Rising consumption : a boon for underpenetrated product categories

0
1051

The industry’s top leaders gathered on Wednesday for the unveiling of the Pitch Madison Advertising Report 2022.

The much-anticipated study, released by Sam Balsara, Chairman and Managing Director of Madison World, predicted a 20% growth in AdEx for the year, bringing the total to about Rs 90,000 crore. 

The paper also looked at the various industries that are driving this growth, as well as the ever-changing landscape for all stakeholders in the A&M business. In his keenly analytic presentation at the launch event, Nagaraj Krishnamurthy, Chief Strategy & Analytics Officer, Madison Media, explored new approaches in media strategy. 

In a market that has seen such rapid change in such a short period, the pandemic has driven firms throughout the media industry to both consolidate and diversify, according to Krishnamurthy. 

We all have a great opportunity in front of us, and we need to talk about how we can all be a part of it. In the last ten years, private consumption, or what all customers spend in a year, has increased by two and a half times. 

It was noted that annual consumption has increased to Rs 3.76 lac per home on average from Rs 1.6 lac per household annually, with the overall market including around 319 million households. 

According to Krishnamurthy, India has more than twice as many households as the world’s largest economy, the United States. Another significant benefit is that almost all product categories in India are underserved, implying that there is plenty of room for enterprises to expand. 

The largest hurdle to this possibility, according to Krishnamurthy, is the significant variance in homes across the country, whether it’s due to income inequality, region, language, culture, or other factors. This necessitates the use of a variety of tools and tactics to reach out to as many consumers as feasible. 

It stated that brands, regardless of the type of product or service they offer, must employ a diverse set of media channels and platforms to reach out to different markets

The pandemic, according to Krishnamurthy, not only accelerated the already underway shift to digital, but it also caused a lot of displacement in terms of how different geographies accessed data. 

Krishnamurthy revealed the figures, demonstrating that there has been a significant shift in how people consume information and who consumes it. He went on to say that brands must stay up with these variables to advertise to their target consumers and to increase industry synergy to continue with many opportunities. 

Follow and connect with us on Facebook, LinkedIn & Twitter