By Sahil Chopra
Since the early days of e-commerce, online businesses have been spending big money on television advertising. But that’s starting to change, at least in India. With investors pumping in billions of dollars and customers becoming more discerning, these companies are looking for every advantage they can get.
One way they’re trying to save money is by cutting back on advertising, and TV seems to be the first casualty. Several start-ups, including Flipkart, Snapdeal, and Shopclues, have either reduced their ad spend on TV or stopped it altogether, and are instead investing that money in digital marketing initiatives. The reason for the shift is simple: TV advertising is becoming less effective as more and more people in India are turning to the internet to shop. One of the reasons behind this shift is that people are increasingly using streaming services like Netflix and Amazon Prime, which don’t carry traditional TV ads. The shift away from TV advertising is also being driven by the rising cost of airtime, which has made it increasingly difficult for start-ups to compete with established players.
There are also a number of other reasons for this trend. First, the growth of mobile internet usage in India is making it easier for people to shop online. Second, the rise of social media platforms like Instagram and WhatsApp has made it easier for e-commerce businesses to reach their target customers.
Finally, e-commerce startups are finding that they can get more bang for their buck by investing in digital marketing initiatives like Search Engine Optimisation (SEO) and social media marketing. The trend of shifting away from TV advertising also includes the need to target a more specific audience, and the ability to track results more effectively with digital marketing. Startups have now realised that TV advertising is not reaching their target audience as effectively as they had hoped.
Another reason is that e-commerce start-ups are under pressure to cut costs. This is because they are facing intense competition from well-established players like Amazon and Flipkart. As a result, they need to find ways to save money, and advertising is one area where they can cut costs.
There’s no doubt that this is a risky strategy. TV is still the most popular form of entertainment in India, and a lot of people discover new products and brands through it. But with budgets tight and competition fierce, the shift away from TV advertising is a smart move, especially when it comes to e-commerce start-ups.
The author is the founder and CEO of iCubesWire
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