MAM
Guest column: How chat-based ads are winning the marketing race
‘You talking to me?’
The famous line of Travis Bickle, a lonely taxi driver in Martin Scorsese’s iconic film Taxi Driver, is known to cinephiles all over the world. In the world of advertising these days, this line is often being repeated by customers, thanks to the prominent rise of chat-based ads as the most effective medium of communication in the millennial world.
Creating compelling brand engagements has become the need of the hour for brands today. While the digital world has opened up numerous possibilities for advertisers all over the world, this very same abundance of options is also driving them crazy. Brands are trying to create the optimum communication mix by employing multiple channels such as print, radio, TVCs, video ads, social media engagement etc. to connect better with their consumer bases and gain insights to help their marketing efforts. However, understanding the millennial customer’s mind with non-personalised advertising tools is like walking into a labyrinth with general directions, rather than a customised map. While the former will only result in you losing your way as you move further, a map, as is the case with chat-based ads, will ensure that you are able to navigate, control, and conquer it.
Chat-based vs. Video ads: Identifying the perfect ad mechanism for the millennial mind
Imagine this: globally, the average consumer is exposed to 4,000-10,000 brands per day, with 56 per cent of digital ads and 86 per cent of TV ads not being seen – even once! In this era of over-saturation, the only way to keep your brand thriving is to shun the volume-driven approach and create personalised, engaging advertising efforts that make users an essential part of your brand’s conversation. This is where chat-based ads are most suited, for they do not inform, but engage users through a two-way communication. As chat-based ads are driven by the inputs of the users, there is no predefined message or conclusion and the chat ad takes a route as driven by the conversation. At one to two minutes, the user engagement on chats is also much higher when compared to the sub-10 seconds worth of engagement that video ads deliver. Even with the rapidly growing proliferation of social media, and its share of video-based content, in our lives, theengagement rate of 75 per centon personalised chatbot-based ads is much higher than the measly 10 per cent of audience interactions that video-based ads manage.
While video ads today offer an edgier style that also has a call-to-action embedded in the form of a link to the brand’s homepage, it can never be a help in the fundamental process of decision-making due to its inherent opacity. Chat-based ads, on the other hand, engage customers by distilling the rigid process of advertising into a simple and personal conversation. Perhaps, this is the reason why 90 per cent of users are reported to give a positive feedback to chat-based conversations, as compared to 45 per cent affirmative responses received by video ads.
Furthermore, the recent technological developments in the field of machine learning and artificial intelligence have made it possible for chat-based ads to offer remarkably authentic conversational experience, while simultaneously collating data and solving a user’s problem. For business purposes, chatbot creators like us have developed numerous solutions that help organisations to conduct initial communication with customers. These chatbots then store the data, thus obtained, and analyse it. The information collated by chatbots presents a rich data source that enriches future conversations by human agents, invariably culminating in positive end-results for the business. In fact, 40 per cent of chat-initiated communication efforts result in task completion, a number that in videos still hovers at 10 per cent.
Apart from the fact that it creates highly personalised experiences for the user, the alternative possibilities with chatbots, as opposed to video ads, is endless. Chat-based solutions are being used the world over to tackle a diverse range of problems, from helping out cyber harassment victims report incidents and file complaints to helping insomniacs get through the night without having to go through multiple re-readings of old WhatsApp conversations! For instance, Endurance, a chatbot specifically designed for dementia patients, apart from being a conversational companion to the users suffering from the ailment, also identifies deviations in conversational branches indicative of a problem with immediate recollection – quite a technical achievement for a natural language processing-based system.
Every era has a generation-defining advertising medium that is preferred by consumers. The post-World War eras saw the epic rise of print-based ads, which was followed by the complete dominance of radio and TVCs. At the onset of the digital era, video ads and content ruled the roost. As the era of smartphones reaches its peak, it still hangs on to the throne. But chat-based ads, with their personalised, flexible, deeply engaging, and highly-efficient approach, are quietly making their way to the top, one conversation at a time.
The author is the co-founder and CEO ofHaptik. The opinions expressed here are his own and Indiantelevision.com may not subscribe to them.
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Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
