During the ‘Addressable TV and Beyond’ summit hosted by Finecast, a division of GroupM, Harsh Deep Chhabra, the Senior Vice President at Mindshare Fulcrum, underscored the importance of four core pillars for advertisers, broadcasters, and agency professionals. These pillars, as Chhabra elucidated, encompass Consumers, Business, Ecosystem, and Shareholders. His address specifically delved into “Performance Marketing on TV from the perspective of an FMCG advertiser.”
Chhabra emphasized that among these pillars, the foremost one is the consumer. He stressed the imperative of comprehending consumer behaviors within the context of various factors like demographics, geography, and psychographics. Whether one operates as an advertiser or a media owner, the ultimate objective is to understand and engage the consumer base.
He elaborated further, stating, “It’s imperative for our brands to take demographic and geographic factors into consideration when assessing metrics such as penetration, brand awareness, and market share.”
From a business perspective, Chhabra also underscored the significance of reaching consumers, making it the third crucial pillar within the ecosystem. He urged the industry to embrace available resources for media owners, including data, content, and inventory, to augment their reach and impact.
Chhabra emphasized that accountability rests with the shareholders, primarily concerned with safeguarding future investments and ensuring target fulfillment. Consequently, these four pillars – Consumers, Business, Ecosystem, and Shareholders – should constitute the primary focus of any business strategy.
Regarding shifting consumer habits, Chhabra observed an increasing consumer engagement with addressable media, leading to transformations in the landscape for the other pillars. He noted, “Consumers are not abandoning media; instead, they are allocating more time to consume media through evolving channels. Video inventory has emerged as a valuable tool for advertisers to connect with these audiences.”
He highlighted a significant trend of cord-cutting, with approximately 80 million individuals opting for non-linear TV consumption. In the NCCS A segment, 75% of individuals either abstain from consuming linear TV or engage in it only minimally. However, linear TV maintains a dominant presence, especially in NCCS BC, boasting an 82% penetration rate. It is primarily the upper segment of the population that is adopting connected TV and other internet-based media forms.
Chhabra also noted that the audience for linear TV largely comprises older individuals. He stated, “Audiences are shifting away from traditional TV, reflecting changes in viewer preferences and the amount of time spent on linear TV.”
When discussing the business aspect, Chhabra mentioned that advertisers are displaying reduced interest in purchasing TV GRPs (Gross Rating Points) and are instead focusing more on promoting their products, such as soaps and shampoos. Their primary concern is to achieve business growth across diverse markets.
