white paper- digital marketing

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www.dmti.in Background of the Digital Industry New media technologies such as social media, mobile, Internet and analytics are advancing rapidly on the economic landscape. Technologies described as new media are digital in nature and have changed the way people communicate. It has revolutionized different sectors such as Internet, websites, computer, multimedia, videogames, CD-ROMS and DVDs. The digital sector refers to any job that is related to working online. The digital sector is extremely diverse and ranges from web development to social media. The digital media sector started in the 1970s with the initial success of Atari in starting the video game business but really started to grow in the late 1990s due to a combination of strong growth in video games and the first Internet boom. According to the Deloitte report (2012), the new media will be delivered through Internet and mobile platforms unlike traditional media, which is forecasted to shrink. The world has turned to digital media for consumer information, share thoughts and reviews about products and brands before making any choices. Most industries are leveraging on new media to build their brand image and increase sales. According to IAMAI figures, broadband subscribers in the last year grew by 10-12 percent with rural India also joining the Internet bandwagon. The wireless/mobile subscription has grown three folds during 2012 with higher growth in tier two and three cities. The number of people accessing Internet on their cellphones has grown by 20 percent. According to the Wilkofsky Green Associates, digital and mobile distribution constituted only 5 percent of global media and entertainment spending in 2007. However, it is estimated that during the next five years, the revenues of the industry will account for 24 percent of the industry’s growth and will constitute 10 percent of global media and entertainment spending in 2012. Digital Industry in India The digital industry in India is just over ten years old and is still at a very nascent stage. Traditional media such as television, radio, newspapers still play a very significant role in reaching out to the target audience. In the 90s, India was extremely dependent on the traditional media and digital media platforms were remotely being used by corporates and other organizations. Today, things have remarkably changed and India has rapidly involved in new media. Indians are using new media extensively from MySpace to Facebook and from Technorati to SlideShare. Indians are online through access to phones, cyber cafes and personal computers. This has opened innumerable opportunities for marketers to reach their target audience.

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White Paper- Digital Marketing

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Page 1: White Paper- Digital Marketing

www.dmti.in

Background of the Digital Industry New media technologies such as social media, mobile, Internet and analytics are

advancing rapidly on the economic landscape. Technologies described as new media

are digital in nature and have changed the way people communicate. It has

revolutionized different sectors such as Internet, websites, computer, multimedia,

videogames, CD-ROMS and DVDs. The digital sector refers to any job that is related to

working online. The digital sector is extremely diverse and ranges from web

development to social media. The digital media sector started in the 1970s with the

initial success of Atari in starting the video game business but really started to grow in

the late 1990s due to a combination of strong growth in video games and the first

Internet boom. According to the Deloitte report (2012), the new media will be delivered

through Internet and mobile platforms unlike traditional media, which is forecasted to

shrink.

The world has turned to digital media for consumer information, share thoughts and

reviews about products and brands before making any choices. Most industries are

leveraging on new media to build their brand image and increase sales. According to

IAMAI figures, broadband subscribers in the last year grew by 10-12 percent with rural

India also joining the Internet bandwagon. The wireless/mobile subscription has grown

three folds during 2012 with higher growth in tier two and three cities. The number of

people accessing Internet on their cellphones has grown by 20 percent.

According to the Wilkofsky Green Associates, digital and mobile distribution constituted

only 5 percent of global media and entertainment spending in 2007. However, it is

estimated that during the next five years, the revenues of the industry will account for

24 percent of the industry’s growth and will constitute 10 percent of global media and

entertainment spending in 2012.

Digital Industry in India The digital industry in India is just over ten years old and is still at a very nascent stage.

Traditional media such as television, radio, newspapers still play a very significant role in

reaching out to the target audience. In the 90s, India was extremely dependent on the

traditional media and digital media platforms were remotely being used by corporates

and other organizations.

Today, things have remarkably changed and India has rapidly involved in new media.

Indians are using new media extensively from MySpace to Facebook and from

Technorati to SlideShare. Indians are online through access to phones, cyber cafes and

personal computers. This has opened innumerable opportunities for marketers to reach

their target audience.

Page 2: White Paper- Digital Marketing

www.dmti.in

An IAMAI- IMRB report estimated that by June 2014, India will have 243 million Internet

users. The number of internet users in India reached 205 million in October 2013

registering a 40 percent year on year growth.

Source: IAMAI- IMRB I-cube

Rural India has witnessed a year on year growth of 58 percent of active internet users

since June 2012. In rural India, there were 68 million internet users in October 2013 and

is estimated to reach 72 million by December 2013

Source: IAMAI- IMRB I-cube

In Rural India, 70 percent of active internet users also access internet using mobile

phones, while 32 per cent use internet only through mobile. Public spaces such as the

community service centres and cyber cafes are the main point of access for 40 per cent

of these users.

Source: IAMAI- IMRB I-cube

Page 3: White Paper- Digital Marketing

www.dmti.in

Digital Marketing in India The digital marketing industry is huge and is evolving to become a phenomenally

growing sector. According to the study published in the United States by the Direct

Marketing Association, the digital marketing industry was worth $62 billion in 2012. The

study analyzed the value of the data market, revenue generated from online ads, email

subscriber targeting and what publishers make by selling information. Indian marketing

professionals today have thousands of digital ways to interact with their audience. An

audience that consists of digitally proficient students who are accessing their profiles in

buses, working professionals who check their mails on-the-way to office, and even

housewives who know how to access their online profiles.

Indian digital marketing sector has immense demographic advantages with which it can

reach their target audience. With broadband access growing, there is a huge potential

market that can be capitalized by Indian marketers. Experts have highlighted the Indian

digital marketing sector’s ability to go viral. The one major aspect of Indian digital

marketing that has a huge potential to grow is virality. The potential to go ‘viral’ can

have a great impact on the Indian blockbusters that could capture the attention of the

Indian public

One big advantage of digital marketing in India is definitely its cost-effectiveness and

interactivity. It also gives easy accessibility, which is a boon. considering traditional

Indian marketing faced hurdles in reaching out to Indian masses in the most resource-

effective way. However, Indian audiences face the challenges of additional difficulty of

linguistic differences. Digital marketers have chosen to stay away from addressing these

challenges

One of the largest contributors to the Indian economy is Small and medium Enterprises

(SMEs). Most of these enterprises are family run who hire people with experience in

digital agencies that may not necessarily understand marketing. Although, these

professionals are proficient in the technical aspects of digital marketing such as Search

Engine Optimization (SEO), Search Engine Marketing (SEM), Website Optimization, they

may lack the understanding of why digital marketing is required in the larger context.

Digital Marketing Spending Businesses are increasingly spending money on online advertisements, and digital media

marketing online marketing platforms.

Page 4: White Paper- Digital Marketing

www.dmti.in

Figure 1: Chart showing spending on types of digital marketing in India:

As shown in the figure above, social media and email marketing gained top positions in

the digital spends plan of marketers. About 65% of the respondents claimed that there

would be an increase in their social media spends in the year 2013. Email marketing

stood next with 57%.

The online advertising market in India is projected to reach Rs 2,938 crore by March

2014, according to the findings of Digital Advertising in India report, by the Internet and

Mobile Association of India (IAMAI) and IMRB International. The online advertising

market in India, comprising search, display, mobile, social media, email and video

advertising, which was valued at Rs 1,750 crore in March, 2012 has grown by 29% over

the previous year to reach Rs 2,260 crore by March, 2013.

The BFSI, travel and automobile sectors continue to be the top 3 spenders in online

advertising. Increased spending by e-commerce players has been one of the highlights

of the online advertising industry in FY 2011-12. Their share of spends is estimated to

decline in 2012-13.

Figure 2: Chart showing money spent on digital media in India

Page 5: White Paper- Digital Marketing

www.dmti.in

Spending on Social Media Ads:

• Total Spending of INR 175 Crore in FY2012

• Total Spending of INR 300 Crore in FY2013

Below are some of the campaign goals of Social Media Ads:

• Contextual Advertisements

• Engagement with users through Company Fan pages

• Facebook leads Social Media Revenue charts

• LinkedIn Ads Most Effective

On Mobile Ads: FY2011 Total Size – INR 90 Crore

FY2012 Total Size – INR 123 Crore

Main Types

• WAP / Browser Based Ads (74%) of Total Mobile Ad Spend

• In-App Advertisements (20%) of Total Mobile Ad Spend

Careers in Digital Marketing The digital sector is one of the fastest growing industries across the world. The digital

sector refers to any job, which is related to working online. We are doing more and

more things online today that have led to the sector growing radically. This has led

to brands needing an online presence to survive and employers investing big money to

online resources and offering a wide range of roles to support their digital activities.

Some of the key digital disciplines that have immense opportunities are:

• Analytics

• CRM and email

• Social media

• Online marketing

• Website/graphic design

• Media planning/buying

• Content management

• Mobile applications development

• Search Engine Optimization (SEO)

• Search Engine Marketing (SEM)

• Internet marketing consulting

• Digital copywriting

• User experience

Page 6: White Paper- Digital Marketing

www.dmti.in

One of the advantages of pursuing a career in digital marketing is that one may already

possess some of the relevant skills. For instance people may already have some

experience and knowledge in using social media and be familiar with the Internet,

websites and digital TV. As the industry diversifies and grows, the job opportunities also

increase and the area will become more niche and specialized.

Some of the profiles that are prevalent for a career in digital marketing are online

portfolio manager, digital marketing executive, digital head and many more such

positions

Tips to get started in digital marketing:

1. Read digital marketing blogs and keep yourself updated with industry insights

2. Attend digital marketing events, conferences, webinars in your city and network

with all the relevant people

3. Start your own blog and put your thoughts out to the world

4. Do field-specific courses from a specialized institute, get certifications and learn

more about the industry

As the digital industry grows, there are immense opportunities in the sector in the case

of India. However, there is a lack of professionals that can cater to the demand of this

growing sector. It is important for marketers from traditional marketing to upskill

themselves and learn digital marketing to sustain their careers. This will also lead to the

growth and performance of the sector.

About  this  White  Paper  This introductory White Paper on “Digital Marketing” has been written by Dr. Shruti Nair

of DMTI.

 About  DMTI  

The Digital Marketing Training Institute (DMTI) is the leading Digital Media Marketing

training provider in the country. Founded in the year 2011, DMTI is the only company

that provides training for all aspects of Digital Media viz. Search Engine Marketing,

Social Media Marketing, Digital Data Analytics, Email Marketing, Social Media

Optimization, Online Reputation Management, Mobile Marketing, Advertising Sales,

Digital Strategy, etc.

Through their comprehensive offering of training and qualifications, DMTI helps

students, professionals and corporates from various marketing spheres build the

knowledge, skills and experience needed to compete in the world of digital marketing

and e-commerce.

Page 7: White Paper- Digital Marketing

www.dmti.in

DMTI is a consortium of thoughts of a bunch of senior marketers in the industry and it

plans to not only design but also deliver digital marketing courses in different colleges,

private training institutes and universities etc. across the country to produce digital

marketers of no match.