targeting cricket audience across Hotstar and other cricket sites and content is huge. Spends on digital has definitely increased and is targeting a higher pie from the 2100 crore ad revenue Star is targeting from both digital and TV; but digital being bigger than TV would be a question as a lot of digital ad space is sold as value add in the overall TV deal.”
Arya explains how smartphones have made the content consumption patterns very different when asked about the digital landscape in India changing at a lightning speed. He said Grapes Digital changed the way they strategized after smartphones penetration into the digital market especially with Jio’s penetration into the market has changed the game.
He said, “Today out of 1.3 billion of India’s population we have approximately 40 per cent people use smart phones. This number is increasing every year in double digits. Smart phones have made our content consumption patterns very different. Every year there are new apps and new ad formats which keep us on toes to evolve and conceptualise a strategy to target the audience in unique and innovative ways.”
“Jio’s penetration has definitely increased the number of people accessing internet and hence there is a huge slash in price as now you have more audience accessing content. For example, YouTube cost per view slashed majorly last year as we had more audience and hence inventory to showcase our ads. And the masthead is now being sold for 1.4 crore as YouTube has a base of 225 Mn users. We are really looking forward to more advertising spends moving online with Jio as more and more audience becomes available,” added Arya.
Speaking on the increasing impact of video content, Arya said, “Video, voice and vernacular will define the digital ecosystem of tomorrow. Video has been playing an important role and has seen the highest spends in 2018 and will continue to grow.”
“It is also expected that by 2021, 85-90 per cent of the content consumed will be video. With every second ad on Facebook being a video and YouTube flaunting a subscriber base of 225 Mn users one can easily say that video is the way to go. Today every brand has a video brief and for every campaign big or small. Social days like April Fool, Valentine, Father’s Day, Women Day etc now gets flooded with video stories from multiple brands. Content Creators like Pocket aces, TVF etc and common users are also focusing on creating more and more video content. So the way to go is definitely video.”
Sharing the company plans and client acquisition, Arya said that they have just expanded their Mumbai operations. “And our initial focus is to set up the teams and acquire new clients. While we are focusing on the moolah we also aim to bring in innovation and creativity and push the bar like we have always done year on year,” he added.
In terms of client acquisition last one year has been great for Grapes Digital, “We won big account like Logitech, Realme, Bajaj Finserv Direct Limited, Aakash Education Services Limited, Maxxis Tyres and few others. We also expanded our Mumbai operations and expanded our team here. Our employees have grown by 50 per cent. From a 100+ strong team, we are now 150+ stronger team across offices,” concludes Arya.
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