Source : Mint and Webchutney Survey Report 2010

Source : Mint and Webchutney Survey Report 2010

Growing online medium

Though online spend share of the top 1,000 advertisers remains low at 4% in fiscal 2010, it’s still a jump from 2% in fiscal 2009. Online advertising share will continue to grow albeit slowly and is expected to touch 5% in fiscal 2011. Ad spend share will continue to be dominated in 2010-11 by television (close to `8,100 crore), followed by print (`6,690 crore), and below-the-line advertising at `3,758 crore. In 2010-11, online advertising is estimated to grow at `876 crore while mobile advertising will marginally increase to reach `129 crore.

Source : Mint and Webchutney Survey Report 2010

Falling mobile spend

Mobile advertising spends have been low at 45% in fiscal 2010. In fact, this is likely to drop further to 36% in fiscal 2011. Mobile advertising stood at `65 crore in 2008-09 and saw a marginal growth of 0.5% in 2009-10 and stood at `95 crore. And while sectors such as consumer services, auto and durable goods had the maximum spend share in the mobile segment (21%), pharma spent only 1% in the space. Telecom, too, had a low spend share in the segment of just 2%.

Biggest spenders The FMCG sector, with the largest overall ad spend of `7,910 crore at 42%, spends

only `56 crore or 9%, on advertising online. It is the banking, finance and services industry which contributes the maximum (around `114 crore or 19%) to total online spends. This is followed by sectors such as consumer services which spends `108 crore in the space. IT spends `79 crore and telecom spends `70 crore in the online advertising segment, according to the report.

Source : Mint and Webchutney Survey Report 2010

Tracking viewers online Advertisers haven’t yet utilized the potential of the online medium in terms of

advertising. While 73% of advertisers view only the click impressions (the number of times viewers click on the site), 84% don’t know how to track viewers who reach advertisements or companies through social media. Advertisers cannot think of the online medium as a substitute for traditional media. They need to look beyond just clicks.

Source : Mint and Webchutney Survey Report 2010

Using social media It’s clearly with the need to connect with younger consumers that the report has

noticed an increase of 50% in social media usage by advertisers. Facebook, YouTube and Orkut continue to be popular social media platforms for advertisers. General Motors, for instance, ended up with more than 10,000 fans on Facebook in less than six months.

Source : Mint and Webchutney Survey Report 2010

Source : Mint and Webchutney Survey Report 2010

Creating brand awareness Online media is effective in

driving traffic to a website. And while the medium barely helps in driving traffic to a store, many advertisers admit that it can create brand awareness. “Digital platform as an advertising option is evolving fast and this is where we feel it’s right to invest. We believe that the youth are opinion leaders and we would like to target them,” said L.K. Gupta, chief marketing officer, LG Electronics India.

Tapping online potential

Online ad spends will increase by 45% in the next fiscal. At least 51% of the advertisers surveyed in the report have indicated that they will increase spends in the online segment in fiscal 2011. Gaurav Gupta, business head, utility vehicles and strategic planning, General Motors India, says: “Media and creative agencies have to sell the power and potential of the online medium. Too much of focus on return-on-investment (ROI) takes away from the true potential of the medium.”

Source : Mint and Webchutney Survey Report 2010

Prakash Ranjanhttp://in.linkedin.com/in/prakashranjansingh

http://blog.prakashranjansingh.comhttp://digitalmarketingstories.wordpress.com

http://myvideopouch.wordpress.com

9Facing The Digital Reality