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Vikas Katoch

Vikas Katoch is Founder & CEO at Adomantra Digital.

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Mass Personalisation Set to Explode Digital Advertising Growth

In India, brands and advertisers are expected to strongly ride on this trend leveraging the digital surge in the country.

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Advertising has come a long way from street announcements to print, radio, outdoor, movies, online and now digital video advertising. ‘Visibility’ to the right target audience with the objective of getting them to act favourably has been the driver of this evolution.

Over the years, digital advertising has emerged as one of the biggest and most persistent trends in advertising, growing at double digit rates annually. In their quest for maximum visibility and impact, marketers have been innovating with newer platforms, formats, devices and ad techniques.

This rapid innovation cycle in the online advertising ecosystem has also been fuelled by the expectations of better response with niche segmentation. The next paradigm in this innovation cycle is in the emergence of mass personalisation. Mass personalisation is the key to winning customer confidence in the fast paced digital transformation story. Adding personalized content elements and customer touch points in online ads can help create engagement and response beyond the capabilities of programmatic advertising.

In India, brands and advertisers are expected to strongly ride on this trend leveraging the digital surge in the country. It has been established that India’s millennials (which is driving the country’s economy), is appreciative of digital video ads that are filtered as per their choice and likes of products, indicating a maturing consumer landscape in the country.  

As per an ADI report, 75 % surveyed consumers prefer personalized advertisements. It is turning out to be a very significant format, comprising of granular targeting based on the spending capacity, interest, age and likes and dislikes of consumers. This is becoming increasingly popular with Indian advertisers and marketers. Personalisation of digital video ad creates a sense of individuality; where the ad placement is tailored to the demographics and context of the customer, intrinsically creating a sense of connect.

Marketers use the micro data analysis and mass personalisation technique to connect the brand with its audience in the most effective way. An infrastructural model at the backend generates the relevant data about individuals visiting the publisher site where the ad is to be displayed and optimises the algorithm that helps serve the ad as per the individual choice, age, taste and interest. Brands are able to leverage 10-15 permutations and combinations of messaging which is affixed to the tone and messaging of the brand. Each permutation is mass personalised for different clusters of target audiences, publisher and the customer context creating the impression of being individually targeted.

As per reports, 94% of senior executives believe that delivering personalised message as per individual taste is critical to reaching and retaining customers. This results in increased engagement from consumers over a longer period time. Personalised ad generates about three times the engagement in comparison to non-personalised ad, leading to a greater return on the investment.

With so much video ad content to choose from, mass personalization of video will increasingly become a key differentiator in the online video advertising industry. Mass personalised digital ad revenue is forecast to rise 25% of total digital advertising by 2020.

With the foray of OTT in India like Netflix, Amazon Prime, Hotstar  etc. and the Indian millennials catching up to variety of shows in those platforms, the viewing experience of ads for audiences is changing towards a different ballgame. When the viewability of the ad jumps, the engagement from audiences also witnesses a jump, thus providing endless opportunities for brands.

Also, increased options of reaching out to the targeted audience through various data and algorithms like installations of ipads/ taxi screens in cabs, monitor screens in aeroplanes and passenger trains have given more opportunities to advertisers for reaching the for settled audience.

Millennials create the largest consumer demand in today’s India, they are positive about the relevance of ads they watch. Hence, personalizing digital video ads will get them to embrace the efforts of marketers and help drive business goals. Mass personalisation of video ad content would lead to more engagement from brands, advertisers and marketers be compounded by the consumers’ willingness to consume personalised ads as part of the total content experience.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house

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