Digital Marketing

Marketing on Mouse Click

 Information/Data Sources
IRS : Indian Readership Survey R2 ’07
TGI : Target Group Index, ‘07
TRAI : Telecom Regulatory Authority of India, Oct’07
COAI : Cellular Operators Association of India, Jan’08
AUSPI : Association of Unified Telecom Service Providers of India, Jan ‘08
IAMAI : Internet and Mobile Association of India
Icube : IAMAI & Indian Market Research Bureau Report, Sept ’07
Comscore, Jan’08
Lintas Media Group
Internet World Stats
ISPAI : Internet service providers association of India
Internet Evolution
India stat
Technorati
McKinsey Global Survey Jan’07
Marketing By Mouse Click

•It has not taken long for the www to take over the living rooms of the
world . People of all ages collect, compare & buy.

•By 2010, according to a recent McKinsey survey among marketing

managers worldwide, two-thirds of all consumers will download
information from the Inter-net ,half of whom will call online services &
compare prices & every 3rd person will make purchases on-line.

•Whether advertising, sales, service, product development, or pricing,

when it comes to marketing activities, companies can no longer
circumvent the Internet.

•Experts agree that digital media will become the center of the marketing
mix of the future

•Digital Mktg helps in tracking the customers purchase process from the
initial awareness of the products and the desire to test the products & the
services that follow.
Marketing By Mouse Click
•Titan supports a host of Fan communities on social networking sites
like facebook and orkut. Also seeks feedback on these sites dedicated to
fastrack brand used to tweak brand positioning & sometimes even
pricing. Preview of products to select fastrack fans.
•HUL promotes sunsilk range of products through interactive website
‘sunsilkggangofgirls’ hosted by bollywood star priyanka chopra.
•HR depts are using the benefits of the social media for recruitment or
more cohesive workforce.
•There is at least one evangelist in every company in age group of 25-35
who is perhaps a blogger himself , pushing the concept of social media
and online mktg internally.
•Nike leverages social media by hosting popular communities on
facebook , QQ (localized website in china).
•Club force , official fan club of force India F1 team gets their fans to
share their perspective , not just listen to what they have to say.
•Growing trend of travellers choose holiday spots and air travel based on
travel blog postings.
Marketing By Mouse Click
•394 million people in age group of 16-54 watch video clips posted
on the internet & 346 million active internet users read blogs &
active internet users at 425 million according to Loadstar
universal report.
•In India there are 17.8 million users , out of which 15.1 million
users read blogs and watch online videos.
•There is a wealth of learning's and ideas floating around these
sites.
•As per Market research firm Forrester Research demand for web
2.0 tools such as wikis is expected to grow in 2008.
•IBM Blog central hosts 1400 + active blogs to initiate dialogues
on emerging topics that are relevant to IBM.
•An automotive components company from India is building a
virtual plant on second life that is up to scale by Anantara
Solutions Pvt. Ltd. This will help company make sales pitches and
offer plant visits to customers across geographies.
Marketing By Mouse Click
•IBM’s live sales avatars based in India will now interact with
customers both in Hindi and English on second life.
•Cisco maintains a campus in second life and launched its new
integrated services router there.
•Marketers need to use social media to listen by building in
tracking devices like RSS , Google reader and keywords to
understand what customers are saying.
•Start ups use social medias effectively like in case of online travel
search engine , Ticket wala promotes intercity bus travel.
•Senior Managers in India spend 3~20 hours a week on social
media sites and blogs .
Marketing By Mouse Click
Olympics & Social Media…
•Coca-Cola design the world a coke , digital effort invites
consumers to design virtual Coke bottles . They can build their
own bottle artwork galleries or display them in Coke gallery ,vote
for favorite design ,post their creations on personal web pages.
•McDonald Corp focused on their maiden reality game ‘Lost Ring’
The game challenges players to solve mysteries related to the
Olympics.
•Lenovo created blogs for 100 Olympic athletes. Their website did
not host the blogs , but showcased that the participating athletes
have ‘Lenovo 2008 olympics Blogger’.
•Panasonic photo contest , consumers can upload photos on
subject of Olympics and vote for prizes.
•Samsung electronics had a video contest based on the torch relay
Marketing By Mouse Click
Olympics & Social Media…
•Volkswagen launched Honk for China Campaign . Netizens who
write about the torch relay passing their town could upload videos
on VW official torch map website and receive ‘honking badge’
•China Mobile did a cheering for Olympics video share portal
•Haier sponsored Olympics online ‘love torch’ relay.
•Nike had a ‘creative community’ for sharing creative works.
•Pepsi website celebrated ‘Everyone can be on the can for China’
•Consumers can upload pictures or articles on their love for china.
Kodak Clicks with Social Media Success

•Kodak's blog provided readers a behind-the-scenes look at the people and

a human perspective on the Games detailing experiences & sharing photos.
While many Olympic-focused sites detailed event results and medal tallies.
•Social Media is part of their corporate strategy. They are engaged in social
media like podcasts, twitter, facebook, YouTube, Flickr & Delicious
•Kodak has three blogs , ‘A thousand words’ features stories of Kodak
employees on a variety of topics with a focus of photographing & imaging.
‘Plugged In’ features stories about Kodak products & services .’Grow your
Biz’ features stories improving business.
• Their blogs give customers and readers (from over 100 countries) a better
understanding of Kodak—from how their products and services can help
them do more with their pictures to how the company's innovations are
impacting our world. This also helped them build relationship with their
customers.
•They have a Chief Blogger and employees share their stories there by
increasing morale.
Opportunities of Digital Mktg
1. Total transparency
Nothing is a secret on the Internet. Within seconds, product
information can be obtained, offers called up, prices & trade terms
compared.
Companies can leverage transparency of the medium in order to
measure themselves against competing offers & play to their own
advantage.

2. It can't get any faster

Just one click and services can be provisioned, prices changed, and
customer data analyzed, which would take days in an offline world.
For companies, the unbeatable speed of the Internet is a blessing
and a curse in one no one can be served more quickly at the same
time ,no one is more impatient than the e-customer.
Opportunities of Digital Mktg
3. Always in dialogue
On the Internet, customers can even be involved in product
development, as shown in examples from Procter & Gamble,
Apple, and Nokia. Audi lets its clientele develop their own
infotainment systems.
SK Telecom uses the Web for product tests. Even forums and
blogs are well suited for marketing activities because certain
products and services can reach interest groups in a targeted
way.
4. Customers up close
Customers on the net were initially an anonymous quantity,
technical development meanwhile enables one-to-one
relationships, permitting customized marketing, which was
previously inconceivable.
Online trader Amazon, for instance, makes an individual
selection of books for each customer, which corresponds to
their preferences.
Opportunities of Digital Mktg
5. Unbeatably cheap
Direct connection to the customer keeps the budget low across
all stages of the marketing process, from market research to
advertising to distribution.
Internet is now an essential sales channel for tourist Industry,
and advertising also profits from the new net world.
Consumer goods manufacturer Unilever featured the
commercial “evolution” of the Dove brand on the video portal
YouTube. Result: two million calls, zero euros in media costs.
Via classical advertising channels, the dissemination of the
campaign would have cost €4 million.
Opportunities of Digital Mktg
6. Maximum reach
Where does the pharma market researcher find a statistically
sufficient number of people with rare illnesses? How do
sociopolitical surveys come about with half a million
participants? Without the Internet and its high reach right
through all sociodemographic groupings, such surveys would
be scarcely possible, let alone financeable.
Marketing managers could fish in a practically inexhaustible
pool.
Growth In Internet Subscribers
(Inclusive Broad Band) In India

Over 11 million
internet
Users in India
By Mar’08
Market Share of ISP’s In India

BSNL with over

50%
Of Market share
amongst
ISP’s
Internet Subscribers Technology Wise In India

DSL Dominates
the
Technology with
3.2 million subs by
Mar’08.
 The Internet …Big Picture
WORLD INTERNET USAGE AND POPULATION STATISTICS
Internet
Population Users Internet Usage, % Population Usage Usage Growth
World
Regions
( 2008 Est.) 31-Dec-00 Latest Data ( Penetration ) % of World 2000-2008
Africa 955,206,348 4,514,400 51,065,630 5.30% 3.50% 1031.20%
Asia 3,776,181,949 114,304,000 578,538,257 15.30% 39.50% 406.10%
Europe 800,401,065 105,096,093 384,633,765 48.10% 26.30% 266.00%
Middle
East 197,090,443 3,284,800 41,939,200 21.30% 2.90% 1176.80%
North
America 337,167,248 108,096,800 248,241,969 73.60% 17.00% 129.60%

Latin
America/C
aribbean 576,091,673 18,068,919 139,009,209 24.10% 9.50% 669.30%
Oceania /
Australia 33,981,562 7,620,480 20,204,331 59.50% 1.40% 165.10%
WORLD
TOTAL 6,676,120,288 360,985,492 1,463,632,361 21.90% 100.00% 305.50%
Asia and Europe have 66% of the world users. Highest Population penetration is USA,
Followed by Australia & Europe. Asia has the highest number of users (578 million).
 Country Wise Internet Users
TOP 20 COUNTRIES WITH HIGHEST NUMBER OF INTERNET
Country or
# Region Internet Users, Penetration % of World Population User Growth

Latest Data (% Population) Users (2008 Est.) (2000 - 2008)

1 China 253,000,000 19.00% 17.30% 1,330,044,605 1024.40%
United
2 States 220,141,969 72.50% 15.00% 303,824,646 130.90%
3 Japan 94,000,000 73.80% 6.40% 127,288,419 99.70%
4 India 60,000,000 5.20% 4.10% 1,147,995,898 1100.00%
5 Germany 52,533,914 63.80% 3.60% 82,369,548 118.90%
6 Brazil 50,000,000 26.10% 3.40% 191,908,598 900.00%
United
7 Kingdom 41,817,847 68.60% 2.90% 60,943,912 171.50%
8 France 36,153,327 58.10% 2.50% 62,177,676 325.30%
Korea,
9 South 34,820,000 70.70% 2.40% 49,232,844 82.90%
10 Italy 34,708,144 59.70% 2.40% 58,145,321 162.90%

TOP 20
Countries 1,115,713,572 25.40% 76.20% 4,388,052,548 284.50%
Rest of the
World 347,918,789 15.20% 23.80% 2,288,067,740 391.20%

Total World -
Users 1,463,632,361 21.90% 100.00% 6,676,120,288 305.50%

TOP 20 Countries constitute 76% of world users. India, Germany, UK, Italy are our
Focus Areas too.
In the Social Space

India
Social Network Profiles India

Daily Visitors Monthly Unique Visitor Age Profile

( In 000s) ( In 000s)

6%
12% 26%

1,973 7,832 34% 66% 13%

43%

21% 0% 14%

275 1,869 44% 56%

31%
34%

5%
27%
26%

82 956 57% 43% 9%

33%

Below 20 20-29 30-39 40-49 50+

India Source: TGI’07

Internet accounts for 2.28% of the ad
spends India

1% 2% 2%
6%
3%
38%

48%

Television Print Radio Outdoor Cinema Internet Internet

Source: LMG & IAMAI

India Estimates’07
Market Snapshot Internet India
Top 20 Websites Website Type Monthly Unique Daily Traffic
Visitor
In (000) In (000)
Google.co.in Search 16,745 5,349
Yahoo.com Contents Portal 16,388 5,113
Msn Contents Portal 11,378 1,924
Rediff.com Contents Portal 8,022 1,566
Orkut Social Networking 7,832 1,973
Wikipedia Sites Search 5,138 410
eBay Auction 4,692 306
Youtube Videos 4,327 479
NIC.IN Govt Site 3,784 349
Naukri Job Portal 3,757 337
Indiatimes Contents Portal 3,343 347
Timesjobs Job Portal 2,791 220
Monster Worldwide Job Portal 2,742 183
Indianrail.gov.in Railway Booking 2,692 229
Sify Contents Portal 2,469 472
BharatMatrimony.com Pvt Ltd. Matrimonial Site 2,350 224
123 greetings.com eGreetings 2,169 126
Moneycontrol.com Finance site 2,159 336
CNET Download.com IT Downloads 1,621 87
Jan’08
India
 Ad Spends Forecast India
2007 Online 2008 Online 2009 Online
Adspend (Estimated) I) Ad spend II) Budget Est. Adspend I) Ad spend II) Budget Est. Adspend
( in Rs. Crs) Increase Growth Rate Increase Growth Rate

399.9 181% 100% 1,125 100% 69% 2,250

Budget Growth Rate for Internet advertising - rate of

growth in the share of internet advertising in total media
spends

India Source: IAMAI Estimates from 2004

 User Profiles India

Predominantly Male and below 29 years

Predominantly Male and below 39
years

23% 77% 18% 82%

25% 30% Age Break up
Age Break up
20% 25%

20%
15%
15%
10%
10%
5% 5%

0% 0%
Age 15-19 20-24 25-29 30-39 40-49 50 or Age 15-19 20-24 25-29 30-39 40-49 50 or
Below Above Below Above
15 15

India Source: IRS R2 ‘07

User Profiles: Mobile

Age Profile
Total Subscribers %
57.4 mn 17.7 82.3

42.2 mn 17.8 82.2 100%

80%
41.1 mn 18.8 81.2
60%

40%
33.7 mn 15.6 84.4
20%

22.5 mn 23.3 76.7 0% Bh Re Vo BS Ta ID Ai Sp M BP

ar lia da NL t a EA rc i ce TN L
ti nc fo el L
Ai e ne
rte Te Es
l le sa
co r
m

21.9 mn 16.4 83.6

Below 20 20-29 30-39 40-49 50+

6.6 mn 17.1 82.9

3.9 mn 19.6 80.4

3 mn 20.9 79.1
India
1.2 mn 18.6 81.4 Source: TGI’07
Cellular Operators Market Shares

Group Company wise % market share - July'2008

Sl. No. Name of Company Total Sub Figures % Market Share

1 Bharti Airtel 72078007 32.92%

2 Vodafone Essar 50950365 23.27%
3 BSNL 37916116 17.32%
4 IDEA 28248346 12.90%
5 Aircel 12475529 5.70%
6 Reliance Telecom 8080454 3.69%
7 Spice 4197250 1.92%
8 MTNL 3537248 1.62%
9 BPL 1439956 0.66% India
All India 218923271 100.00%
Cellular Coverage By Service Providers
Aircel Digilink India Limited Haryana, Rajasthan, U.P. ( East)
Aircel Limited Chennai, Tamil Nadu

Delhi (Metro), Mumbai (Metro), Kolkata (Metro),

Chennai (Metro), Andhra Pradesh, Gujarat,
Haryana, Himachal Pradesh, Jammu & Kashmir,
Karnataka, Kerala, Madhya Pradesh,
Maharashtra & Goa, Orissa, Punjab, Rajasthan,
Bharti Cellular Limited Tamil Nadu, UP (West), UP (East), West Bengal
Mumbai (Metro), Kerala, Maharashtra & Goa,
BPL Cellular Limited Tamil Nadu
Mumbai, Delhi, Kolkata, Chennai, Gujarat,
Vodafone Essar Andhra Pradesh, Karnataka,Punjab
Andhra Pradesh, Maharashtra, Gujarat, Madhya
Pradesh,Kerala, Haryana, U.P.(W), Madhya
Idea Cellular Limited Pradesh
Assam, Bihar, Himachal Pradesh, Kolkata,
Madhya Pradesh, North East, Orissa, West
Reliance Telecom Limited Bengal
India
Spice Communications Limited Karnataka, Punjab
 Emerging Vehicles Digital Marketing
•Blogs (short for Web logs) are online journals or diaries hosted on a
Web site.
•Online games include both games played on dedicated game consoles
that can be networked and “massively multiplayer” games,
which involve thousands of people who interact simultaneously
through personal avatars in online worlds that exist independently of
any single player’s activity.
•Podcasts are audio or video recordings a multimedia form of a blog or
other content. They are often distributed through aggregators, such as
iTunes.
•Social networks allow members of specific sites to learn about other
members’ skills, talents, knowledge, or preferences. Commer-
cial examples include Facebook and MySpace. Some companies use
such systems internally to help identify experts.
 Emerging Vehicles Digital Marketing
•Virtual worlds, such as Second Life, are highly social, three-
dimensional online environments shaped by users who interact with
and receive instant feedback from other users through the use of
avatars.
•Web services are software systems that make it easier for different
systems to communicate with each other automatically to pass in-
formation or conduct transactions. A retailer and supplier, for
example, might use Web services to communicate over the public
Internet and automatically update each other’s inventory systems.
•Widgets are programs that allow access from users’ desktops to Web-
based content.
Wikis, such as Wikipedia, are systems for collaborative publishing.
They allow many authors to contribute to an online document
or discussion.
Social Network sites
•Second Life
•Linkedin
•Orkut
•Flickr
•Face Book
•Virtutal World
•Wyn
•Hi5
•Fropper
•My Space
•Twitter (Micro Blogging )
•You Tube
•Delicious
•Plurk (plurkshop.com)
Other Digital Marketing tools
•Paid Keyword search ,E-mail, Branded sponsorship, Referrals
•Video ads, Display Ads
•RSS feeds : A set of daily news/features circulated through mail by HTML
or text format to the TG
•Photo Sharing, Fan Communities, Video Sharing, Search Advertising
•Web 2.0 tools :Web 2.0 tools are internet tools that allow multiple users to
share data using the internet as a platform.
• Consumer User Forums
• User generated Media
•Alternate Sales & Service channels through internet portals , web-2.0 tools,
call centers (tele services)
•Price Comparison Portals like billiger.de, Opodo, Finance Scout24
•Micro Blogging sites can be used as an alternate marketing channel as a
means of promotion, by occasionally sharing links to their online content.
Twitter is especially suited to promoting an online contest It can also be
used as an additional sales channel: Dell's Twitter account DellOutlet has
generated around $500,000 in sales by offering special discount
A survey of marketers from around the world shows where
online tools are most important, how they’re being
used, and on which ones companies plan to spend more.
Usage & Importance of DG tools

In 4 out of 5 major activities under mktg ,majority of executives say that online or
atleast some what important.
Digitizing Sales & Service

Service Leads Now

Current Usage Vs Spending

Frequent users of digital tools used the mix of all the tools.
Becoming More Digital by 2010
Becoming More Digital by 2010

Search advertisements considered to be efficient rank 3 rd, but respondents say they
are likely to increase spending here.
Half of respondents say that they run integrated online and offline campaigns,
companies already using this are more likely to do this.
Adoption Barriers

More than half of the current users see insufficient metrics as a barrier.
Ease of measurement is one of the key selling point for vehicles like paid key search.
Collaborating with customers
•Collaborative tools such as blogs, wikis, and social networks are being
used in advertising, product development, and customer service. At the
simplest level, for instance, 22 percent of respondents say that their
companies host user forums for customers to help one another.
•Over half of those whose companies advertise online - say that their
companies use some kind of collaborative or interactive tool to advertise.
About 22 percent are using these tools for customer retention, which fits
into the common under-standing that they help build relationships
between customers and companies.
•Some two-thirds of all survey respondents use online tools to involve
their customers in product development; about a quarter do so
frequently. The reasons vary notably by industry: respondents in both
financial services and manufacturing, for example, focus on testing
concepts and screening ideas, while those in high tech focus on
generating new ideas.
•Further, 31 percent of all the survey respondents are using collaborative
product-development tools, such as initiating discussions in blogs to test
ideas, involving customers in the use of collaborative design tools, or
testing how well products sell in virtual worlds.
Role of Digital Tools in 2010

Response in % for question on what percentage of customers in that industry use

For these activities.
Risks of a Digital Marketing
1. Image damage due to anti-campaigns
The digital future companies will have to admit much more of the
disadvantages and weaknesses of their products.
Creativity of consumers’ online distortion of marketing campaigns was
something bitterly experienced by automobile manufacturer
Chevrolet. In their homemade commercials, users depicted Chevies as
gas-eating monsters and also associated them with the war in Iraq.
Irony: Chevrolet itself had launched the competition and even
provided its own commercial for creative processing.
2. Incorrect implementation
Companies who rashly put undeveloped marketing campaigns on the
Internet must often pay dearly for this. A coupon campaign, which was
launched online, cost the coffee house chain Starbucks both money
and reputation. This is because marketing managers did not expect
customers to print out several coupons for free coffee.
Marketing managers are thus well advised to test planned campaigns
in advance and carefully check their impacts in scenarios.
Risks of a Digital Marketing

3. Dilution of positioning
Companies positioning their brands on the net differently than
in the real world. This confuses the buyer, who no longer finds
the product in the store that has been promised to him or her on
the Internet. Moreover, the company is diluting its overall
positioning on the market. Here, it is important to consistently
maintain the product image across all media and not to shift
from clear positioning, even for the Web presentation.
Risks of a Digital Marketing
4. Deficits in the marketing mix
No one buys policies on the net, many insurance companies thought
that continued to rely on their broker networks and failed to provide
direct insurance. A mistake: today, direct sales already hold a market
share of 5 percent Whoever
misses out on key elements such as online sales in their marketing mix
will easily fall behind in highly competitive markets, particularly if the
competition is already offering these elements.
The jump on the digital marketing bandwagon therefore also means
that the marketing mix is becoming more complex, the management
more complicated, the dangers more costly, and the failures greater.
Correctly assessing and weighing up the opportunities and risks of
digital marketing will be the challenge of the future.
With systematic planning, careful analyses, not least through the
provision of corresponding financial means, this challenge can be
overcome. And whoever wants to generate the best-possible
marketing ROI for their company should begin today.
 Way Forward…

•The evolution in Digital Mktg reflects fundamental changes in consumer

behavior.
•More & More people are using using web instead of books , yellow pages,
libraries, car dealers, departmental stores, or real estate agents –to search
for information. In doing so they are often aware of new products and
compare prices.
•Customer first point of contact is the website . Website should be enriching
, customer friendly & correct information . With the new CI , arises a need
for a new ‘Customer’ friendly look to our corporate website.
•Research to be done to study the usage of tyre brands in these tools and
which engine / tool apollo can leverage.
•It becomes very important for europe entry strategy
•We can get into blogs and use the expertise of the technology team based at
Frankfurt and India initially.
•Can also help in user generated media to deliver message , monitor for
consumer sentiment.
Way Forward…