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Startups Rethink Marketing Strategy after VC Boom

Bindu Balakrishnan, Country Head-India, DCMN
Friday, October 7, 2016
Bindu Balakrishnan, Country Head-India, DCMN
Headquartered in Berlin, DCMN is an advertisement & marketing platform that develops individual growth strategies through a combination of creativity and media solutions with proprietary ROI-optimization technology to help businesses easily reach out to their target customers.

India’s booming startup sector has got the world’s attention. Large investors have flocked in, billions of dollars have been raised, and there’s seemingly no end to the spate of new businesses popping up every week. No wonder Forbes named Indian startups the investment of the moment in 2015.

The growth in this industry is having another often not discussed effect. As competition heats up between India’s many startups, marketers both in India and around the world are now sitting up and taking note. Investment in advertising has increased alongside investment in the startup sector as a whole.

Take the growth in advertising spend as an example. Last year, media agency GroupM predicted that ad spend would rise 15.5 percent in 2016. Digital advertising is set to grow at the fastest pace (47.5 percent growth is forecast for this year), yet TV remains the dominant medium – 47.1 percent of advertising dollars in India are spent on television campaigns.

One of the main sectors driving the rise in ad spending is e-Commerce, where competition is particularly strong and VC investment is high. Part of the reason many startups spend big on marketing is because of the pressure they come under from investors. Once founders secure investment, they also often face pressure to perform and to scale their business fast. This is where marketing comes in.

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