You only see ecommerce ads nowadays. Why do ecommerce companies advertise on TV? Are they just blowing up their investor’s money? Shouldn’t they only be advertisng online because that’s finally where their customers are?

Answered by Meeta Malhotra

Hello Curious Guy,

I get asked that question a lot by sceptics. The biggest benefit of advertising on TV for ecommerce companies is an immediate and typically sharp, rise in direct and organic traffic. That’s the undeniable truth in India – the bulk of consumers still spend many hours in front of their TV sets. The caveat, of course, is that your TVC has to work. There are enough cases where media spends have gone to waste because the audience just didn’t connect with the ad.

There’s another less-obvious advantage and that is ‘associated stature’. if you are on TV, you must have money, which in turn means you must have scale and that helps to create some degree of trust with consumers.