As India eagerly anticipates the arrival of its festive season, the country’s eCommerce apps are gearing up for what promises to be a period of unprecedented digital activity. The festive season is not marked by cultural celebrations—they also represent peak shopping times, where consumers plan to purchase new electronics, apparel, home decor, and beyond. In some households, the festive season also marks the only time when they plan and budget for big purchases such as home electronics, appliances, furniture, or automotive. But, no matter the budget to spend, one thing is for certain - eCommerce (driven by purchases on web and mobile app) is looking at the bumper of a festive season.
For marketers, this period offers a prime opportunity to engage with millions of potential customers. But to truly harness the power of this surge, a full-funnel marketing approach—one that combines programmatic user acquisition with strategic retargeting—is not just recommended, it’s essential. Here’s why this comprehensive strategy is the key to making the most of the festive season’s eCommerce potential.
The Festive Season Shopping Frenzy: Is There a Consumption Revival?
Source: Statista, Gross merchandise value (GMV) of eCommerce during festival season in India from 2019 to 2023
India’s festive season, which typically spans from September to November, is a time of celebration, gifting, and, importantly, shopping. In recent years, the eCommerce sector has seen exponential growth during this period, with sales often surpassing industry estimates. The festive season is marked by mega sales events from eCommerce giants like Amazon's Great Indian Festival and Flipkart's Big Billion Days, which further fuel consumer spending. This year's festive season is expected to signal a revival of consumer consumption. Analysis from RedSeer Consulting reveals that due to businesses bouncing back and consumer confidence soaring, the "economic landscape is expected to thrive in the second half of this year." The report focuses on eCommerce which has the potential to grow at 20% this year, as compared to 2023. This surge is driven by a combination of factors, including increased internet penetration, a growing middle class, and the convenience of online shopping.
While the festive season undoubtedly brings a significant influx of shoppers, standing out in a crowded market requires more than just offering discounts. Marketers need a comprehensive strategy that guides potential customers through every stage of the purchase journey, from awareness to consideration and finally, conversion. This is where a full-funnel approach comes into play, combining programmatic user acquisition with effective retargeting.
1. Maximizing Reach and Relevance
By using programmatic advertising for user acquisition, brands can attract a wide array of potential customers who are already showing interest in similar products or categories. This stage is crucial for building awareness and drawing in new users who might not have otherwise considered your brand.
However, without a follow-up strategy like retargeting, many of these newly acquired users may drop off without converting. Retargeting ensures that these users are re-engaged with personalized content, reminding them of the products they browsed and encouraging them to return to complete their purchase. This dual approach not only broadens your audience but also increases the likelihood of conversion by delivering tailored messages at the right time.
2. Creating a Consistent Brand Experience
During the festive season, consumers are bombarded with advertisements from multiple brands, all vying for their attention. A fragmented approach can lead to inconsistent messaging, which can confuse potential customers and weaken brand perception. A holistic strategy ensures that your brand message remains consistent across all touchpoints, from the initial ad impression to the final purchase.
3. Improving Conversion Rates
A key advantage of a holistic strategy is its ability to significantly improve conversion rates. According to industry data, brands that implement a full-funnel approach see up to a 2x increase in conversion rates compared to those that focus on single-stage campaigns. This is because a holistic approach not only brings in more potential customers but also nurtures them effectively through the purchasing process.
By leveraging data-driven insights, programmatic campaigns allow marketers to deliver highly relevant ads to users based on their browsing behavior, demographics, and preferences. During the festive season, when consumers are actively searching for deals and products, programmatic advertising can help brands capture attention at scale. A study by Adobe revealed that programmatic ads can lead to a 3x higher CTR compared to traditional display ads. Retargeting plays a crucial role in keeping your brand top-of-mind and encouraging users to return to your app or website to complete their purchase.
Additionally, studies show that retargeting ads can lead to a 70% increase in conversion rates, making it an essential component of any festive season marketing strategy. A personalized approach can further boost the chances of conversion and the overall customer experience.
4. Optimizing Ad Spend
Approaching user acquisition without thinking about a clear retargeting strategy can lead to wasted ad spend, with money being funneled into broad campaigns that fail to convert. By integrating user acquisition and retargeting into a single, cohesive strategy, marketers can ensure that their budgets are used more efficiently.
The insights gained from the initial user acquisition phase can be used to inform and optimize retargeting efforts. For instance, data on user behavior, such as the products they viewed or the time spent on your app, can be used to create personalized retargeting ads that resonate with individual preferences. This level of personalization not only enhances the user experience but also maximizes the return on ad spend (ROAS).
As the festive season approaches, the stakes for eCommerce brands in India have never been higher. With consumers ready to spend and competition intensifying, marketers must be prepared to deploy a full-funnel strategy that combines programmatic user acquisition with targeted retargeting. By doing so, they can capture attention, drive engagement, and ultimately, convert festive browsers into loyal buyers. The time to act is now—embrace the full-funnel approach and make this festive season your most successful one yet
Ready to elevate your festive season campaigns? Contact us today to learn how we can help you design and execute a full-funnel strategy that resonates with your audience and drives tangible results. Let’s work together to turn this festive season into a remarkable success for your brand.