Is Online Marketing A Different World?

Sidharth Swarup – ISHIR Digital

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?