Music streaming up 3,923 mins, OTT growth hits 16.7%: Tonic Worldwide GIPSI report

GIPSI, the research division of Tonic Worldwide launches "The Festive Report 2024- Part 2" which shares six insight capsules to get for Festive’24. The report reveals a significant shift towards impulse shopping and increased reliance on quick commerce apps for festive and last-minute needs. 

Festive shopping shifts from Planned to Impulse

As per the report, from January to July 2024, there was a 22% rise in monthly active users on India's top quick commerce apps, alongside a 71% increase in mentions of hunting for great offers. Conversations about quick commerce as a saviour for late-night deliveries surged by 127%, while discussions around buying electronics doubled. Searches for same-day delivery rose by 50%, and chatter about last-minute gift buying increased by 64% from August 2023 to August 2024. These trends highlight a growing consumer preference for convenience and rapid fulfillment, driving the popularity of quick commerce platforms for both planned and impulse purchases.

The report highlighted the insight that quick commerce is spoiling the consumers, starting by nudging trials with emergency orders which eventually turns into a habit. It is expected to see more planned shopping lists entering impulse buying carts this festive season. The implication of which will ride the rise of quick commerce this festive season. “Be discovered or be promoted. But be quick!” reads the report. 

First Party (Data) then Nurture

The report underscores that during the festive season, notifications are well-received, intrusions are more tolerable, and shopping is top of mind, making it a prime time for first-party data (1PD) collection. 

There was a notable 6 million increase in unique app installs in the shopping category from October to December 2023 compared to May to July 2023. Discussions on innovative first-party data collection methods and Account Based Marketing surged by 17% and 62% respectively, while mentions of ‘sign-up discounts’ tripled.

Additionally, there were 297K more monthly searches for ‘gift guides,’ an 88% rise in first-party data discussions, a 23% increase in searches for Instagram comments automation, and 283K+ comments on reels with CTAs since January.

It also highlighted the implication that with intrusion barriers lowered during the festive season, this is an optimal time to gather and leverage first-party data, and to focus on nurturing these connections in the post-festival period.

It’s time to review REVIEW! 

According to the report, from January to July 2024, there were over 4,000 average monthly searches for ‘honest reviews,’ reflecting a heightened consumer focus on authenticity. Conversations on X about buying products after reading reviews doubled from May to July 2024 compared to the same period in 2023, and discussions about reviews related to travel, shopping, and automobiles surged sevenfold. There was a 114% increase in discussions about trusting and decision-making based on Google reviews on X during the festive season (August to December 2023). 

Additionally, the top 20 YouTube Shorts on ‘Keep or Return’ reviews in the fashion category amassed over 27 million views from January to July 2024, while chatter on X about concerns and complaints regarding ‘fake reviews’ rose by 96% during the same period.

Insight: Reviews are crucial as the final touchpoint in the customer decision-making process, yet trust issues are increasingly undermining their effectiveness.

Implication: To address growing concerns, it's essential to implement strict regulations and filtering bots, leading to a potential revamp of review strategies. For example, an excessive quantity of reviews can sometimes backfire, highlighting the need for a balanced and authentic approach.

Music, Video Streaming & Inspiration

There was a notable increase in engagement with music streaming, with 3,923 more minutes spent on India's top music OTT platforms from July to December 2023 compared to January to June 2023. Conversations about using AI for personalization during festivals rose by 57% from January to July 2024 compared to the previous six months. Additionally, total minutes spent on OTT platforms shifted from a -9% growth rate in January to June 2023 to a positive 15.5% in July to December 2023, and grew further to 16.7% in January to June 2024. Content consumption during the pre-festive period in 2024 has already surpassed the 2023 festive season, suggesting a potential surge in activity during the upcoming festive season.

The report stated that this festive season, focus on music, video streaming, and inspiration as key areas for engagement. Given the rise in consumer time spent on these activities, leveraging AI for personalized experiences and utilizing QR codes can effectively capture attention and drive engagement.

App with Benefits

According to the report, a 7% decline in consumer retention rates on India's top five online shopping apps from January to June 2024, compared to the same period in 2023, alongside a 12% increase in discussions about users uninstalling apps due to poor user experience (UX), highlights that repeat ‘install-uninstall’ behavior is becoming a new expression of app loyalty. Additionally, there has been a 42% rise in discussions on X about discounts on app purchases from January to July 2024 compared to the previous year.

It also highlighted the implication that instead of judging consumer loyalty solely by app downloads, focus on the number of transactions to better understand user engagement and loyalty.