Everyone agrees that the future of advertising is digital. What is not as commonly discussed is just how digital this transformation is going to be. That is a major oversight on our part, for the innovations and technologies that will shape the future of advertising are already with us.

As are their demand and need.

Consider, for a moment, the growth trajectory of the digital ecosystem in India. Morgan Stanley estimates that India will be home to 914 million internet users by 2027, while a 2020 report by India Cellular and Electronics Association (ICEA) and KPMG forecasts the number of smartphone users to exceed 829 million by 2022. The number of online shoppers in the country is also expected to grow by almost 300% to around 600 million within the next 5-6 years.

These numbers highlight just how lucrative the digital landscape, already a major area of play for brand marketing initiatives, will be for advertisers in the very near future. The next step, of course, is to identify the tools and solutions that can help them tap into this high-potential space – and that is where new-age adtech solutions such audio/video (A/V) watermarking step into the picture.

What is A/V watermarking and why you, as a brand advertiser, must pay attention to it?

Like some of the most important innovations across history, such as the wheel, A/V watermarks are simple concepts that perform an important function. In essence, they are unique identifiers embedded in an audio or video signal that are indistinguishable to human senses but can be recognised by smart devices. Initially used to identify ownership of copyright by brands, these watermarks can now be used to integrate contextual messages in broadcast feeds to provide the end-user with the most relevant information, as well as to trigger the desired outcome. For instance, advertisers can use these messages to send promotions and offers to their target consumer base and can also conduct polls and surveys.

What makes this approach perfect for advertisers in the digital age is the fact that it helps them reach the right audience with the right message at the right time through the right channel – the smartphone. The heightened engagement that A/V watermarking enables also helps brands overcome the challenges and restrictions that they have conventionally faced with audio and video broadcasting.

Take, for instance, the challenges faced by brands operating physical retail stores. Despite hosting signage boards and video displays at every conceivable corner, these outlets struggle to drive any meaningful engagement with their target consumer base. Most visitors, in fact, simply consider these visual displays as a part of the background – a kind of white noise, so to speak. What this means is that any in-store video ads displayed on these boards is unlikely to draw sustained attention from the end-user.

A/V watermarks can step in here to amplify the efficacy of in-store marketing initiatives with promotions and call-to-actions that are transmitted directly to the customer’s smartphone through proximity-based alerts. Brands can also embed the relevant messages within digital displays and ambient music to provide

visitors with updates, deals, and offers pertaining to the latest collections as they move through the store. Not only does this add another layer of immersive digital engagement within the offline store but also pushes customers towards transacting by enhancing their purchase sentiments.

To add further gloss to its appeal, A/V watermarking is even effective in a domain that digital advertisers have conventionally found hard to crack: the consumer’s living room. With A/V watermarks, brands have the perfect channel to non-intrusively reach out to consumers through television ads for heightened engagement, as well as to provide information about their various online and offline offerings. Further, advertisers can roll out highly customised rewards and loyalty programs based on the end-consumer’s interactions with their A/V watermarks – and, since the information never leaves the customer’s device, all without compromising on their privacy.

How A/V watermarks add incremental value for the entire value chain?

Another domain that the introduction of A/V watermarks can drastically improve is that of real-time TRP measurement and audience insights for television networks. Access to such in-depth and precise data can help both network operators and brand advertisers to gain a deeper insight into the viewing behaviour and preferences across all target demographics. A/V watermarks can also help brands roll out contextual polls and surveys to create a near-instantaneous feedback loop to measure their campaign efficacy.

Last, but not least, come the benefits to the end-consumer. Apart from enabling a seamless cross-channel brand experience, A/V watermarking technology helps customers benefit from greater personalisation as well as cost savings facilitated by customised offers. The purchase process – whether in-store, online, or teleshopping – also becomes much simpler with one-click checkouts and on-demand product information, ensuring that their experience across all channels remains consistently high.

Given the various ways in which it adds value across the entire brand-consumer equation, it will not be an overstatement to say that A/V watermarking will soon emerge as the benchmark against which all current and future adtech innovations will be judged. Brands that adopt it in their digital marketing strategies will reap the benefits faster than ones that delay the inevitable – because the emergence of A/V watermarking as an essential component in the advertising value chain is no longer a matter of possibility, merely that of time.

The author is Sudeshna Singh, Head Marketing, ToneTag