 Can you hear me guys today? I'm gonna make an attempt to talk about a very very important marketing activity Without the use of slides However, a market here would not be complete without showing you do a quick video. So I want to show you a quick one-minute video To look about let's take a bit of a crystal ball gazing into what the future of marketing could be if I have to break Down marketing in a very very simplistic way into three buckets the first would be Who's the audience? I? Show my content to second What is the content? I show and the third is how would I measure impact? Today, I'm gonna talk About audiences when it comes to describing the consumer Market years have never been short of flair. How often have you seen a brief which calls out? Looking for effluent consumers in x to y age group Who is into high-end fashion who is into styling? Etc. Etc. Etc. And If you don't have this very well-defined psychographics, there is enough researchers like tau segmentation Social vision who can help you fine-tune the psychographics of your consumer? All this is good in designing your content But I have a very very practical question to ask you Where do you find this consumer? When the media is struggling to go beyond the basic demo and age groups How do we start getting into these nuances? This question has been challenging us and especially in a big market like India Finding these consumers becomes a big big big challenge. So let's go back to the brief Let's start with effluence when it comes to affluence We are looking at a needle in the haystack Let's talk about the traditional way of finding effluence. Let's look at NCCS a b 18 to 44 45 females That's probably you have different numbers to it, but probably less than hundred million consumers in a in India When you come to luxury It's even tinier We're talking about five to six million consumers Five to six million consumers in a country of one point four billion How how do you find this consumers? You might have the best pieces of content to show them your brand experience might be great, but How do you find this consumers? there are a couple of solutions which people use one is Stop-city marketing and there are two reasons why I think this is a completely misnomer one The wealth accumulation in the smaller cities which are fueling e-commerce growth The next six seventy to eighty percent of e-commerce consumers are going to come from tier two three cities So assuming that all the wealth accumulation is in the top cities is a big big misnomer Small cities there is great pockets of wealth accumulation and more than just the wealth accumulation There is a very high propensity to spend Because sometimes they don't have the ability of these products which you know you might get in a Bombay and Italy secondly even looking at For a minute assuming this you know top city targeting works to find effluence. I live in Mumbai Where two tall high-rises buildings are flanked by Chol's? We have to be really true to ourselves on saying if Mumbai means targeting effluent consumers and that is probably the most convenient lie. We are telling to ourselves, but again The question is if not this then what? But why just effluence? Let me also take a minute to talk about this age bracket 18 to 45, you know, I'll give you an example. We're launching long com And we said okay high disposable income. We should target 25 plus females We were very pleasantly surprised to see the influx of younger audience in the first three months of launch and we stood corrected But among all these different elements of finding your audience The one that I find the worst is affinity. I often hear about this Okay, let's find consumers who have an affinity towards beauty I'm yet to find a woman who doesn't have affinity to beauty. We often Look into two buckets one bucket is these consumers who are on social media who might have ticked a few boxes might have liked a Few pages and they say yeah, yeah, she's my consumer What about those consumers who might not have ticked boxes, but saw your content and actually bought your product Should they not be in your target audience? And guys we are taking these claimed based approaches To decide a target audience on a platform which is meant to project an image I love Ferrari. I search a lot about Ferrari I like a lot of pages on Ferrari But I hope I'm not in Ferrari's target audience because I would be disappointing I don't plan to buy a Ferrari in the next four five years Don't even get me started on the maths of it. This is the target audience. This is a cluster who likes sports This is a target audience that likes wellness health and you know when you put your media monies to it It is an 80% overlap between these audiences the maths never works out. You never get a good return so all the traditional ways in which You hear we can target effluence is Wasteful it's easy to say okay. What's not working in finding the right audiences, but let's move on and talk about okay Then how do you find this? This audience has got up the first basic element we need to start doing is moving away from Claim based signals to deterministic signals What this consumer actually bought can tell you a little bit about what this consumer is likely going to work What this consumer actually watched can tell you a little bit about what this consumer is likely going to buy The second thing which I've started now seeing in Google is doing a fantastic job at it Is they are using their household panel data on their entire YouTube audiences which for the first time gives a sense of affluence targeting to two brands At a scale level But other elements like this, you know neighborhood targeting and stuff which are still small and scale for a mass advertiser to take cognizance Hence in my view the best way to find your future consumers is The data of your existing consumers and I'll talk about this a little bit imagine if you have a quality seed audience It could be 100,000 for a small brand or a million for a big brand You could create an audience which is 30 or 40 times bigger than that Just by using more than hundreds of the signals on Facebook and Google and The chances of this audience Being returning more value for your marketing is much higher It is better than the fancy of any marketers putting in their briefs It is completely data-led at L'Oreal. We have tried Across brands this approach both in mass brands and luxury brands and we are seeing 1.5 to 2 times the return on our marketing Spends and guys when we look into the future of Marketing when we look towards China nearly 30 to 50 percent of media money is now tracking consumer data-led cohorts Closer home our D2C brands do that e-commerce retailers, you know a significant chunk of their money is being spent on the consumer data that they have However for big mass advertisers, this is still in a nascent stage Because there are quite a few challenges by use with using consumer data in marketing One is obviously where do you store this in a privacy protected way with fully consented signatures and That is leading to a route of discussion around create your own CDP or at least have your CDS But for me the bigger question is How do you collect? Good quality consumer data and maybe even a better way to ask this question would be What Would a consumer want To give you their data in return Will just by seeing ads consumers will give you their data. I highly doubt that So what is it and that is good quality consumer experiences Let me talk about that we talk a lot about the marketing funnel has collapsed Right. It's difficult to identify you have a shoppable ad. Is it a upper funnel ad? Is it a lower funnel ad what consumers are looking beyond just ads is good consumer experiences Let's take D2C sites for example They're one of the perfect places to give you an end-to-end consumer and brand experiences People flock on to D2C sites because some of you don't get that level of consumer experience on an Amazon or a flipkart and Hence D2C's becomes a goldmine of consumer data L'Oreal we tried virtual try-ons with Micah Just in the last year There were 35 million times our virtual try-ons were used and Everybody who tries our virtual try-on the conversion rate was 1.7 X higher This is the kind of experience that people are looking and getting in their offline grout GT stores and is missing on online So when you give that consumer that experience, they are happy to share the data with you So that you can reach back to them and promise of similar high quality consumer experiences But DTC's videos are not the only examples, you know a well-crafted Online consultation talking to an expert as Simple as customization of your products engravings These are great consumer experience in return of which consumers would be happy to share the data with you Even the age-old sampling If you target the right audience, you have the right sample It is packaged in a beautiful box that talks about your brand experience That again would be a great great way for you to give a very strong value exchange to your consumer and collect data in return however in this horde of collecting of consumer data, there are a lot of Seemingly wrong practices being born out of it as well You started taking a lot of pride of I have 40 million consumer data. I have 50 million consumer data. I have 100 million consumer data But all data is not the same Just imagine a campaign Where I say okay all participating people will get a chance to meet my celebrity. I'll get a lot of consumer data But will I be able to filter it down to say? Find the intent to buy for my brand All I'm getting is an intent to meet the celebrity So just collecting phone numbers and email IDs while throwing anything at the consumer is not the right approach of collecting consumer data The best consumer data is of people who have bought you Because when you look into it either from media or from inside you can learn a lot about people who are likely going to buy you I'm running out of time. So let me wrap this up By talking about a bicycle. Yes a bicycle the front wheel Which is attached to the handle and is leading the way for you into the future of marketing is your consumer experience Not your ads consumer experience and these consumer experiences are end to end where somebody gets to know about your brand Experiences it and hopefully buys it. It could be via a D2C. It could be expert consultation. It could be customization It should it could be via influences But an end to end consumer experience That's your front wheel The rear wheel is a well oiled data marketing engine Where your ambition is nearly 30 or 50% of all your marketing money chasing consumer data the frame in the middle is Insights and analytics because without good insights, you will never be able to design good experiences and Without good analytics, you will never be able to hold your marketing dollars true Can you picture your bicycle? Okay, so with that good luck riding your bicycle into the future of marketing Thanks a lot for giving me a chance to talk here