Why has redBus avoided the advertising route on IPL post-2019?

The last time redBus, an online ticket platform, advertised on the Indian Premier League (IPL) was in 2019. In 2015, the company also partnered with Royal Challengers Bangalore. Still, after five years, the company is not looking to associate with one of India's biggest sporting extravaganzas.

Pallavi Chopra, CMO of redBus, states, “The impact of associating was not great when we partnered with the IPL last, and therefore it has not given us the confidence to partner with the IPL again. It is expensive and cluttered in terms of marketing.”

The company states that they are not looking to advertise on IPL 2024, as the targeting options offered by the media partners are subpar.

Chopra emphasises, “The current package lacks sufficient targeting capabilities, and hyperlocal offerings fall short of effectiveness at this time.”

Last week, the online ticketing platform also launched a report, ‘India Bus Track’, based on the trends in the Indian intercity bus industry reflecting the overall health and trends in November and December 2023.

However, the report trends are restricted only to private bus operators and don’t include SRTCs (State Road Transport Corporations).

The data revealed on redBus shows that metros contributed 33% of bus bookings, while 67% were done by tier-II and III cities due to increased digital penetration.

Based on the findings, the 26-36 age group dominated bus bookings at 39%, followed by the 18-25 years age group at 29%.

The report also adds that 33% of all passengers booked via the redBus platform were females, and 52% of bookings were solo travellers.

Seeing the growth coming from non-metros, the brand has decided to curate its marketing strategies accordingly.

Chopra states that the company is looking to identify the market through this data, and with the findings, the company has also launched a campaign #MPkaharsafarkaroredbuspe specifically curated for the Madhya Pradesh market.

She mentions, “In the insights gleaned between travel from Indore to Mumbai versus Indore to Bhopal, people considered redBus for the former but not the latter. Recognizing the gap in intra-state travel, the company crafted this campaign.”

The campaign is conceptualised by Leo Burnett.

In terms of media planning, the company looks to advertise on autos in the city and gather a high share of voice through autos.

"It was both cost-effective and high in share of voice; nearly every one out of three autos in Indore bore our branding. With their ubiquitous presence at all boarding points, it became imperative for us to target this market with our business," she mentions.

The company’s sales in the market increased 100% year-on-year following the hyperlocal strategies. Following the same route, the company has also identified markets like Delhi, Uttar Pradesh, Maharashtra, and West Bengal to target with the same hyperlocal approach.

Media planning

Gathering findings from data showed that 70% of business is contributed by the 18-35 years old age group.

Pre-Covid, the online aggregator platform, was spending 70% of media spends on television. However, with changing customer behaviour, the company has reallocated the strategy and flipped the allocation by allocating 70% to digital channels and 30% to television.

"With people shifting away from TV and increasingly consuming content on digital devices, we recognize the importance of targeting our core audience where they are most engaged," she states.

There were also key findings that helped curate hyper-local strategies. She mentions that in Madhya Pradesh, Raksha Bandhan is as significant as the summer season in other major cities regarding bus travel. Consequently, the company plans its coupon codes in the city.

Category dominance

The bus booking category is still dominated by offline counters, as customers get to save on taxes while buying through a counter. According to the latest guidelines, travellers opt for offline booking after the imposition of 5% GST (Goods and Services Tax) on non-AC bus rides when booking online.

The company is in talks with GST councils to relook at the policies. “While some users may feel the pinch of additional taxes online, the convenience we offer remains undeniable,” she adds.

Expanding its reach, redBus also sells its tickets at post offices.

Talking about the competitive landscape, she says, “Our primary rival remains the offline booking counter and all the offline booking options. Our platform’s USP is to give customers a preferred choice to select their seat on a bus, and this is what sets us apart in the market."