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l M e d ia O u t lo o k 2010
Ranked as India's Number 1 Digital Agency two years in
a row (Brand Equity Agency Reckoner, The Economic Digita igital Marketing Sce
D
nario
Times, 2008 & 2009), Webchutney is committed to A study of the Indian
leading the interactive marketing industry.
We are a team of over 150 digital marketing
professionals across New Delhi, Mumbai and Bangalore.
Visit us at www.webchutney.com for more information
Follow us on www.twitter.com/webchutney
Join us on www.facebook.com/webchutney
Ad-Spends of
Top 1000 Marketers 6
in India
C o n t e n t s
Usage, Attitude
12 and Perception of
Digitial
Outlook 2010 24
Amidst strong recessionary headwinds of 2008-09 that blighted the global
advertising market, a stellar 66% growth recorded in 2009-10 bears
testimony to the imminent boom in India's online industry.
On the other hand, the medium remains bogged in a quagmire of paradox
and irony with the lowest spend-share in the ad-pie. If we dig deeper, the
advantages of the medium over traditional media have become an impediment
to its growth. Specifically, the innate advantage of its 'measurability' has
been stretched to 'over-measurability' which reflects in the gap between
marketers understanding of the medium versus its actual potential.
With its promise of a large audience base and contextual targeting, Social
Media has become a norm with every second marketer across verticals
Prologue and businesses looking to advertise online today. Its growth trends are
impressive (40% growth estimated in 2010-11) with 63% marketers
either using or planning to use it in the near future. Yet this medium does
not seem to deliver expected results for marketers and there is a sense of
dissent in its effectiveness. The reason lies in the 'one size fits all' approach
adopted by most advertisers. A measure of impact on brand credibility, its
reputation, and number of recommendations/brand referrals add equal
value in judging the 'engagement value' of this medium.
The range of options open to advertisers online have grown beyond Search
and Display. Interactive online channels such as E-commerce are expected
to provide the much needed momentum in India's digital economy. It is,
however, one of the most underutilized channel with only 20% of top 1000
Ad-Spends of in 2010-11(E).
7
Online Makes Significant Gains; Still The 'Virtual' Paradox
Remains a Fraction of the Pie One of the primary reasons for online contributing lowest share
Online witnessed a significant 66% growth in 2009, ahead of any to the overall pie is the 80:20 paradigm witnessed in budget
other medium, as increasing number of marketers shifted ad-spends allocations. We notice a repeated trend from our survey in
from traditional media to online. In comparison, growth of TV and 2008-09, as verticals with maximum overall ad-spends
Print was sluggish at 14% and 10% respectively. Despite positive contribute the least online, whereas marketers with relatively
growth, it is ironic that top 1000 marketers who contributed 73% to smaller ad budgets spend higher online.
the overall ad-pie allocated only 4% of ad-spends online. Television FMCG contributes the largest share of 42% (Rs 7,910 crore)
claimed the largest spend share of 45%, followed by Print with 38% to the total ad-pie, but shells out a frugal 9% online. BFSI with
and BTL advertising with 19%. overall spend share of 7% contributes maximum to online
spends with Rs 114 crore (19%). Similarly, Consumer Services
sector is the second largest contributor to online spends with
18% of its overall ad-spends allocated to this medium, while its
contribution to the overall ad-pie is almost half at 9%.
BTL, 3040 2% 3%
Print, 6183 Online 9% 9% 18% 12% 19% 4% 4% 13% 3%
2009-10
2% 2%
BFSI 19%
A whopping 65% of online ad spends are accounted by Display, 16%
Website development and Search, and they are expected to continue Consumer Services 18%
19%
to dominate the online landscape in 2010-11 too. Display has and will 13%
IT/ITES/Internet
continue to dominate almost a quarter of online ad spends next FY. 13%
Telecom 12%
Across verticals, BFSI, Consumer Services and IT/ITES/Internet 12%
sector which were the top contributors, accounted for 50% of online Durable Goods 9%
10%
ad-spends across various executions in 2009. High growth in share 9%
FMCG 10%
of online spends is expected from FMCG, Durable Goods and Retail
sectors in 2010-11. Real Estate 4%
4%
Auto 4%
3%
Retail 3%
3%
Ad-Spends Across Online Executions Media/ Publication/ 3%
Entertainment 3%
Lifestyle Goods 2%
Share 2009-10 Share 2010-11 2%
Infrastructure/Equipment/ 2%
18%
g e , A t t i t u de
Usa
Stage of Usage Across Online Executions
r c e p t i o n of Primary Executions
and Pe
d i um
13%
On l i n e M e 2% 24%
8%
31%
7%
38% 38% 38%
8% 11% 13%
EDM
Website
Interactive
Brand
Promo
Website
Display-Rich/
Social Media
Platforms
Text/Static
Display
Ongoing/Currently Used
Planning to Use
Not too Sure When
12 13
Ad SEO/SEM Contextual Paid Adverblogs Paid Blogs Mobile Spend Share of Mobile in Ad-Pie
Network Search/ Keyword Inclusion Ads/Apps
Listing Search
Rs 129 Cr
Tertiary Executions
14% 5% 0.4%
6% 5%
21% 21% 20% 19% 6% 10% 3% 7%
11% 9% 8% 7% 5% 2%
Viral
Marketing
App-vertising
E-Commerce
In-Game
Online
Advertising
Video
Referrals/
Branded
Sponsorships
Affiliates
Podcasts
Virtual/
Augmented
Reality
Pharma
BFSI
Consumer Service
Real Estate
Telecom
Auto
Lifestyle Goods
Durable Goods
Infra/Equip/Manufac
IT/ITES/ Internet outlet. Next generation digital consumers are quick to realize the
efficiency of a 'click and mortar' store. This 'disruption' in the
traditional purchase model will only increase in the future with
greater exposure to technology and the advent of m-commerce.
In our conversation with marketers, 7 out 10 indicated they were
not sure how soon they would include e-commerce in their
SMS/Text based marketing has been the only predominant activity marketing strategy and only 20% marketers have utilized this
undertaken in Mobile sans innovative and engaging made-for-mobile
16 17
Perception of Online: Just Another These are some of the pertinent reasons why online remains at the
fringe till date. Its ability to target selective audience accurately, poses
'Lead Generation' Medium? a great advantage over 'wastage' witnessed with other mediums but
the number of marketers realizing this potential are few and far in
In an attempt to understand what drives allocations of budgets to between. Their 'mass media' approach towards online has rendered it
online based on marketers' perception and awareness of various just another tool to acquire leads, which may or may not deliver results
attributes and strengths of the medium, we find a majority of sectors as effectively as offline channels.
like FMCG, Durable Goods, Pharma and Infrastructure/
Manufacturing/Equipment investing online for its ability to 'generate
leads' and being a relatively 'economical' medium. Only a handful of
them like Automotive and Media/Publication/Entertainment engage in Marketing Objectives of Top 1000 Marketers
online activities to spread 'brand awareness' and 'engage customers',
while few sectors such BFSI and Consumer Services find value in
Brand Awareness
'utilizing it in integrated marketing campaigns'.
Increase Sales/Leads
1
.8
2
Increase Reach 3 Customer Engagement
.6
BFSI
Your brand utilizes the Internet in integrated marketing campaigns 4
Consumer Services 5
Ability of the Internet to generate leads for your brand 6 Image Consolidation
.4 Internet is an Economical Medium Product Differentiation Base:801
-.8
Media/Publication/Entertainment
-1.0
- 1.0 - .5 0.0 .5 1.0 1.5
Vertical
18 19
40%
Although marketers were forthcoming in embracing Social Media in 20%
2009, certain degree of dissatisfaction with Social Media can be
attributed to lack of awareness in metrics and optimum/appropriate 0%
Paid Keyword
Search
Inclusion
SEO/SEM
Paid
Contextual
Search/Listing
Adverblogs
Blogs
Mobile
Ads/Apps
Ad Network
utilization of this medium.
Despite greater visibility of brands in the Telecom, FMCG and
Automotive sectors (to name a few) across social networking sites in
particular, almost 2 out of the 5 marketers who engage in social media
advertising express dissatisfaction with campaign results.
Tertiary Executions
Social Media seems to have become a popular 'fad', but marketers
100%
haven't really understood how to navigate and steer brand advocacy
among online communities to their distinct advantage. Expressions such 80%
as 'Consumers are the new social currency' are afloat, but haven't been 60%
absorbed at the heart of online campaigns to target influencers who 40%
E-Commerce
Referrals/
Viral
Marketing
Online Video
In-Game
Branded
Sponsorships
Affiliates
Advertising
Podcasts
Virtual/
Augmented
Reality
App-vertising
Primary Executions
100%
80%
Not Analyzed/
84% 16%
Doesn’t Work
No Yes
22 23
Effectiveness of Online vs.
Traditional Media
The pace at which digital marketing has evolved worldwide in just the
last decade is evident in the rampant disruption caused in traditional
marketing methods. How has the Indian advertising market responded
to this change? When questioned about the relative effectiveness of
online vis-a-vis traditional media in our discussion with decision makers
who hold the power to drive this change, a few things emerged clearly.
53% marketers still believe online is 'Less Effective' in creating
brand awareness compared to traditional media.
Only 4 out of 10 marketers consider Online as an effective medium
25
Positive Outlook for
Digital in 2010
Effectiveness of With increase in overall ad spends to Rs 21,523 crore in 2010-11,
Online vs. Traditional Media growth in online ad spends are expected to witness sustained
momentum with 45% increase making it a Rs 876 crore worth
.6
Creating brand awareness market. 51% marketers indicated increase in Online spends in
Driving traffic to a website 2010-11 which is the highest among all mediums.
.4
Less Effective Generating leads
At the same time, the comparative spend share of mediums is
expected to remain skewed towards offline in 2010-11 as well.
.2
More Effective
-.0
Creating top-of-mind recall Comparison of Ad-Spends by
Driving traffic Delivering promotions to customers Type of Execution in 2008-09 vs. 2009-10
to a store
50%
-.2 45%
41%
Share 2008-09
39% 38% Share 2009-10
Attribute
34%
Newsletters/
Other Publications
Online
Mobile
Marketing
Radio
PR
Outdoor
Print
Direct
Marketing
TV
that best suits the nature of their message, and extends the value
of that message beyond typical direct marketing executions.
Marketers must take stock of the rapid change that technology and
content serving platforms are bringing into the lives of their
consumers, and give them something meaningful to think about or
act on by inviting them to participate and build unique experiences
28 for them to become self-serving brand evangelists. 29
Methodology
In 2009, Online witnessed a surge in growth worldwide as a
result of the recession. This year, we decided to expand the
scope of our study and identify the impact of global trends on
marketers in India, if any, and therefore spoke to double the
number of decision-makers and influencers vis-a-vis last year.
The 2010 Digital Media Outlook presents opinions and views of
Chief Marketing Officers and Marketing Heads of India's Top
1000 advertisers. We spoke to decision makers across 13
verticals pan India, and conducted
in-depth face-to-face interviews.
The primary objective of the report was to study the nature of
allocation of ad-spends by top marketers across various
mediums. In the process we also analyzed the reason/rationale
30