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For years, cheerleaders have been dancing to the potential of online advertising in India. But now Internet giants are gung-ho on making online advertising more meaningful for marketers, giving fresh hope to those tired cheerleaders, says VAREEN RAY
It was a bright sunny winter morning and Sagar had just logged on to the Internet to chat with his brother in Philadelphia. While surfing, he couldn’t help but notice the very in-your-face click-able ad of MakeMyTrip.com that popped up on screen. Sheer curiosity made him click on the link, and before you could say Jack Robinson, he was on his way (along with the rest of his family) to Philadelphia, thanks to the irresistible scheme that the travel portal offered through that one ad. A big deal for Sagar and great word-of-mouth publicity for MakeMyTrip.com! The travel portal is not alone in exploiting the growing popularity of Internet surfing within the country, job sites like Monster.com and matrimonial offerings like Shaadi.com are also in the fray.
But apart from sites offering services on the Internet, the vast labyrinth of products and services available in India are still shying away from online advertising. Big ticket players like Pepsi, Maruti (Maruti SX4), ADAG (Zapak) and HLL (Sunsilk Gang of Girls) who have ventured onto the media, have also not tasted expected success. A big reason is the abysmal levels of Internet penetration in the country – just a meagre 46 million users (Internet in India Report 2007 by IAMAI & IMRB), contributing just a miniscule 2-3% to the total advertising expenditure. Prathap Suthan, National Creative Director, Cheil Communications, feels, “If I know that at maximum, I can reach only 5-10% of my total target audience through this medium, I would definitely be less interested in that medium and prefer a mass media, where I can reach the maximum of my target audience.” Even the terrestrial signals of Delhi Doordarshan can reach 87.9% of India’s population. Contrast this to the melancholic 2-3% Internet penetration in India, and you know why online advertising is a poor distant cousin to the traditional mass media.
Says Shailesh Rao, MD, Google India, “It is difficult to be excited about the advances in the telecommunications sector when our computing infrastructure is so far behind from where it should and needs to be.”
However, marketers are increasingly diversifying their media mix to include new genres and technologies like IPTV, broadband TV, mobile TV, et al. Gaurav Arora, Delhi Head, G2 India, asserts, “Fresh blood that is coming on the client side has much more faith in new media. But the decision makers still don’t trust new media.” According to him, every media has its own reasons why users interact with it. While TV and print are what can be called ‘lean backward’ media, Internet is a ‘lean-forward’ media as there is a two way interaction involved, believe marketers.
In as much, the power of the Internet as an advertising media cannot be discounted. Of course, the benefits of online advertising remain far superior for online sites, as a majority of their clients are online. But other sectors are also cashing in. The financial services sector for one is a clear leader as far as online-spends are concerned. Hari Shankar, Business Director, Starcom IP India says, “The industry which has gained maximum by online advertising is banking & finance (banks, credit cards, mutual funds, stocks & shares etc.). They use the Internet as a lead generation medium. Other sectors that are active on the Internet are mobile, automotive, computers & technology, entertainment, to name a few.”
Going by the sheer number of advertisers optimistically looking at online advertising as a strong upcoming media, even analysts have upgraded their forecasts. Earlier reports suggested that online advertisement segment would grow to Rs.9.5 billion by 2011. But according to the Internet in India report 2007, online advertising in India will be worth Rs.20 billion in 2009 itself. Google’s Rao is as bullish as these figures. According to him, marketers “demand to know the concrete value delivered for a given investment. AdWords, as an example, fulfils this by providing a detailed understanding of ROI.”
Though search engines like Google boast of being able to calculate the actual ROI per online marketing campaign, a majority of marketers in India are still questioning the validity of reaping ‘payback’ benefits from this much hyped medium. ROI simply depends on the definition of ‘success events.’ A case in point being the banking sector. Banks have defined success event as ‘lead generation’ (because they possibly see Internet only as a ‘sales tool’). But advocates of online advertising believe that such an assessment is stifling to the vast potential that the medium offers. They prefer to define success events as ‘time spent with content, number of pages viewed, number of repeat visits, number of users who visited as a result of exposure, number of conversations generated as a result of advertising, number of voluntary participations as a result of exposure’. Asserts Rahul Nanda, COO of Web Chutney, “The medium allows you to measure and track reach, it also allows you to be in control of your budgets real-time and target your audience with more focus.”
All said and done, for the present and even in the near future, online advertising in India will just remain an add-on medium or as Titus Upputuru, Creative Director, O&M, puts it, “For marketers it will always be ‘achcha kuch online bhi soch lete hain’.” And even then, for most marketers, Internet advertising simply means banner ads. The more adventurous ones adopt the ‘pay per click’ model. But even here, faultlines creep in as the risk of false clicks is very high and marketers end up paying huge amounts for false clicks. Savvy marketers are therefore increasingly using consumer profiling, demographics and proper media planning to overcome such obstacles. Adds Nanda, “Understanding user behaviour is the first step in the online advertising process. Any online campaign seeks to engage the user with carefully targeted ads based on their browsing behaviour, time spent on different web properties, matching the ad content with the website content and other relevant parameters. The next step is ‘Behavioural Targeting,’ but India is still some time away from it.” Foolproof consumer profiling techniques are also reducing privacy intrusion of surfers tremendously. Intrusive banner formats today, are moving towards a scenario where users are given the choice of making them non-intrusive. Many formats today ask users if they want to play the ad whereas all the formats give the user an immediate option to close the ad. Advertisers also limit the exposure of the ad to the same user these days (example – person sees the ad only once a day) so that there is minimal irritation. The usage of ‘pop-ups’ specifically as a format is largely done by transaction-oriented companies (banks, money transfer etc.) who want an immediate response/action from the user in the form of a lead. This definitely can be an irritant factor, which can disrupt the user experience but this again, is slowly changing to formats which are less intrusive. such as pop-unders.
Online research tools such as Red Sheriff, Nielsen et al, allow media planners to feed in users’ demographics and get real time data on their usage patterns, content consumption & site visits. This enables even seasoned online media professionals to get insights from post-campaign evaluations done across industries and brands. Adds Shankar, “Such seasoned professionals are what I call the ‘road warriors’ who know exactly the answer (media solution) to a question (media brief) without the support of media software runs and research data. But India will eventually have to get to a scenario where third party measurement, auditing, media behaviour analysis and monitoring are available akin to the US (tools such as Nielsen @Plan) and then planners can work with the support of such tools.” Adds Dr. Subho Ray, President, IAMAI, “Collectively setting up proper rules of engagement between advertisers, agencies and online publishers, as exists for other media, will certainly help.” Even new forms of online advertising like Search Engine Optimisation and Social Media Optimisation (very popular in the western world and much effective than banner advertising) are still to be explored in India.
But for online advertising in India, the biggest hurdle to be crossed is in changing the mindset of the traditional marketer. Of course, there’s no way that the Internet can ever replace traditional mass media, but once marketers start looking at online advertising as an ‘add-on’ media strategy rather than a ‘now off-now on’ strategy, it won’t be long before things brighten up for this fresh kid on the block.
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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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