Why programmatic tops marketers’ festive to-do list

As the Indian festive season gains momentum, brands are increasingly leaning into programmatic advertising to optimise campaigns and capture consumer attention. With India’s rapid digital transformation, programmatic advertising has cemented itself as an essential tool in a marketer’s arsenal, enabling real-time bidding, precise targeting, and data-driven insights that traditional methods can't match.

In 2024, as brands prepare for the peak festive shopping season, they are doubling down on programmatic strategies, leveraging technology to stand out in a crowded marketplace.

As Indian consumers increasingly embrace digital platforms for shopping and entertainment during the festive season, programmatic advertising has become an indispensable tool for brands aiming to maximize their returns.

The Perks

The convenience of automated, data-driven ad buying, coupled with its ability to scale and adapt in real-time, makes programmatic the backbone of many brands' festive marketing efforts. From capturing early-bird shoppers to delivering personalised, high-impact messages at the right time, programmatic offers the flexibility and precision needed to succeed in today’s fast-paced digital landscape.

For brands, however, the key to success lies not only in adopting programmatic but in crafting a balanced strategy that accounts for rising competition, increased costs, and the need for cohesive, omnichannel campaigns that resonate with India's diverse and digitally-savvy consumer base.

Varun Mohan, Head of Growth & Revenue, India & SAARC at MiQ, explains the shift, “In recent years, programmatic advertising has transformed the digital marketing landscape by automating ad buying, enabling real-time bidding, and making it highly efficient for targeting specific audiences. With the festive season kicking in, and consumers increasingly turning to digital platforms for their shopping and entertainment, programmatic efficiency, real-time adaptability, and precise targeting offer brands a significant opportunity to elevate their festive marketing efforts.”

Festive Spend

This festive season, marketers are increasingly choosing programmatic as their go-to strategy, and the numbers reflect this shift. The rise of omnichannel strategies that integrate both digital and offline touchpoints has amplified the importance of programmatic in the broader campaign mix. According to Mohan, mobile video ad formats and connected TV (CTV) are experiencing significant growth in programmatic spend, with mobile now accounting for around 70% of global programmatic advertising spend.

The highly competitive nature of the festive period drives up advertising rates as brands fight for premium ad placements across high-engagement channels. During this time, programmatic ad rates can see a 20-30% increase as brands compete across OTT, social media, and CTV platforms. This surge in demand is also fueled by consumer behavior—MiQ’s festive survey data indicates that shoppers begin researching their festive purchases about three weeks in advance, with over 25% planning high-value purchases of INR 50,000 or more.

Mohan adds, “Popular categories such as earphones, smartwatches, and mobiles are topping search volumes, and we’re seeing brand loyalty shift towards greater value for money. During high-engagement periods like festivals, brands that adopt a video-first approach are able to better capture the attention of potential customers. Around 18% of ad spends are going toward programmatic video, while 20% is being allocated to YouTube videos.”

Pitfalls Any?

However, as with any high-demand period, challenges arise. Chetan Asher, Founder & CEO of Tonic Worldwide, highlights the increased competition that brands must contend with, “The festive period marks a peak shopping time, and brands are likely to leverage any channel that can help them connect with customers and drive conversions. Programmatic platforms, with their vast historical data, learning capabilities, and features like flexibility, adaptability, and precision targeting, offer a valuable tool for brands to achieve impactful results.”

That said, Asher cautions that brands should be mindful of the increased costs. “Higher demand could drive up costs, so managing budgets and expectations around results will be key to success. For high-demand categories like apparel, jewelry, gifting, and footwear, we may see a surge in CPC and CPA by around 15-20%. For lower-involvement categories, the rise in CPM could pose a challenge as advertisers compete to capture attention amidst the clutter.”

As programmatic advertising continues to evolve, the ability to execute full-funnel strategies becomes crucial, particularly during the festive season. Tejas Maha, Group Head - Media at White Rivers Media, notes that programmatic advertising’s strength lies in its ability to deliver highly targeted ads at scale while optimizing in real-time. “Programmatic advertising is poised to play a pivotal role in festive campaigns. Its precision not only drives engagement but also supports local sellers, especially in non-metropolitan areas where traditional methods often fall short,” he says.

Maha emphasizes that the heightened competition during this period makes a comprehensive strategy essential. “With heightened demand raising competition and ad rates, a full-funnel strategy integrating user acquisition and retargeting becomes essential. As programmatic evolves, it will solidify its position as a cornerstone of digital ad spending and festive success,” he explains.