Over the last few years, spends across traditional media formats (TV, Print, Magazines) has been going down whereas digital has been on the up and up. The market is expected to exit at 30,000crs by 2020 in India.
Digital has been dominated by search, social and display over the last few years. Video is the new frontier with YT and FB leading the race followed by multiple OTT platforms. All of them can potentially be left behind with With Ecommerce becoming large globally. Digital has grown on the promise of being the most accountable media. With search migrating from horizontals to product searches on Ecommerce, advertising here provides the shortest click to purchase journey. This hypothesis is proven true by the traction that Amazon Ads is getting (over 1.5 BN $ in revenue last year) and Alibaba making 50% of its bottomline via ads.
Scope of this Study
Understanding how Ecommerce advertising is shaping up across the following players: Amazon, TaoBao, Alibaba, Tmall, Lazada, Zalora etc.
Details to be covered
1) Ad formats – Text, Display, Search, PLA, Attach, Video any others
2) Selling formats – CPM, CPC, CPD, others
3) Reporting – Online/offline, reporting formats, frequency of reports etc. Measurement metrics – Depth of reports provided
4) Ads – Sales attribution models
5) Media sales are a part of merchandise sales or is an independent lever
Learnings and Implications for Flipkart
1) What should Flipkart ads do given competition, from Ecommerce giants and also deeply entrenched competition like Google, Facebook, BCCL, Hotstar?
2) What are the new formats that should be forayed into? Where should these ads be placed?
3) What are industry best practices when it comes to pricing? Should e-commerce advertising be in line with Social, Video and Display advertising across other platforms or should there be a premium given the short click to purchase journey?
4) What should the time to implement these changes be?
5) How are media sales team across these organizations structured?