Ad industry’s most influential trade organizations have come together to spell out new definitions for ‘made for advertising’ websites, which are designed solely to attract an influx of ad dollars and gobble up a significant portion of digital ad spends. 

The consortium, which includes the Association of National Advertisers (ANA, US), the World Federation of Advertisers and the Incorporated Society of British Advertisers, this week released a detailed definition of “Made for Advertising” websites which lack organic audience and are instead highly dependent on visits sourced from clickbait ads that run on social networks and websites of reputable publishers. 

These sites generate a whopping 21 percent of ad impressions and gobble up 15 percent ($13 billion) of digital ad spend of the Open Web Programmatic which is a $88 billion global market, the ANA said in a report released early this year. The report blamed data gaps, lack of ad viewability and a huge number of publishers (44,000 websites, mostly created for ads) for the massive ad-waste. 

The move has come at a time when marketers are increasingly facing pressure to justify their ad spending, reduce wastage and deliver ROI. 

“Advertisers are often not in control of their media placement decisions as much as they should be,” says an Indian CMO, adding that programmatic players should weed out such publishers. 

While Google commands a significant portion of programmatic advertising, marketers are increasingly allocating more budgets for Open Web programmatic advertising to reduce their dependence on Google. 

According to a densu report, programmatic contributes 42% of digital ad spends in India which corresponds to Rs 12,000 Cr.

MFA sites impact ad rates: Indian Publishers 

Indian marketers expressed concerns over the extent to which MFA sites have grown and impacting their ad dollars. 

Such websites affect genuine publishers as well, industry players say. “Excess supply of inventory created through such websites impacts ad rates. In India digital ad rates have either remained static or have declined since 1995. The same is not true for US and other markets,” says Pradeep Gairola, Digital Head of The Hindu. 

Abhishek Karnani, Vice President of International Advertising Association (India chapter) and Director, The Free Press Journal Group of Newspapers, echoes the sentiments. “It is surely a cause of concern as it eats into the genuine publishers’ share in ad revenue. I am glad that the issue is coming to the forefront and being discussed,” says Karnani. 

He added that Google is making its robot and crawlers smarter to wean these types of websites by regularly posting updates on the algorithm. 

How to spot MFAs

As per trade organizations, MFA sites usually exhibit a combination of the following five characteristics:

1. High ad-to-content ratio (Up to 30%)
   
   

2. Rapidly auto-refreshing banner ads, autoplay video ads, slide shows forcing visitors to click through multiple ads to access content

3. High percentage of paid traffic sourcing

4. Generic low-quality content, often syndicated, dated and non-unique

5. Poorly designed sites

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The Telecom Regulatory Authority of India (TRAI) has released a consultation paper on ‘Regulation on Rating Framework for Digital Connectivity in Buildings or Areas’. The comments on the issues raised in the consultation paper are invited from the stakeholders by November10, 2023 and counter-comments, if any by November 24, 2023.

According to the authority, digital connectivity has become an integral part of personal, professional, and social life. The exponential growth in digitalization of services and manufacturing sectors has revolutionized the world, impacting everything, from economy, innovation, science, and education, to health, sustainability, governance, and lifestyle. 

“The demand for digital connectivity has increased many folds in the recent years. The crucial role of digital connectivity has been acknowledged pandemic, witnessing a surge in the demand across all segments of users, irrespective of their locations,” stated TRAI. 

The authority further stated that the TRAI has been monitoring the quality of service of telecom services across the country by conducting detailed studies and issuing suitable directions to the stakeholders, to improve the quality of service. While there have been significant improvements in coverage of telecom services on the street, there are still gaps observed in meeting the perceived quality of service demands of the users, especially inside the buildings, residential or commercial areas.

In an official release, TRAI said, “The quality of telecommunication services inside the buildings is an integral part of protection of the consumer interest. TRAI has already taken various policy initiatives including the Recommendation dated  February20,  2023 on "Rating of Buildings or Areas for Digital Connectivity". These recommendations provide for introduction of Rating of Buildings framework to ensure good digital connectivity experience to the consumers through a collaborative and self-sustainable approach.”

The Consultation Paper on "Regulation on Rating Framework for Digital Connectivity in Buildings or Areas" is released to deliberate on regulation for implementation of rating framework for buildings and areas for digital connectivity to improve QoS inside buildings and for seamless consumer experience.

TRAI said that the paper highlights the need for Rating of Buildings or Areas for Digital Connectivity that meets not only the current expectations of the consumers but is also ready for future expansion or upgradation with the advancement of technologies or change in users' demand. This CP also discusses the benefits of the rating framework to the end-users, service providers and to the ecosystem.

“The consultation paper describes overview of the 'Rating framework for Digital Connectivity' based on the practices being followed internationally and rating frameworks like GRIHAor Credit Rating in India,” reads the official statement. 

Google, Facebook and several ed tech firms may have to pay nearly 18% GST on services provided to the government and individuals, as the exemption is likely to end starting October, media networks have reported.

These companies will be taxed for their services in the Online Information Database Access and Retrieval category.

The integrated goods and services tax will be applicable to overseas companies providing advertising, cloud services, online education and some other services, media reports said quoting government officials.

The Goods and Services Tax (GST) Council has already decided to amend central and state laws from October 1 to implement a 28% tax on online gaming, casinos and horse racing.

The tax will be applied not to each value of the bets placed but to the entry amount that users pay.

There will be an income tax on winning as per the law. The GST Council also has decided to amend the integrated GST Act related to importing goods and services. Offshore money gaming platforms that do not comply with the requirement will also be blocked.

Leading e-commerce players are utilizing the potential of Generative Artificial Intelligence (AI) to gain deep insights into consumer expectations and preferences, enhance the shopping experience of buyers and predict demands based on past sales. 

Walmart-backed Flipkart, for instance, is set to introduce a range of advanced technology integrations to elevate the shopping experience of customers. 

“This involves the implementation of virtual assistants and generation of product descriptions, high-quality images, creative materials, and augmented reality visualizations, all aimed at enriching the user experience,” Mayur Datar, Chief Data Scientist at Flipkart, tells e4m. 

Datar explains, “With deeper integration of Generative AI, we are reimagining product recommendations based on customers' preferences and behaviours. Flipkart has also developed chat-driven interactions for both customers and sellers, enhanced search capabilities using semantic search technology, and created internal tools to boost productivity and efficiency.”

Ajio, an online fashion and lifestyle store from Reliance Group, has introduced a dreamlike sequence that transports influencers into an AI-Verse generated by artificial intelligence. 

“Within this virtual realm, influencers seamlessly transition between various outfits sourced from Ajio, before returning to their normal selves. This innovative approach to brand promotion is unparalleled,” says Rashi Agarwal, Founder, Megalodon, an AI firm that is working with Ajio to develop its generative AI capabilities. 

Ajio has also appointed influencer Aiyyo Shraddha as “Chief of Small Talk” to add humour into their branding proposition. Besides, the company’s prowess in the ‘moment marketing’ game would also be on display in the festive season. 

Amazon too has rolled out a new set of generative AI capabilities early this month at their premier annual seller conference-Accelerate 2023. 

“The generative AI tools will simplify how sellers create more thorough and captivating product descriptions, titles, and listing details. These new capabilities will make it faster and easier for sellers to list new products as well as enrich existing listings, helping customers more confidently make purchase decisions. The new tools can recognize, summarize, translate, predict, and generate text and other content, to build more comprehensive product descriptions,” the company announced at the conference.  

Top D2C brands too are enthusiastic about presenting engaging content that instantly connects with their target audience, utilizing methods ranging from computer-generated videos to AI creativity, Agarwal says. 

AI-Powered Designs

Traditionally, fashion designers have relied on their intuition and creativity to envision new collections. Now, they are increasingly collaborating with AI systems to generate unique patterns, colour combinations, and even entire garment designs. 

AI is also revolutionizing the supply chain, enabling fashion brands to streamline their operations and minimize waste. This data-driven approach ensures that brands produce the right amount of inventory, reducing excess stock and the need for heavy markdowns. 

Demand predictions 

Brands typically focus on the festive season due to the significant surge in traffic, translating into increased sales. They often overlook some critical aspects of user experience. 

Shashank Rathore, Vice President, E-commerce, Interactive Avenues (the digital arm of IPG Mediabrands India), explains, “As consumers, we've all encountered out-of-stock products during festive seasons, leaving us wondering why brands miss out on potential sales opportunities. However, this time around, brands are harnessing the power of generative AI to analyze historical data and accurately predict product demand.”

These initiatives extend far beyond the festive season as AI has evolved into a long-term sustainable strategy for growth in this digital marketplace, says Shubham Srivastava- AVP, D2CPro Powered by Team Pumpkin. 

He noted, “AI tools may assist in streamlining tasks like data analysis, strategic planning, trend forecasting, and improving customer buying experiences. Amazon, Google, and Shopify are already at the forefront of Gen AI and are utilizing its capability to understand and help with customer needs.”

“E-comm sales to touch Rs 90,000 Cr during fests”

A Redseer report predicts that the Gross Merchandise Value for the entire festive month of India’s eTailing in 2023 will reach approximately INR 90,000 crores, marking an impressive 18-20% growth compared to the previous year’s festive month sales. This growth is expected to be fuelled by a significant user base of around 140 million shoppers who are projected to make online transactions during this festive month. 

“We expect increasing GMV contributions from non-electronics categories like Fashion, BPC, Home & General Merchandise and more this festive period,” says Mrigank Gutgutia, Partner at Redseer Strategy Consultants. 

Separate budget 

Expecting a great festive season, Brands are not hesitant to allocate significant resources for AI. 

Rathore says, “Brands with large budgets are investing in AI by creating in-house AI research and development teams. Mid-sized e-commerce players are choosing to invest in third-party AI tools and platforms that offer ready-made solutions for personalization, recommendation systems, chatbots, and more. However, most of the ecommerce related companies are motivating current teams to learn AI by investing in training programs and educational resources for their employees to build AI knowledge and skills.”

They also allocate separate budgets for hiring data scientists, machine learning engineers, and AI experts who can develop, implement, and maintain AI solutions in future, Rathore noted. 

Will AI help lift consumption?

As per Gutgutia, generative AI will lead to better and novel consumer experiences and drive stronger growth momentum. Some experts are not very hopeful though. 

Rathore opines, “While AI is poised to have a notable impact on driving consumption this year, it's still just a single component in a multifaceted environment, and its effects must be evaluated within the larger framework of consumer behaviour and market dynamics. Furthermore, consumer actions during festive seasons can be shaped by a variety of factors, encompassing economic circumstances, cultural customs, and external occurrences.”

Attributing a direct influence on consumption can be challenging for brands at present, but as we move into the next year, we can anticipate more precise measurements of its impact, he added. 

Moreover, consistency remains a major hurdle in AI, with many AI video tools still in their beta stages yielding unprofessional results, experts point out. 

The Marcom Avenue has announced that it has secured the performance marketing mandate for biscuit brand PriyaGold. The collaboration aims to amplify PriyaGold's digital presence and engagement with its diverse customer base.

“As part of this partnership, The Marcom Avenue will leverage its expertise in data-driven insights, creative content, and cutting-edge digital strategies to enhance PriyaGold's brand visibility and market reach. The agency will focus on driving measurable results, optimising customer acquisition, and increasing overall brand performance,” stated a press release.

"The Marcom Avenue is thrilled to have been entrusted with the performance marketing mandate for Priya Gold. We are excited to work with a brand that is synonymous with quality and innovation in the food industry," said Ms Divanshi Gupta, Director at The Marcom Avenue. "Our team is committed to delivering exceptional results, and we look forward to helping PriyaGold achieve new heights in the digital landscape."

Manas Agarwal, Director, Priya Gold, expressed satisfaction with the collaboration, stating, "Partnering with The Marcom Avenue would prove to be instrumental in leveraging our strengths, amplifying Priya Gold's narrative, and expanding our market reach to a remarkable audience. Their team has consistently demonstrated their expertise in the marketing field and has gone above and beyond to understand our unique requirements. Their efforts have played a significant role in positioning Priya Gold as a preferred choice for snacks and confectionery products. We are excited to continue this partnership and achieve new milestones together."

The online viewing revolution means the word ‘TV’ no longer just describes purely linear TV. Increasing numbers are watching streamed content via Smart TVs and according to IDC over 4.5 million Smart televisions were shipped to India in 1H23, an increase of 8% year-over-year (YoY).

Samsung has been the leading TV manufacturer worldwide for the last 17 years, and this means the data we collate at glass level is representatively robust. In the first half of 2023, this data showed that Indian viewers on Samsung TVs spent almost 88% of their total TV time in streaming environments.

This sea change in viewing behaviour is important for advertisers as the data-driven insights we gather from connected TV (CTV) provide opportunities to deliver more relevant advertising, refine reach to find new audiences and reduce wastage.

Jargon is clouding our understanding of CTV

We are all guilty of over-complicating the TV landscape and reinforcing the fragmentation within the medium with an over-use of jargon. This is detrimental to agencies’ full understanding of how CTV can be utilised as part of an integrated media plan.

Streaming brings the data collation and targeting ability of digital to the world of TV but the disjointed way we talk about the ecosystem can be confusing. We have created an alphabet soup of categorisation. One that viewers do not care about and which muddies the waters in our own commercial conversations.

The original labels that initially accompanied the streaming revolution– Advertising Video on Demand (AVOD) and Subscription Video on Demand (SVOD) – can be useful in identifying these two different streaming environments.

Viewers certainly understand if they are watching TV for free or paying for the experience - and we know most streamers in India are happy to watch advertisements in return for access to free content. Research we carried out with Verve shows 80% of people in India are happy with this trade off. On the other hand, subscription numbers are churning as people face increased economic pressures.

But we have since added to a growing list of acronyms FAST (Free Advertiser Supported Streaming TV), a descriptor to explain the proposition of a scheduled streaming channel, and we’re grappling with an acronym for Subscription with Advertising Tiers as the SVOD platforms look to new monetisation models.

Will HVOD (Hybrid Video on Demand) win out or SAVOD (Subscription Advertising Video on Demand) win out? This is exactly the kind of meaningless debate around terminology all involved in the TV industry need to put aside.

Step out of siloed thinking

Planners can find these acronyms useful but the lines between these different viewing environments are blurring so much that as an industry we risk creating a convoluted landscape for ourselves that will hold back overall CTV growth. Acronyms become out of date and can inhibit fresh thinking – the most creative solutions and TV buys come from stepping out of siloed thinking.

Agency buyers and planners who may be anxious about their streaming knowledge should be confident in the digital abilities they have honed across a range of media. If you understand how digital media is traded and the capabilities of programmatic then the fundamentals of how to plan and buy CTV will not be difficult to grasp.

Audience first approach

Instead, the focus should be on gaining a deeper knowledge of the viewer and how to reach them. Understanding what they watch, their preferences and how to deliver a positive, privacy compliant experience in which advertisements are welcomed as an integral part of the whole should be the goal. The data-driven insights surfaced by CTV are what is truly important, not the label categories.

This will come by breaking down the silos including the ones that might exist in agencies between audio-visual and digital teams – alignment across teams to focus on CTV’s strengths will deliver the best results for advertisers. These strengths include knowledge at the glass level of watch time,  awareness of favourite genres and the ability to identify audiences that have not been reached by a brand’s linear TV campaign.

These insights mean brands can devise complementary campaigns for advertisers that can reach fractured audiences, whether they are linear TV viewers or streaming enthusiasts. Planning against deterministic data rather than siloed viewing formats badged by acronyms  will lead to the media mix best optimised to meet marketing objectives.