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

1. Digital Marketing in India – Current State, Trends and Future Strategy Siddharth Sriram Email Id - siddharth.sriram@outlook.com Contact No - +91 – 7259630188

2. Content Overview Digital Ecosystem In India Search Marketing Display Advertising, Rich Media and Online Video Social Media in India Mobile Marketing – Future in Focus Measuring Effectiveness of Digital Programs Looking Forward Page 2

3. Digital Landscape in India

4. 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. Page 4 Private and Confidential

5. 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 Page 5 Private and Confidential

6. How Indian Customers Use Different Media Today MORNING AT HOME 0.5 – 1 hour Page 6 TRAVEL TO OFFICE/COLLEGE 0.5 – 1 hour AT WORK/ COLLEGE 8 – 10 hours Private and Confidential TRAVEL BACK HOME 1 – 2 hours HOME 1 – 2 hours

7. 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. Page 7 Private and Confidential

8. 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 Page 8 Private and Confidential

9. 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. Page 9 Private and Confidential

10. Estimated Share of Spends in 2016 Source: FICCI – KPMG Indian M&E Industry Report 2012 ► ► 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. Page 10 Private and Confidential

11. 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’ Page 11 Source - Webchutney Digital Media Outlook2010 Report Private and Confidential

12. Digital Marketing Objectives of Top 1000 Advertisers Source - Webchutney Digital Media Outlook2010 Report 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 Page 12 Private and Confidential

13. 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. Page 13 Private and Confidential

14. Search Advertising

15. Growth of Search Ad Spends Source: IAMAI Digital Advertising Report 2012 ► 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. Page 15 Private and Confidential

16. 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. Source: IAMAI Digital Advertising Report 2012 The maximum industry wise spends were found to be in the Financial Services and Travel Sectors, forming 43% of the overall search advertising pie Page 16 Private and Confidential

17. 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) Page 17 Private and Confidential

18. Types of Search Methodologies Search Methodology SEO • • • • • SEM Long term Strategy Requires well made site Based on trust, expertise Lower Cost/ Earned Media Harder to Measure SEO 10% SEM 90% • Faster Performance • Depends on keyword, copy and landing page • Ease of Measurement • Higher Costs/ Paid Media • Not trusted by Searchers • ROI requires conversion Share of Spends (INR 547 Crores) Source – IMRB International Report 2012 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 Page 18 Private and Confidential

19. 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 Page 19 Private and Confidential

20. Reporting and Monitoring Search Performance Metrics Week One Week Two Week Three Total Clicks 9 85 188 282 Impressions 687 6950 5341 12978 CTR 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 (Impressions/Clicks) Page 20 Private and Confidential Sample performance report template for a 3 week search campaign

21. 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? Page 21 Private and Confidential

22. Display Advertising, Rich Media and Online Video

23. Display Ad Spend Growth Source: IAMAI Digital Advertising Report 2012 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. Page 23 Private and Confidential

24. 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. Source: IAMAI Digital Advertising Report 2012 Top Spenders by Sector – Source: IAMAI Digital Advertising Report 2012     Travel Auto Telecom BFSI Source: IAMAI Digital Advertising Report 2012 Page 24 Private and Confidential

25. 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 Source - Webchutney Digital Media Outlook2010 Report Page 25 Private and Confidential

26. Why Use Display Advertising?   Better Targeting Capabilities than any form of traditional media  Highly Interactive and Experiential Advertising is also possible  Page 26 Efficient Tool for Improving Brand Awareness, Engagement, Top of Mind Recall Continuous tracking of campaign performance to measure metrics such as impressions, clicks and conversions that helps calculate the ROI Private and Confidential

27. Display Advertising Value Chain Page 27 Private and Confidential

28. Different Usage Formats – By Size Different sizes of ad formats – • • • • Page 28 Private and Confidential Banners and Leaderboards Buttons Rectangles and Boxes Skyscrapers

29. Different Usage Formats by Technology Different Ad Technology Formats Available • • • • • Text Image (GIF/JPG) Simple Flash Rich Media with Video Rich Media without Video Text Rich Media3% without Video 10% 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 Page 29 Simple Flash 39% Rich Media with Video 24% Images 24% SHARE OF DISPLAY AD FORMATS IN INDIA - Source IAMAI Digital Outlook 2012 Report Private and Confidential

30. Worldwide Click Through Rates by Industry 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? Source: DoubleClick for Advertisers, U.S. Advertisers, January – December 2009 DoubleClick Rich Media Formats Only Page 30 Private and Confidential

31. Experiment for Measuring Effectiveness of Display Ads 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 Page 31 Private and Confidential

32. 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. Page 32 Private and Confidential

33. Measuring Performance On Website % 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 Page 33 Private and Confidential

34. Measuring Performance On Search % 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. Page 34 Private and Confidential

35. Pricing Models By Targeting Methodology CPM: Cost per thousand impressions served CPC: Cost per single click CPA: Cost per action performed on a marketer’s site 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. Page 35 Private and Confidential

36. 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. Page 36 Private and Confidential

37. 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 Page 37 Private and Confidential

38. 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 Page 38 Source – Vizisense Data Private and Confidential

39. Case Study - Jabong Website Traffic Source – Vizisense Data No Of Branded Searches – Jabong Rises To The Top In 5 Months Source – Google Insights Page 39 Private and Confidential

40. 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. Page 40 Private and Confidential

41. Social Media Marketing

42. Social Media Marketing - Definition 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 Page 42 Private and Confidential

43. Social Media Marketing – Usage Snapshot 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. Page 43 Private and Confidential

44. 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. Page 44 Private and Confidential

45. Social Media Marketing – Usage Snapshot 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. Page 45 Private and Confidential

46. 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. Source - Webchutney Digital Media Outlook2010 Report 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. Page 46 Private and Confidential

47. 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 Brands that have leveraged the respective platforms Page 47 Private and Confidential Dell Community for Old Spice Man SME’s Campaign

48. Benefits of Social Media Marketing According to Marketers Worldwide Source – Social Media Examiner 2011 Report Page 48 Private and Confidential

49. 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 Page 49 Private and Confidential

50. How the Indian Marketers Have Leveraged It So Far Companies in India have successfully used Social Media for : 1. 2. 3. 4. 5. 6. Page 50 Raising Awareness - Johnson and Johnson’s Nicorette Garnering Marketplace Insights – Dell Ideastorm Reducing Marketing Expenses – Parle Hippo Increasing Brand Engagement - Fiama Di Wills Improving Customer Perception and Satisfaction – Skoda Auto Generating Product Buzz – Reebok Reetone Shoes Private and Confidential

51. Establishing a Social Media Framework 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 - 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. Page 51 Private and Confidential

52. 2. Building social metrics to support business objectives Page 52 Private and Confidential

53. 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 Page 53 Private and Confidential

54. 4. Developing content strategy across social media platforms 5. Refining and optimizing for social media efficiency and insights. Good Compelling Content must –        Page 54 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 Private and Confidential ► ► ► ► 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

55. 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. Page 55 Private and Confidential

56. Mobile Marketing – Future in Focus

57. Introduction About 10 million smartphones with internet connection in 2011 ACTIVE INTERNET ENABLED SMARTPHONES 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: KPMG in India Analysis -Source Hungama Digital, Nielson Informate Mobile Insights Page 57 Private and Confidential

58. Users by Point of Primary Access of Internet (%) Page 58 Private and Confidential

59. 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 Page 59 Private and Confidential

60. Usage Patterns 1. INCREASED PHONE USAGE Smartphone users spend significantly more time on the phone than others. 3. 2. LESS VOICE, MORE DATA Evolved smartphone users engage with many activities on their devices, calls lower in priority. ECOSYSTEM AND LIFE-STAGE GUIDE ENGAGEMENT Varying smartphone involvement across operating systems and age groups, simplifying targeting for marketers Source: Nielsen Informate Mobile Insights Page 60 Private and Confidential

61. 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. Page 61 Private and Confidential

62. The Need for a Mobile Strategy  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. Page 62 Private and Confidential

63. Serving the Mobile Customer CHASE Customers now use smartphones and tablets to interact with businesses 24/7, from anywhere. How can business take advantage? 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. WALGREENS 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, Page 63 Private and Confidential Important to define value proposition by determining what consumers want to do with business on mobile.

64. 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 Page 64 Private and Confidential 7

65. The Local Mobile Customer 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 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. Page 65 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. Private and Confidential

66. Price Transparency 45% 53% 38% 39% 12% 8% ShopSavvy is the bargain hunter’s app that has altered the retail of all consumers use smartphones for in-store landscape in the west. With a simple scan of a product’s product research & browsing7 barcode, it delivers information to the shoppers on the fly, of men use smartphones compare prices, product reviews, or share information about in-store to check prices at potential purchases with friends. With the cost conscious Indian other stores8 of women use smartphones customer, it’s only a matter of time before it at becomes a hit here in-store to check prices too. other stores8 Page 66 themobileplaybook.com Private and Confidential 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 of walk-outs, when shoppers to offers better value or leave without making a lower prices. purchase, were influenced by smartphone usage10 checked other online retailers10 checked availability at other stores10

67. Price Transparency – Possible Solutions IMPROVE IN STORE EXPERIENCE STOCK UNIQUE PRODUCT BUNDLES EMBRACE MOBILE TECHNOLOGY IN STORE Page 67 • Offering services offered by stores that an online experience cannot such as expert service from salespeople or same-day pickup • By stocking products that manufacturers have modified exclusively for them or by bundling products with unique accessories • 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 Private and Confidential 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.

68. Mobile Optimized Websites NECESSARY BECAUSE OF DIFFERENCE IN SIZE AND A DIFFERENCE IN MINDSET OF MOBILE CONSUMERS TICKETS NOW 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. The Advertiser’s #1 Priority Must be to Build a Mobile Optimized Site Page 68 Private and Confidential

69. 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. 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. 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 Page 69 Private and Confidential Entertainment or Utility Driven – Great Medium to Promote Brand Loyalty

70. Measuring Effectiveness of Digital Programs

71. Arriving at Key Metrics Identifying Business Objectives Goals of the Campaign/Brand Key Performance Indicators(KPIs) Metrics Page 71 Private and Confidential

72. The Need for KPI’s 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 Page 72 Private and Confidential

73. POEM Framework for Metrics Media Type Definition Example Role 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   Shift from foundation to a catalyst that feeds owned and creates earned media     In demand Immediacy Scale Control   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   Paid Media Earned Media Page 73 Brand pays to leverage a channel When customers become the channel Display Ads Paid Search Sponsorships WOM Buzz Viral Private and Confidential Benefits  Challenges     No guarantees Company communication not trusted Takes time to scale Clutter Declining response rates Poor credibility No control Can be negative Scale Hard to measure

74. Classification of Metrics Metrics Used No. of impressions Unique visits Number of visitors Time spent on site Bounce Rate Metrics Used Share of Voice Sentiment Analysis Top Of Mind Recall Customer Satisfaction Page 74 Activity based metrics Engagement Metrics Metrics Used – Metrics that are transactional and simply reflect the action performed by the user Metrics to the level of engagment between the user and the brand Likes Comments Shares, Retweets Level of interaction Mindshare metrics Business metrics Metrics Used – Metrics that are used to obtain the value and perception of the brand in the minds of the consumer Metrics that can be used to calculate the actual financial impact of the online activity of the user Private and Confidential Conversion rates CPM CTR Lead Generation Sale / Lead

75. Tools Managers Are Aware Of Page 75 Private and Confidential

76. Tools Available in the Marketplace Tools Categories Website and social media analysis Uses Traffic, reach, and ROI Analyticalcalculation, reporting and tools USP Free availability monitoring Digital business analytics 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 Page 76 Online audience measurement, e-commerce, ad, search solutions Tracks user activity rather than just clicks Conversion Funnel Private and Confidential

77. Tools Available in the Marketplace Tools Categories Analytical tools Uses USP Integrated social media tool 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 Page 77 Track, compare performance and obtain insights Assessment, reporting, Engagement Online reputation management, brand perception, cloud based tools Private and Confidential

78. Key Metrics Currently Used By Managers PAID MEDIA EARNED MEDIA Number of impressions CTR | CPC | CPM Conversion Rate Buzz | WOM No. of brand mentions Likes, comments and shares Fans and growth in fans Sentiment analysis Influencers discussing the brand OWNED MEDIA Clicks Average time spent on website Page views Degree of engagement Depth of navigation Unique | Repeated visitors Traffic Page 78 Private and Confidential

80. Analyzing Owned Media 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) Page 80 Private and Confidential

81. Measuring ROI   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.  Page 81 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. Correspondingly, based on the company goals and KPIs, the metrics can be figured out and correspondingly the ROI. Private and Confidential

82. Planning and Strategy Overview Methodologies for Client to Improve Online Presence AWARENESS Reaching prospects & customers CONSIDERATION Achieving the initial interaction CONVERSION to Lead or Sale ENGAGEMENT Building customer loyalty and advocacy Marketplace Audit – Evaluating Client’s Existing Presence Audience & Customer Analysis Competitor Benchmarking Evaluating Current Digital Touch points SWOT -Own Digital Marketing Review Objective Setting – Determining Goals and KPI’s to be Used Alignment with Overall Strategy Page 82 Goal Setting and Evaluation Private and Confidential Analytics Tools for Monitoring and Reporting Performance Review & Incorporating Feedback

83. 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 Page 83 Private and Confidential

84. Audience Reach Analysis Audience & Customer Analysis • 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. Evaluating Digital Touch points • Relevance of channel touch points used to the different segments of the target audience •Did the agency compensation contract cover for different scenarios of under/over performance? • Reducing duplication of reach across the different channels • Reconciliation between client’s PO and RO raised by the agency to the media publishers • 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 Page 84 Financial Check Private and Confidential • Did the agency have any preferred vendors/existing partnerships that could’ve been leveraged for cost effective digital media purchase?

85. Objective Setting & Performance Monitoring Alignment with Overall Strategy Was campaign objective in line with the overall business strategy? Were they broken down into short, medium and long-term goals ? Page 85 Goal Setting and Evaluation 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? Analytics Tools for Monitoring and Reporting Performance Review and Incorporating Feedback What proprietary tools were used for monitoring analytics and reporting? Comparing campaign performance against previously set benchmarks What is the timeline that the agency would follow to report campaign performance to the client? Reasons for under/over performance, if any Are there other measurement tools needed ? Private and Confidential Were the impact on customer experience, revenue and costs measured? In what way are the campaign insights to be used in subsequent strategies?

86. Digital Marketing Strategy, Planning & Implementation Strategy Implementation Evaluation Establishing objectives aligned with the overall strategy Deciding priority among Social, Search, Display and Mobile Creating KPI’s estimating returns per channel Evaluating KPIs and fiscal achievement Identifying relevant TG across segments Deciding Channel Mix covering Setting and Display Search, Social Campaign Benchmarks Design of campaign elements across channels Determining campaign performance against set benchmarks Best communication methods of engaging with the audience Page 86 Planning Proprietary tools to be used for monitoring and reporting Recording salient information at each step for evaluation Integrating lessons into future campaigns Private and Confidential

87. 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. Page 87 Private and Confidential

88. THANK YOU Page 88 Private and Confidential

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

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

Recommended

More Related Content

What's hot

What's hot(20)

Viewers also liked

Viewers also liked(19)

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

Similar to Digital Marketing in India - Current State, Trends and Future Outlook(20)

Recently uploaded

Recently uploaded(20)

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