In a war for user attention, brands need to balance traditional and digital in media strategies: Kantar

Post-COVID, the Indian market has witnessed several socio-economic changes, including stagnating confidence in the urban middle class due to reduced real incomes. At the same time, there has been a steady rise in rural consumption, buoyed by favourable monsoon showers this year.

This was revealed by Kantar in its latest report, ‘India at Crossroads’, which examines the forces shaping the future of marketing in India in 2025.

The market research company observes that the rise in rural spending is fuelled by growth in the adoption of digital services, both, in terms of digital payments as well as online purchases. As per Kantar's Rural Barometer 2024, digital payments have grown from 38% in December 2022 to 43% in July 2024. E-commerce delivery from 14% to 23% and gaming platforms from 4% to 12%.

The study points out a movement towards premiumisation with aspirations of Indian consumers being driven by factors such as smaller families, women practising self-love, and Gen Z looking to establish their own identity. The study notes that consumers gravitate towards brands that they perceive can make a "difference" in their lives.

Examining the media consumption behaviour of Indian consumers, the report mentions that while their time is split between traditional and digital media, the levels and quality of attention vary by channel. The parameters of attention and reach have also been the key drivers behind their influence on consumers' buying decisions. Given this, from a brand's perspective, a combination of expected outcomes, incremental reach, and attention must influence their media mix and creative strategies.

While most brands continue to chase the Gen Z audience, Kantar warns against a generalised approach advising them to focus on the intersectionality of Gen Z audiences to craft effective campaigns in 2025. Given the diverse nature of this demographic, the report observes that Gen Z's motivations cannot be fully understood through simplistic or algorithm-driven personalisation.

In 2025, according to Kantar, brand marketers will need to concentrate on stories that will resonate with the evolving consumer identities, find a balance between media reach and cost considerations, and devise campaigns that factor in the diverse Gen Z nuances. Brands will also need to use digital platforms and blend influencer content with traditional advertising to catalyse buying.