Reliance Jio and Google’s JioPhone Next 4G smartphone, whose launch has been postponed until Diwali, could be a game-changer for the media and advertising industry. Jio and Google want to bring the next 300 million Indian users online with the world’s cheapest smartphone.
According to experts, JioPhone Next is expected to give a boost to regional content, voice and rural advertising, which relies heavily on non-measurable mediums like print and outdoor. They also believe that brands and advertisers will also need to start working on their strategy to engage with this new set of new internet users.
At the company’s Annual General Meeting on June 24, Reliance Industries Limited (RIL) Chairman and Managing Director Mukesh Ambani made a clear call to make India 2G-mukt. Ambani noted that India still has nearly 300 million mobile users using 2G services due to the unaffordability of even entry-level 4G smartphones.
Expected to be priced at Rs 3499, Ambani had noted that JioPhone Next will have the full suite of apps from Google and Jio. Moreover, the smartphone will be powered by an optimized version of the Android operating system, which has been jointly developed by Jio and Google, especially for the Indian market. It will also have features like voice assistant, auto-read screen text aloud, language translation, smart camera with augmented reality filters and much more.
Mirum India co-CEO Hareesh Tibrewala said the JioPhone Next will be a breakthrough product that will attract a new set of users to the internet. He also said that the smartphone will become a huge platform for telecom operators to promote their own products and services.
“In terms of advertising, it creates an opportunity to reach those people who were previously not easy to reach. The audience will suddenly expand through smartphones where we can engage those audiences on different types of This will also lead to the proliferation of local language content as many of these users will not necessarily be English speakers,” Tibrewala said.
“We will also see a voice explosion since many people will not be able to type. JioPhone Next will have built-in voice capabilities. Regional content and voice will experience huge proliferation from the advertisers’ perspective. Advertisers must quickly determine how they will interact with consumers with access to voice. They must understand the message, the content and the response. They also need to strategize how their websites and properties should interact with these consumers. »
Jio, Tibrewala said, will also have plenty of first-party data that they can marry with the ecosystem of products they are building. “It will look like a sort of ecosystem of Amazon + telecom + advertisers built into one. In developed countries, the three areas have different players, but here in India, one player will be so strong in each of these areas that it is almost as if a monopoly is created on e-commerce, content and network.
Kurate Digital senior partner Uday Sodhi said services and advertising will be a big part of Jio’s low-cost smartphone strategy as much of rural India is serviceless. Other areas where JioPhone Next will have an impact are e-commerce, e-governance and digital payments. “Partnering with Google will help as the tech giant is quite strong both on the payments and advertising side. Agritech is also something that will benefit,” Sodhi said.
According to Sodhi, adding 300 to 400 million people with high-speed Internet access on the phone will be a game-changer for the digital industry. “The layers are multiple, so you have a hardware market opening up for phones. Based on that, you have e-governance, payments, transactions, OTT, entertainment, communication, etc. ., all of this will open up. It will give a huge boost to business and commerce, and then advertising will kick in. For advertisers, Jio Phone Next will provide a measurable way to reach rural users. Today, the problem with most rural spending is that there is very little measurability,” he added.
The penetration of smartphones to the deepest corners of the country will allow advertisers to target rural consumers in an addressable way. Regional print and outdoor could be affected by the emergence of a digital platform. “FMCG might prefer this medium to reach rural consumers over other non-measurable mediums like print and outdoor. This will also impact the regional print as so far it has been quite insular and not impacted by digital. I guess a lot of that could be affected by the arrival of digital in those markets. The consumption of information in these markets could become digital, regardless of the platform through which it reaches the public. »
He also expects audio applications to see an increase in consumption due to the unique nature of the rural market. “Audio applications would wait for those 200-300 million to arrive, because video will be that much harder to reach due to bandwidth quality issues. Audio is a great medium, and it is language neutral as there is no need to read and you can listen to the content.Voice advertising will occur if the voice content is there.
Profit Wheel co-founder Vivek Bhargava said telcos have the most first-party data, and in a world without cookies, that will be valuable. “Companies that have first-party data are going to build a much more effective advertising engine. Google and Facebook around the world will obviously benefit from a cookie-free world, but the other is telecom providers. Jio will have significant reach with JioPhone Next, and they will have a lot more first-party data. These users’ APRU will be so low that advertising will become an important part of their overall strategy. In the long run, even voice will become very important. Theoretically speaking, one can listen to the conversation a person is having based on AI and serve an ad based on the nature of the conversation. Contextual ads are beneficial for users.”
According to a source in the advertising industry, Jio is in talks with media agencies to create advertising solutions. However, the company is not interested in companies that do not have a certain scale. “Jio is already building solutions with some media agencies, but it’s not at a desirable scale. The two ecosystems need to merge to gain momentum. Jio is not even interested in looking at the Rs kind of business 500-1000 crore,” the source said, speaking on condition of anonymity.
The source also said that the JioPhone Next will be a transformational smartphone due to its price and its integrations with Google services. “It will be the cheapest smartphone in the history of the planet. It will be complemented by high bandwidth. It will have holistic voice features that will allow even illiterate people to use it seamlessly in the same way we do. are using our smartphones. Many Google features will be integrated into the Jio Phone Next. The most important of them is the visual search engine, Google Lens. They will also add seamless language functionality to this phone. This phone will be heavy on apps like Google Bolo, a speech-based reading app.
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