Are auto brands going slow on marketing to cross semiconductor shortage hurdle?

Industry observers say marketing strategies for the sector are evolving to tide over the crisis with the focus being on tailor-made communication and creating experiences

e4m by Mansi Sharma
Published: Jun 13, 2022 8:39 AM  | 7 min read
Auto

The global semiconductor shortage has come up as an unexpected challenge for automakers around the world. The undersupply of this crucial component – because of a confluence of problems such as insufficient capacities at manufacturing units, the pandemic, and the tense socio-economic environments across the globe – has slowed down the production process for new vehicles.

Each company is dealing with a long list of pending orders. In India alone, carmakers are sitting on the books of 7 lakh pending orders as of December 2021, according to the recent Economic Survey 2022.

Additionally, as per reports from the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales in December 2021 were down by 13 per cent on a year-on-year basis. The country’s two-wheeler sales also plummeted to the lowest in the last 9 years because of fuel prices going up and owing to the decreasing purchase power in rural districts, courtesy rising inflation.

According to dentsuMB Managing Partner Indrajeet Mookherjee, “This Covid-induced semiconductor shortage disrupted car sales across the world and it also resulted in higher waiting periods and lower production in India as well. Mass car makers who have higher volumes have been feeling the heat more with an average 10 per cent sales slump month on month while premium car makers who have secured the supply side are still able to grow their volume share.”

Sharing more on the crisis, Grapes CEO Shradha Agarwal says, “Very evidently, the semiconductor shortage has impacted the industry quite a bit. We have seen new launches taking a hit over the past two years and it will take some time for the situation to normalise.”

Impact on AdEx

All this has now affected marketing spends and strategies of leading carmakers in the country. The industry is of the opinion that the brands are being very cautious about how much, and where all they are spending their precious ad monies.

Initiative CEO Vaishali Verma highlights, “We work with a lot of auto brands and the last two years have been pretty stressful for the industry. While the demand is there, because of production-related problems, the supply is limited. And this paired with accelerated inflation, and increasing crude oil and fuel prices, made the first five months of 2022 very grim as well. We have witnessed the category slashing down at least 60-70% of their marketing budgets.”

However, things have slowly started looking up post-Covid, in terms of the AdEx of auto players.

Mookherjee notes, “There was a Covid-induced dip in AdEx for auto brands in the last 2 years. However, there has been an upsurge after Covid. With markets and dealerships having reopened, there has been an evident increase in demand for cars in urban HHs in the post-Covid world. Also, newer entrants along with existing players are driving the AdEx, especially in the SUV segment. The auto sector is expected to contribute nearly 7% to the overall AdEx, becoming the 3rd largest segment after FMCG and E-commerce in 2022.”

How have marketing strategies evolved?

Even as the situation around semiconductors remains dubious, with the next two years projected to be slow, the marketing strategies have surely evolved for the industry.

When it comes to the media pie, print, which has been a mass favourite for the auto industry, has slowly started taking a backseat as digital comes to lead the roost. Television spends, on the other hand, have largely remained stable.

“From an overall perspective, the auto sector’s dependency on print is reducing and digital is gaining momentum. The presence of big-ticket sporting events and consistent viewership means TV spends are stable. Cinema, Radio and OOH are seeing a reduction in terms of expenditure and these budgets are increasingly being diverted to digital. In the digital online space, paid video search and social media are witnessing exponential growth,” Mookerjee elaborated.

He further said, “From a communication point of view, we are in the middle of a great shift from advertising to experiences. With data at the centre of everything, communication will be tailor-made to specific customer clusters based on their needs & experiences.”

As for Agarwal, the industry is resorting to spending more on seasonal/festive campaigns, “Print, radio, and OOH all are seeing a reduction in ad revenues. GRPs on television are paused, with not much incremental growth happening. These brands, therefore, are surviving largely off digital where the ad rates are quite low and affordable, while offering better targeted reach.”

Verma further said the industry was now doing more of “quick to action” ads instead of brand or intent building. “The idea is to get more and more people to experience the product, get them to test drive and order a vehicle. Performance-driven campaigns are taking centerstage.”

What brands say

The leading auto brands in the country, however, are focusing only on the positives of the time: increased demands, growing purchase intent for several categories, and maintaining a robust production portfolio.

A Tata Motors company spokesperson told e4m, “The demand for our ‘New Forever’ range continues to be strong. The same has been reflected in our May 2022 month sales, where we have recorded our highest ever monthly sales of 43,341 units, since the inception of the PV business, reporting a growth of 185% over the same period last year. All our products are leaders in their respective segments, forming a portfolio that is rich in selections, ranging from smart trim choices to strong powertrain options, making us the only OEM catering to customer needs across petrol, diesel, CNG and EVs. Furthermore, while the semi-conductor situation and supply-side challenges remain uncertain, we continue to monitor the situation closely, while remaining agile, taking prudent actions with our multi-pronged approach and finding innovative solutions with our suppliers to debottleneck production capacities. These actions have helped us on an ongoing basis and have not let the shortage impact the supply side to a large extent.”

Maruti Suzuki Senior Executive Director - Marketing & Sales, Shashank Srivastava, in an earlier interview with e4m had mentioned, “We have a good portfolio of vehicles, about 15 at present, which is the largest in the industry. Different models require different types of chips. We tried to adjust the production plan to keep pace with the supplies of chips. The production, which was about 40 per cent last September, has now come up to 93 per cent. It would take some more time for things to become normal. And I can't say how much time it is going to take due to non-visibility in the global supply chain.”

He had further claimed, “The auto industry’s advertising expenditure would increase 15-20 per cent as compared to the previous year. Last year, the auto segment accounted for Rs 5,000 crore of AdEx, out of overall Rs 57,000 crore expenditure on traditional media platforms, keeping digital aside. Half of it, that is roughly Rs 2,500 crore, was from car manufacturers alone.”

Mercedes-Benz India Vice President – Sales & Marketing Santosh Iyer quips, “The global auto industry continues to face disruptions and delays stemming from chip and container shortages. However, we are witnessing a better-than-expected recovery. Despite supply chain challenges, we expect 2022 to be one of our best years ever in India in terms of sales, as for the first time we have an order bank of over 5,000 cars.  The continued high demand for our new launches is evident from our recently launched C-Class which registered more than 1,000 confirmed bookings even before its price announcement. We have sold every car available with us, and the waiting period ranges from two months for some models to two years for speciality cars such as the G-Class.”

Speaking of the impact on marketing plans, Iyer adds, “The vehicle shortage has certainly had an impact on our marketing plans and we have shifted focus from advertising to CRM. We have been investing our resources in curating very luxurious and exclusive experiences for our customers and prospects like sending them to Paddock clubs for F1 races, creating unique AMG emotion tours and many other experiences that money cannot buy. We are using this opportunity to build strong relationships and further strengthen our brand ethos of ultimate luxury. Marketing spends have also accordingly shifted from performance media campaigns to brand campaigns and customer experiences.”

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Robin Uthappa named brand ambassador of fantasy sports platform Sportiqo

Sportiqo will also launch a host of digital campaigns with Uthappa in the near future

By exchange4media Staff | Mar 21, 2023 5:00 PM   |   2 min read

robin uthapa

Sportiqo, a blockchain-based fantasy sports platform has announced ace Indian cricketer Robin Uthappa as their brand ambassador. Sportiqo marked the beginning of its operations in India in the month of February and so far, amassed 32,000 active users owing to its beta launch.


The stylish batter from Karnataka, Robin is a generational talent, wanted by every cricket league in the world. Uthappa was a part of the Indian squad which won the ICC World T20 in 2007. He is known for his masterful batting performances and his great impact on his team’s success.


Speaking on the association, Robin Uthappa said, “Sportiqo is the perfect platform where I am able to find a cohesive link between sports and technology. The stock market is something that is often portrayed as being meant for a particular segment of the audience but with Sportiqo sports fans across age groups would not only be able to learn how the stock markets work but at the same time be able to use their sporting knowledge and skills to do it in a fun and engaging manner.”


He further added, “Making the youth learn about investing and trading using cricket is a great idea. India needs creative options to improve the financial literacy of the masses and I am glad that Sportiqo is addressing that gap. I am proud to be associated with the platform.”


“We are delighted to welcome Robin Uthappa to the Sportiqo family as our new brand ambassador. He is one of the most exciting cricketers of his era. said Anindya Kar, Chief Product Officer and Co-Founder of Sportiqo. “With his disruptive and instinctively innovative approach to his sport, Robin Uthappa embodies the same pioneering spirit that will drive Sportiqo to keep pushing boundaries in the sector.”


Sportiqo will also launch a host of digital campaigns with Robin Uthappa in the near future.


Sportiqo has so far, raised $1.25 million (Rs. 10 crores) in the pre-seed round from angel investors with a focus on user acquisition in its first phase post-launch. The cricket stock market platform is already live for the ILT20 League, Pakistan Super League (PSL) and additionally, in the coming time, Sportiqo will add a portfolio of other sports and leagues as well such as the English Premier League and the Indian Premier League among others.

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Jr. NTR and Kriti Sanon come together for Appy Fizz campaign

The campaign also introduces the newly revamped packaging design of Appy Fizz

By exchange4media Staff | Mar 21, 2023 4:02 PM   |   3 min read

NTR Kriti Sanon

Appy Fizz has unveiled an upbeat summer campaign kicking off the new era of the sparkling fruit-flavoured brand. For the first time ever, megastars and brand ambassadors Kriti Sanon and Jr. NTR will be seen together onscreen, as a part of Appy Fizz’s campaign. The fresh onscreen pairing is testimony to the brand’s commitment to infusing new energy into the brand. The theme revolves around embracing the new i.e. doing something new, exciting and unique by inspiring consumers to take bold next steps for a much needed change.

The campaign also introduces the newly revamped packaging design of Appy Fizz through their summer brand film and activations for consumers across India.

Free of caffeine and a healthier alternative to colas, Appy Fizz continues to wow audiences with its edgy and exuberant campaigns. The ad film’s captivating cinematography pulls the viewer in on an exciting journey across highly stylised graphic backdrops. The seamless transitions seen in the Appy Fizz brand film adds to the mysterious, stylish and confident vibe of the brand. Kriti Sanon and Jr. NTR's enigmatic personalities invite audiences to ‘Feel the Fizz’ and embrace the new, against a setting of magnificent graphics and catchy, pulsating music.

Commenting on the summer campaign, Nadia Chauhan, Joint Managing Director & CMO, Parle Agro said “This season’s summer campaign for Appy Fizz is symbolic of our legendary brand of 20 years, shedding its old look and marking a new chapter in its prolific legacy. We are celebrating this elevated identity in a massive way as our brand ambassadors, Kriti Sanon and Jr. NTR join forces for a memorable multi-channel campaign. With our commitment to innovation and quality, we have plans to further drive growth of the sparkling fruit flavoured category that we’ve created, to newer heights and reinforce consumer affinity for the much loved brand.”

Along with the ad film, there are activations planned across TV, outdoor, digital and radio to amplify the new avatar of Appy Fizz. An aggressive outdoor campaign has been put into action. Large impact hoardings and branding at heavy footfall and traffic areas have been set up to drive enormous visibility and reach for the brand. Appy Fizz is the associate sponsor for the IPL this season and the new campaign will play out during the entire run of the much-awaited sports event, capitalising on its massive reach and high viewership. Apart from ads, there are numerous innovations that will be done within prime-time TV shows across channels to feature the product. The idea is to focus on building the brand through in-show integrations, going beyond showcasing the product via advertisements. Appy Fizz retails at an unbeatable price of Rs.10.

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Ranveer Singh pips Virat Kohli to become 'Most Valued Celebrity of 2022': Kroll report

Singh's brand value of $181.7 million puts him ahead of Kohli, Akshay Kumar, Alia Bhatt and Deepika Padukone

By exchange4media Staff | Mar 21, 2023 3:52 PM   |   3 min read

ranveer singh

Kroll, the leading independent provider of global risk and financial advisory solutions, announced today the launch of the eighth edition of its Celebrity Brand Valuation Study titled, “Beyond the Mainstream”. The study provides a ranking of India’s most powerful celebrity brands based on brand values derived from their brand endorsement portfolios and relative social media presence. The overall brand value of the top 25 celebrities in 2022 is estimated at USD 1.6 billion (bn), an increase of 29.1% from 2021.

 Key findings of the report include:

  • Ranveer Singh becomes the most valued celebrity of 2022 with a brand value of USD 181.7 million (mn)
  • Virat Kohli secured second position with a brand value of USD 176.9 mn and Akshay Kumar stays steady at the third position with a brand value of USD 153.6 mn
  • Allu Arjun and Rashmika Mandanna feature on the top 25 list with brand values of USD 31.4 mn and USD 25.3 mn, making it the first time for a South Indian celebrity to be featured on the list
  • Olympic gold medalist Neeraj Chopra debuted with a brand value of USD 26.5 mn at No. 23

Aviral Jain, Managing Director, Valuation Advisory Services, Kroll, said: This year’s theme ‘Beyond the Mainstream’ is driven by the stupendous rise of South Indian movie stars and sport celebrities. Notable names from the Tollywood industry, Allu Arjun and Rashmika Mandanna, were featured on the list of India’s top 25 celebrities along with India’s T20 captain Hardik Pandya and Olympic gold medalist Neeraj Chopra. Amongst the Bollywood stars, Ranveer became the most valued celebrity brand in India, given his mammoth endorsement portfolio and widening global presence. Kiara Advani, Kartik Aaryan and Sara Ali Khan were other Bollywood debutants on our top 25 list.” 

2022 has been the second successful year for South Indian movies at the box office, resulting in many Tollywood faces being sought after in the advertising and media industry nationally. Further, with a splendid performance at the Olympics followed by the Commonwealth Games, Indian sports stars continue to bag several marquee endorsements benefiting because of lower competition from Bollywood stars with a limited box office collection. 

We present the list of our top 25 celebrity brands for 2022 below: 

Rank (2022 Report)

Celebrity

Brand Value (USD mn)

1

Ranveer Singh 

181.7

2

Virat Kohli

176.9

3

Akshay Kumar

153.6

4

Alia Bhatt

102.9

5

Deepika Padukone

82.9

6

MS Dhoni

80.3

7

Amitabh Bachchan

79.0

8

Sachin Tendulkar

73.6

9

Hrithik Roshan

71.6

10

Shah Rukh Khan

55.7

11

Salman Khan

54.5

12

Ranbir Kapoor

54.5

13

Rohit Sharma

49.5

13

Ayushmann Khurrana

49.5

15

Anushka Sharma

41.7

16

Kiara Advani

38.3

17

Kareena Kapoor

36.5

17

Kartik Aaryan

36.5

19

Hardik Pandya

34.8

20

Allu Arjun

31.4

21

Sara Ali Khan

28.0

21

Varun Dhawan

28.0

23

Neeraj Chopra

26.5

23

PV Sindhu

26.5

25

Rashmika Mandanna

25.3

 2023 marks 25 years of Kroll’s presence in India. Kroll Advisory Private Limited is a SEBI registered Category 1 merchant banker, enabling the company to provide fairness opinions and a wider range of valuation services to listed companies. In 2018, Duff & Phelps acquired Kroll, and the entire firm unified under the Kroll brand in 2020.

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Madison World turns 35

Known as India's largest independent communications group, the company was founded on March 21, 1988 by media veteran Sam Balsara

By exchange4media Staff | Mar 21, 2023 12:58 PM   |   1 min read

madison

Homegrown communications agency Madison World has turned 35 today. The agency holds the distinction of being the largest independent communications group in India and the fifth-largest independent media agency in the world.


Founded on March 21, 1988 by media veteran Sam Balsara, the company has 24 business units across 11 specialised functions of advertising, media, business, analytics, outdoor, activation, events, PR, retail, entertainment, mobile and sports. The company posts a gross billing of Rs 4,000 crore.

Over 1,000 communications professionals work for the company in offices across India.

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Pitch CMO Summit 2023: Brand leaders to share thoughts on ‘The Agile Marketer’

The summit will be held in Mumbai on 24th March, 2023

By exchange4media Staff | Mar 21, 2023 8:47 AM   |   4 min read

Pitch CMO

exchange4media Group is back with the on-ground Mumbai edition of its flagship property - Pitch CMO Summit after three years. The upcoming edition of the conference will be held on the 24th of March, 2023 from 10am onwards.

Fancode and WebEngage are the Co-Powered by Partners for the summit while the Co-Gold Partners are ABP News, DoubleVerify,  Pepper Content and Torc ai. 

Pitch CMO Summit Mumbai 2023 brings India's most reputed brands and top management to interact and share insights on their game-changing success stories under one roof.

The theme of this edition of the conference is ‘The Agile Marketer’.

The summit will witness two panel discussions apart from various spotlight sessions.

The first panel will discuss ‘Adopting Agile Marketing: Need For A Mindset Shift’. Organizations today need a proper structure and a strong underlying system to function efficiently and achieve a common goal. Constraints are often seen as limitations and obstacles when in reality, they complement each other to provide a team with true project flexibility. It’s no secret that change is hard and can be difficult to navigate, but in an agile work environment, the strong underlying system of guidelines offers teams the agility to optimize their work for improved and more efficient delivery.   

In this panel discussion at the Pitch CMO Summit Mumbai 2023, we aim to explore and understand:

  • How is the agile mindset different and how it can prove to be a precursor to agile marketing?
  • Why is there a need for teams to cultivate an agile mindset and adopt an agile marketing approach?
  • How does an agile mindset help in today’s VUCA environment?
  • How can brands & marketers try and understand the ‘why’ of being agile clearly to nurture the ‘how’ naturally?
  • How can agile marketing be the perfect approach during uncertain times?

The session will be moderated by Jaiti Hariani, Sales Director, DoubleVerify and the members of the panel will be: 

  • ESHA NAGAR, Managing Director – APAC, Nepa
  • HAREESH TIBREWALA, Joint Chief Executive Officer , Mirum India
  • JAYA JAMRANI, Vice President - Marketing, Castrol India
  • MANASI NARASIMHAN, Vice President and Head, Marketing & Communications, South Asia, Mastercard
  • NIKHIL GULATI, GM- Marketing, Clovia
  • SAPANGEET RAJWANT, Head – Marketing & Digital, Hindi Mass Entertainment, Viacom18
  • VANDA FERRAO, Chief Marketing Officer, WOW Skin Science 

The summit will also see the coming together of another panel to discuss ‘The Playbook for Building Agile Brands’. 

With the increasing demand for consumers’ attention, brands need to enhance the consumer journey as they have a plethora of options to choose from. Creating and deploying fresh content regularly is the key to keeping your audience engaged. Today, uncertainty and volatility have been the most used terms in the business arena over the last few years due to the pandemic. For this, a number of brands are adapting the agile approach to marketing to keep pace with the constantly changing consumer sentiment. Agile marketing is believed to leverage and help brands lead the next wave of growth for the businesses of the future. 

In this panel discussion at the Pitch CMO Summit, Mumbai 2023, we aim to understand: 

  • How has the marketing playbook evolved over the years to accommodate agile marketing?
  • Can there be a playbook to abide by when talking about agility as the core approach to brand building?
  • What does being an ‘Agile Brand’ mean in today's scenario?
  • The DOs and DON’Ts of building an agile brand
  • Do marketers today need to move beyond a playbook to build brands that are future-proof? 

The session will be moderated by NIKHIL KUMAR, Vice President -  India, SEA & ME, mediasmart and the members of the panel will be: 

  • DIPPAK KHURANA, Co-founder & CEO, VServ
  • ANUJ ARORA, Chief Marketing Officer, Symphony
  • KAVITHA GANESAN, General Manager – Marketing, TVS Eurogrip
  • VIJAY KUMAR PAMPANA, Director & Head of Marketing, P&G Health India
  • VIRAT KHULLAR, AVP & Group Head – Marketing, Hyundai Motor India Limited
  • YANNICK COLACO, Co-Founder, FanCode

The conference will be followed by the award felicitation ceremony of The Pitch Best CMO Awards 2023.

For more details, please check out the microsite:

https://e4mevents.com/pitch-cmo-summit-2023/

To attend the summit and awards, get in touch with

Chandrakant@exchange4media.com or kapil.ramudamu@exchange4media.com

 

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MuscleBlaze announces Shubman Gill as its brand ambassador

Shubman Gill will be seen in multimedia marketing campaigns for MB Fuel One Sports

By exchange4media Staff | Mar 20, 2023 3:54 PM   |   2 min read

shubham

MuscleBlaze, a sports nutrition brand, announced the appointment of Shubman Gill as its new brand ambassador for endorsing the brand’s MB Fuel One Sports range amongst the youth.

Talking about his association with MuscleBlaze, cricket’s rising star Shubman Gill said, “I'm excited to be a part of MuscleBlaze since I've always been passionate about working out every day and maintaining a fit lifestyle. With everyone getting busy and always juggling with their lives, nutrition takes a backseat; so my association with MuscleBlaze will promote the healthy way to be ahead in the game of staying active by dispelling the myth that consuming supplements and protein is a barrier to fitness”

Commenting on this brand ambassador announcement, Sameer Maheshwari, Founder & CEO, HealthKart, said “The ethos of MuscleBlaze is to foster a Ziddi attitude, and Shubman’s journey reflects exactly that. He is a rising star and we are thrilled to fuel his achievements with our products like Biozyme etc. This partnership will scale great heights.“

Adding to the excitement, Kaustuv Paliwal, Business Head, MuscleBlaze said, “We’re thrilled to have Shubman Gill represent us as a brand ambassador. MB has a penchant for being the harbinger of great talent, and what we see in Shubman Gill is an unassailable potential to stand out with his champion mindset, exactly what MB stands for. Our association with such a trailblazing batsman, who has dauntlessly pursued his Zidd against all odds to make sure failure does not loom close, also reiterates our vigor to fuel the future of Indian sports with genuine supplements specially crafted for athletes. With this, we’re expecting to further motivate our young consumers and infuse them with the right supplements.”

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Max Protein ropes in Kartik Aaryan as brand ambassador

Kartik Aaryan and Max Protein form 'Protein Police' force to bust unhealthy snacking

By exchange4media Staff | Mar 20, 2023 3:22 PM   |   2 min read

aaryan

Max Protein has roped in actor Kartik Aaryan as their brand ambassador.

A campaign will soon be launched focusing on educating consumers about the importance of incorporating protein into one’s diet and promoting Max Protein's protein-rich snacks as a healthy snacking option under the concept of ‘Protein Police’.

Since Kartik Aaryan’s fitness and active lifestyle aligns with Max Protein’s vision of promoting health and wellness through its products that cater to every palette, this association will enhance the brand’s visibility and market value.

Expressing his zeal for being the face of the brand, Aaryan said, “As a fitness aficionado, I believe that adequate protein intake plays a crucial role in living a healthy lifestyle, which should ideally be a necessity rather than a choice. I am pleased to come on board with Max Protein to endorse and further boost the idea of healthy yet tasty protein bars and cookies.”

Commenting on the same, Vijay Uttarwar, CEO at Naturell India Pvt Ltd, “In the highly competitive snacking market, association with a popular celebrity like Kartik Aaryan will maximize the reach for the Max Protein brand. This will help the brand to stand out in the market and attract more customers. Our brand aims to cater to the younger generation who are looking for convenient and healthy snacking options. Thus, the credibility and trust factor of Kartik Aaryan will help to further cement Max Protein’s name in the market by reaching out to our key audience.”

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