Trends, Consumers, Conversions - Key Focus for a Startup

Welcome back to a new edition of StartUPdate. Today, we have the perfect balance of learning, planning, and inspiration for you! Why? Because March was full of those things for us! So, without wasting any more time, let's get straight into it.

India's Ad Revenue: Trends That Will Shape It

The medium, the way of communicating, the narratives—almost everything has undergone a transformation in the Indian advertising world. But you know what? Traditional mediums will continue to have the upper hand, accounting for 54% of the total ad spend in 2024! Again, not for long.?

The 'Global Ad Forecast' report expects digital advertising to grow by 13.8%, reaching a whopping Rs 56,703 crore. There's so much happening, isn't it??

The bottom line? The Indian advertising industry is going nowhere! It's here to stay, and if you want to stay on top of it, you better pay heed to the trends that will drive advertising revenue.?

We identified 5 of them—Authenticity, Video Content, and…….we have listed them all here for you! Read to learn!?

Brand loyal vs Price loyal consumers: Who should a startup aim for?

Our founder, Hinal, loves sipping on good coffee! Recently, she ran out of her stock of Love Kaapi. What to do now? Getting a new pack would take a couple of days. So, Hinal decided to explore a little.?

She checked out a couple of other brands and found herself at a crossroads—Should I order and wait for Love Kaapi, or should I buy from another brand for the same price? Guess what she did?

Hinal ordered from Love Kaapi, again, for the 10th time!?

What is the moral of the story? Invest in consumers like Hinal. Chasing the right consumers is a game-changer for early-age startups. And here’s where most startups make a mistake. They chase quick sales in the form of price-loyal consumers. When all you must be doing is creating brand loyalty and investing in brand-loyal consumers. Here’s why!?

Brand-loyal consumers are a brand's biggest win, while price-loyal consumers are just a short-term advantage. Unlike price-loyal consumers, brand-loyal consumers are not much affected by price. This makes brand loyalty an important metric for measuring your brand's profits and profitability.

Are you convinced, or will we also have to tell you that brand-loyal consumers typically spend 33% more per order?

Secret Sauce to More Conversions: Hick's Law

We've already told you one of the secrets to long-term growth—brand-loyal consumers. It's time for another one. This one is about sales!?

Imagine you're in a bustling café, eyeing a menu that seems to stretch forever. Each dish tempts you, but as choices pile up, so does the overwhelm. This scene is Hick's Law in action.

Named after psychologist William Edmund Hick, it's simple: the more options, the longer the decision time. This is why it asks you to simplify choices and reduce decision fatigue to improve your conversions. Apply this to conversions: websites, emails, or retail displays. Here are some quick tips!

Website:?

• Limit menu options and categorize content logically.
• Use prominent, concise CTAs to direct visitors towards desired actions.
• Remove unnecessary elements and visual clutter.

Email Marketing:

• Each email should have a clear primary objective to avoid overwhelming receivers with too many choices.
• Keep email content concise and visually appealing. Highlight important points.?
• Tailor email content and offers based on preferences and past interactions to increase relevance and engagement.

Retail Displays:

• Arrange products in a logical order, highlighting key items.
• Use signage, colours, and lighting to draw attention to featured products or promotions
• Make product selections based on popularity, seasonality, or promotions

Leaving you with a thought: The FoundHers Podcast?

There are so many women-led businesses that are doing so well, and you might not even have an idea about them. But behind the entrepreneur lies a little girl who wished, worked, and made it, just like our Founder, Hinal Mehta.?

So we thought, "Why not share their heartfelt, inspiring stories and give more power to their voices?" Result? 'The FoundHers Podcast'—created by women and featuring women to inspire women and everyone alike!?

Tune into our first episode, 'MENTAL HEALTH of a Founder | How to deal with ANXIETY featuring Tanvi Parulkar founder of Rum & Raisin Studio. This one is special because it candidly discusses mental health, anxiety, and burnout in entrepreneurship and how Tanvi's passion for art has fueled and shaped her journey!?

Let us know what stood out for you! And if you have a special request for us, we are all ears!