TV,Indian Startups and Venture Capital


Just read a fantastic writeup on TV Advertising by Indian Startups written by Mr. Nitin Sharma, Principal at Lightbox Ventures -> You can read it Here. I think it is an insightful article for anyone who is curious to learn why internet companies are spending big bucks on offline marketing rather than on creating call to action online campaigns. Apart from well funded Indian startups the western internet giants  such as Amazon, Foodpanda, Expedia,  Google and others are marketing on TV in India which they may not have done in the US or other countries - If you are a marketeer looking to take your brand international this is a noteworthy example of localization of marketing strategies where you choose a communication medium which is a social phenomenan to create brand and concept awareness. TV is a social habit in India and thus internet companies advertise on TV. 

There are certain things that i think can be food for thought about TV ads, startups in India and where should the funds be spent. 

What is the the objective of your TV advertising campaign is it to drive sales or just create awareness, I haven't seen any of the TV ads educating consumers on how to use portals or apps, these  ads show incredible things happening on mobile but not how to  make them happen. If the objective of the TV ad is just to create awareness then these campaigns are good but if you want to capture new segments of consumers and generate sales then you will have to think of ways of reaching the consumer directly and educating them on how to use. Merely bombarding with ads will not work because the Indian consumer is still learning. 

The real growth story of India is in BOP and rural areas were 68% of India is present. Whereas Facebook has created localized version(based on language) of their platform our Indian startups are still not there yet, Snapdeal has tried to create a local version but it has succeeded in creating only a hinglish version. Logistics is a challenge well acknowledged and we see work being done there but payments is another critical challenge. Digital  payments penetration and usage is low. COD is a great option which has helped ecommerce gain trust in the Indian consumer but it has also been exploited by consumers who order televisions and end up gigling and not paying. Instead of spending millions on TV rather money should be spent on building models which can enable reach to rural India. FMCG major HUL's project Shakti and ITC's e-Choupal are notable examples.On similar pattern Indian startups can start create models where village/block level representatives can be appointed as brand ambassadors who will work to educate consumers on app usage, collecting payments and also work as mini distribution centers.  

The money has to be spent on capturing new consumer segments, building and enhancing customer experience.

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