OML's branded content agency aims to clock over Rs100 crore in FY22
Premium- MD Ajay Nair says OML aims to grow the branded content business to Rs180 crore out of which India is expected to contribute over Rs100 crore in FY 22
In a post pandemic world, as live events go digital and more firms take to branded content for promotions, Global Creator Network (GCN), the content agency of media and entertainment company Only Much Louder (OML), said that it is looking to clock over Rs.100 crore turnover during FY22 from the India market.
The agency works with clients such as Bacardi, Red Bull, Levi's, Flipkart, Bumble, upGrad and Amazon in India to create branded content with content creators across social media and digital platforms.
“We aim to grow the branded content business to ₹180 crore out of which India is expected to contribute over ₹100 crore in FY 22. Overall, as a business we did ₹175 crore in FY21, out of which the branded content practice fetched ₹106 crore. India led this growth contributing ₹65 crore worth of branded content business," said Ajay Nair, managing director at OML.
The jump in branded content division's turnover of OML, which runs popular IPs such as NH7 Weekender, can also be attributed to severe impact of pandemic on live entertainment industry which pivoted to digital.
During pre-pandemic period, the company claimed that 70% of its overall revenue came from content which includes both over-the-top (OTT) shows, branded content and studio business while 30% was contributed by live entertainment (including both OML owned IPs such as NH7 Weekender or brand owned IPs such as YouTube Fan Fest).
“Brands that have invested in branded content last year realised that was the best way to reach audiences at scale. Branded content provides reach as opposed to an on-ground event that provides concentrated high-touch environment where you build dedicated to a particular brand ethos, which was impossible in a covid year," said Gunjan Arya, chief executive at OML.
OML is backed by US-based media and entertainment firm The Chernin Group (TCG) which picked up a 49.9% stake in the company in 2012 through its Asia-based investment arm, CA Media. Having handled multiple digital creators and artistes, OML started content agency business GCN in 2016 positioning it as a one-stop destination for creating engaging content across genres. The agency pushed brands to leverage the digital presence of creators and artistes across platforms such as YouTube, Facebook and Instagram which helped fetch higher engagement. The agency claims that it also let creators take over the direction and conceptualisation of branded content campaigns as they understand their followers and fan base better.
Over the years, advertisers have also started realising that doing a one-off video is not helping them engage with an over saturated audience which is spoilt for choices when it comes to content.
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“More brands want to do multi-episodes and longer format of content which engages their audiences over a period of time in place of short video content," said OML’s Nair.
Agreed Shrenik Gandhi, chief executive and co-founder at digital agency White Rivers Media who noted that as quantum of branded content has increased over the years people’s memory to recollect brands have gone down. According to him, branded content helps companies reach a wide variety of audience and create awareness about the brand.
“Despite the fact that branded content gets better engagement because people don’t think they are being sold something. I believe it has to be followed by either remarketing or search marketing where the audience is being reminded of the brand. Agencies working on content alone will only be relevant if they offer advertisers solutions beyond branded content marketing," he added.
As more consumers become immune to traditional ads, content which subtly promotes brands is becoming the mainstay of promotions by advertisers. This is also reflected in the advertising spends pattern with social media and online video emerging as the biggest contributor to India's ₹18, 000 crore strong digital advertising market. Therefore, there has been an increased investment in the content segment by both big advertising agencies as well as platforms.
In May, Mediabrands, for instance, launched Mediabrands Content Studio (MBCS) in India. Facebook-owned Instagram is now allowing advertisers to create sponsored ads from user accounts and the feature is part of its update to branded content ads which was introduced last year.
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