Indian Startups Conundrum- How loud are you?

Switch on television in India for your favourite show and it is hard to miss the relentless flurry of advertisements by growing number of funded tech startups. Whether you are watching the Indian Premier League or ICC World Cup event, a reality program or a film award function, every second ad seems to be about e-commerce or a mobile app.

What really strikes is the number of startups advertising on mainstream TV channels - Large players from Flipkart, Amazon, Snapdeal, Paytm and ShopClues to smaller startups many of whom were scrappy not too long ago .

This is a common scene in India today. With the unprecedented growth of the Indian startup eco-system coupled with huge influx of funds, marketing budgets have grown manifold and ad spends are increasing exponentially.

No wonder, it appears that the real winners of the digital India startup boom are the ad agencies and television networks!

As numerous startups competing in the country feel the pressure and heat to jump to the marketing bandwagon, the million dollar question that arises is how loud is ideal for startups to be heard successfully in India?

Optimum loudness
There are a few important parameters to take into consideration in the Indian context. India is a land of over billion people and is the second most populous country in the world. People with varied preferences as well. Needless to say , with the mushrooming of startups all vying for their share, the big question that rises is how fast can a new brand be established in the Indian market?

Obviously, building brands is essential.
Startups want to be heard, and want to be heard real loud!

This makes sense in a densely populated country like India where reach is of utmost significance. India is unique in this context. Television works well for brand building here as it is a shared social experience in most Indian households. It becomes much easier to introduce new concepts like e-commerce, mobile apps or mobile wallets, to Indian families, across generations. Many companies have now established new mainstream brands by flooding the consumer market with prime-time TV ads.

With the widespread penetration of internet in India, mass awareness about the advantages of eCommerce is growing at a rapid pace. Mobile and smartphone have taken the Indian population by storm. Everyone right from a high flying executive, businessman, shopkeeper, housewife, to a maid, driver or a cook now owns a smartphone. It is no wonder that digital marketing is proving to be one of the core strategies of startups in India. Changing Indian mindset to use the smart phone as the cooler, faster and cheaper way of doing regular activities say - buy movie tickets, recharge phone or plan travel, order food, learn something new – is steadily on the rise.

The real challenge for Indian startups lies in creating these behaviours for consumers beyond big cities and for the vast majority of Indians, for whom the only exposure to the internet is via a smartphone. Television is an effective way to accelerate this leapfrogging. Mass awareness, adoption and changing behaviours at such a large scale and so quickly in the country is a mind-boggling journey. Quite a challenge to bring a quick shift in mindsets across hundreds of millions of consumers! No doubt, multi-channel advertising is the preferred option now for most startups.

Race for monopoly
As Indian startups struggle to win the race to dominate the emerging spaces, the need to increase the share of voice rises as there is an intense FOMO (fear of missing out) being the leader.

Nonetheless, Indian startups are grappling with the issue of how loud is good. The debate still rages on today but what is the answer? As with most strategies, it is still ambiguous as it depends on a myriad of factors.

If a startup has developed a new game changing technology/IP or innovation that intends to disrupt a market but could be easily replicated by competition, minimum noise should definitely be considered an option. There may be well funded and developed direct or indirect competitors who could steal the startup’s thunder, potential investors and clients. First to market has a lot going for it.

In most cases, especially in the Indian environment however, being loud works. Because you can create a lot of buzz and start building a brand before you are even in the market. Works well for a company to create as much noise as possible pre-launch and gain public attention. You can be as loud as possible!

Making noise also helps in attracting attention and getting on the investors’ radars. Finally, with market validation and traction you can start the exciting journey from startup to a business making revenue, build investments and ultimately get much closer to the company vision.

Be loud and unique
In most scenarios, it is better to be loud. The real challenge lies in making the customer listen to you. Positioning your startup in the mind of the user is vital. Defining the problem that you are out to solve and why your solution is compelling needs to be understood by the customer.

This is especially relevant if you are launching in a crowded space, or if there is a clear incumbent. Nailing down a strong loud positioning can differentiate you as a premium offering, or a discount offering, or as the perfect product for a certain segment of customers. Many companies skip evaluating their competition seriously while positioning themselves. Customers understand what is new and different by comparing it with an existing brand they already know. This differentiation strategy has massive potential benefits that could be lost by keeping quiet.

There are no easy answers here.

As the race gets deeper, budgets will move to more performance-driven approaches or innovative brand-building (like true personalisation or customisation) strategies. Given the impact that television, internet and mobile continue to have in Indian society, advertising on these media will remain the most effective option for consumer tech companies, to have a unique and differentiated voice, not just a share of voice.

Voice which can be heard over others!