Digital Marketing in India - Current State, Trends and Future Outlook

Digital Marketing in India – Current State, Trends and Future Strategy

Siddharth Sriram

Email Id - [email protected]

Contact No - +91 – 7259630188

mailto:[email protected]

Digital Ecosystem In India

Content Overview

Display Advertising, Rich Media and Online Video

Social Media in India

Mobile Marketing – Future in Focus

Measuring Effectiveness of Digital Programs

Search Marketing

Looking Forward

Digital Landscape in India

Private and Confidential

The Story So Far

120 million Internet users today

10 million 3G connections within 6

months of launch

28% of travel gets booked online

47% of the classifieds business is

online

Close to 50% of music revenues in

India comes from mobile downloads

E-commerce companies are recording

revenues in the region of a crore a day

– rivaling retail brands that are around

for more than 10 years.


Increase in No. of Users

The no. of internet users in India today stands at 120 million and is expected to reach 376 million by 2015 – close to 3 times the current number.

Ecosystem

National Broadband Policy - Rs 60,000 crore by govt. to facilitate high-speed data

Introduction of affordable PC’s, Tablets and Smartphones

Widespread adoption of 3G and 4G services


How Indian Customers Use Different Media Today

MORNING AT

HOME

0.5 – 1 hour

TRAVEL TO

OFFICE/COLLEGE

0.5 – 1 hour

AT WORK/ COLLEGE

8 – 10 hours

TRAVEL BACK HOME

1 – 2 hours HOME

1 – 2 hours


Time Spent Online

► Time spent online at

16.5 hours per month

low compared to global

benchmarks,

► Projected to reach 21

hours by 2015

► Time spent online has a

significant relationship with

ad spends on Internet and

is expected to aid growth

of online advertising

besides directly benefitting

retail, financial services

and ecommerce

industries.


Age Distribution

► Young users drive online

growth today.

► This trend is expected to

accelerate, since technology

adoption rates tend to be

higher among younger people.

► At the same time, the number

of Internet savvy people in

higher age groups will

continue to rise


Advertising Revenues by Media (INR billion)

Source: FICCI – KPMG Indian M&E Industry Report 2012

Between 2007 to 2011, spends on digital advertising increased by CAGR 54% , far more than other forms.

This shift of spends comes majorly at cost of print and OOH advertising.

Ad spends on TV, remain relatively flat as a percentage of overall spends

Digital ad spends are estimated to increase to 10% of the overall ad spends of 586 billion INR in the year 2016.


Estimated Share of Spends in 2016

► The increase in the overall share of spends indicates an increasing preference of Indian advertisers towards digital

media as they look to test, understand and leverage the strengths of this medium over others.

► Bulk of this revenue in digital advertising is expected to be driven by display, video ads, followed by ads using the

search channel.

Source: FICCI – KPMG Indian M&E

Industry Report 2012


Ad Spend Share by Vertical

FMCG contributed the largest share

of 42% to the total ad-pie, but

shelled out a frugal 9% online.

BFSI with overall ad spend share of

7% contributed maximum to online

spends with Rs 114 crore(19%).

Automotive and M&E - ‘Brand

Awareness' and ‘Engage

Customers‘

BFSI and Consumer Services -

useful in Integrating with other

Campaigns.

FMCG, Pharma, Durable Goods –

find it a relatively ‘Economical

Medium’ and to ‘Generate Leads’

Source - Webchutney Digital Media Outlook2010 Report


Digital Marketing Objectives of Top 1000 Advertisers

KEY ADVANTAGES ACCORDING TO THEM OVER TRADITIONAL MEDIA

Lead Generation

Key Insights Obtained for Free

Reach is Better, More Targeted - Especially for Youth Oriented Brands

Quick, Highly Cost Effective and Easily Measurable

Highly Interactive, Engaging Platform

Source - Webchutney

Digital Media

Outlook2010 Report


Outlook in Brief

► The online advertising market is one of the fastest growing segments in the Indian E&M industry.

► Increasing broadband penetration, successful broadband wireless access spectrum auction and

the adoption of 3G and 4G will boost internet and in turn lead to growth in internet advertising.

► Social media is growing to become an important form of online advertising.

► Lack of trust in the effectiveness of using online as a medium and the absence of effective

measurement tools are the key challenges facing the industry.

Search Advertising


Growth of Search Ad Spends

► As online spends increase, search advertising has seen a robust growth of 25% YoY over the

last three years, only second to growth seen by display advertising.

Source: IAMAI Digital Advertising Report 2012


Share of Digital Ad Spends

Indian “paid” search advertising estimated

to be around Rs. 574 crore in 2012 – 20% of

the overall online advertising market today.

The maximum industry wise spends were found to be in

the Financial Services and Travel Sectors, forming 43%

of the overall search advertising pie



Why Use Search Marketing?

Consumers Using Search Have Higher Purchase/ Usage Intent

Cost effective medium for increasing awareness/ reach

Established Method of Conversion / Leads (bottom of the funnel conversion) –

Search ads ALWAYS have a CTA whereas TV always focuses on awareness and

affinity towards brand

Real time monitoring possible where budget for campaign can be increased/decreased

at will depending upon performance

Strong ROI measurement mechanism in place which are performance driven and cost effective

(Eg – Cost Per Click Methodology)


Types of Search Methodologies

SEO SEM

• Long term Strategy

• Requires well made site

• Based on trust, expertise

• Lower Cost/ Earned Media

• Harder to Measure

• Faster Performance

• Depends on keyword, copy and landing page

• Ease of Measurement

• Higher Costs/ Paid Media

• Not trusted by Searchers

• ROI requires conversion

Search Methodology

Currently, the Share of Spends happens to be in the ratio9:1 in favour of SEM.

However, it is considered ideal to start with a 65:35 ratio between SEM and SEO while SEO is being improved upon

over time. As the advertiser gains more confidence in SEO and sees an improved performance, budgets can be

gradually shifted from SEM to SEO

SEM 90%

SEO 10%

Share of Spends (INR 547 Crores)

Source – IMRB International Report 2012


Integrating Search with Display Advertising

Display Advertising are used for more top of the funnel activities such as brand awareness

Search ads meanwhile focus on bottom of funnel activities such as conversion


Metrics Week One Week Two Week Three Total

Clicks 9 85 188 282

Impressions 687 6950 5341 12978

CTR (Impressions/Clicks)

1.31% 1.22% 3.52% 2.17%

Avg CPC $ 0.42 $ 0.82 $ 0.68 $ 0.71

Total Cost $ 3.81 $ 69.45 $ 127.29 $ 200.55

No. of

Conversions

0 0 9 9

Conversion Rate 0% 0% 4.81% 3.23%

Cost per

Conversion

0 0 Rs 6820 Rs 10,000

Reporting and Monitoring Search Performance

Sample

performance

report

template for

a

3 week

search

campaign


Search Marketing Checklist

Was testing and optimization done for the copy and best performing keywords

Is there sufficient relevance between keyword, copy and landing pages?

Is campaign duration optimal and has optimal budget been allocated between SEO and SEM campaigns?

Are the right metrics in place to measuring and optimizing website and/or PPC performance?

Were the reporting timelines and parameters identified and agreed upon?

How well integrated is the search strategy with the rest of the online strategy?

Display Advertising, Rich Media and Online Video



Display Ads have been increasing at a rate of 27% over the last three years to

form a major chunk of the overall online ad spends.

Display Ad Spend Growth



Share of Digital Ad Spends

Display forms 25% of overall ad spends today

As the display and other interactive technology

improves and the vendor networks consolidate,

many more advertisers are expected to invest in

this medium.

Top Spenders by Sector –

Travel

Auto

Telecom

BFSI




Current Usage by Indian Marketers

Amongst the top 1000 marketers

surveyed in India, the following

happens to be the order of priority for

digital marketing –

• Brand Website

• Campaign Microsite

• Display Ads

62% of the existing marketers using

digital medium and 51% already

employ Display and Rich Media Ads

respectively



Why Use Display Advertising?

Efficient Tool for Improving Brand Awareness, Engagement, Top of

Mind Recall

Better Targeting Capabilities than any form of traditional media

Highly Interactive and Experiential Advertising is also possible

Continuous tracking of campaign performance to measure metrics such

as impressions, clicks and conversions that helps calculate the ROI


Display Advertising Value Chain


Different Usage Formats – By Size

Different sizes of ad formats –

• Banners and Leaderboards

• Buttons

• Rectangles and Boxes

• Skyscrapers


Different Usage Formats by Technology

SHARE OF DISPLAY AD FORMATS

IN INDIA - Source IAMAI Digital Outlook 2012 Report

Simple Flash 39%

Images 24%

Rich Media with Video

24%

Rich Media without Video

10%

Text 3%

• Text

• Image (GIF/JPG)

• Simple Flash • Rich Media with Video

• Rich Media without Video

Different Ad Technology Formats Available

Why is Simple Flash Most Popular?

In the hope of a cost effective

manner to increase reach

Lack of awareness of strengths and

proven performance of other formats


Worldwide Click Through Rates by Industry

Source: DoubleClick for Advertisers, U.S. Advertisers, January – December 2009

DoubleClick Rich Media Formats Only

CTR’s by industry

for Rich Media ads

in US

How do we justify the low CTR’s?

What is the best way to measure

the ROI?


Control /Exposed Group Testing –

► Two groups were created, similar in behavior and demographics prior to the campaigns and are used to measure lift in site visitation and search.

► Lift is calculated by the delta between the two groups.

Audience

Average ad-exposure group consisted of 8,239 panelists per campaign by comScore

103 campaigns,

39 advertisers,

7 industries

Results

To be measured based on

1) Lift in Website Visitation

2) Lift in Branded Searches

Experiment for Measuring Effectiveness of Display Ads


Media Placement Strategies

► Run of Network - Select ads to run over a specific ad network such as a GDN or a Yahoo Network. Even specific categories

within the network can be chosen For example, if “Automotive” is chosen, ads may appear on sites throughout the Yahoo!

Network as well as Yahoo! Autos.

► Audience / Contextual Targeting - Ads on web pages that have a relationship to the content of the page. For example,

shampoo ads are placed in the hair care section of health and beauty sites.

► Premium Targeting - Based on high-visibility placements on premium publishers. Eg – Advertising on MoneyControl or

LinkedIn that maintain their own inventory.

► Behavioral Targeting: Relevant to individuals based on past site visit behavior. Eg - Ads for Volkswagen may be shown on

the music site or child care site, or both. This is different from contextual targeting, where auto ads on auto sites are rendered.

► Efficiency Targeting - Based on cost-per-click engagement with creative

► Retargeting: Based on data that confirms users have previously visited an advertiser’s site. Eg – Makemytrip ads literally

follow you across any site, if there was any previous visit to their site for unfinished ticket bookings.


% Lift In Site Visits after 4 Weeks Of Exposure

•‘Retargeting’ and ‘Audience’

buys remain the best at driving

audiences to the site over time.

•‘RON’ and “efficiency’ buys

result in the lowest lift in site

visitation

Measuring Performance On Website


% Lift In Branded Search after 4 Weeks Of Exposure

‘Retargeting’ best due to

consumers having already

expressed an interest in the

brand

‘Audience’ and ‘Premium’

placements also excellent at

driving sustained, actionable

interest

Contextual, RON and efficiency,

relatively effective at driving site

traffic but less effective in

creating long-term brand lift.

Measuring Performance On Search


Pricing Models By Targeting Methodology

Marketers Use -

CPM pricing when seeking Branding Impact

CPC and CPA pricing when seeking Direct-response action (Site Visit, Online Purchase, Lead Form Fill)

‘Retargeting,’ ‘RON’ and ‘Efficiency’ are primarily sold using direct-response pricing models.

CPM: Cost per thousand

impressions served

CPC: Cost per single click

CPA: Cost per action

performed on a marketer’s site


Video Advertising

WHY IS IT THE NEXT BIG THING?

► India saw a growth of 21 percent in unique viewers across video sites in India from 2010 to 2011.

► In Dec 2011, YouTube witnessed 25 percent of its views in India from mobile devices, and has seen a 300

percent increase in viewership from mobile devices

► As broadband, 3G and 4G services become more acceptable, video watching is going to evolve among

Indian users.

► Advertisers will become more comfortable with the format as the reach increases and the

online video ad rates continue to be far lesser than TV advertising.


Video Advertising

Video advertising is conventionally misunderstood to be about uploading videos online ( which

is part of social media marketing). On the contrary its more about reaching audience before

the respective videos upload.

How is it different from TV Advertising?

► One on One Targeting Possible

► CPV (Cost per View) Model - Advertiser is only charged when a viewer has chosen to

watch the ad, not when an impression is served.

► Real time campaign monitoring possible

► Far lower rates in comparison


Case Study - Jabong

Onslaught of Display Banner ads,

resulting in a huge increase in

no. of impressions over

three months – from 2.39

to 189 million impressions in

three months.

RESULT

The traffic increases to more

Than 8 times within the

same period

Source – Vizisense Data


Case Study - Jabong

No Of Branded Searches – Jabong Rises To The Top In 5 Months

Website Traffic

Source – Vizisense Data

Source –

Google Insights


Risks Involved in Display Ad Delivery

Not in View: In-view is defined as an ad impression with at least 50% of the ad’s pixels in the user’s view

for one second or more. The likelihood that an ad is counted as an impression despite not reaching the

intended user is high.

Wastage: Instances of multiple banner ads being targeted to the same user on the same page are rampant

which result in wastage of delivery.

Use of Wrong Costing Method – Using CPM methodology when the objective is to drive conversion and

CPC for improving brand awareness for instance results in the unnecessary increase in costs incurred.

Protecting Brand Safety - Ads delivered on sites deemed not appropriate for brand advertising due to

objectionable. Also cases where ads which start to appear in totally unrelated publisher page is undesirable

and adversely affects brand consistency.

Social Media Marketing


It refers to any platform that a brand provides to interact with its consumers and where

consumers are able to connect to each other, in a very transparent, real time world.

Usually, social media marketing forms a part of Earned media because it forms a big part of

“Word of Mouth” marketing. Also, a major part of social media is co-creation – where users

form a majority of the content.

There are 5 main categories of social media:

► Forums – Yahoo Answers, Mouthshut, TripAdvisor

► Social Sharing Tools: Youtube, Flickr, Pinterest

► Social Networks – Facebook, LinkedIn

► Blogging and Micro blogging: Twitter, Blogger, Wordpress

► Bookmarking sites – StumbleUpon, Pinterest, Delicious

Social Media Marketing - Definition


67 percent of Indians who are on the web use online reviews to help them make purchases

60 percent Indians who are social media users are open to being approached by brands

Indians spend more time on social media than they do checking personal email

1/4th of online Indians were able to recall brands using social media

Having a social media presence connotes ‘innovation’ ‘customer friendliness’ - Source: comScore 2012

Facebook

Facebook is the most popular social networking site in India with 46 million active users as of April 2012,

an increase of 132% since last year. 75% of Facebook users are Males and Metro cities dominate its usage

in India.

Twitter

Twitter has a total user base of more than 14 million in India and is the sixth largest country in terms of accounts

and the micro blogging in India has not risen in India when compared to other social networking sites as Indians

are not comfortable with a 140 character limit.

Social Media Marketing – Usage Snapshot


LinkedIn

Professional social networking site LinkedIn user base in India has grown 300% since they set up their

India office in November 2009. There are currently over 14 million users from India on the network,

making it their second-largest user base, only behind the US. 7 million of India’s 14 million users log in

to LinkedIn via mobile applications.

Youtube

India has 23 million unique users on YouTube, which saw 48 hours of content uploaded every minute

and more than one trillion playbacks that's about 140 views for every person on the earth. Video

streaming has truly arrived for the 100 million internet users in India.

In terms of amount of time spent watching videos, UK leads the list with an average of 18.3 hours of

videos per single userin a month This was followed by US with 15.8 hours. India were lower with 5.1

hours of video per viewer. This does present a lower online video penetration in India but it also

reflects the scope of growth that is possible.



Google+

► Google+ has a total user base of 12.3 million in India with 86% of the users being male and

dominated by students and young professionals. However the engagement time on this network

is very low and is yet to catch up.

Pinterest

► Pinterest is “A Virtual Pinboard.” Probably the best social networking site where you can upload

pictures of what interests you. Traffic on Pinterest has grown 4000% in the last 6 months. They’re

already at 40 million users worldwide with close to 2 million users in India. Unlike Google+, the

engagement time spent on this site is also very high, with avg user time anywhere between 10

minutes and half hour/day.

► It’s easier for brands to showcase their products and services on Pinterest because of the

availability of boards and the ability to post pictures.



Satisfaction With Social Media As A Marketing Tool

Social Media seems to have become a

popular 'fad', but marketers haven't

really understood how to navigate and

steer brand advocacy among online

communities to their

distinct advantage.

There is a high rate of dissatisfaction amongst marketers (close to 20%) already using it as a tool.

This could mainly be because of using it for the wrong objectives or not at the dissatisfaction at not being

able to measure the ROI. It truly is a fad for quite a few.



How Users Behave on Social Media

Facebook Blogs Forums Twitter LinkedIn Youtube

The Brand

Proactively Reaches

out to the User

Want Expert/ Influencer

Opinion

Seek Mass Peer

Opinion

Proactively Follow For

Updates

Seek career or

business

advancement

Seeks entertainment/

visual explanation of a

concept

Tata Docomo,

Fastrack

Technorati.com

The Mobile Indian

Carwale,

Mouthshut

Femina Magazine

Dell Community for

SME’s

Old Spice Man

Campaign

Brands that have leveraged the respective platforms

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Benefits of Social Media Marketing According to Marketers Worldwide

Source – Social Media Examiner 2011 Report


Why Use Social Media?

► It is where the youth are increasingly spending their time.

► High media fragmentation, brings everyone on one platform.

► Helps increase transparency, trust and WOM when used optimally.

► Free Earned Media, most cost effective.

► Proven by research that interacting consumers on social media are likely to

spend much more on brand purchase and also refer it to peers.

► Ideal medium for research insights, developing advocates, generate leads,

change brand perception and offer customer service


How the Indian Marketers Have Leveraged It So Far

Companies in India have successfully used

Social Media for : -

1. Raising Awareness - Johnson and Johnson’s Nicorette

2. Garnering Marketplace Insights – Dell Ideastorm

3. Reducing Marketing Expenses – Parle Hippo

4. Increasing Brand Engagement - Fiama Di Wills

5. Improving Customer Perception and Satisfaction – Skoda Auto

6. Generating Product Buzz – Reebok Reetone Shoes


1. Identifying business objectives and relevant business metrics that support them. Refers to measures such as revenue, customer satisfaction, and brand reputation, while business unit

heads focus on other, more granular metrics specific to their goals. For measuring metrics, the step

would be deciding how to measure success from a business perspective. For example -

Establishing a Social Media Framework

Many companies struggle to create, monitor strategies and

calculate an ROI on their investment in social media. And

without confidence in clear returns, have difficulty securing

the funds needed to scale their efforts.


2. Building social metrics to support business objectives


3. Choosing between different social media platforms and setting metrics for each

Every platform has

its own set of

strengths that

needs to be

selected according

to TG and

objectives


4. Developing content strategy across social media platforms

Good Compelling Content must –

Develop a voice relevant to brand &objectives

Be real time, flexible according to most

trending events

Be user generated for a significant portion

Not be too pushy and promotional, offensive

Be Informational, entertaining, funny,

fascinating and/or non repetitive

Follow a content schedule that is pre

decided (especially for blogs)

Be well integrated and cross promoted

across different platforms

► Test each platform for a predetermined

duration.

► Compare performance of each social media

platforms v/s pre decided metrics

► For underperforming platforms, figure the

reasons why if any.

► Use insights gathered to fine tune

subsequent strategies

5. Refining and optimizing for social media efficiency and insights.


Risks Involved in Using Social Media

► Limiting the campaign strategy to only Facebook, with lack of awareness of other platforms

► Not going beyond reach (Followers, Fans) for measurement, ignoring engagement and sentiment metrics.

► Absence of pre decided metrics and KPI’s in place during planning and strategy

► Not having a crisis monitoring system and response mechanism, apart from social media guideline policies in place.

► Being pushy and using too much promotional content.

► Not considering sufficient integration strategies with other online and offline platforms.

Mobile Marketing – Future in Focus


Introduction

About 10 million smartphones with

internet connection in 2011

Smart phones estimated to reach

approximately 264 million by 2016

72% of internet users are

estimated to use mobile as a

primary point of access by 2015

More than 100 million user

subscribers in rural India.

-Source Hungama Digital, Nielson Informate

Mobile Insights

ACTIVE INTERNET ENABLED SMARTPHONES

Source: KPMG in India Analysis


Users by Point of Primary Access of Internet (%)


Time Spent on Smartphone

Source: Nielsen Informate Mobile Insights

Smartphone users spend about 150 minutes a day on their phones

More than 50% of this time is on Browsing, Entertainment and Applications


1. INCREASED PHONE USAGE

Smartphone users spend significantly more time

on the phone than others.

2. LESS VOICE, MORE DATA -

Evolved smartphone users engage with

many activities on their devices, calls

lower in priority.

3. ECOSYSTEM AND LIFE-STAGE GUIDE ENGAGEMENT -

Varying smartphone involvement across operating systems and age groups,

simplifying targeting for marketers

Source: Nielsen Informate Mobile Insights

Usage Patterns


BlackBerry users principally use their devices for communication with all other activities taking a back seat.

Android - encourages users to make the most of their devices which is why they drive maximum engagement.

Symbian users’ smartphone activities revolve around Entertainment and Browsing as it makes up for 2/3rd of their

total active time.

Usage Patterns


Mobile access to outgrow PC access within 3 years in India

Facebook, Twitter and LinkedIn all grew their mobile audiences by 50% in the

past year worldwide.

More Google searches in India happen on mobile than online

One on One and Geo - Local targeting possible

Influencing customers decisions at point of purchase

Potential to increase sales through mobile commerce

Increasing brand awareness through better interaction and engagement.

The Need for a Mobile Strategy


Important to define value

proposition by determining what

consumers want to do with

business on mobile.

Serving the Mobile Customer

This banking app lets customers

deposit checks via a snapshot and

send via email, leaps in mobile

functionality that might eventually

let banks maintain fewer ATMs.

CHASE

Walgreens delivers what their

mobile users want on their

mobile site:

ability to find nearby stores,

prescription refills, mobile shopping

and coupons.

As a result, Walgreens now

completes 25% of all prescription

refills via mobile,

WALGREENS

Customers now use smartphones

and tablets to interact with

businesses 24/7, from anywhere.

How can business take advantage?


The Local Mobile Customer

Mobile site builder Digby reports that across all their mobile sites mobile customers use store locators 63 times for every one mobile commerce order

Data from Google suggests that roughly a third of all web searches have local intent in the US

7


The Local Mobile Customer

BOOKMYSHOW

CLEARTRIP

One of India’s premier travel and hotel booking portals,

Cleartrip’s app has enabled many travellers to search and book

hotels in the last minute within miles from their area suggesting

they are making more real time decisions, apart from making the

travel booking process itself a seamless experience.

BookMyShow enables users to search for

information on local movie listings and events

ranging from theatre to sports. With the majority

users being the youth which makes decisions on

the go, this feature provides a convenient

platform to book tickets, increasing bookings

substantially ever since it went mobile.

In 240 cities with 3.5 million listings

and 25 million users, Just Dial the

free search service has become

the advertising medium of choice

for small and medium local

businesses.


Price Transparency

of all consumers use smartphones for in-store

of walk-outs, when shoppers leave without making a

45% 53%

38%

product research & browsing7

of men use smartphones in-store to check prices at other stores8

of women use smartphones in-store to check prices at other stores8

39% 12%

8%

purchase, were influenced by smartphone usage10

checked other online retailers10

checked availability at other stores10

themobileplaybook.com

ShopSavvy is the bargain hunter’s app that has altered the retail

landscape in the west. With a simple scan of a product’s

barcode, it delivers information to the shoppers on the fly,

compare prices, product reviews, or share information about

potential purchases with friends. With the cost conscious Indian

customer, it’s only a matter of time before it becomes a hit here

too.

Half of US consumers use

smartphones for in-store

product research and

browsing. The power is

therefore shifted to the

consumer where retailers are

now being forced to offers

better value or lower prices.


Price Transparency – Possible Solutions

IMPROVE IN STORE

EXPERIENCE

• Offering services offered by stores that an online experience cannot such as expert service from salespeople or same-day pickup

STOCK UNIQUE

PRODUCT BUNDLES

• By stocking products that manufacturers have modified exclusively for them or by bundling products with unique accessories

EMBRACE MOBILE

TECHNOLOGY IN STORE

• Example – Nissan emblazons vehicle price stickers with QR codes that let shoppers find key information features, options, video overviews, image galleries, incentive offers, dealer inventories

Mobile gives the

opportunity to reach

consumers with contextual

ads when they’re

searching for products

within their own or

competitor’s stores and

affect choices at the

moment of purchase.


Mobile Optimized Websites

The Advertiser’s #1 Priority Must be to

Build a Mobile Optimized Site

TicketsNow’s mobile-optimized site doubled the company’s

mobile sales and increased ticket sale conversions by 50%.

These dramatic before-and-after numbers are actually common

when brands first launch their mobile-optimized site.

TICKETS NOW

NECESSARY BECAUSE OF DIFFERENCE IN SIZE AND A DIFFERENCE IN

MINDSET OF MOBILE CONSUMERS


Using Mobile for Branding & Promoting Loyalty

HP

An app is essentially a bookmark for users

who want to engage with the brand

but the majority of the traffic will still coming

from the web.

DOMINOS

Domino’s mobile app lets

customers order more than 1.8

billion pizza combinations from

anywhere, and follow their

order’s step-by-step progress

with the Domino’s Live Pizza

Tracker

HP’s ePrint app enables consumers

to print from their phones to an HP

printer. The app drives revenue for

HP because it encourages printing

and ink usage, and is also very

convenient when travelling.

Entertainment or Utility Driven –

Great Medium to Promote

Brand Loyalty

Measuring Effectiveness of Digital Programs


Arriving at Key Metrics

Identifying Business Objectives

Goals of the Campaign/Brand

Key Performance Indicators(KPIs)

Metrics


KPI – Metrics that help understand how company is performing against adjectives.

A company that wants to measure the success of their campaign should

thus have a target obtained for every KPI.

CLASSIFICATION OF KPIS

► Based on website’s traffic growth

► Content effectiveness KPI

► Marketing effectiveness KPI

► Conversion KPI

The Need for KPI’s


POEM Framework for Metrics

Media Type Definition Example Role Benefits Challenges

Owned

Media

Channel a brand

controls

Website

Mobile Site

Blog

Twitter Account

Build long term

relationships with

existing clients and

customers, earned

media

Control

Cost efficiency

Longevity

Versatility

Niche

Audiences

No guarantees

Company

communication

not trusted

Takes time to

scale

Paid Media Brand pays to

leverage a

channel

Display Ads

Paid Search

Sponsorships

Shift from foundation

to a catalyst that

feeds owned and

creates earned media

In demand

Immediacy

Scale

Control

Clutter

Declining

response rates

Poor credibility

Earned

Media

When customers

become the

channel

WOM

Buzz

Viral

Listen and respond –

Earned media is often

the result of well

executed and well

coordinated owned

and paid media

Most credible

Key role in

most sales

Transparent

and lives on

No control

Can be

negative

Scale

Hard to

measure


Classification of Metrics

Activity based metrics

Metrics that are transactional and simply reflect the

action performed by the user

Engagement Metrics

Metrics to the level of engagment between

the user and the brand

Mindshare metrics

Metrics that are used to obtain the value

and perception of the brand in the minds of

the consumer

Business metrics

Metrics that can be used to calculate the

actual financial impact of the online activity of the user

Metrics Used -

No. of impressions

Unique visits

Number of visitors

Time spent on site

Bounce Rate

Metrics Used –

Likes

Comments

Shares, Retweets

Level of interaction

Metrics Used -

Share of Voice

Sentiment Analysis

Top Of Mind Recall

Customer Satisfaction

Metrics Used –

Conversion rates

CPM

CTR

Lead Generation

Sale / Lead


Tools Managers Are Aware Of


Analytical tools

Tools Categories Uses USP

Website and social media

analysis

Traffic, reach, and ROI

calculation, reporting and

monitoring

Free availability

Digital business analytics Online audience

measurement, e-commerce,

ad, search solutions

Unified Digital Reach of

consumers

Online marketing and web

analytics unit

Host of products and

services offering analytics

Engagement, Social activity,

customer loyalty, brand awareness

Social media marketing

platform

Blog content, promotion,

monitoring, analytics

Email-like Interface, track

social mentions across

different networks

Web analytics to increase

customer acquisition and

retention rates

Tracks user activity rather

than just clicks

Conversion Funnel

Tools Available in the Marketplace


Analytical tools

Tools Categories Uses USP

Integrated social media tool Track, compare

performance and obtain

insights

Average engagement Rate

Social media Social media Influence,

reach and Advocacy

The Influence of a

user/brand

Social media Brand strength Strength of brand, Sentiment

analysis, Passion, Reach

Social media dashboard for

measurement and

monitoring

Track brand mentions,

social media traffic,

managing and monitoring

Good, easy, clean UI

Social media measurement

and monitoring

Assessment, reporting,

Engagement

Online reputation

management, brand

perception, cloud based

tools

Tools Available in the Marketplace


Key Metrics Currently Used By Managers

PAID MEDIA

Number of impressions

CTR | CPC | CPM

Conversion Rate

OWNED MEDIA

Clicks

Average time spent on website

Page views

Degree of engagement

Depth of navigation

Unique | Repeated visitors

Traffic

EARNED MEDIA Buzz | WOM

No. of brand mentions

Likes, comments and shares

Fans and growth in fans

Sentiment analysis

Influencers discussing the brand


Google Analytics showing analysis for a branded website over a month. From this tool, it becomes possible to

Track increase/decrease in no. of visitors on the site

Analyze difference in behavior of traffic from different sources ( pageviews, avg time on site, bounce rate etc)

Analyzing Owned Media


Measuring ROI

Not everything can be bracketed into a one on one comparison

between traditional and digital. However this methodology helps weigh

benefits of one over the other.

By obtaining Impressions of digital media vis-à-vis impressions of

traditional media, ROI can be calculated for each form of Paid,

Owned and Earned media.

Search and Display Advertising already have advanced measurement

methodologies, however attribution between them becomes key.

Correspondingly, based on the company goals and KPIs, the metrics

can be figured out and correspondingly the ROI.


Methodologies for Client to Improve Online Presence

AWARENESS CONSIDERATION CONVERSION ENGAGEMENT

Reaching prospects

& customers

Achieving the

initial interaction to Lead or Sale

Building customer

loyalty and advocacy

Audience & Customer

Analysis

Competitor

Benchmarking

Evaluating Current

Digital Touch points

SWOT -Own Digital

Marketing Review

Alignment with Overall

Strategy

Goal Setting and

Evaluation

Analytics Tools for

Monitoring and Reporting

Performance Review &

Incorporating Feedback

Planning and Strategy Overview

Marketplace Audit – Evaluating Client’s Existing Presence

Objective Setting – Determining Goals and KPI’s to be Used


Evaluating Digital Optimization Strategies

REACH CONVERSION RETENTION AND GROWTH

Search Marketing (SEO & PPC) Social Media Marketing Community Building Initiatives

Online Advertising Conversion rate optimization eNewsletters & promotional

emails

Viral Marketing Lead generation techniques Customer Support Tactics

Social Media Marketing Analytics Practices Mobile Marketing

Integration with Traditional Media AB and Multivariate Testing Social CRM

Evaluation and Measurement of ROI


Audience Reach Analysis

Audience & Customer Analysis Evaluating Digital Touch points Financial Check

• Evaluation of the targeted

demographic, psychographic and

behavioral profiles of segments.

• Assessing the online needs,

wants & behavior of different

audiences

• Relevance of message style

relevant to the aims that need to

be delivered for effectiveness.

• Relevance of channel touch points

used to the different segments of the

target audience

• Reducing duplication of reach across

the different channels

• Assessing if the strengths of each

channel had been optimized, risks

mitigated.

• Evaluating potential alternative

channels have for better performance

• Recommendations for integration with

offline and traditional media

•Did the agency compensation

contract cover for different scenarios

of under/over performance?

• Reconciliation between client’s PO

and RO raised by the agency to the

media publishers

• Did the agency have any preferred

vendors/existing partnerships that

could’ve been leveraged for cost

effective digital media purchase?


Objective Setting & Performance Monitoring

Alignment with Overall Strategy Goal Setting and Evaluation Analytics Tools for Monitoring and

Reporting

Performance Review and

Incorporating Feedback

Was campaign objective

in line with the overall

business strategy?

Were they broken down

into short, medium and

long-term goals ?

Were the right

evaluation metrics &

KPI’s in place for

measurement of the

goals?

Were the best case and

worst case scenarios

covered before the

campaign?

What proprietary tools were

used for monitoring

analytics and reporting?

What is the timeline that the

agency would follow to

report campaign

performance to the client?

Are there other

measurement tools needed

?

Comparing campaign

performance against

previously set benchmarks

Reasons for under/over

performance, if any

Were the impact on customer

experience, revenue and

costs measured?

In what way are the

campaign insights to be used

in subsequent strategies?


Digital Marketing Strategy, Planning & Implementation

Strategy

Establishing

objectives aligned with the overall

strategy

Identifying relevant TG across segments

Best communication methods of engaging

with the audience

Deciding Channel Mix covering Search, Social and Display

Planning

Deciding priority among Social,

Search, Display and Mobile

Setting Campaign Benchmarks

Proprietary tools to be used for

monitoring and reporting

Implementation

Creating KPI’s -

estimating returns

per channel

Design of

campaign elements across

channels

Recording salient

information at each step for

evaluation

Evaluation

Evaluating KPIs and

fiscal

achievement

Integrating lessons into future

campaigns

Determining campaign

performance against set benchmarks


Digital Marketing Going Forward

• As the medium and consumer habits evolve, marketers shifting to this medium

sooner will reap immense first mover advantages.

• Significant no. of advertisers are willing to shift to digital as a medium over

time, they’re only looking for concrete evidence that it works better

than traditional

• Integration of digital with traditional media will become key over the long run.

• It’s the only medium to offer a two way conversational channel fine tuned

towards serving the customer and most measurable.

• Ultimately, businesses will stop looking at digital as just a medium and

would change entire business models to serve their customer.


THANK YOU

Digital Marketing in India - Current State, Trends and Future Outlook

Marketing

Transcript of Digital Marketing in India - Current State, Trends and Future Outlook