WARC Talks: 3 in 15 – Lessons from the Effective 100

In this episode of the WARC podcast, David Tiltman, WARC's SVP Content, is joined by Amy Rodgers, Head of Content for WARC Creative, to discuss some of the key findings from the Lessons from the Effective 100 report.

Takeaways 

• This year’s rankings show that effective campaigns are innovating in extending reach in social media and gaming, including, for example, by using virtual influencers.
• Food and drink advertising ranked highly in 2023, partly through impactful use of celebrities.
• Campaigns using traditional, non-digital media indexed highly in the 2023 rankings as both lead and supporting channels.

Listen to the full episode here

Timestamps

1:42 – Background to the WARC Rankings and the Effective 100.

3:10 – ‘Peak purpose’.

4:02 – Extending reach in social media and gaming.

6:26 – Innovations in virtual influence.

10:46 – Creating impact in food and drink advertising.

13:51 – Use of celebrity in food and drink.

16:23 – Winning creative strategies include use of celebrities, influencers, emotion and storytelling.

20:00 – Traditional media channels index highly in the Effective 100.

See the full list of WARC podcasts here

WARC Media Platform Insights: YouTube

YouTube continues to command a strong position in the online video advertising market and is actively looking for ways to forge deeper connections with viewers, creators and brands through multi-format video strategies.

Context 

YouTube is prioritising Shorts and CTV engagement, and is innovating with unskippable 30-second ads and “pause experiences” on TV to help marketers engage audiences across screens and achieve both performance and brand-building goals.

Takeaways 

• Ad investment with YouTube is set to rise 4.0% in 2023 to reach $30.4bn

That marks a turnaround from Q4 2022 when ad revenue declined 8.8% year-on-year, as marketers shifted investment to retail media and search. But growth is expected to resume in 2023, at more than double the rate of growth recorded in 2022. WARC Media forecasts YouTube’s revenue growth to accelerate 10.3% in 2024, to reach $33.5bn by the end of that year.

• Commerce brands are expected to spend $4.1bn on YouTube ads in 2023 

This is a 4.6% rise on 2022. Retail remains YouTube’s most important category for ad investment, but growth from other sectors has been harder to achieve. While some categories will see double digit spending increases in 2023, including technology and electronics (+13.9%) and toiletries and cosmetics (+12.1%), figures elsewhere are more modest.

• YouTube advertisers can reach half of all internet users globally. More than one billion hours of video are watched every day on YouTube

YouTube is the world’s most popular online platform, with an adult advertising reach estimated at 2.07 billion people, almost twice as much as TikTok and Instagram respectively. YouTube Shorts (60 seconds or less) will provide more opportunities for marketers to reach new audiences, but its 50 billion daily viewer total is some way behind the 140 billion daily views achieved by Instagram Reels; under-18s, meanwhile, spend on average 60% longer on TikTok than with YouTube content.

• YouTube has overtaken Netflix as the biggest TV streaming platform in the US

YouTube accounted for 22.9% of OTT viewing in March 2023. It is also the most popular channel for US Gen Zs to catch up with sports news, and last year it was the most popular platform for both music and podcast listening in the US.

APAC is a key growth region for YouTube – from live shopping and Shorts to gaming – while in Latin America, YouTube delivers brand impact more cost-effectively than any other video platform, according to research by Kantar.

Platform Insights is a new series of reports exclusive to WARC Media subscribers. These include an overview of platform investments, media consumption and performance insights. More information is available here.

Ambitious in-house agencies need strategy capabilities

In-house agencies are evolving, with half aspiring to become a lead creative agency for their brand in future, a new study finds, but for that to happen they’ll need to develop greater strategy capabilities.

That’s according to a survey of in-house agencies, conducted by the In-House Agency Leaders Club (IHALC) across almost 50 brands in the UK and EMEA, that aims to provide benchmarking data for the sector.

Why it matters

In-house agencies (IHAs) are growing more confident in their abilities, with around 60% now working on above-the-line advertising and headcount expected to increase this year. But the study notes that “there is still work to be done to ensure alignment between what the IHA believes it is there to do, and the actual remit and/or operational potential afforded to the business”.

Takeaways 

• External agency partners remain a vital part of the mix, for now, with 82% of IHAs turning to them for above-the-line campaign creative and 64% seeing them as partners rather than rivals.
• IHA leaders score their marketing colleagues poorly for quality of briefing, understanding the creative process and ability to give feedback.
• Only 35% of IHAs currently have any planning capability; only 22% have a strategy director or equivalent.

Sourced from IHALC

Can Apple crack the VR puzzle?

Apple’s Vision Pro is a test of whether a head-based computer – in the guise of virtual, augmented, mixed, or extended realities – can have a commercial or cultural impact, something which has eluded the technology up until now.   

Why it matters

Is this the new iPhone? Should every developer and every brand start ploughing millions into showing up on this new device? 

Previous examples of headset-based technology have always struggled against several complicated factors: comfort and weight, price, a lack of applications and content, as well as the problem of human vanity (or not wanting to look like a dork). 

Use cases are fast emerging, and the average level of application quality appears to be improving – but it’s not yet mainstream behaviour beyond gaming circles.

However, iPhone-era Apple doesn’t tend to invent entirely new categories as much as it takes the best elements and makes them beautiful, simple, and useful. So the fortunes of the Vision Pro will be something of a reckoning for the company’s formula: success could ignite an entire industry and the future of computing. Low-level adoption, by contrast, would likely see the product pivot to B2B use cases, similar to Microsoft’s HoloLens or Google’s Glass.

What’s happened

The device (pictured) was unveiled on Monday at Apple’s WWDC ‘23 conference, giving developers the chance to start building for the ecosystem that Apple hopes will come alive following the product’s US release in early 2024 (other countries will follow later that year).

Apple’s introduction of the device included several applications of “spatial computing,” which you are likely to have already seen:

• A 3D workspace
• A movie theatre mode
• Video recording through the headset
• Spatial facetime (in which wearers’ digital representations become their uncanny avatars during the conversation)

The potential: sleeker and simpler than the competition

Beyond the launch apps and the headset’s similarity to ski goggles, there’s an element of the device with enormous potential: the new controller-free interface using eyes, hands, and voice. “Users can browse through apps by simply looking at them, tapping their fingers to select, flicking their wrist to scroll, or using voice to dictate,” the company explains. 

Interestingly, its ambitions here are less grandiose than triggering the next phase of the internet, and the word ‘metaverse’ was conspicuously absent. Although there were ways to interact with other people and with the internet, Monday’s launch was all about people’s interaction with the device.

Improvements to the experience, such as a translucent mixed-reality mode, are – along with the interface –  encouraging but not yet transformative. It remains a chunky piece of kit. And despite the presence of Disney+ content on the platform at launch, it’s not only Apple but the whole VR industry that is still searching for a killer app to justify the high price.

Price: The elephant in the room

Priced at $3,499, the device is seriously expensive compared to other consumer-focused offerings like Meta’s forthcoming Meta Quest 3 ($499.99). Its closest competitor at the same price point is Microsoft’s business-focused HoloLens ($3,500).

Bottom line

Though it is a very expensive device, Apple may choose to market the product as a replacement to a personal computer – as much a tool for work as a conduit for entertainment – which could begin to justify some of the price. But the competitive set is totally different here; the kind of people looking at $3,500 computers are usually looking for pro-level performance gains and a tried-and-tested solution.

This said, it’s hard to escape the sense that Apple has the gravitas to immediately establish itself at the very top end of this nascent industry and has suggested to any headset-making competitors that they are now the hardware to beat.

The final, critical point, is that humans don’t tend to be that individual when it comes to being entertained; screens big and small have slotted into our social and family lives neatly. Habit is hard enough to break, and it will be a special device from a special company that is able to buck that trend from the top of the pricing spectrum.

Sourced from Apple, WARC

[Image: Apple]

It's Pride Month and advertisers are nervous

Some advertisers are reported to be rethinking their support for LGBTQ+ issues as right-wing media stoke a “war on woke”. 

Context

The nervousness comes in the wake of a backlash against Bud Light, which has been promoted by a transgender influencer, and Target’s decision to sell a PRIDE clothing range. 

Both brands have been forced to backpedal to a degree, after facing threats of violence against property and people, and lost sales in the case of Bud Light. But both are still sponsoring celebrations across the US: Target is a platinum sponsor of NYC Pride, while Bud Light parent company Anheuser-Busch is a sponsor of Pride celebrations in Chicago and San Francisco.

Other big brands – Kohl’s, Lego, Southwest Airlines, PepsiCo, Starbucks, and General Motors – are also continuing to support Pride. 

Why it matters

While brands may feel it necessary to reassess how they show support in order to avoid putting employees at risk, Pride organizations are understandably disappointed at anything that is seen as a climb-down. "The wavering is what’s causing some mistrust in the brands,” Amy Luca, SVP of social at Media.Monks, told Business Insider. 

There’s a danger of alienating both sides but ultimately it comes down to integrity. And money. Are brands involved in virtue signalling or will they capitulate to a vocal minority opposed to human rights? And are they prepared to ignore the estimated $1 trillion spending power of the US LGBTQ+ community?

Key quote

“We stand by our values and we’re a highly inclusive organization. And we think the bulk of America is as well” – Jeff Gennette, CEO of Macy’s. 

Sourced from New York Post, Business Insider, Fortune

What's the future of print?

The shrinking size of the print ad market reveals that many marketers are shifting investment away from news and magazine media, but remaining players may benefit from reduced clutter, a new WARC Media report suggests.

Why it matters

Print remains a mass media, for now, but appears midway through a transition towards being dominated by digital format consumption, especially in North America and Europe. At the same time, newsbrands have looked to diversify away from advertising. For example, The New York Times’ share of revenue coming from print and digital ads dropped from 40.4% in 2015 to 22.6% in 2022. 

Takeaways 

• Global publishing print ad revenue has collapsed from $75.9bn in 2016 to $37.3bn in 2022.
• Globally, print press has the lowest reach of any major channel monitored by WARC Media and GWI. Consumption of print media will be overtaken by both games consoles (68.0%) and podcasts (68.8%) in 2023.
• Consumers in Asia-Pacific remain more committed to publishing media than those in other regions, with a forecasted average daily consumption of more than two hours in 2023.
• But consumption is increasingly dominated by digital formats. In Q3 2022 in APAC, more than half (56.7%) of the time spent with publishing media is expected to be with online, rather than print, content.
• Research by Peter Field and UK trade organisation Newsworks found that newsbrand advertising has a big effect on profitability and contribution to market share growth, and that this effect rocketed after 2016, due to newsbrands’ perceived trustworthiness.

Read more in The Big Picture: Print, from WARC Media

Why Western luxury brands need to understand China's Gen Z

The luxury market in China is very different to that in the West, in part because of the younger buyer demographic. 

Why it matters

Where Western brands have generally tended to focus on older Gen X or Gen Y purchasers, it’s Gen Z which is important in China: the average age of luxury purchasers is just 29. These consumers are hard-working, optimistic, and ready to reward themselves. 

What Gen Z expects

Writing in Jing Daily, Équité’s Daniel Langer highlights five areas to focus on: 

• Digital innovation: The online retail experience needs to be truly engaging. Too many Western luxury brands are failing to deliver the top-level consumer experience that China’s Gen Z now expects on digital platforms like WeChat. 

• Authentic brand narratives: Western brands can’t simply transplant their existing narratives to China. Without adapting to local sensibilities, these won’t resonate with consumers.

• Social responsibility: China’s Gen Z consumers are quick to hold brands accountable for their societal and environmental impact, so Western luxury brands need to communicate their stance on these issues effectively.

• Celebrity partnerships: Western celebrities generally aren’t as effective as local celebrity endorsement. 

• Personalised offerings: Limited editions can cater to a Gen Z desire for individuality and exclusivity.

Key quote

“[Gen Z] consumers seek more than just products; they want their brands to reflect their values, engage with their culture, and provide a digital-first, personalised experience. Navigating these expectations will be the key to thriving in this promising yet demanding market” – Daniel Langer, CEO of luxury brand adviser Équité.

Sourced from Jing Daily

Asia avoids, mostly, the war on woke

The recent experience of Bud Light and its use of a trans influencer highlights how the culture wars can engulf a brand, but the picture is more nuanced outside the particular environs of the US. 

Why it matters

Brands clearly want to be in step with culture and to generally connect with progressive youth – to be more “woke”, if you will – but they also have to be cognisant of the different cultures and politics of the Asia region. Associating themselves with Pride month, for example, could make sense in the UK or US but consumers across APAC are less likely to expect brands to address this issue – they’d rather see a focus on environmental, health and educational issues, according to Ipsos. 

Takeaways 

• Research from GWI indicates that the main reasons APAC consumers say they would boycott a brand are: harmful behaviour directed towards specific communities (57%), unethical manufacturing practices (54%), violating regulations (51%), behaviour that is not environmentally friendly (50%) and transphobic behaviour (50%). 
• The region lacks the sort of far-right news media (cf. Fox News) that actively seek out perceived threats against conservative values and stoke culture wars. 
• “Anti-woke” activity in Asia tends to be led by governments or religious groups; for example, religious groups in Indonesia and Malaysia have encouraged a boycott of Starbucks over the brand’s support for LGBTQ+ rights.

Key quote

“Generally, ‘approved’ issues like sustainability, climate change and female empowerment are safe for brands to engage with through marketing campaigns, while issues like LGBTQ+, race, class or even mental health are decidedly more sensitive” – Zoe Chen, strategy director at Virtue APAC, speaking to Campaign Asia.

Sourced from Campaign Asia

Twitter’s advertising woes deepen amid executive turmoil

Internal documents from Twitter suggest that the social media company’s ad revenues are down 59% on this period last year, just one of the service’s advertising woes as top-level departures fan brand safety fears.

Why it matters

It was always going to be interesting: since Tesla and SpaceX CEO Elon Musk’s first murmurs of interest in buying the company for a meme-worthy price per share, the story of Musk-era Twitter has taken place in the full glare of the media. The billionaire has readily courted controversy in his public statements and tweets, while some of the policy changes, such as paid verification, have thrown up serious questions about the place of brands on the platform.

Twitter has for years been more influential than its commercial profile would suggest, but its current financial performance is apparently lagging behind even last year’s figures. The arrival of a CEO with strong pedigree across traditional and digital media appears to be a step in the right direction, especially as the company explores new avenues – like payments – that will require the trust of both its user base and brands.

Ad revenues fall

Documents seen by the New York Times indicate that April-May US ad revenues this year were down 59% year-on-year to $88m. A further document forecasts a 56% drop each week compared to the same week last year over the coming month.

In context

New leadership incoming: The news comes as Twitter’s new CEO Linda Yaccarino, a media veteran most recently at NBCUniversal, is set to take the helm of the ailing company which has struggled to keep advertisers onside following the drama and brand safety fears of the last year.

An aura of chaos: Concerns often centre on the talkative nature of Musk’s leadership, with the owner’s tweets sometimes pre-announcing important decisions. This has added to the aura of chaos that has seen some copycat accounts being mistakenly verified as advertiser brands, with the experience of Disney a significant example.

Important departures: Recent departures of company executives from brand safety and content moderation teams have done little to allay advertisers’ nerves. CNBC reports that the company has lost its VP of trust and safety as well as its head of brand safety and ad quality in quick succession.

Financial implications: In April, revenue forecasts for the full year suggested that the company was set for an overall revenue decline of 28% in 2023. Analysts at Insider Intelligence put it bluntly: “Advertisers don’t trust Musk.”

Sourced from The New York Times, WARC, Deadline, CNBC

Brands tap emerging sports in India 

Even as the reach of the IPL expands, brand investment in sports other than cricket continues to grow, and at a faster rate.

What’s happening?

IPL media rights owners have sought to maximise the reach for their investments – JioCinema streaming games for free and Star Sports broadcasting them on FTA and GEC channels. And digital channels have brought in more ad revenue than TV for the 2023 tournament, insiders tell Afaqs!, at Rs 2,300- 2,500 crore compared to 1,800-2,000 crore.

But while the IPL juggernaut rolls on, other sports are also booming. Data from GroupM ESP’s Sporting Nation report shows India’s sports business – sponsorship, endorsement, media spend – hit Rs 14,209 crore in 2022, 49% up on a year earlier. And while spending on cricket grew 44% (to Rs 12,115 crore), spending on emerging sports, such as kabaddi and football, was up 87%, albeit from a much smaller base (to Rs 2,094 crore). 

Why it matters

Industry observers note a post-COVID surge of investment funding for startups and brands looking to expand. “These brands have identified sports and live events as one of the fastest mediums to gain quick momentum and establish connections with their customers,” the President, Investments at Havas Media India, explains to e4m. 

Takeaways 

• Success on the international stage helps boost the popularity of individual sports and success becomes more likely as the government increases spending on sports development.
• A plethora of new sporting leagues is attracting new audiences and new advertising categories.
• Brands are increasingly willing to consider advertising around non-cricket sports. 

Key quote

“Emerging sports are becoming part of brands’ marketing calendar and making advertisers work on a tactical approach to cash on these sporting opportunities” – R Venkatasubramanian, President, Investments at Havas Media India.

Sourced from Afaqs!, e4m

The complex world of virtual influencers

Virtual influencers, models, and KOLs are a growing trend and while they present opportunities there are also significant issues that marketers need to think about when engaging.

Why it matters

Virtual influencers aren’t particularly new, with brands ranging form Samsung, to Balmain, to LG, to Magnum deploying these technologies, some as far back as 2018. But with the emergence of AI, the use cases and the questions surrounding the tech become tougher.

The good

The benefits for brands include hyper-flexibility to campaign needs, video-game tie-ins, and inherent cross-channel applications.

As Jing Daily argues, there are opportunities in the metaverse-like virtual worlds (still), as well as a broader opportunity for gamification designed to speak to gaming-friendly Gen-Z.

Arguably, the strongest opportunity lies in the branded possibilities of virtual characters – such as those made famous by their video game manifestations. Meanwhile, the stronger argument is that they can be a lot cheaper than real influencers.

The bad

Sixth Tone takes a very different angle on the story, noting the increasingly sexist and objectifying creations of AI-generated virtual models as they grow both on social media and as instruments for brand promotions – in short, the male gaze appears to be baked into many of these models.

The report finds that many such AI-generated images look to an ultra-sexualised, unrealistic and toxic idea of women, through a kind of doll-like quality. For marketers, aside from the considerable ethical problems, there is also the issue that female models typically advertise clothes bought by women.

As Xu Ke, a graduate student at the China Academy of Art, quoted by Sixth Tone, wrote: “Can creators be aware that images of female models should serve females?”

Sourced from Jing Daily, Sixth Tone, WARC

Meta tests news blocking in the face of legislative pressure

Meta faces new rules in Canada and California that are deeply reminiscent of recent regulatory changes in Australia – some of the tactics it is using to resist the changes are deeply reminiscent too – but it is likely that these laws will pass despite protests.

Why it matters

It’s strange to see both Meta – the owner of Instagram and Facebook – and, to an extent, Google repeat the unsuccessful tactics they deployed in Australia, where collective bargaining laws now exist. It means that technology firms now need to pay local publishers in the country for linking to news content or making it available on their platforms. 

As much in California as Canada, and Australia before it (where there were hints that news could just be turned off), the effort has provided politicians with useful ammunition against the company, as their plucky states/countries stand up to Big Tech incarnate.

What’s going on: bargaining laws on the rise

In Canada: Meta is gearing up to test news blocking for a sample of Canadian users across its Facebook and Instagram properties, according to reports in The Toronto Star.

• The tests, which echo some similar measures from Google that also blocked news links, are a response to a law currently going through the Canadian senate.
• The Online News Act emulates much of Australia’s News Media bargaining code by providing collective bargaining abilities for news outlets, arbitration, and a preference for voluntary agreements, according to the Canadian Government.

In California: Threats to remove news content from users in Meta’s own home state just a day before the California Assembly voted to advance the Journalism Prevention act to the State Senate appeared to have strengthened the resolve of lawmakers, the Sacramento Bee reports.

• California’s draft law is similar, in that it requires platform companies to pay a percentage of ad revenues to publishers as a “journalism usage fee” which is then intended to go toward funding staff at newspapers around the state. Smaller publishers will also be allowed to negotiate jointly with platforms.
• Similar to arguments elsewhere, Meta argues that instead of helping struggling local publishers, funds would flow toward major publications out of state. It has also argued that less than 3% of content on the platform is news.

Did it work in Australia?

When Australia’s News Media Bargaining code came into force in early 2021, the story was closely followed around the world – an impact that likely influenced the above laws.

But its impact has not been an unalloyed success. Both Google and Meta appeared to set about making deals with publishers even ahead of the law coming into force. These tended to go to the largest and loudest publishers in the country, while the government was often reluctant to step in and designate platforms, thereby ‘forcing’ negotiations, as it was characterised by Meta. Despite this view, it’s light touch.

Imperfect as the law is, it appears to have been quite effective for publishers, who received around $150m USD ($200m AUD). This is according to Columbia Journalism School’s Bill Grueskin who has studied the effectiveness of the law.

Sourced from Toronto Star, Government of Canada, NPR, Sacramento Bee, Columbia Journalism Review, WARC

Adidas puts unsold Yeezy stock back on sale, proceeds to be donated

Yeezy come, not so Yeezy go: Adidas is selling remaining inventory stock designed by Ye – the artist formerly known as Kanye West – and donating a “significant amount” to organisations working to combat discrimination and hate. 

The decision follows the designer’s repeated antisemitic comments and is a move that aims to end the ethical and financial nightmare of the company’s conscious decoupling from Ye.

Why it matters

Brands exist in increasingly political times and the problems they face contain many complexities that don’t tend to occupy the conversation at the same volume as the central issue – but they are real. Adidas’ solution, while not devoid of problems, seeks to end the issue as soon as possible and start afresh, though there is a lot of inventory to sell.

But there’s a weird brand story here too. Despite the toxic association, it appears that enthusiasm for Yeezy sneakers remains strong.

The story

According to a press release from the company, a range of existing designs will be made available to consumers (through Adidas’ websites) for the first time since parting ways with West. These will be a series of three releases that echo the ‘drops’ that helped make the brand a streetwear icon.

Adidas is contractually obliged to honour the partnership’s 15% royalty contract, which means that Ye will receive some of the money from the sale – a fact that some Jewish groups, speaking to the New York Times, felt to be “highly problematic”. The company has, in fairness, attempted to stop payments but was prevented by a New York court from doing so. 

The sportswear giant cut ties with the rapper in October 2022, a move that would leave as much as €1.2 billion of unsold inventory and end one of the company’s most profitable brands. The company adds that it chose to see through production of the stock to protect supply chain partners.

Key quote

“We believe this is the best solution as it respects the created designs and produced shoes, it works for our people, resolves an inventory problem, and will have a positive impact in our communities. There is no place in sport or society for hate of any kind and we remain committed to fighting against it,” said Adidas CEO Bjørn Gulden in a press release.

Sourced from Adidas, The New York Times, WARC, Bloomberg

China’s influencer agencies strike out in new directions

Agencies representing China’s influencers are launching their own brands and exploring brick-and-mortar retail as livestreaming develops in new directions. 

For example, agency Jiaoge Pengyou (Let’s be friends) is making 200 million yuan ($28m) a year from Reloading Peacemaker, a clothing label it launched in 2021, Jiemian Global reports. 

Why it matters

The shine has been taken off influencers after several ran into problems with government authorities (eg evading tax) and new regulations began to constrain the sector. Agencies also have to contend with the fickle nature of online fame and the sometimes trying demands of celebrity influencers. But now, agencies are finding that selling their own brands is more profitable than relying on influencers and commissions from clients. 

Takeaways 

• The supply chain is a crucial factor but, given China’s manufacturing base, it is relatively straightforward to find a factory capable of making good quality products. 
• Product cycles for agency-owned, internet-sold brands can be far shorter than for existing rivals. In apparel, for example, it can be just 45 days compared to six months. 
• Some agency brands are looking to reduce their reliance on livestreaming for sales and get their products stocked in traditional retail outlets. 
• If livestreaming encourages impulse purchases, brick-and-mortar builds trust and connections, which brings customers back, explains the manager of one agency-owned brand.

Sourced from Jiemian Global

Apple’s India strategy taps deep demand

New reports from Apple’s latest retail locations in India indicate strong demand for the tech giant’s products in a market of major focus as its first two stores set electronics sales records.

Why it matters

Apple’s Mumbai (pictured) and New Delhi stores, which opened in late April, were not only a sign of a pivot towards India as a source of new sales in a high-potential market, but also for manufacturing operations as it moves away from its reliance on China.

Of course, new device sales aren’t the end of the process: the iPhone maker’s deeper services strategy, including its burgeoning advertising business, will be key to its India strategy.

The story

First reported in the Economic Times, industry executives aware of the stores’ performance tell the paper that they have made gross monthly sales of ₹22-25 crore ($266,9326 to $303,325).

Largely, one source says, it’s down to “the fact that the average selling price of Apple products is much higher, which leads to higher revenue,” adding that sales “have far exceeded” Apple’s own internal estimates.

In context

• The presence of the stores is somewhat symbolic, as the figures are a small part of the $6bn of sales the company made in India in 2022.
• Overall India sales are expected to grow 31% this year, a strong subsequent act on 2022’s nearly 50% year-on-year growth.
• More broadly, new product sales are only part of the strategy in a relatively price-sensitive market like India, where a lot of potential to bring people into Apple’s ecosystem exists alongside the aspirational purchases of the fast-growing middle class.

Sourced from the Economic Times, WARC, Reuters 

[Image: Apple]