The changing landscape of advertising: What small and medium advertisers and media owners are missing

Global advertising is growing at 10.5%, with predictions that it will surpass a trillion dollars for the first time. A recent WARC study indicates that 70% of incremental ad spend is flowing into the hands of Meta, Alphabet and Amazon, highlighting the rapidly evolving advertising landscape. But is traditional media dead or dying in India? Absolutely not.

Contrary to popular belief, traditional media still holds considerable weight in India and can be effectively combined with digital strategies. Advertisers today must cater to at least four different generations of consumers, making it essential to balance both emerging digital trends and the continued relevance of traditional media.

Let’s explore how small and medium advertisers and media owners can approach this landscape differently, as large advertisers with deep pockets tend to focus solely on buying premium time and space.

First-party data

With privacy regulations tightening and third-party cookies on the decline, collecting first-party data—direct relationships with customers—is crucial for brand owners. This data enables better personalization, making your ad spend more effective. However, this shouldn’t be seen as a short-term tactic but rather as a strategic investment built into the organization’s culture.

For traditional media owners, especially regional ones, this presents a great opportunity to build their own micro “walled gardens.” By leveraging their own first-party data, they can offer advertisers targeted solutions that are both privacy-compliant and highly effective. Traditional media owners who adapt to data-driven strategies will not only retain relevance but will also future-proof their offerings.

Video and interactive content

Video continues to be one of the most engaging ad formats, with platforms like YouTube and connected TV (CTV) making it more accessible to smaller advertisers. Interactive ads, such as shoppable links or engagement buttons, offer additional conversion opportunities.

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Traditional media owners can go beyond just printing a QR code or including augmented reality (AR) elements. They can create revenue streams by incorporating shoppable print ads—where product videos, virtual try-ons or interactive experiences become integral to the print ad. This adds significant value and extends the lifespan of traditional media, turning it into an immersive experience.

Diversification beyond the Big Three

Relying solely on Meta, Alphabet and Amazon can limit options. Advertisers should consider expanding into regional OTT platforms, influencer collaborations, native advertising, smaller digital networks and podcasts, which often offer less competition and more targeted reach.

Additionally, advertisers must build genuine partnerships with willing traditional media owners. Going beyond simple ad-space negotiations, they can collaborate to create storytelling-driven campaigns that resonate with local or regional audiences. Branded content in newspapers, for example, can be a great way to leverage the trust and loyalty that regional media commands. Even pay-per-performance models can be explored.

Contextual advertising

Contextual advertising is making a comeback, allowing ads to be placed alongside relevant content instead of relying on personal data. This is particularly important with growing privacy concerns and the decreasing effectiveness of third-party cookies.

For both digital and traditional media owners, this is an area of potential growth. Companies like Channel Factory are already providing tools that allow for contextual ad placement on YouTube, where brand safety and targeting accuracy are top priorities.

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Augmented traditional media with artificial intelligence and machine learning (AI/ML) is a possibility. For example, AI-driven content analysis that could suggest the best ad placement in a newspaper or the time slots on a radio show based on content relevance and audience behaviour.

This creates an opportunity for advertisers to reach audiences in a privacy-conscious way while boosting relevance.

Geo-targeted campaigns and hyperlocal targeting

Traditional media still excels at geo-targeted TV, radio and print promotions. For example, an FMCG company might want to run a focused promotion for a particular region or a pharmaceutical company might want to promote a local doctor. Most regional newspapers have local editions, making them ideal for hyperlocal campaigns.

Digital media owners can also tap into this potential by combining geo-targeted traditional campaigns with location-based digital retargeting. For instance, a radio spot promoting a product can be reinforced by a mobile ad when listeners are near the advertiser’s store or event, providing a seamless cross-platform experience.

Programmatic advertising

Some advertisers are still manually buying ads, missing out on the efficiency of programmatic advertising. This technology automates ad buying, optimizes budget allocation and ensures ads are targeted to the right audience. However, transparency remains a challenge. Smaller advertisers should demand greater clarity from their agencies and media partners, ensuring they have tools to track and analyse performance.

Also read | Advertisements crafted by AI needn’t be short of consumer insights

For traditional media, till the introduction of programmatic ad buying becomes more common, media owners within geographies can collaborate to automate ad sales and placements, particularly on TV and radio within certain slots, in an exploratory manner. Traditional media can, thus, become more flexible and accessible to small and medium-sized advertisers.

Collaborations with content creators

Beyond the usual digital influencers, collaborating with journalists, TV anchors and radio hosts can help brands create sponsored content that feels more organic within the media’s storytelling. These collaborations allow both media owners and advertisers to reach audiences in a more credible and authentic manner.

For example, a brand could sponsor a special segment on a popular local radio show, bringing value to both the media owner and the audience by creating content that resonates rather than just placing a standard ad.

User-generated content

Traditional media is much better placed here considering the trust factor it brings along. A photo competition linked to a social cause, allowing brands to be associated with that user-driven story, can add an authentic layer to traditional media engagement.

Cross-platform campaigns

Consumers engage with content across multiple devices. Running cross-device and cross-platform campaigns—from smartphones to CTV—ensures a seamless experience and more consistent messaging. Traditional media owners can capitalize on this by syncing TV, radio or digital out-of-home (OOH) ads with real-time social media campaigns, encouraging viewers and listeners to engage further on platforms like Twitter or Instagram.

Attribution and cross-channel analytics remain a challenge. Digital tools offer clear attribution. But traditional media can also be measurable by cross-channel analytics. For example, combining print ads with digital call to action elements (QR, unique URLs) helps advertisers better track which campaigns lead to customer actions.

Unified metrics across digital and traditional is still a challenge. Traditional media owners should explore unified reporting tools where advertisers can see campaign performance across platforms.

Sustainability as a strategic factor

Brands can partner with media owners that have adopted ecofriendly practices—such as publications that use recycled paper or moved to distribution e-vehicles, and TV stations that use energy-efficient studios. This will connect with purpose driven consumers.

The urgency of action

Small and medium advertisers, as well as regional media owners cannot afford to sit on the side lines while the advertising landscape evolves. Some of the opportunities discussed here might not deliver immediate mass-market traction, but they will undoubtedly position businesses for future success.

Final advice to advertisers

Diversify your advertising platforms, embrace programmatic tools, invest in building your own first-party data and embark on genuine partnership with like-minded media owners. Without this, you could find yourself in an uphill battle.

Final advice to media owners

The landscape is changing fast. Now is the time to adapt and innovate, not only to integrate digital strategies into your offerings but also to revaluate the past systems, processes and even mindsets. By doing so, you’ll not only remain relevant but also open new revenue streams and keep advertisers engaged.

Yesudas S. Pillai is the founder of Y&A Transformation.