No more TV vs Digital? 'Collaborate not compete' the new mantra for India’s ad landscape

With the entry of JioStar, Indian media is poised even more to leverage TV's mass reach and digital's precision, crafting dynamic ad strategies for brands

e4m by Shantanu David
Published: Nov 18, 2024 9:11 AM  | 5 min read
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In India’s fast-evolving ad landscape, TV and digital are now viewed as complementary rather than competing, each playing a unique role in driving brand engagement and audience reach. The shift reflects a balance between TV’s traditional mass reach and digital’s precision targeting, creating a dynamic, integrated ad strategy for brands aiming to maximise engagement across diverse audiences.

Gopa Menon, Chief Growth Officer for APAC at Successive Digital, notes that digital ad spending in India is on an upward trend, surpassing TV ad spending and projected to grow at a rate of 10-12% annually until FY28. He attributes this to increasing internet access, smartphone usage, and a surge of digital-first businesses. “While digital is gaining ground,” Menon says, “TV still commands a significant portion of ad spend, especially for large-scale brand-building campaigns.”

Currently, digital accounts for about 40-45% of ad spend in India, with TV close behind at 35-40%, underscoring a shift but not a total departure from traditional media. Digital’s primary strengths—precision targeting, ROI tracking, and measurability—contrast with TV’s unparalleled reach and credibility, positioning them as powerful allies in modern marketing.

The entry of JioStar, the newly announced entity between Reliance Industries Limited, Viacom18 Media, and The Walt Disney Company, marks a turning point for the Indian media landscape and perfect exemplifies this new balancing act of combining TV's mass reach with digital's capabilities.

The merger, approved by all requisite Indian and globally regulatory authorities unites Viacom18's and JioCinema's media assets with Star India, creates a media conglomerate valued at approximately Rs 70,352 crore (US$8.5 billion). RIL has further invested Rs 11,500 crore (US$1.4 billion) in the JV to bolster its growth. JioStar will operate over a 100 TV channels, produce over 30,000 hours of content annually, and cater to a combined digital subscriber base exceeding 50 million.

At the recently held e4m confluence, Indian marketing maven Sam Balsara emphasized the importance of a balanced media strategy that encompasses both traditional and digital platforms and stressed that while digital channels have reshaped consumer interactions with brands, traditional media, particularly television, still plays an irreplaceable role in building brand memory.

Balsara pointed out that while digital media has become dominant due to changing consumer habits, it cannot be the sole focus of a brand’s media strategy. “If all we are doing is investing in performance media, then we are risking the long-term brand equity that sustains a business,” he noted. He acknowledged the temptation brands face to prioritize short-term performance metrics, especially in light of digital's measurable impact, but warned that this approach might erode brand loyalty and value over time.

Television remains essential in reaching a broad and diverse Indian audience, especially during cultural moments like major sports events and festivals. In fact, Connected TV (CTV) is shaping how brands think about traditional TV.

Rahul Vengalil, CEO and Co-founder of TGTHR, argues that “it’s all about video ads, irrespective of the medium. In urban areas, a majority of TVs will be CTVs in the near future.” This convergence is reshaping the “TV vs. digital” debate, enabling advertisers to leverage TV’s mass reach with the targeting capabilities of digital channels through hybridized, addressable TV.

Different sectors, from FMCG to fintech, are blending TV and digital based on their target demographics. Tejas Maha, Group Head - Media at White Rivers Media, highlights that FMCG brands maintain strong TV campaigns while exploring digital, whereas D2C brands look to TV for brand building. “We’re not witnessing a battle of mediums,” says Maha, “but a convergence of strengths. Traditional FMCG brands maintain a strong TV presence while expanding digitally, whereas D2C brands are exploring TV for brand building.”

Additionally, Maha notes that regional markets are crucial for TV, with local language programming sustaining its influence, even as digital adoption grows. He also emphasizes that sectors like e-commerce and fintech lean heavily on digital, while automotive and durable goods companies employ multi-screen strategies.

The Indian ad market also reflects broader economic conditions. High interest rates, commodity price fluctuations, and changes in consumer spending all affect advertising budgets. For example, sectors like automotive and FMCG, facing increased raw material costs, may adjust budgets to maintain profitability. Yet, rural demand—bolstered by a strong monsoon season—is expected to keep ad spends steady in rural areas.

This evolving synergy is clear in campaigns that harness both platforms. Brands frequently launch products with high-impact TV spots to establish credibility and visibility and follow up with targeted digital ads to retarget interested viewers. Maha points out the rising trend of “second-screen” experiences, where digital engagement complements the emotional connection TV creates, converting interest into action.

With India’s media landscape shifting toward a blended future, brands find value in the distinct yet interconnected roles of TV and digital. As Menon suggests, “Successful brands will adopt an integrated approach, leveraging the strengths of both digital and TV to achieve their marketing objectives.” This synergy reflects a transformation in Indian advertising, where the traditional and digital worlds no longer compete but work in tandem, aligning brand-building aspirations with today’s diverse, multi-channel consumer journey.

Published On: Nov 18, 2024 9:11 AM