Spotify’s global share under pressure
As per the report in Q2 2021 Spotify owned 31% of the online music streaming market, which is down from 33% in 2020 and 34% in 2019. There is no risk of it losing its dominant position but the threat is there. But its global premium subscriber base was 165 million up by 20% from the previous year. But Amazon Music grew by 25% and Spotify by 20%. And Youtube Music topped in terms of growth. Youtube Music takes a major share among Gen Z & millennials and this could dent Spotify’s market share. In Q3 2021 Spotify had 381 million active users worldwide. That is an increase of over 60 million in 2020.
Streaming services are changing the global TV industry
Netflix has showcased the power of global TV with hits like “Money Heist” and “Squid Game,” and other entertainment companies have been following its lead in expanding their streaming services internationally. Disney’s platforms including Disney+, Hulu, and Star are now in six continents. WarnerMedia’s HBO Max has landed in Latin America and Europe, with Asia next on the horizon. And NBCUniversal, ViacomCBS, and Discovery are bringing their services in more parts of the world. Netflix spent years forging ties with local creators around the world before it landed hits like the South Korean show “Squid Game” and the French heist series “Lupin.”HBO Max, which expanded into Latin America and Europe last year, is also leaning into local-language programming, and ramping up development of non-scripted programming in places like Europe. But Disney, on the other hand, leaned on sports to propel its streaming service Disney+ in places including India. Amazon is also investing heavily in local content in India ,where it’s been growing its Prime shipping business. In the Middle East, local streamer StarzPlay grew market share by tailoring its payments strategy for consumers who don’t have credit cards. As competition intensifies, companies from Netflix and StarzPlay will need to get more creative in how they leverage partnerships to grow the overall audience for streaming TV worldwide.
B2B spending in India expected to grow 10.3% in 2022
India’s total B2B spend grew by 9.4 percent in Q3 2021 on a year-on-year basis and is forecast to grow by 10.3 per cent in 2022. Indian businesses reported an 8.8 per cent rise in overall spending in Q3 2021, according to the India Business Spend Indicator (IBSI) report. The survey also reveals that some of the trends that have emerged or accelerated during the pandemic such as payments automation and new approaches to manage the supply chain are likely to stay. “This report indicates that technology and automation are the key drivers for Indian businesses as 71 per cent business are expected to spend more on technology in Q4 2021 as compared to Q3 2021. This will help in improving productivity, remaining operational, enhancing quality of products/services and speed and effectiveness of making and receiving payments. Out of the companies surveyed, 38 per cent said that they automated their sales functions while 37 per cent automated their accounting processes. In a bid to prioritize convenience for users, 49 per cent respondents stated that using an integrated digital platform that provides insights across end-to-end payments helps their businesses. Seventy-two per cent of businesses surveyed have made B2B payments using a debit card or credit card in Q3 2021.
Shopee takes India’s e-commerce market by storm
It’s a worrying time for e-commerce players like Meesho, Amazon, and Ajio because Singapore-based Shopee, launched only in November, has become the new love of Indian consumers. It has shot into the coveted position of being the second most downloaded app in India (just behind Meesho) according to Sensor Tower figures for January. It has touched 21 million app downloads and over 20,000 sellers before the month is even over. In terms of daily and monthly active users, it has overtaken Amazon, JioMart, Myntra and Ajio and is just behind Meesho and Flipkart, according to a study by J P Morgan Asia Pacific Research. A study by Apptopia shows that Shopee has 10 million daily active users and over 21 million monthly active users to date. Shopee is focusing on long tail categories. According to JP Morgan, 35 percent of its gross merchandising value is accounted for by fashion, followed by mobiles and accessories (19 per cent) and home and furniture (14 per cent). It also sells electronics, consumer appliances, groceries, and health and beauty products.
Mobile-first programmatic campaigns deliver enhanced ROI
The 2022 India Mobile Marketing Handbook released by mobile marketing firm InMobi has three key takeaways for brands and agencies. According to the report, marketers need to understand their consumers with mobile-first consumer intelligence. Secondly, they must meet their consumers where they are with mobile video and gaming and thirdly, brands must enable consumers with immersive experiences that inform. The report further stated that mobile users generate a huge amount of data as they are always connected. Brands can use this data to understand consumer sentiment and create more targeted, personalized experiences, especially with technologies such as polygon-based location targeting and first-party data-based deterministic audiences, it added. With video and gaming taking considerable attention of users, the report states that advertisers must focus on these two segments as mobile-first programmatic campaigns across these environments have seen a great upswing in delivering enhanced ROI for brands. In addition brands must focus on driving personalized experiences at a scale that empowers consumers.
Social chatter is an active driver of brand choice
Kantar has revealed its 2022 Annual Trends which defines how consumers are preparing themselves in the new year. The report takes into account the changes brought-in by the COVID-19 pandemic, and the new normal which the people have accepted. Some of the prominent changes include people shifting from big to small cities, as the WFH model enabled them to return to their native towns, and how brands coped up with this trend to meet their demands. It also includes changes such as social commerce being accepted readily by the masses and Instagram becoming a leader in the segment. Among the trends – Going small to live big – The urban-trapped millennials have been looking for breathers in their busy corporate lifestyles, often finding respite in trips along uncharted tracks. The lockdown and the opportunity of working from home has allowed them to consider an alternative to the city humdrum. Due to health concerns consumers are not ordering food online that much. Proactive upskilling – As companies have been on their accelerated journey of digital transformation, the moot question has been whether the Indian workforce is ready for this change. Constant learning has become an imperative for workers to adapt to changing times and stay relevant. Freelance job market has seen an upward traction. What started as WFH due to the pandemic has now blurred lines between private and personal space. Making purchases through social media has become more prevalent. Instagram is the star among social media sites for purchases.
Amazon & Flipkart collectively garnered ad rev of Rs 3900 crore in FY21
The growing adoption of online shopping has come as a shot in the arm for e-commerce giants like Amazon and Flipkart. While both these platforms are logging strong growth in revenue year-on-year, they have also emerged as important platforms for brands and marketers to reach out to their customers.With an increasing number of brands and categories taking to e-commerce advertising, Amazon and Flipkart are expected to reap rich dividends, thanks to the huge consumer base of their respective platforms. Amazon Seller Services and Flipkart Internet, the online marketplace arms of Amazon and Flipkart respectively, have seen a huge growth in revenue earned through advertisements.
Twitter launches recording option for Spaces
Twitter has updated Spaces, and now allows everyone on iOS and Android to try out the new recording feature. Previously, the company was testing the feature with a limited number of users on iOS and Android. To record a Space, users will have to toggle the Record Space option, when setting up a new session. Twitter said that the recordings will be available for public playback, for a period of 30 days after the recording.
MSMEs now prioritizing cross border trade, online selling, social commerce
As small and medium businesses in India learn to cope with changing market scenarios due to the ongoing pandemic, there has been a significant increase in their participation in online selling, social commerce and cross-border trade. As per a recent survey, 9 in 10 MSMEs say cross-border trade is a key area for business growth and 2 out of 3 MSMEs use social media as a sales channel today. The survey by PayPal India aims to understand how Indian MSMEs have adapted during the pandemic by adopting a digital-first approach while leveraging the global opportunity and their key priorities to scale up. The survey highlighted that after two years since Covid-19 hit the country, more than half of small businesses (52%) witnessed a positive impact on their business once economies began to reopen. In fact, 29% of the MSMEs found that the business environment in India became more favorable for online sales and for 31% the cross-border opportunity was promising. insights clearly showed that the majority of the MSMEs have benefited post pandemic, especially the guys who have actually taken the lead to go digital. Further, one in three businesses have benefited from various payment offerings and cross border selling. The survey showed that MSMEs saw a 65% increase in online buying from customers and close to 80% shared that their consumers are more receptive to using different payment options. The ease, accessibility and adoption of digital methods has led 51% of MSMEs to see an increase in spending from existing customers while 46% witnessed an increase in repeat purchases.