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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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India’s early education sector is growing fast, making preschool franchises a profitable business option for new entrepreneurs. However, success depends heavily on clear budgeting and realistic financial planning in the first year. From initial setup costs to monthly expenses and expected revenue, every detail matters.
This guide breaks down the year 1 costs and explains how long it typically takes to reach break-even and start generating consistent profit.
Initial Investment Breakdown
The initial investment includes the key costs required to set up the centre and prepare it for admissions. For anyone evaluating a preschool franchise in Chennai, this breakdown helps explain where the money goes at the start and supports better financial planning during the launch stage.
Franchise Fee
The franchise fee is usually the first fixed outlay. It may include onboarding, training support, and access to the operating model. This amount should be separated from the premises budget, since it does not usually cover fit-outs, hiring, or local compliance.
Infrastructure Setup
Infrastructure setup often takes a major share of the budget. Interior work, child-safe flooring, washroom changes, classroom partitions, storage, and entry security can all affect the final figure. Costs may also vary depending on whether the property needs basic modification or a full fit-out.
Furniture & Equipment
This includes classroom seating, storage units, play materials, learning aids, outdoor play items, office furniture, and basic technology. A realistic estimate should separate essential purchases from items that can be added later, so the first-year budget stays more controlled.
Monthly Operating Costs
Monthly operating costs are the regular expenses needed to keep the centre running smoothly after launch. While reviewing the overall playgroups franchise cost, these recurring payments are important because they directly affect cash flow and the time taken to reach stable returns.
Rent
Rent is usually the most predictable recurring cost, but it can create pressure if occupancy grows slowly. A Year 1 plan should include security deposits, possible rent increases, and the risk of low enrolment in the early months.
Staff Salaries
Teacher salaries, helper wages, and administration support form the core of monthly expenditure. Payroll planning should consider the minimum staffing needed to run safely and consistently.
Utilities & Maintenance
Electricity, water, internet, cleaning supplies, repairs, sanitisation, and routine upkeep can add up throughout the year. A play school for young children must also plan for regular wear and tear. A small maintenance buffer can help cover these repeated costs.
Revenue Potential in Year 1
Revenue in the first year depends on how the centre earns from admissions and how quickly enrolment improves. A clear view of fee planning and student strength helps in understanding how soon the business may move towards operating balance.
Fee Structure
Revenue depends on how fees are structured across admission charges, tuition, activity components, and other school-related collections. It is equally important to map when payments are received, since cash flow timing can influence working capital during the first year.
Student Capacity
Student capacity plays a central role in the profit timeline. A centre may open with room for more children than it can initially enrol, so profitability often depends on how quickly seats are filled. Fixed costs begin immediately, while revenue builds gradually, which is why some centres reach monthly break-even earlier than others.
Conclusion
A good year-1 budget for a play school franchise should balance setup expenses, monthly commitments, and the likely pace of admissions. The key issue is not only the opening spend, but how long the centre can operate before enrolment supports recurring costs. When each cost item is mapped clearly, the profit timeline becomes easier to assess, and financial decisions become more measured from the outset.
