is online marketing a different world?
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Is Online Marketing a Different World?TRANSCRIPT
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Is Online Marketing A Different World?
Sidharth Swarup – ISHIR Digital
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Presented at OMCAR 2008, World’s 1stOnline Marketing Careers Conference
For details, check out
http://conference.omcareers.org
Jan 12, 2008 (New Delhi, India)
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Myths?
• Technology driven and complex
• Only works well for lead based campaigns
• Demographics for Offline and Online are different
• Digital and Offline Agencies must be different
• Skills and experience needed are different
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Creative Business Consulting
Marketing Technology
DIGITAL
What comprises Digital?
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Online has started reaching out to a lot of Indians
Every 5th individual in Urban India has experienced the
Internet
Internet in India
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Internet Reach in India
SEC A
SEC B
SEC C
SEC D&E
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Demographics
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While most advertisers are still focusing on the traditional advertising media, the target audience is rapidly moving to a more dynamic and interactive medium - the Internet.
About 93% of the 38.5 million online Indians today belong to the age group of 18-45 years, which has the maximum buying power - prime TA.
What's more, the Indian online population is estimated to be 100 million in the next 3 years
Advertising market 2003-04 2004-05 2005-06 2006-07 2007-08
Online Ad Market(Rs. Crore)
42 107 163 250 600
Online Advertising Spend
*Financial Services includes: Credit Cards, Loans-Personal, Home, Car, Banking Services, Utility Payments, Insurance, Investments )
**Online Services (Personal) (Matrimonial, Job Placement, Surveys, Personalized Travel Verticals- advertising are predominantly pure-play net ventures)
Categories 2005-06 2006-07Financial Services* 27% 24%Tech 13% 11%Travel 14% 12%Automobile 9% 11%Consumer Durables 8% 9%FMCG 8% 9%Online Serives (P)** 13% 11%Entertainment 5% 7%Telecom 3% 6%
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Comparative Study
Population Internet Users, Penetration Use Growth
( 2007 Est. ) Latest Data (% Population) ( 2000-2007 )
India 1,129,667,528 60,000,000 5.30% 1000.00%
North America 334,538,018 232,655,287 69.50% 115.20%
Europe 809,624,686 321,853,477 39.80% 206.20%
Population Internet Users, Penetration Use Growth
( 2010 Est. ) (% Population) ( 2007-2010 )India 1,242,634,281 420,000,000 8.48% 600.00%
North America 367,991,820 255,920,816 65.50% 102.40%
Europe 890,587,155 354,038,825 38.80% 154.50%
India Total AD Spend
Internet Penetration
Total Media Ad Market
Print Radio Cinema OOH Internet TVTotal (Rs.
Crore)
2006 7824 489 163 978 163 668316,300
% Share 48% 3% 1% 6% 1% 41%
2010 17112 2388 398 1990 3184 1472439,795
% Share 43% 5% 1% 5% 8% 38%
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Business Scenario?
• A whole lot of new, first time entrepreneurs
• A whole set of new businesses with new and innovative products and services
• People wanting to go out and get known!
• Companies want to have more meaningful communication with customers
• Higher demand for metrics and ROI
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Fundamentals?
• Marketing is to figure out what customers want, what products/services meet their needs and then the strategy to match make.
• Advertising is typically a one-way communication whose purpose is to inform potential customers about products and services and how to obtain them.
• The fork or the spoon? Go where the customers are!
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Myths?
• Technology driven and complex
• Only works well for lead based campaigns
• Demographics for Offline and Online are different
• Digital and Offline Agencies must be different
• Skills and experience needed are different
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Is OM A Different World?
Questions?