Every year in India, thousands of aspiring businessmen start their own businesses. Being one of the world’s biggest emerging economies, India stands full of such untapped entrepreneurial potential. However, not all startups touch the skies of glory. There are some essentials that must be undertaken before starting up a new agency to ensure that the flight of aspirations reaches the top. Amidst the highly competitive work ambience, the world received a blow from the Pandemic which added more to the challenges. Where each passing day new agencies are emerging, reduction in the marketing spends of companies made it tough for the new bees to survive in this game of advertising.
Advertising industry in India.
The advertising industry in India was estimated to grow by 10.9% to reach Rs.75,952 crore by the end of 2020. However, pandemic stalled the growth game and the nation witnessed an economic slowdown, advertisers decided to cut back on marketing, consumers decided to wait-and-watch, market touchpoints reached a new low, and India’s Ad Expenditure (AdEx) received a noticeable fall. And amidst all the chaos, all that soared higher and higher was Digital Advertising. A new stream of advertising which branched out from traditional advertising owing to its popularity, efficiency, and effectiveness saw exponential growth. By the end of 2019, the digital advertising industry stood at Rs.13,683 crore, up at a rate of 26% from Rs. 10,859 crore in 2018. And it is expected to grow at 27% to reach Rs. 17,377 Crore by the end of 2020.
How is it growing in the current world?
The advertising industry has been growing rapidly worldwide. Here are some insightful numbers by the month of October 2020, which spell the growth rate of advertising.
· Total world population: 7.81 billion people
· Number of people using mobile phones around the world: 5.20 billion
· Global internet users: 4.66 billion
· Worldwide social media users: 4.14 billion
The number of people using social media around the world has grown to 4.14 billion in October 2020, and an average of nearly 2 million new users are joining them every day. Analysis by Kepios mention that more than 450 million people started using social media over the past 12 months, equating to annual growth of more than 12%. It has been found that more than 9 in 10 Internet users around the world connect via mobile devices, but two-thirds still, connect via computers too. Ad spending in the Digital Advertising market is projected to reach US$345,948m in 2020. The market’s largest segment is Search Advertising with a projected market volume of US$148,488m in 2020.
Advertising market share.
Google was the leading vendor in the internet advertising industry with 31% market share in 2019, followed by Facebook with 20% internet advertising market share, Alibaba with 9% internet market share, Amazon with 4%, Baidu with 4%, Tencent with 3%, Microsoft with 2%, and others with 27% internet advertising market share. Facebook has been inserting ads directly into a user’s feed, making it look more organic and is also exploring inserting advertisements into WhatsApp, Alibaba Internet Advertising market share was 9%. Alibaba accounts for a third of the Chinese market and places ads on its various platforms, including online shopping sites Tmall, Taobao, and video streaming service Youku Tudou. Amazon’s market share was 4% of the Internet Advertising market. Amazon’s ad business is similar to that of Google’s. It displays digital ads to over 200M unique monthly users when they search for products on Amazon’s online shopping platform.
Startup trend in India
The Indian startup ecosystem now stands as the third-largest startup hub in the world after USA and China. With more than 1,300 startups joining this year and taking the total to 8,900-9,300, India continues to reinforce its position as the third-largest startup ecosystem. Companies with a valuation of $1 billion are termed as unicorns and India witnessing the addition of seven unicorns till August taking the total tally to 24 – the third-highest number of unicorns in a single country in the world. It is also reported that startups have created an estimated 60,000 direct jobs and 1.3-1.8 lakh indirect jobs.
Reason for such spike in startups
Indian youth accounts for 34% of 1.3 Billion people. Such a young nation is bound to burst with new ideas, inventions and innovations. This scenario is one of the reasons for such a spike in startups. Another reason for more and more people switching to start-up culture is to help them break the monotony of regular 10-6 jobs with an aspiration to do something new in their lives.
The balance between creativity and relevant communication
Roti, Kapda, Makaanaur Transport – Ola’s success mantra has spoken for their growth. An Indian startup that is not only thriving in India but also is doing commendable business in countries like the UK and Australia. Another startup that created its own space in the hospitality business is OYO. The objective of Oyo’s inception was to provide standard rooms at a very affordable price and this has become the mantra of their success.
What does the client look for in an agency?
Firstly, clients look for accountability of their brand when it comes to an advertising agency. A brand is what they have grown with special attention and care, they expect the same from an agency so that they can do the best for it. Clients also notice the proactive work which an agency does for their brand. Instead of giving directions, they also expect to get directions with regards to the brand’s growth.
Does the client’s cost, justify creativity, or vice versa?
Good work comes at the price of thorough research, deep thinking, brainstorming sessions, visualization, interactions, and multiple changes by a team. A touching piece of craft involves a lot more than just time; it is a work of energy, and confluence of minds. And hence, good work comes at a price.
At 3 Dots Design, we ensure that each of our client’s work is validated by every member of the team to ensure the best result. Here, each member contributes with their ideas and skills to bring out a touching craft into existence or to achieve the desired goal. Also, we make sure that our processes are updated every once in a while to keep up with the latest tools and technologies. Using such ingenious methods along the strings of creativity we have been able to deliver results and strive to continue the same.
In this highly competitive market, where growth and expansion are everyday aspirations, these essentials shall stand helpful for every startup agency.