India’s festive season, which includes Durga Puja, Dussehra, and Diwali in the second half of the year, is a period of immense cultural significance and economic activity. These religious festivals are also significant social and economic occasions that witness people coming together to celebrate, shop, and indulge in various cultural activities. This cultural backdrop creates a fertile ground for economic activities, particularly in the retail and e-commerce sectors.
The Surge in E-commerce Activity During Festive Seasons
With the rise of digital commerce, the festive season in India, synonymous with shopping, has now gone beyond the traditional brick-and-mortar stores to include online shopping. Consumers flock to e-commerce platforms for festive deals and discounts during this period, which has led to a substantial spike in traffic and sales.
Last year, e-commerce was responsible for over 50% of total festive sales, up from 45% in 2022 (Source- Grant Thornton Bharat). It also grew 25% YoY in purchase volumes, with order volumes increasing by 37% (Source- Visa). Mobile shopping, in particular, saw a threefold increase from US$ 2.1 billion to almost US$ 6 billion during the festive season between 2018 and 2022.
That is not just a drop in the bucket! The IAMAI (Internet and Mobile Association of India), predicts India’s E-commerce market to be worth close to US$100 billion this year and US$350 billion by 2030. To put that number into perspective, in six years, India’s e-commerce market would be worth more than the GDPs of Colombia, Finland, Portugal, and New Zealand, to name a few.
The Role of Mobile OEM Advertising in E-commerce Success
As e-commerce activity intensifies during the festive season, the competition among online retailers to capture consumer attention also heats up. In this highly competitive landscape, traditional digital marketing strategies, while still effective, may not be sufficient to stand out.
This is where Mobile Original Equipment Manufacturer (OEM) advertising that leverages the built-in features and apps of smartphones to promote products and services directly to users becomes super relevant. Its unique advantages can be a game changer for brands, especially during peak shopping periods.
- Targeted Advertising
Mobile OEMs have a vast reservoir of user data, allowing them to offer highly targeted advertising solutions. Advertisers can reach users based on various parameters, such as device model, location, usage patterns, and even specific app behaviors. For example, an e-commerce app can target users who frequently shop online or use related services, ensuring that the ads are relevant and more likely to convert.
- Enhanced Visibility
One of the key benefits of mobile OEM advertising is the ability to reach users directly on their devices. This can be through splash ads, push notifications, or even personalised app store recommendations. Such placements ensure that the ads are highly visible and engaging, capturing user attention when they are most likely to make a purchase.
- Cost-Effective Campaigns
Compared to traditional digital marketing channels, mobile OEM advertising can be more cost-effective, particularly with regard to Cost Per Install (CPI). By integrating ads into the ecosystem of a device, e-commerce apps can benefit from lower acquisition costs while still reaching a broad audience.
This is especially important during festive seasons when the cost of advertising on traditional platforms can skyrocket due to increased competition. The ability to set up private marketplace deals (PMP) with OEMs during these festive periods provides advertisers with a significant cost advantage compared to traditional ad networks.
- Fraud-Free Environment
Mobile OEM advertising offers a more secure and fraud-free advertising environment than other digital channels. By working directly with OEMs, advertisers can reduce the risk of ad fraud and ensure that real users are seeing their ads, thereby maximizing their return on investment (ROI).
- Alternative App Stores
Mobile OEMs also offer alternative app stores that can be leveraged to feature and promote e-commerce apps during the festive season. For instance, Xiaomi’s GetApps, Samsung’s Galaxy Store, and Huawei’s AppGallery offer prime real estate for apps looking to boost visibility during key shopping periods like Diwali.
- Dynamic Preloads via GooglePAI and Organic Uplift
Dynamic Preloads via Google PAI (Play Auto Install) has been a game changer in user acquisition, allowing users to download an app as part of the OEM’s recommendation during the initial phone set-up. This not only has the benefit of allowing any app prime space on a device to capture the user’s attention but also provides added benefits.
These would include ensuring the user has the best possible first experience with an app as the latest version is installed upon user selection, and the added benefit of acquiring an increasingly engaged audience, as the user has made the active decision to opt-in to installing the app.
One other major benefit is that of organic uplift. Dynamic Preloads works by downloading the latest version of the app from the Google Play Store. Thus every install via Dynamic Preloads counts as an install on Google Play, thereby increasing organic download numbers and helping with ranking and discoverability algorithms within the app store, further increasing installs and exposure.
- Festive Season Pricing to Make Any Advertiser Smile
Say goodbye to exorbitant festive pricing and take advantage of price fencing with mobile OEMs. This allows advertisers to utilize fixed CPI pricing during festive periods, ensuring no ambiguity and allowing for your advertising budget to stretch further, even during the busiest of periods.
Seasonality is a Cycle
A relevant comparison to the festive season is the Indian Premier League (IPL), which sees a similar surge in e-commerce and mobile app activity as brands capitalize on the massive viewership and engagement it commands. During the IPL, mobile OEM advertising has proven to be particularly effective, as it contributed to a 63% increase in app downloads in categories like food delivery and e-commerce.
This demonstrates the potential for similar strategies to be deployed during the festive season, with mobile OEMs providing a direct line to millions of potential customers at a time when they are most likely to engage with shopping apps.
Mobile OEMs are “Lighting Up” Festive Advertising
Leveraging advanced marketing strategies like mobile OEM advertising will be crucial for brands to stand out in a crowded market during the upcoming festive season. This will not only enhance visibility and engagement but also ensure that advertising efforts are cost-effective and targeted.
As the digital landscape continues to evolve, mobile OEM advertising will likely play an increasingly important role in shaping the success of e-commerce platforms during India’s major festivals. By tapping into the unique advantages offered by mobile OEMs, brands can unlock new levels of growth and engagement, ensuring that they make the most of the festive shopping frenzy.
