We have all experienced sudden dramatic changes in our lives, so it’s no surprise that consumer consumption has also been turned upside-down. Many of the new patterns we are witnessing are trends that were simmering and have been accelerated by the pandemic. Brands need to respond swiftly to these changes in behaviour and consumption in order to stay relevant and, ultimately, survive. At least, something is certain in these unpredictable times: There will be no immediate return to our previous normality.
One of the most significant changes noticed is media consumption, which is increasingly happening on digital formats. The increase in the number of devices capable of supporting digital media along with increasing internet access, has provided consumers with an option to access the media content of their choice; be it information, entertainment, or social activity anytime, anywhere. Media consumption in India has shown tremendous increase and has seen a significant jump from traditional media to new (digital) media. The rise of digital media players such as Zee5, Hotstar, Voot, AltBalaji, SonyLIV are challenging the traditionally maintained supremacy of the television as the main entertainment hub. There is a marked shift in consumer preferences towards digital media consumption as compared to traditional forms of media which include TV, print press, and radio. People are spending more time each day on digital rather than traditional forms of media.
All of this will require support from the Internet infrastructure ecosystem as this requires incremental and exponential data storage, processing and data distribution. This is where CDNs will play a pivotal role. It was expected that by 2022, 72% of all data consumption globally would cross CDNs. COVID-19 has just accelerated the need for this shift at an unanticipated pace. Looking ahead, here are a few key consumer trends that businesses must adapt, sooner rather than later.
Vernacular will be the key growth driver as the audience broadens and digital consumption becomes mainstream in rural areas
CII–Deloitte India’s ‘Broadband for Inclusive Development’ report highlights the unprecedented growth in data consumption and demand for broadband required for daily activities. Overall rural wireless broadband availability has widened too. As a result, rural consumption now accounts for roughly 45% of overall mobile data usage and urban usage makes up 55%, compared to a 40:60 ratio before the Covid-19 outbreak.
The Google KPMG report predicts that the Indian internet userbase will increase to 735 million by 2021. Indian language internet users are expected to grow at a CAGR of 18% to reach 536 million by 2021, while English users are expected to grow at only 3% reaching 199 million within the same period. Clearly the growth opportunity for brands lies in the regional markets.
One of the significant changes seen recently is the situation of reverse migration with people moving from metro cities back to their hometowns. COVID-19 and the resultant movement restrictions are not the only reason for this change, but have of course been a major catalyst; however, the fact is also that people have started finding opportunities beyond Metro and Tier-1 cities. Some enterprising youngsters have even gone from big IT cities to Tier-2 cities and beyond to start new ventures in Agri-tech, Health-Tech, Ed-Tech, etc. Social ventures have been on the rise and have even found traction from a community of investors. Local entrepreneurship and associated opportunities have been growing with exposure and digitalisation. All this has led to more dwell, awareness and associated consumption in the rural areas.
As the number of internet users in rural India increased, the media and service consumption has also grown rapidly. This surge in the number of users has also inevitably led to rise in use of multiple apps. Some of these platforms include WhatsApp, Facebook, TikTok, and more. The more surprising aspect was how internet users in rural India used social media platforms. For instance, the majority of internet users in rural India used TikTok or YouTube much more than WhatsApp and Facebook, which are defying urban trends. New apps, like Chingari, that have been in the news after TiKTok was banned in India, have also seen a far larger uptake in Tier-2 and Tier-3 cities, than in metros.
Artificial Intelligence + Augmented Reality + Virtual Reality will start playing a key role in content and all other aspects of digital consumption
Advances in artificial intelligence, augmented reality, and virtual reality mean fresh design opportunities for brands. Bandersnatch was just the start, but as we move along, AI and dynamic storytelling will play a key role – not just in making the consumption experience interactive but giving content creators personalised insights regarding preferences across user cohorts. And this trend will move beyond just OTT. Recently, Tinder utilised a similar dynamic video approach to identify similar interests and match people based on that! In addition to the above, gaming as an industry has been the most important consumer and beneficiary of this.
However, the impact of AR and VR will penetrate the entire digital ecosystem. The rise of Augmented Reality (AR) and Virtual Reality (VR) has opened the door for many business sectors, helping them innovate and optimise many business processes. It’s already transforming the way the Real Estate and Auto Industries function, where developers and car makers have been leveraging this technology to provide virtual walkthroughs. It’s particularly important to adopt this new technology today when – according to a survey by the National Association of Realtors – 44% of clients search for properties on the internet first and this trend is being witnessed across other sectors as well, with the internet becoming the primary medium for research.
UGC, micro-influencers and user context
The trend is here to stay. Consumers will increasingly start becoming creators, with many Tier-1 audiences now making this their secondary or even primary profession. As the world of social media starts expanding to the masses, you will see these trends play out across audiences and start getting more and more hyperlocal – creating millions of micro-influencers across platforms. This will push content creators and digital platforms alike to start creating hyper-personalised, localised experiences based on user’s geography, ambience, proximity, etc.
Content creators are becoming the modern marketing’s key opinion leaders and leveraging their social influence often creates a positive impact on brands. Creators and influencers are becoming a #newnormal where businesses share their brand story from the creator’s point of view and use that realistic content in their advertising strategies.
