Foreign companies when they enter India have to make sure everyone knows they are there. India is right now extremely hot for business, not only because of its summer but because it is ready to be a market for everything. There are many companies looking to debut their successful business in India. The subcontinent of India is ripe enough to be a starting point for anything at the moment. The companies are therefore looking to invest and grow on this land of colors.
For a foreign company to be successful in India, there are two things which are essential if not anything else; the first one is the price and the second one is brand awareness. The price totally depends on what product or which service you are offering, while brand awareness depends on the budget and the marketing strategy. Now, the budget is extremely important here, India is a populous country and as we know, the attention span of a crowd is equal to a millisecond. To literally grab the attention of a large crowd in India, you need to constantly remind them of the product and stay relevant.
However, being relevant and in touch with the population or to just simply create brand awareness, you will need piles and piles of money. At this moment, advertisements in India are extremely overpriced. The reason for the same is the General Elections. The country right now is going through one of the biggest elections and the battle during this election was completely fought online. The banners were not on roadside hoardings but on websites and social media.
Now, the foreign companies entering India and the General Elections are connected via advertisements. The companies are not advertising online because the rates are mountain-high. YouTube, which is one of the biggest advertising platforms and has the largest reach in India has increased its rate of three-fold for advertising. YouTube promises 900 plus million impressions in a single day, no one promises this amount of eyeballs in a single day.
The price, however, reaches around INR 1.2 Cr per day as of January 2019. The price tag of INR 1.2 Cr for 900+ million impressions is massive as it was around INR 40 lakhs per day by the end of 2018. The price just shot up three-times the previous rate and all the digital marketing freelancers had a hard time facing their clients. The reason for this was none other than the General Elections. That said if you calculate YouTube’s per impression price it comes down to INR 15 which is less than any other platform.
That being said, the foreign companies coming in India and even the companies that have deep roots are not marketing or giving advertisements online at the moment. This is in a way hampering the business and some businesses might not be able to stay relevant, however, these rates might not stay as high as they are. Once the election wave settles down, the prices might just go back to normal.
However, it is not only YouTube but also Facebook and Twitter ads are also high. The reason is again elections and given that there are a lot of ads driving an agenda, social media companies are finding it hard to keep a track. Increasing the price for time being might just keep other people from posting their ads. The foreign companies, hence are laying low, until this overpriced ad storm passes away and they could just get back to work.