A recent landmark study in India has declared that view-through rate (VTR) is no longer the most important metric in digital advertising. The study, conducted by Snap Inc., WPP Media, and Lumen Research, suggests that "attention" is the real currency that drives brand outcomes, especially among Gen Z.

The Rise of the Attention Economy

India's digital advertising market is booming, with a projected worth of ₹50,000 crore. However, a significant portion of this investment might be misdirected if advertisers are focusing on outdated metrics. Today, consumers are exposed to thousands of ads daily, leading to a decline in attention spans. Studies indicate that the average attention span has fallen to just eight seconds, creating a paradox where people consume more content but retain less. This shift has given rise to the "attention economy," where focus is a valuable and scarce resource.

The "Attention Advantage" Study

The "Attention Advantage" study, which involved over 3,000 Gen Z users in India, introduces a new perspective on digital advertising. By using Lumen's eye-tracking technology, the study measured the visual attention given to ads across various digital platforms. The key findings of the report are:

• Attention is a better predictor of brand outcomes than VTR. The study found that attention is eight times better than VTR at estimating brand recall and four times better at predicting brand favorability.
• A mere 5% increase in attention can lead to a two-fold increase in brand perception.
• All types of attention are not equal. "Light attention" (less than one second) primarily builds brand recall, while "sustained attention" (more than three seconds) is necessary for creating deeper connections. However, the study also notes that the benefits of attention diminish after nine seconds.

The study also introduces new metrics for media planning: Attention per Mille (APM) and cost per APM. APM measures the seconds of attention an ad receives for every 1,000 impressions, while cost per APM assesses the cost-efficiency of acquiring quality attention.

Implications for Brands

The "Attention Advantage" study provides actionable strategies for brands seeking to capture Gen Z's attention. These include focusing on platforms where the target audience is most active. For instance, the study found that ads on Snapchat capture twice as much attention from Gen Z users in India compared to other social media platforms. This is largely attributed to Snapchat's AR Lenses feature, which adds AI-generated, augmented reality elements to photos in real-time, increasing user engagement.

Beyond VTR: Essential Digital Marketing Metrics

While VTR might be losing its significance, other digital marketing metrics are gaining prominence. These include:

• Conversion Rate: Measures the percentage of website visitors completing a desired action.
• Cost Per Acquisition (CPA): Measures the cost of acquiring a new customer through digital marketing channels.
• Return on Ad Spend (ROAS): Calculates the revenue generated by a marketing campaign divided by the campaign cost.
• Website Traffic: Measures the number of visitors to a website over a specific period.
• Engagement Rate: Measures the level of interaction and involvement users have with content.
• Click-Through Rate (CTR): Measures the percentage of users who click on a link.
• Bounce Rate: Indicates the percentage of visitors who leave a website after viewing only one page.
• Social Media Follower Growth Rate: Tracks the rate at which a brand's social media audience is growing.
• Email Open Rate: Measures the percentage of recipients who open an email.

The Future of Digital Advertising in India

As India's digital landscape evolves, marketers need to adapt their strategies to focus on attention-based metrics. This involves creating engaging and relevant content that resonates with the target audience. As ad fatigue is high among Indian viewers, personalization, and reduced ad frequency can help improve ad effectiveness. Connected TV (CTV) and OTT streaming platforms are emerging as strong channels due to premium content and lower ad clutter. Furthermore, innovative formats like Digital Out-of-Home (DOOH) and gaming are also gaining traction, especially among younger demographics. By embracing these changes and prioritizing attention, brands can unlock new opportunities for growth and build stronger connections with consumers in the dynamic Indian market.