A Study on digital marketing and its impact on revenue generation By Mamidipaka Manohar IV Semester MBA Reg.No: 13M13215 Under Guidance of
Vinay Rao Project Report submitted to the University of Mysore in partial fulfillment of the requirements of IV Semester MBA degree examinations – 2013-15
NATIONAL SCHOOL OF BUSINESS
University of Mysore Mysore – 570 006
CERTIFICATE This is to certify that the project work entitled study on digital marketing and its impact 1
on revenue generation submitted to University of Mysore in partial fulfilment of the requirements for the award of the degree of Master of Business Administration in marketing is a record of the original work done by Mamidipaka Manohar under my supervision and guidance and this project work has not formed the basis for the award of Degree or similar title to any candidate of any University.
Signature of Director.
Signature of Guide.
ACKNOWLEDGEMENT The completion of this project will be incomplete without mentioning of few names .I takes this opportunity to acknowledge the efforts of the many individuals who helped me to complete this project. I want to express my heartfelt gratitude to Mr. Sourabh S for giving me the opportunity to do my internship project at Odigma Solutions Pvt Ltd. The supervision and support that he gave truly help the progression and smoothness of the internship program. I would like to thank Mr. Vinay Rao (project guide) for his support and guidance throughout the project study. The co-operation is much indeed appreciated. Finally, I would like to thank my Institute Faculty of Marketing; NSB for making this experience of internship program .The learning from this experience has been immense and would be cherished throughout life.
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Mamidipaka Manohar 13M13215
CONTENTS S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10
Title Executive summary Introduction Research Methodology Company profile Industry Analysis Literature review Digital marketing Digital marketing channels AIDMA and AISAS in digital Era Digital marketing impact on revenue generation Digital agencies Digital agencies fee structures
Page No 5 6-10 11 12-16 17-21 22-25 26-27 27-57 58-60 61 61-63 63-64
11. 12. 13. 14.
Research problems Findings Learnings conclusion
65 66-82 83 84
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EXECUTIVE SUMMARY Project title:“
A study on digital marketing and its impact on revenue generation with reference to ODigMa.” Digital marketing is marketing that makes use of electronic devices (computers) such as personal computers, smartphones, cell phones, tablets and game consoles to engage with stakeholders. Digital marketing applies technologies or platforms such as websites, e-mail, apps (classic and mobile) and social networks. ODgiMa consultancy solutions Pvt.Ltd has emerged as one of the best online media companies in the Indian marketplace. The company offers a plethora of services in all online media platforms. The offerings include marketing and consulting on Facebook, Twitter, LinkedIn, slideshare, YouTube, and Google. Though the company was started only two years ago, it is way ahead of most of competitors through its relentless pursuit of perfection and enormous amount of creativity which they put in their work. The firm worked with multiple brands on social media and currently have 4 out of Top 30 brands in Facebook India. The project was in the marketing department of ODigMa. The project was “A study on digital marketing and its impact on revenue generation with reference to ODigMa”. This report will help to get an idea about digital marketing and how the digital marketing has impact on revenue generation for digital marketing companies and with reference to ODigMa. Through this study we will see how online media companies emerging how they are generating revenue and how they are growing economically and revenue generation models of online media companies particularly reference to OdigMa. Main findings of this internship are given here. Indian customers are highly information seekers. They collect more information about a product before buying it. Internet penetration in India is key player for this phenomenon. Most of Indians are getting stimulus through advertisements, but they are not reaching to end phase of customers purchase journey, mainly in high involvement purchases. Brands are getting more touch point to reach their target group in this digital era. More details about findings are given this report.
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1. INTRODUCTION To begin with, as a part of the curriculum a summer internship programme was to be conducted for a period of two months. Given a choice one was allowed to choose the field in which he/she was interested. As my interest and curiosity was in online or digital marketing I choose to work with a start-up company named ODigMa, I choose the start-up company because with start I can explore myself and why digital marketing? Because it is booming industry, the growth of digital marketing is tremendous and expected to grow more. Due to this summer internship, I learnt every aspect of digital marketing include (business development process, content writing, social media) Marketing practices have dramatically shifted with the rise of social media and proliferation of devices, platforms, and applications. Your prospective and current customers are trying to communicate with you, and you can listen and respond faster, and with more personalization than ever before. This shifting environment presents new opportunities and challenges for marketers. With digital marketing, it's easy to fall behind. Digital marketing equips you with the tools you need to assess your organization’s social media and digital marketing strategy and helps you identify areas of improvement. Useful for individuals from small- to medium-sized businesses who want to use new media as a vehicle for growth. Organizations are leveraging digital marketing methods for successful marketing strategy implementation inbound marketing through publishing content online in the form of portals, podcasts, ejournals, online campaigns, social media marketing, search services; and outbound marketing including email marketing, RSS (Really Simple Syndication) feeds and others. A recent survey of 3300 business executives from various industries indicates that on an average, 34% of a company’s leads come from inbound marketing verses 22% through1 outbound marketing .
1.1 Digital Marketing:Digital marketing can be defined as the process of promoting of brands using digital distribution channels comprising internet, mobile and other interactive channels. The basic advantage in this form of advertising lies in its low cost model. Digital Marketing can be classified into Pull and Push marketing.
Pull Pull digital marketing technologies involve the user having to seek out and directly grab (or pull) the 5
content via web searches. Web site/blogs and streaming media (audio and video) are good examples of this. In each of these examples, users have a specific link (URL) to view the content.
Push Push digital marketing technologies involve both the marketer (creator of the message) as well as the recipients (the user). Email, SMS,RSS are examples of push digital marketing. In each of these examples, the marketer has to send (push) the messages to the users (subscribers) in order for the message to be received.
1.1.2 Web Site Designing From the initial process of taking inputs from clients, planning on the basis of such inputs to final implementation and testing – all are done using latest web designing techniques and skills. Our services have the advantage of offering clarity in its design style, which is backed up with an easy and free flowing content and latest technical know-how. Not only we provide affordable web site design and ecommerce web development services but also search engine friendly designs. Our Service Includes
Website Design
Website Redesign Shopping Cart Web Design Detailed and Advanced Page Layout Custom Logo Design Banner Ads Custom Graphics Design using advanced design tools.
1.2 Digital Marketing Trends: Organizations are implementing a wide range of digital channels so as to engage customers in a more personalized way. Digital marketing trends that organizations are rapidly embracing include
1.2.1 Mobility: Business Insider's recent report indicates that globally, one in every five people owns a smart phone, and one in every 17 owns a tablet. That's an increase of nearly 1.3 billion smartphones in last four years. Therefore an increased user base accessing the internet via smartphones has prompted many companies to optimize their online content for mobile devices.
1.2.2 Social media: Organizations are focusing on engaging with customers through social media to offer real-time interactions. Social media helps organizations reach out to a vast pool of potential customers by supplying them with medical and campaign-related information.
1.2.3 Social-Local-Mobile marketing: The growing popularity of smart mobile devices, increasing location based social activities like experience 6
sharing, review reading via social media and the evolution of Global Positioning System (GPS) are helping companies leverage Social-Local-Mobile marketing activities.
1.2.4 Personalized Content marketing: Customer engagement, acquisition and retention have all taken on a new dimension with the delivery of unique, personalized, and relevant messages through identified digital channels. Email is one of the most preferred marketing channel to broadcast targeted organization messages and campaigns to existing and prospective customers.
1.2.5 Advanced analytics: Increased adoption of digital channels is generating large volumes of customer behavioural data. Advanced actionable analytics can help organizations define targeted marketing strategies. Search Engine Marketing (SEM) / Search Engine Optimization (SEO) Organizations are focusing on SEO efforts and paid search advertising for enhancing the visibility of their products and services. One more trend that has been observed recently is the continually mounting costs of pay-per-click (PPC) that has resulted in the increased disappointment with this form of search engine Advertising. According to experts, the reason behind such high costs is the huge investments made by large business concerns. Consequently, online business owners have now turned to the organic search results delivered through search engine optimization to enjoy so many advantages. There is currently more emphasis given to user-generated content, improved conversion rates, location- or language specific campaigns, and E-mail newsletters. The future of online Advertising is going to be more interactive with elevated bandwidth and computing speed. Viewing and transmitting videos will be a cakewalk for web surfers. There is also every possibility of witnessing browser-specific results in the coming days. Social media will consolidate their dominance further. They will not only make more revenues, but will grab the attention of more and more users as well. As far as search engine optimization is concerned, the search engine algorithms and link determination factors will be complicated. Further, thereby giving a hard time to online Advertising companies. Websites will be a lot slimmer to enhance user browsing experience. Last but not least, video search will grow in prominence with the potentiality to dictate the terms in the world of Internet advertising.
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TITLE: A Study on digital marketing and its impact on revenue generation, with reference to Odigma 1.3 NEED OF THE STUDY: Advertising is normally done by a third party known as advertising agency. An advertising agency is a service based business dedicated to creating, planning, and handling advertising for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and sales promotions for its clients. Types of ad agencies are Full service agencies Creative agencies Specialized agencies In-house agencies Digital agencies or new media agencies This report is completely discussing about digital or new media agencies. There was a time when Television was the most popular medium for Marketer to promote, spread awareness and generate leads for their products but now the trend has changed and Digital media has taken its place. Main reason for this change was Traditional methods are expensive. Compared to digital marketing channels, you could end up spending lakhs of rupees more. Traditional marketing channels fail to provide instant feedback and reports about who saw or heard an ad, and took action. This data is collected long after the initial ad impression is made (and still 8
then, the statistics are far from exact numbers). Digital marketing, on the other hand, refers to marketing methods that allow organizations to see how a campaign is performing in real-time, such as what is being viewed, how often, how long, as well as other statistics such as sales conversions. The digital landscape is moving at a lightning fast pace. Every industry has been affected by the advances in digital. Digital marketing is an essential part of this for companies who want to utilise the power of the internet in order to boost business. The tremendous scope of Internet Marketing in India, we have to understand that marketing through the internet can be an entirely different ball game. In fact it is a potent combination of technology and marketing acumen.
Digital Marketing like traditional form of marketing is a highly result driven and set objective practice. One can’t begin a digital marketing campaign without setting the campaign objectives. A digital marketer understands the needs of the clients and visualizes their needs to deliver what they want. Taking a look at last year’s figures, let’s see what AdAge discovered when looking at the statistics: 77% of people interact with brands on Facebook by looking at posts 17% share news and experiences with others about the brand 13% post updates about brands they have connected with 56% said they would recommend a brand after becoming a fan on Facebook 34% of digital marketers have generated leads from Twitter so as a marketing management student it's very essential to research on such an important marketing tool and study on its impact on revenue generation will help you to know about how marketing agencies performing .
1.3.1 Scope of the project: 1
To understand the digital marketing models.
1) To understand marketing effectiveness. 2) To understand how digital marketing campaign's takes place. 3) To understand how digital marketing agencies works and generating revenue. 4) To understand how digital marketing has impact on revenue generation.
1.3.2 Limitations of this project: 1. The time span for the project is limited. 9
2. This revenue generation model completely with reference to OdigMa 3. Time of campaigns for some client is more than three months. 4. Advertising expenditure of some companies is confidential so it can’t be revealed
2. RESEARCH METHODOLOGY The research design and methodology is presented as follows
2.1 Data collection:
The task of data collection begins after a research problem has been defined and research design has been chalked out. While deciding about the method of data collection to be used for the study, the research should keep in mind two types of data viz. Primary and Secondary.
2.2 Sources of data a) Primary Data. b) Secondary Data.
2.2.1 Primary data: The observation method is the most commonly used method. Data pertaining to digital marketing process and most of information is collected from project guide in the company. Questionnaire method is also very widely used in order to give a structure to the entire study.
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2.2.2 Secondary data: Secondary data is collected from already existing sources in various organization broachers & records. Secondary data for the study were collected from the magazines, websites & other previous studies. To meet the objectives, the study used qualitative research. The descriptive study was done through review of existing literature that helped in validation and extraction of the important variables and factors. Data was collected from secondary sources. Secondary sources were magazines, websites, books, office executives, and company data.
3. COMPANY PROFILE Odigma, a digital marketing firm with a performance-based pricing strategy, is Gearing up to serve clients in over 150 cities in India, in addition to setting up shop in Singapore and the Middle East by the end of next fiscal.
MISSION: Customer Satisfaction is our primary objective and we strive for Excellence in it. End user Contact and Immediate Problem Resolution is our Strength.
VISION Our vision is to set the high standards for Digital marketing & Technology around the world, across all industries through hard work, innovation and creativity until the preferred outcome is achieved.
WHAT THEY DO Odigma’s services entail Facebook
brand building suite, Twitter strategy planning and implementation,
social media platform connect, strategy on social media applications and SEO and Google AdWords PPC. Its clientele spans across sectors and includes companies such as Myntra, Infibeam, Indus League, HI design, MakeMyTrip and Toyota, to name a few. While 75 per cent of its clients are acquired through referrals and online marketing. 11
Digital Marketing and Customer Acquisition
From optimizing search campaigns to gain maximum leverage on media spends (SEM), to optimizing your internet property for gaining a better rank in organic search results (SEO), we ensure that you reach your objectives in the best possible way.
Plan companies social media campaigns to reach your exact target market with the right communication message.
Understanding brand message and creating interactive videos to showcase your brand presence is our speciality. 12
Creating custom mailer designs and execute them to drive your inbound marketing strategy.
Creating brand partnerships by leveraging an ecosystem with over 30,000 active partners.
Omni Channel Strategy and Business Solutions:
Designing and developing, visually appealing and functional websites which are accessible to your audience across multiple platforms. We ensure that whatever we deliver has the highest quality of experience.
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Creating integrated campaigns to create brand presence and recall in the mind of your audience.
We help understand the key pain areas of your CRM process and ensure the elimination of negative impression of your brand across the web.
Mobile App Development:
Specially designed enterprise and retail apps to ensure that your buyers can easily find and purchase products, leveraging technology in your favour to increase your revenues.
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Our visualizers think out of the box every day, thus helping you to leverage on existing content through innovative concepts to gain revenue.
Apps specifically conceptualized and designed to meet your business objectives. Our team of highly skilled visualizers, designers and developers, ensure that your users will experience only the best.
Digital Media Distribution and Solutions:
Brand campaigns using a mix of media and marketing. We partner with some of the largest music labels globally.
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Distribution of music, videos & other digital content across devices. Our platform and analytics power some of the largest labels globally.
Want to launch a story telling campaign built around music/videos/films celebrities.
3.1 MAJOR CLIENTS OF THE COMPANY:
4. INDUSTRY ANALYSIS The Indian Media and Entertainment (M&E) Industry, one of the most vibrant and exciting industries in the world, has had a tremendous impact on the lives and the Indian economy. As the M&E industry widens its 16
reach, it plays a critical role in creating awareness on issues affecting, channelling the energy of and building aspirations among India’s millions. As it entertains and informs the country, the M&E industry has been a catalyst for the growth of large parts of the Indian economy. M&E industry consist of TV, Print, Films, Radio, Music, OOH, Animation and VFX, Gaming and Digital Advertising. The FICCI-KPMG 2014 Report 'The Stage Is Set' showing the Indian media and entertainment (M&E) industry has grown by 11.8 per cent in 2013 while comparing with 2012 and touched Rs 918 billion. It is expected to touch Rs 1785.8 billion by 2018, with a CAGR of 14.2 per cent. By the end of 2014, the industry is expected to stand at Rs 1039 billion. Additionally, digital advertising has shown promising growth in 2013 while comparing with 2012, which is about 38.7 per cent, followed by gaming which grew by 25.5 per cent. As for the 2018 prediction: Digital advertising is expected to lead the CAGR with 27.7 per cent, followed by radio with 18.1 per cent. Gaming and television are expected to register a CAGR of 16.2 per cent each, followed by growth rates of animation and VFX (15.9 per cent), music (13.2 per cent), films (11.9 per cent) and OOH with 9.2 per cent expected CAGR.
According to the annual advertising expenditure report from GroupM, The digital media advertising revenues for the year 2013 is estimated at Rs 2,520.1 crore (around $405 million) , up 30% from Rs 1,938.6 crore in 2012,. Digital contributed to 6.5% of the total media advertising expenditure in 2013, up from 5.5% share in 2012. The agency estimates that the digital media advertising revenues to reach Rs 3,402.2 crore ($546 million) in 2014, registering a 35% growth year on year. This will represent around 7.9% of the total media advertising 17
expenditure in 2014, which is estimated at Rs 43,065.4 crore. The company notes this will be driven by election spending by the government and political parties across all media. GroupM made the prediction in the latest edition of its annual report This Year, Next Year. Digital media were projected to increase 35%, with TV slowing to 12% from last year’s 14.6% and print picking up to 8.5% from 4.6% in 2013. Digital ad spends accounted for 8.3 percent of the total ad spends of Inr362.5 billion in 2013. Digital media advertising in India is grown by 38.7 per cent in 2013, faster than any other ad category. With the dramatic growth in mobile usage, content providers and advertisers are seeking opportunities to get their message across on this preferred medium of the masses. It is estimated that the total internet user base will reach 494 Million by the end of 2018 as against 938 million TV viewers in the same year. This means that the internet user population will be approximately 53 per cent of the total number of TV viewer in the country in 2018 compared to 27 per cent in 2013. This shift towards the digital media is important for digital media strategists to consider, in order balancing their marketing budgets between online media and traditional TV strategy. IAMAI & IMRB report of March 2013 showing trends in breakup of Digital ad market among various ad types like search ads, display ads, mobile ads, social media ads, email ads and video ads. By seeing this breakup we can understand marketer are giving importance to all venues to place ads.
Some of the key players in the Digital advertising are Ogilvy & Mather, Web chutney, IBS, Isobar, Maxus, 22 Feet, Grey Digital, Mind Share, Interactive Avenues, Omnicom Media Group, Digital Law & Kenneth, Pinstrom.
4.1 Business Model of Industry:
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ATD- Agency Trading Desk
DSP- Demand Side Platform
SSP- Selling Side Platform
4.1.1 About Process Clients would give authority to agencies, to wear the shoes of clients. Agency will create ads, which may be banner ads or videos. After the creation and getting approval from clients, agency while find out the portals or websites where the T.G is present. Later give the order to DSP or ATD, this order contains details regarding where to place ads or which portal is requiring to placing the ad. This DSP/ ATD will bid in ad exchange for that portal. Otherwise agency can directly approach to ad networks and give orders. These ad networks buy the inventories from publisher and give to agency. From publisher view he can sell inventories through Ad networks or through SSP. If publisher give to SSP, they will place those space in ad exchange for bidding. Through ad exchange DSP/ATD will buy those inventories. Bidding will not only for space but also for T.G which required for clients. Ad exchanges are technology platforms that facilitate the bids for buying and selling of online media advertising inventory from multiple ad networks. The approach is technology-driven as opposed to the historical approach of negotiating price on media inventory. A demand-side platform (DSP) is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. Real-time bidding for displaying online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for
The banners and the pricing for the data that they are layering on to target their audiences. A supply-side platform or sell-side platform (SSP) is a technology platform, web publishers of the world use a supplyside platform to automate and optimize the selling of their online media space.
4.2 Porter’s Five Model Analysis of Digital Advertising Industry: Porter’s model will help analysis the industry and understand where the power lies in the business. Here I am using porter’s model to understand digital advertising industry in India. Generally, in the Indian advertising industry, contracts are long termed, and customers are likely to keep going back to the same advertiser so long as results were obtained the first time. 19
1) Threats of New Entry Full service agencies have high demand in Market. Lack of getting efficient work force is a threat in digital advertising. Cost of setting up a digital agency is low. But agencies need to invest a huge amount in backend function like technology. Getting clients in the initial stage is a bit difficult, because clients will usually look the past experience of agency. Government regulations in the digital advertising are low. While comparing with M&E industry. 2) Bargaining power of suppliers Lot of suppliers are there, but some suppliers who have high reach and affinity will charge high price for placing ads in their portals. Real time bidding will lead to increase the demand of some portals. Bargaining power of suppliers, who provide data and information are very high. Seasonal campaigns put pressure on supply side to charge high. Employee or work force with proper knowledge is limited. 3) Bargaining power of buyers Buyer are the clients of agencies, basically buyers are high idea seekers. Clients will choose agencies which have good experience in industry. Clients like long term relationships with agencies, so they also try to adjust with agencies. Clients can ask agencies to change pattern of campaigns at any time. Clients like MNC’s have high power over agencies, but SME’s will satisfy with performance of agencies. Backward integration by buyers is not possible. 4) Threats of substitutes No. of substitutes is high, substitutes include Print media, TV, OOH and Radio. Substitutes are too popular among buyers. They had high demand in past years. Main competitor for Digital advertising is TVC, but trends are now changing FICCI-KPMG report of 2014 showing growth of digital is very high while comparing with others media. But media consumption through radio is increasing now. 5) Rivalry by existing competitors At present competitors are low, but it can be increase in future. Because lot new players are
coming to the industry. Existing competitors have high profile clients and clients loyal toward them. Most of the traditional agencies are now concentrating in digital also. Existing firms in the Industry are creating variety and unique campaign for clients. Most of the firms have efficient backend support in technology. Existing firms have the expertise manpower and firms giving good remunerations to employees.
So employees are loyal towards employers. Some firms are popular due to execution of innovative campaigns.
Conclusion of Porter’s Five Force Analysis Low threats for new entry. High bargaining power of suppliers. Bargaining power of buyer is medium, but in coming year there is chance for increase. Due to lot of players are coming to industry. Threats of the substitutes are high, but it will change in coming years. 20
Rivalry by existing competitors is high, but possible to break it by doing some unique campaign for client. Indian market is a potential market for digital advertising due to high internet and mobile penetration.
5. LITERATURE REVIEW 1. Neelika Arora 32has published research article entitled “Trends in Online Advertising” in advertising Express, Dec2013. The global online advertising revenues are expected to touch US $10bn by 2015. In India, the revenues at present are estimated to be Rs.80 cr. and are expected to increase six times more within the next five years. In India, Internet as a medium is accepted by a wider industrial segment that includes automobiles, telecom, education, banking, insurance, credit cards, FMCG (Fast Moving Consumer Goods), apparel/clothing, durables, media, business services and tourism. Out of these, it is estimated that the banking, FMCG and insurance sectors together account for 45% of the total advertising spend. In comparison to this, automotive, travel and retail spend 37% of the total advertising revenue and financial service companies spend 12% only. Some of the top spenders in India are automobiles, followed by brands like Pepsodent, Kelloggs, Cadbury, HDFC (Housing Development Finance Corporation Ltd.) loans and Sunsilk. In addition to these the early adopters in the field of finance and IT are also increasing their spending. Globally, the trend is that almost 60% of the revenue goes to five firms- Goggle, Yahoo, Microsoft, AOL(America Online Launchers), and Overture. Approximately, 90% of the Goggle revenues come from advertising. In India, portals like indiatimes.com, exchange4media.com, rediffmail.com, agencyfaqs.com etc are attracting major online spender. This article explains demographic profile of Indian users. It also gives the comparison between global trend and Indian trend, which is useful for my research work.
2. Sumanjeet37 has published article on “On Line Banner Advertising” in Indian Journal of Marketing. 21
Online banner advertising has great potential as an advertising medium. It is easy to create, place and use. It offers companies targeting well educated, innovative, affluent males/females or students with great potential for success as their segments are highly represented. 3. Jaffrey Graham45 has published his article entitled “Web advertising’s future e-Marketing strategy” Morgan Stanley Dean Witter published an equity research report analysing the Internet marketing and advertising industry. The report studies research from dozens of companies and calculates the cost and effectiveness of advertising across various media. Branding on the Internet works. For existing brands, the Internet is more effective in driving recall than television, magazines, and newspapers and at least as good in generating product interest. 4. Advertising in social media: How consumers act after seeing social ads. Adapted from Nielsen (2012: 10). Social media has not only changed how people communicate online, but it has also changed the consumption of other media too. Online social connections are used to filter, discuss, disseminate, and validate news,
entertainment, and products for consumption. (Ryan 2011: 15) The next chapters will explain more about each of the world‘s current most widely used social medias. There are, of course, many other social networks and applications (apps) available but considering the study, the focus is on the main Medias. 5. Vikas Bondar has published his article on “sales and marketing strategies” Internet is a really good thing. The Internet gives people a greater amount of information as we need. It is the best way to get a comparison of the products that we need. If we are interested in buying, it is best for us to check the Web sites. Also if we would like to make our own Web page we can do this, without paying a lot of money. From where do we set all this information? The answer is from advertising, which we see, everywhere: on TV, on the Internet, in the newspapers and more. Year after year we get more and more new, interesting information and in the future the Internet use will increase more than now. This article explains how internet is useful tool for advertisement. 6. According to Garder‘s survey (2013), the top priority in digital marketing investment will be to improve commerce experiences through social marketing, content creation and management and mobile marketing. Key findings also revealed that a company’s marketing success relies mostly on their website, social marketing, and digital advertising, which are all parts of digital marketing. In addition, savings made by using digital marketing can be reinvested elsewhere. Normally, companies spend 10 percent of their revenue on marketing and 2.4 percent on digital marketing, which will increase to 9 percent in the future. 7. J Suresh Reddy26 has published article in Indian Journal of Marketing. Title of article is “Impact of Ecommerce on marketing”. Marketing is one of the business function most dramatically affected by emerging information technologies. Internet is providing companies new channels of communication and interaction. It can create closer yet more cost effective relationships with customers in sales, marketing and customer support. Companies can use web to provide ongoing information, service and support. It also creates positive interaction with customers that can serve as the foundation for long term relationships and encourage repeat 22
purchases. 8. Economic times published article on “Indian companies using digital marketing for competitive advantage” in Oct 2014. According to this article a growing number of marketers in India are leveraging digital marketing to increase their competitive advantage, a research by Adobe and CMO Council has revealed. According to the study, India leads in the confidence in digital marketing as a driver of competitive advantage. Ninety-six per cent of the Indian marketers have high confidence in the ability of digital marketing to drive competitive advantage. It is among the highest in Asia-Pacific APAC with only Australia leading with 97 per cent, the research said. However, while Indian marketers believe that the key driver to adopting digital is a growing internet population (70 per cent in India against 59 per cent in APAC), their belief that customer preference and digital dependence drive the adoption of digital, and that digital can engage the audience, is lower than the APAC averages, it added.
The 2014 Adobe APAC Digital Marketing Performance Dashboard was compiled through quantitative surveys with over 800 marketers across the region. Marketers from Australia, Korea, China, India, Hong Kong, Singapore and other countries were covered. "However, while India is an emerging leader in Digital Marketing, it has dipped in its own performance this year as compared to the previous year. It is important to note that India scored much higher than the APAC average last year," it said. Adobe Managing Director South Asia Umang Bedi said that customer preference and digital dependence would increase along with the increase in penetration of internet in the Indian market. "Therefore, what would matter is how the Indian marketers are able to increase engagement and activate audience through digital marketing. This presents challenges in programme planning, execution and most importantly measurement," he added. The study also revealed that compared to their APAC counterparts, Indian marketers are receiving lesser support from channel and sales teams for increasing digital spends. However they are doing better as compared to last year suggesting that departments that have a customer interface are realising the importance of digital marketing in augmenting their effort. 9. Andy mallinson in digital marketing magazine on Jan 23 2015 published article titles how social media engagement will impact the retail space it says Traditionally, social networks have not been used as a tool to directly drive e-commerce sales, but as Nielsen reported in its Global ecommerce report in August 2014, an estimated 61% of people spend a considerable amount of time researching products through online channels before making a purchase. And interestingly, a significant 43% of consumers revealed that they specifically browse through outlets such as Facebook, 23
Twitter, Pinterest, Instagram and Google+ to seek inspiration for the types of products to buy. This last statistic reveals just how powerful social media can be in terms of enticing shoppers to make a purchase, both through its use of visual content and product descriptions. But while many consumers still have reservations about purchasing items through social channels directly, the social shopping phenomenon is clearly only going to grow and it’s apparent that this growth will eventually have a positive impact on a retailer’s bottom line. One retailer which enjoyed success by promoting its products via social media is ASOS. At the start of 2014, ASOS previewed their summer sale through a Facebook application, allowing fans to play a series of games to accumulate points, getting them to the front of the virtual shopping queue. The winners gained first access to the sale, and through the support of sponsored ads ASOS was able to generate 1 million views through the application, growing their fan base by 32%.
This example shows how much potential there is for brands to drum up organic publicity for their products whilst engaging through fans across social media channels. Furthermore, it proves that social media outlets have evolved not only as a tool for driving community growth, but also as a revenue driving commodity to boost business performance. Retailers mustn’t underestimate the power of social engagement as a method of generating sales. This was proved by Wanted Shoes, who recently worked with us to design and integrate a ‘social catalogue’ onto their site. The social catalogue depicted real-life images of products that customers had recently purchased. When hovering over a post, users of the site were then directed to a link to buy the exact shoe displayed in the picture, or alternatively, were able to shop for other shoes from that designer. Supporting the concept that that social media engagement can facilitate purchase orders, according to Nielsen, 77% of shoppers say ‘social exposure’ and validation to a product is the most persuasive source of information, and does indeed drive them to make more purchases. After all, we mustn’t forget how powerful the trust of our peers can be, and this has a direct impact of driving revenue. As Wanted Shoes experienced, by showcasing its products in a customer driven catalogue, they were able to boost revenue and encourage more people to engage with their brand. Following this example as well as the other retail giants that have enjoyed impressive results through social channels, the retailer that ignores the power of social engagement in 2015 could potentially miss out on a substantial revenue stream – one that could decide the difference between success and failure in an increasingly competitive retail landscape. 24
10. Avinash kaushik is an indian entrepreneur published an article in dec 2014 titled digital marketing and analytics are two ladders of magnificent success.
6. DIGITAL MARKETING Meaning: Digital Marketing (also Online Marketing, Internet Marketing or Web Marketing) is a collective name for marketing activity carried out online, as opposed to traditional marketing through print media, live promotions, tv and radio advertisement. The rapid growth of Digital Marketing Industry is a direct consequence of the global phenomenon that is the Internet, and effectiveness of Digital Marketing channels in generating revenue and awareness. Compared to traditional methods of advertising, Digital Marketing offers rather realistic costs (particularly important for small- and medium-size businesses and start-ups), accurate targeting and excellent reporting.
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6.1 Types of Digital Marketing In normal outbound marketing, we will use pull and push marketing strategy. Like that in digital marketing also pull and push are types. In push digital marketing the marketer sends a message without the recipient actively seeking the content, such as display advertising on websites and news blogs. Email, text messaging and web feeds with customized Contents can also be classed as push digital marketing when the recipient has not actively sought the marketing message. Push marketing allows you to target your demographics and use your marketing dollars to promote your product to the people you know are interested in what you have to sell. A push marketing campaign can be more expensive when it comes to upfront costs, so you really need to be sure that your marketing is going to reach the right people at the right time. Behaviour targeting is good example for push digital marketing. In Pull digital marketing includes blogging, email marketing, social media, info graphics and other forms of visual messaging and search engine optimization (SEO). A pull marketing campaign also includes public relations or other ways of reaching out to potential or already realized customers who you want to keep engaged. While a pull marketing campaign can be less expensive to get started, you will incur costs in other ways. For example, if you are running a social media campaign, you will need to hire someone to manage your social media and respond to people who leave comments or ask questions. Social media gets people talking and that has a major impact on sales. Pull marketing also requires a greater investment in time, but it 26
gives you more ability to entertain your customers and educate them about your company. But don't get confused by seeing Email in push and pull, there is a difference. If marketer is sending emails with customized content or banners to specific group of customers is push digital marketing. If marketer is sending emails with the same content or banner to all customers is pull digital marketing.
6.2 DIGITAL MARKETING CHANNELS:
1. SEO (Search Engine Optimization): Search engine optimization (SEO) is the process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid ("organic") search results. SEO may target different kinds of search, including image search, local search, video search, academic search, news search and industry-specific vertical search engines. As an Internet marketing strategy, SEO considers how search engines work, what people search for, the actual search terms or keywords typed into search engines and which search engines are preferred by their targeted audience. Optimizing a website may involve editing its content, HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines. Promoting a site to increase the number of back links, or inbound links, social book marking, directory submission is the SEO tactic.
SEO OR ORGANI
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1.1 Directory submission It is a part of SEO (Search Engine Optimization) off page work. Directory Submissions is a process of submitting your Website URL to theme related Directory like if your site is Health Related you should Submit your site URL to Health related directories sites for getting Back link from them. Types of Directories:–There are basically three types of Directories Submissions
1. Paid or Featured Web Listing: – In this type of Directories Submission the owner of Directories Site Will Charge for Submission and your link will approved hand to hand or within 24 hours you will get fast back links from this type of submission. Some sites offer this package for yearly or lifetime.
2. Free or Regular Web Listing: – It is free for Directory Submission no one charge for free or regular submission but there is no guarantee for getting approved your link by Administrator and it will take lots of time. 3. Reciprocal Regular Web Listing: – In this a reciprocal link must be submit to your site when you activate Directory Link then Directory administrator will approve your link.
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Types of Directory Submission Ways 1.
Automated Directory Submission: – In this way of submission many software and tools are used to submit directories it will save time and with the help of automated huge amount of submission done in short time.
2.
Manually Directory Submission: – It is done by manually and it will take lots of time to do directory submissions.
Process of Directories Submissions 1. Open a Directory Site 2. Click on Submit Link 3. Choose your link type like Reciprocal Link Free, Regular Link Free and Featured Lifetime Link. 4. Fill your Site Title 5. Fill your Website URL 6. Fill Owner Name 7. Fill Owner E-mail id 8. Fill if you Choose Reciprocal Link 9. Fill Website Description 10. Choose Category related to your Site 29
11. Then Click on Submit Link
Then Confirmation Message will Display for your Submission and you will received a confirmation mail you must confirm it by clicking that link some sties send confirmation mail some doesn’t send it.
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1.2 Social bookmarking: Essentially, a social bookmark is a link that people post to social websites for others to see because they find it interesting, valuable or cool. In a way, social bookmarks are just like the bookmarks you already have on your private computer. The difference between the two is that social bookmarks are saved to the web where they can be easily shared while private bookmarks are saved to your own browser. The idea behind social bookmarking is simple: post links on popular social bookmarking websites to increase your own traffic and gain an ongoing stream of new readers and customers. Content that are openly shared with other Internet users literally have unlimited growth potential. For example, one link can quickly multiply and reach thousands of desktops across the world if one user passes it on to others, and those users in turn do the same, and so on. Online marketing has gravitated away from true-and-tried ad and affiliate marketing toward the rapidly growing world of global social networking. Social bookmarking is a great traffic-boosting search engine optimization (SEO) strategy because it’s easy, effective and trendy.
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2. SEM (Search Engine Marketing): Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization and advertising. ] SEM may use search engine optimization (SEO), which adjusts or rewrites website content to achieve a higher ranking in search engine results pages, or use pay per click listings.
SEM/PAID
SEM/PAID
There are four categories of methods and metrics used to optimize websites through search engine marketing. 1. Keyword research and analysis involves three steps ensuring the site can be indexed in the search engines, finding the most relevant and popular keywords for the site and its products, and using those keywords on the site in a way that will generate and convert traffic. A follow-on effect of keyword analysis and research is the search perception impact. Search perception impact describes the identified impact of a brand's search results on consumer perception, including title and Meta tags, site indexing, and keyword focus. As online searching is often the first step for potential consumers/customers, the search perception impact shapes the brand impression for each individual. 2. Website saturation and popularity, or how much presence a website has on search engines, can be analyzed through the number of pages of the site that are indexed on search engines (saturation) and how 32
many backlinks the site has (popularity). It requires pages to contain keywords people are looking for and ensure that they rank high enough in search engine rankings. Most search engines include some form of link
Popularity in their ranking algorithms. The following are major tools measuring various aspects of saturation and link popularity: Link Popularity, Top 10 Google Analysis, and Market leap’s Link Popularity and Search Engine Saturation. 3. Back end tools, including Web analytic tools and HTML validators, provide data on a website and its visitors and allow the success of a website to be measured. They range from simple traffic counters to tools that work with log files and to more sophisticated tools that are based on page tagging (putting JavaScript or an image on a page to track actions). These tools can deliver conversion-related information. There are three major tools used by EBSCO: (a) log file analyzing tool: Web Trends by NetIQ; (b) tag-based analytic tool: WebSideStory's Hitbox; and (c) transaction-based tool: Tealeaf RealiTea. Validators check the invisible parts of websites, highlighting potential problems and many usability issues and ensuring websites meet W3C code standards. Try to use more than one HTML validator or spider simulator because each one tests, highlights, and reports on slightly different aspects of your website.
4. Whois tools reveal the owners of various websites, and can provide valuable information relating to copyright and trademark issues.
2.1 Pay per click (ppc): Pay per click (PPC), also called cost per click, is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as “the amount spent to get an advertisement clicked.” With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements, also known as "banner" ads, are shown on web sites or search engine results with related content that have agreed to show ads. In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, which provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner 33
exchange, pay-per-click, and revenue sharing programs. Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to, above, or beneath organic results on search engine results pages, or anywhere a web developer chooses on a content site.
The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers. Pay-per-click is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is: Pay-per-click = Advertising cost ÷ Ads clicked There are two primary models for determining pay-per-click: flat-rate and bid-based. In both cases, the advertiser must consider the potential value of a click from a given source. This value is based on the type of individual the advertiser is expecting to receive as a visitor to his or her website, and what the advertiser can gain from that visit, usually revenue, both in the short term as well as in the long term. As with other forms of advertising targeting is key, and factors that often play into PPC campaigns include the target's interest (often defined by a search term they have entered into a search engine, or the content of a page that they are browsing), intent (e.g., to purchase or not), location (for geo targeting), and the day and time that they are browsing.
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2.1.1 Flat-rate PPC In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click. In many cases the publisher has a rate card that lists the pay-per-click (PPC) within different areas of their website or network. These various amounts are often related to the content on pages, with content that generally attracts more valuable visitors having a higher PPC than content that attracts less valuable visitors. However, in many cases advertisers can negotiate lower rates, especially when committing to a long-term or high-value contract. The flat-rate model is particularly common to comparison shopping engines, which typically publish rate cards. However, these rates are sometimes minimal, and advertisers can pay more for greater visibility. These sites are usually neatly compartmentalized into product or service categories, allowing a high degree of targeting by advertisers. In many cases, the entire core content of these sites is paid ads.
2.1.2 Bid-Based PPC: With the bid-based PPC model, the advertiser is allowed to bid, to compete against similar advertisers in a private auction. Each of the bidding advertisers lets the publisher know the maximum amount they are willing to pay for a given ad spot or keyword. The winning advertisers then pay for each click on their advertisement, based on the amount they bid. The common practice amongst bid-based PPC websites such as Google Ad Words, is to charge a small amount more than the next highest bidder.As you can see, Pay per Click can be a massively effective means of directing targeted traffic to your website, and is relatively inexpensive. While there is the risk of click fraud, most of the major Pay Per Click providers such as Google or Yahoo, have employed several automated systems to prevent abusive clicks by corrupt web developers or competitors out to cost you additional money. If used properly, you can find new customers with ease using Pay per Click. It might also be beneficial to find a reputable pay per click company to assist you with your campaigns.
3. SMM (Social Media Marketing):
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Social media marketing is the process of gaining website traffic or attention through social media sites. Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it across their social networks. The resulting electronic word of mouth (eWoM) refers to any statement consumers share via the Internet (e.g., web sites, social networks, instant messages, news feeds) about an event, product, service, brand or company. When the underlying message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself, this form of marketing results in earned media rather than paid media.
3.1 Engagement In the context of the social web, engagement means that customers and stakeholders are participants rather than viewers. Social media in business allows anyone and everyone to express and share an opinion or an idea somewhere along the business’s path to market. Each participating customer becomes part of the marketing department, as other customers read their comments or reviews. The engagement process is then fundamental to successful social media marketing.
3.2 Facebook Marketing Facebook is the world's most popular social network for both businesses and individuals. With over one billion users, your friends and fans are likely already using the platform and you should be too. In fact, people are 51% more likely to make a purchase after "liking" a brand on Facebook. Face book marketing requires a good intellects and unique thinking to make the campaign effective.
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In face book marketing in fact in visual /web marketing your content speaks a loud that is why make sure your content should be relevant to your audience and business.
Pros: Facebook is a low-cost marketing strategy Marketing activities that would cost thousands of dollars through other channels can be used on Facebook for a fraction of the cost. This makes it ideal for small to medium businesses with a limited marketing budget. Larger businesses can also trial marketing concepts and themes through Facebook before committing to bigger campaigns. Share basic information about your business Your Facebook page is a place where you can publicise your business name, address and contact details, and briefly describe your products and services. You can also talk about your staff, history, or any other aspect of your business that is likely to attract other Facebook users and create interest in what you do. Share pictures and videos from your business As well as allowing you to post text, Facebook lets you upload pictures and videos from your business. This can be a powerful way to communicate with customers and potential customers, allowing them to see your product or service without having to visit your premises. Facebook also allows users to 'tag' photos to indicate if a Facebook friend appears in them. This function can be used to promote your business. For example, a tour operator could post a photo on their page of a group going white-water rafting, then invite each participant to tag their image in the photo. Each tagged image will show up as an update on the participant's Facebook account, where their friends will see it too. This increases the level of interest in the picture, and your business.
If you do decide to use tagging, be careful. It can be a privacy issue, and some Facebook users are sensitive about being tagged in photographs. For this reason, it is better to ask participants to do the tagging, rather than doing it on their behalf. Talk to existing and potential customers You can use Facebook to 'talk' to existing and potential customers by posting and receiving messages. But don't use Facebook to aggressively promote your products or services. You'll have much greater success if you share information related to your business that is actually useful or interesting to other users. This increases your credibility and promotes your business by building long-term relationships with other users. For example, a veterinarian could post tips for looking after pets, timing them according to when particular health issues arise (e.g. ticks in summer).
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You should also listen as much as you talk. Paying attention to what the market thinks about your business, your industry, a product or a marketing campaign can provide valuable insights. Provide customer support Customers can post after-sales questions on your Facebook wall, and your staff can answer them there. This is often more efficient than staff answering phone calls, and allows other customers to read common questions and answers without having to approach you individually. Raise brand awareness and promote positive word-of-mouth You can increase your business's profile on Facebook by encouraging existing and potential customers to click the 'Like' button on your Facebook page. Once they like your page, your customers will receive your updates on their wall, where their friends will also see them. This helps to build awareness of your business, and to associate your friends with your brand. Customers can also post positive messages about your products or services, shared on their walls for all their friends to see. Facebook can steer traffic to your website You can include a link to your website on your Facebook page. Indeed, many businesses report that the greatest benefit of Facebook is the extra traffic that it steers to their site. Visitors who come to the website can be exposed to stronger marketing messages and, often, the option of buying goods and services. Customers who come to your website from Facebook are likely to be more receptive than the average visitor, because they already know something about your business and were motivated to click the website link. Targeted advertising Facebook can analyse all the information that millions of users enter into their profiles. As the owner of a business page, you can pay to use this information to deliver targeted advertising to a specific group. For example, an outdoor store could use Facebook to calculate how many men over a certain age in a certain city have listed 'fishing' as an interest. Then they could develop an ad for new fishing lures, and pay for it to appear only on the pages of those people. (Ads appear on the right-hand side pages in Facebook.)
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Offer deals through Facebook Places Facebook Places allows users to 'check in' on mobile devices at a particular place, so that their friends can see their location on Facebook. Facebook Places also identifies popular places close to where a user checks in. Businesses can use Facebook Places so that when a user checks in to a neighbourhood, street or business, they receive a list of nearby businesses offering deals (e.g. discounts, freebies, loyalty rewards). Businesses that have a Facebook page are automatically included in the Facebook Places directory.
Cons: Loss of Control Facebook was designed as an interactive online forum that encourages members to share information via photos, video clips, links and written posts. While account owners ultimately have control of what remains on their public profile, there is little control over who posts information or what those posts contain. It is relatively easy for a competitor, angry customer or disgruntled employee to post accusatory comments that are inflammatory, derogatory or otherwise slanderous to your business on your Facebook wall. Even wellmeaning posters may use language or photos that are not in line with the image you want to maintain for your business. Maintaining vigilant control over the content that appears on your Facebook page takes the time and effort of approved content monitors, which can be costly and time consuming for small business owners. Cost of Maintenance Content pages must continually be updated with new information that readers will find useful, beneficial or interesting for Facebook marketing to be effective. This requires development of a detailed innovative social media marketing strategy a costly investment for small advertising budgets. Facebook marketing strategies include video product demonstrations, interactive forums and online contests, all of which must be created, uploaded, monitored and maintained by a business owner, staff member or social media advertising agency. Competition Marketing platforms executed via Facebook are open to easy duplication by competitors. Rival business owners can easily pose as “friends” or “fans” to gain access to your content. Photos, artwork and other images posted to your site are easily accessed and reused by visitors and can show up in other places you may not approve of. Professionalism Social media platforms like Facebook were created to facilitate the casual sharing of information that may not mesh with the professional reputation you want to establish for your business. For example, Facebook marketing of a nightclub needs to be vastly different from Facebook marketing of a doctor’s office or law practice. Care must be taken to develop and maintain a Facebook presence that reflects your corporate philosophy, or it could place your company at a disadvantage.
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Advertising Costs While basic Facebook pages are free of charge for personal users, business accounts that feature advertising opportunities come with a price tag attached. This added promotional expense can be a disadvantage for small business owners. Negative Content Communicating with your clients or fans over Facebook sounds friendly in theory, but some people may use your Facebook page as a venue to write offensive comments or post spam. A user might even post false allegations about your business on your page for anyone to see. As a result, your business needs to be monitoring its Facebook page frequently, ideally checking each individual post. Even if you address these issues quickly, you'll never know how many people saw the negative comments on the page and will associate that memory with your business. Subscriptions Just because someone clicks "Like" on your page does not guarantee that she will see your updates in her Facebook news feed. In an effort to give users more control over their Facebook experience, the social networking site allows people to unsubscribe from a page's updates. When a user unsubscribes from your updates, your new posts will be hidden from her news feed, so she will only see your posts if she actively visits your page. This makes it impossible to know exactly how many people are actually viewing your posts in their news feeds, so you cannot accurately measure impressions. Time Consumption Utilizing a Facebook page as a part of your digital strategy is very time-consuming if done right. In addition to watching out for negative comments, a business should respond promptly to any questions or positive suggestions posed by customers. Because Facebook is up and running 24 hours a day, posts may accumulate quickly. If a business's Facebook engagement grows, it may even become necessary to designate an employee strictly to social media duties. This might not be realistic for some companies, making it unreasonable to properly manage a Facebook page.
Thumb rules:
Emphasize on visualization. Rich visuals make the best content and the best timelines. ‘Highlight’
posts to give them the full width of the Face book container. To make it more attractive. ‘PIN’ posts, these posts stay at the top of the feed promoting posts. Ensure FB apps have relevant info, your audience is looking for. Analyse what works, and what doesn’t work: Face book Insight. Edge Rank. Social bakers.
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3.3 Twitter marketing (A game of 140 characters) Twitter’s flexible, real-time platform allows you to get creative and drive results at the same time. Whether you’re looking to drive sales, increase brand awareness or launch a product. Twitter marketing is not much popular than face book but still it has an impact on audience
The very first thing in twitter marketing you need to understand and learn the twitter terminologies well. 1. HASHTAG A hashtag is any word beginning with the # sign. People use hashtags to organize conversations around a specific topic. Clicking on a hashtag takes you to search results for that term. 2. MENTION Sometimes you want to bring a Tweet to someone’s attention, but you still want all of your followers to see the message. So instead of a reply, use a mention. Include the @username of whomever you want to mention in your Tweet, and it will appear in the Mentions section (in the Connect tab). All @username mentions are clickable and link back to the mentioned individual’s profile.
3. REPLY You can respond to a Tweet by hitting the reply button. When you reply, your response is public, and will show up in your home timeline and the timeline of the person to whom you are responding. The reply will also be visible in the home timelines of people who follow both you and the person to whom you sent the reply. Meaning, someone not in the conversation has to follow both of the people replying to be able to read both sides of the conversation. 4. RETWEET You can pass along someone’s Tweet by retweeting it. Just hit the retweet button to send the original message to all of your followers. 5. LINKS Twitter’s link- shortening feature allows you to paste a link of any length into the Tweet box and it will automatically be shortened to 19 characters. This makes it easier to fit long URLs into the 140 character limit. 41
6. FAVOURITE You can favourite the tweet for future reference. This is just like an archiving something that’s really interesting to you. 7. DM (direct message) You can send private messages to someone, just like an email. For DM, sender and receiver should be following each other.
Pros: The targeted market is most probably on Twitter: Since a very large number of people use social network, there is a high probability that the interested parties for the product you are advertising is in the virtual world. This is one great advantage every business should try to make use of because if you are not using social networks for advertising, then you are missing a large market. Great way to research market: With the growing popularity of the internet, market research has become easy. Instead of spreading questionnaires or asking people oral questions, the use of social networks made it easy by making it easier to create free surveys and posting the links so that people can participate. This is a very easy way of doing market research, keeping in mind the fact that the setting up the surveys won’t cost money and people can finish those surveys in less time than the hard copy one. Growth of social networking: There is no doubt that the use of social networks is rapidly growing. What this means to business is that, there are audience on the virtual world than the business could ever reach through any other type of media. This is in fact one of the main advantages of using Twitter and other social networks for businesses. Easier way to pass info: By just posting a 140 character tweets, a business would be passing more information than it can do anywhere else. This costs less or almost nothing compared to other modes like sending a mail or making a phone call. I also don’t know if this is true for everyone else, but I may read lots of stuff online that I may not read if they were on a hard copy or somewhere else.
Cons: Spams and viruses: When the use of the internet world has increased, the potential risks that one can obtain from the internet have increased as well. What this means is spammers could spam your site or worse than that, can find access to your information through social networks. Social networks could be useful, but if not properly used, then they could lead to more problems.
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Using for business needs: Twitter and other social networks are designed to be user friendly. On the other hand, there are also applications and other aids that make it easier to use. One thing with social networks is that businesses and individuals do not use it the same way. What this means is that businesses need to learn how to efficiently and effectively use Twitter and other social networks so that they could make the use out of it. Limited space: I think everyone who used Twitter or paid a little attention to how it’s used knows about the 140 characters thingy. This kind of space or limitation on character is not enough for most business and this is where learning to effectively and efficiently twitter comes into place. On the good side, may be this is good, because otherwise people won’t be in the mood to read a whole blog most of the time. Streamline nature of twitter: It’s a common expectation of anyone who follows others on twitter not to follow everything. One of the reasons this happens is because the tweets in twitter are designed to stream really quickly and usually show the latest tweets. So some of times, some of the tweets one makes or a business makes may lost in the long shuffle of tweets. Like I said before, this calls for learning to use twitter effectively.
Thumb rules:
Remember, you just have 140 characters to play around. Compose your message within 120
characters or less and leave atleast20 characters so that others can re-tweet (RT). Utilization of # hash tags Tweets with hash tags get twice the engagement of those Create a list of #Hash tags relevant to your brand Build a campaign around those #Hash tags and invite followers to re-tweet.
Posts with images have double the engagement of those without even though users can’t see them until they click on them. It creates an interest among the audience.
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3.4 Linked In Marketing: LinkedIn is a business-oriented social networking service. Founded in December 2002 and launched on May 5, 2003 it is mainly used for professional networking. In 2006, LinkedIn increased to 20 million members. As of June 2013, LinkedIn reports more than 259 million acquired users in more than 200 countries and territories. LinkedIn allows companies to create professional profiles for themselves as well as their business to network and meet others. Through the use of widgets, members can promote their various social networking activities, such as Twitter stream or blog entries of their product pages, onto their LinkedIn profile page. LinkedIn provides its members the opportunity to generate sales leads and business partners. Members can use “Company Pages” similar to Facebook pages to create an area that will allow business owners to promote their products or services and be able to interact with their customers. Due to spread of spam mail sent to job seeker, leading companies prefer to use LinkedIn for employee's recruitment instead using different job portals. Additionally, companies have voiced a preference for the amount of information that can be gleaned from LinkedIn profile, versus a limited email. Pros and Cons of social media marketing on LinkedIn LinkedIn is one of today’s biggest social networks but it’s not exactly what you might call “strictly social.” LinkedIn provides a great deal of exposure to businesses and can help find new partners, business opportunities, or employees. Some might even call LinkedIn a social network for business as it’s used mainly for “professional networking.” As a social platform LinkedIn incorporates many social aspects, but its main focus is the business world. As a result, many small business owners join LinkedIn with the hopes of expanding their ventures and creating new connections that might prove beneficial. But like most things, LinkedIn has its pros and cons.
Pros •
The first, most obvious benefit from using LinkedIn comes from the algorithmic realm of SEO (search engine optimization). It’s yet another avenue that search engines use to bring businesses in search query results. It’s the perfect tool to give a business more exposure while also allowing it to expose the most crucial parts of its business – the mission, the background, the members of the team, etc. Increased SEO exposure leads to increased web traffic which, in turn, leads to an increased conversion rate.
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LinkedIn is also a great way to stay up-to-date with the news from your industry or field of interest. This is a major benefit it keeps you in the current loop, indicates upcoming trends or big ideas, and provides a ripe stomping ground for sharing experiences and advice among experts surrounding topics that are important to the business. These easily accessible resources are invaluable to a company, particularly smaller ones, due to its low cost and high beneficial value. 44
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LinkedIn is also a great asset because of the amount of information it gives about a particular company or business. Similar to Facebook, LinkedIn will tell you all the major data you need to know about a company as well as give you the professional profiles of the individuals associated with the business – from employees to investors. Access to this type of specific data and information allows users to easily find potential partners or recruit new employees, saving you a lot of time, energy, and resources.
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LinkedIn Answer also gives users the chance to demonstrate their knowledge and skills in their respective field to establish themselves as credible experts with vast knowledge and expertise. In turn, this is beneficial for LinkedIn users as it positions them as experts and boosts the company’s credibility.
Cons: •
When looking at LinkedIn, it’s also important to be aware of and acknowledge its cons. One of the major negatives is the way users use LinkedIn as an advertising megaphone via SPAM so brace yourself for the slew of SPAM coming your way.
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Once established, LinkedIn is a major timesaver. But in the beginning, it requires a lot of personal time and work version of LinkedIn, but that might not be an option for smaller companies with a limited budget. to get your connections flowing and conversations started. Users need to constantly ask others to be introduced to companies and individuals they are interested in connecting with, which can be cumbersome at times. Always keep in mind that LinkedIn is a platform for connections and conversations so approach these tasks with the outcome of building a business relationship in mind. This task can be sidestepped with the paid
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Overall, LinkedIn is a solid platform for businesses and individuals. If you are just getting started, keep these pros and cons in mind. If you do, your relationship and experience with LinkedIn will prove beneficial.
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In our internship, we used LinkedIn to grow the professional network of Institute of Digital Marketing. This institute not only provides knowledge but also do business with its skill sets. LinkedIn helps in building great professional network and in getting new businesses. Apart from the workshops and course classes, Institute of Digital Marketing has some set of people who develops e-commerce websites and optimizes them. Hence, in order to get business we have used LinkedIn as a major platform.
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In LinkedIn groups, there will be discussions going on every time. So, we have created a LinkedIn group and started discussions on various topics on digital marketing. In the beginning the results were very slow since LinkedIn is strictly a professional network and the targeted 45
people might not
Show much interest here. As it goes on, our discussion has got a wide popularity with students from different colleges asking questions and actively participating in the discussion. With this growing popularity on LinkedIn, slowly business started coming in. in the beginning only small projects used to come like landing page creation, content creation, blog postings etc. There were two big projects came during my internship tenure from Dharani Computers and The Suntech Corporation for developing and managing the website and do search engine optimization for them.
3.5 Pinterest: It is a visual discovery social network. It is a way of sharing images of anything, from fashion to pets to pot plants. You can create your own online pinboards to suits any theme and share it with likeminded people. Pinterest completely revolves around the premise of being creative and visual. 70% users are female and aged between 25 and 44. So if you are targeting women pinterest is the right platform. Pinterest is now one of the top 10 social networking sites tracked by Hit wise.
How brands can use pinterest Pinterest does not encourage product pushing, this means brands must look at crating boards that are culture and lifestyle related. You can create boards on trends, behind the scenes, preliminary sketches for products.
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3.6 Instagram: Instgram, the new revolutionary photo-sharing program, making it easier than ever to share your best pictures with the world. The social media program allow you to upload, add digital filters, and then post your pictures on your Instagram-feed, as well as other social networking sites. You can connect your Instgram account with Facebook, Twitter, Tumblr, Flickr, Foursquare and your email account. This makes it easy to share your pictures on multiple platforms all at once. When it comes to brands and businesses, Instagram goal is to help companies to reach their respective audiences through captivating imagery in a rich, visual environment. Moreover, Instagram provides a platform where user and company can communicate publicly and directly, making itself an ideal platform for companies to connect with their current and potential customers.
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3.7 Google +: Google has described Google+ as a "social layer" that enhances many of its online properties, and that it is not simply a social networking website, but also an authorship tool that associates web-content directly with its owner/author. It is the second-largest social networking site in the world after Facebook. 540 million monthly active users are part of the Identity service site, by interacting socially with Google+'s enhanced properties, like Gmail, +1 button, and YouTube comments. In October 2013, Google counted 540 million active users who used at least one Google+ service, of which 300 million users are active in "the stream".
Pros: With most marketers comfortable with using Facebook for their primary social media marketing tactics they quite often don’t see the other opportunities. Here are some compelling reasons to register and start using a Google+ page to complement your Facebook page, your social media and digital marketing activities. Google+ hangouts Google+ hangouts have been an important part of the Google+ platform since day one. They allow you to create online meetings that are limited to 10 active users but it allows you to stream YouTube video to an unlimited number of viewers. Hangouts provide a way to engage with small groups of customers that you may want to share important information and/or educate. No update filtering Google doesn’t need to make money from Google+ as its major revenue (over $30 billion) is from its Google ad words and search advertising. It doesn’t need to force you to pay to be visible on Google+. Facebook has increasingly applied its Edge rank technology that filters the updates that are seen by people that have liked your brand’s “Facebook page”. Some research shows it at less than 15% and shrinking. This is so they can force you to spend to advertise on Facebook to get attention. It has become “pay to play” Google plus does not filter (censor) your updates to followers that are following your page. No ads Point two leads to another advantage. There are no annoying advertisements on Google plus. No distractions 48
and no one wanting to sell you weight loss or dating services. Social signals Google wanted to enhance its search engine capabilities by having humans vote on what content they liked. (That is the Google+ button). This is now built into Google’s search algorithms to ensure that Google remains relevant on the web. This makes certain that your content is receiving votes (social signals) when you are participating on Google+. Search visibility
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By participating on Google plus you are increasing the visibility of your brand. Ever searched for a brand or business and noticed what comes to the top of the rankings? It is all the major social networks that appear on the first page. Also what should be considered is the importance of securing your brand name on Google+, which is an important part of building your online digital assets. It is the second largest social network Google plus is no longer something to be ignored with over 600 million registered users and over 350 million active monthly users. Many of your customers are now on Google+. That on its own should be enough to make you motivated to participate. You do need to establish a marketing beachhead on this significant platform. Local marketing Google has removed “Google Places” and now has created a “Google+ Places Page”. This means that customers who are on Google+ can leave reviews for your business there. This turns up on local search results. Now that is something you shouldn’t ignore if local location marketing is vital for your retail store or business. Integration with other Google properties Google built Google+ from day one to be integrated into its other web properties. They consider it as being “core” to its entire online strategy so it is woven into Gmail, the Chrome browser, Picasa and YouTube. This integration will lead to more effective marketing over time.
Cons: Google Plus still has Relatively Low Reach Google Plus still serves a much smaller market than Twitter and Facebook, and it is not surprising that many customers cannot be reached through Google Plus. As such, many potential customers will not see or be interested in your company’s Google Plus content on your business page because they don’t want to use Google Plus. Google’s Poor Social Media Track Record This is a legitimate risk factor. Many of Google’s past forays into social media like Buzz and Wave not only failed, but failed with scandals and controversy. There is a fair amount of scepticism whether or not Google Plus is just another house of cards waiting to collapse, even after several years of operation.
3.8 You tube YouTube is a video Social Networking site, and the 2nd most popular search site on the Internet after Google, who owns YouTube. YouTube video watching is a significant activity on the Internet, with over 1 billion visits to YouTube daily and over 100 million videos watched daily. And it's easy for anyone who sees 50
your video to rate it and share it with his Social Network.
Pros: Vast Audiences for your Video The success of any business depend upon its visibility and youtube gives you that very much required exposure with little or no effort at all. It is just the matter of selection of uploading your video under right place, under right category. So it is very easy and more likely to reach masses when you use youtube for your videos, and hence chances of clever video to grab viewers’ attention and go viral, is quite high on youtube, when self-hosted videos(websites). Anybody can embed videos on their websites, blogs etc. and if good, your video will also be approachable from outside of youtube. In case you want your video to be viewed by selected number of people. You can do that by making it private. Save Dollars with Free Video Hosting If you are planning to host your videos on your own video hosting server or thinking about getting licence from a video platform then you have to take in account, this extra burden of dollars on your wallet. Though Google don’t promote commercial video sharing but has now made an amendment in the terms and conditions for sharing original contents of brands. It is one time investment and you would be happy to upload your content on YouTube as you are still saving the additional design and functional costs. Hence, if you compare the current cost for licences of video platform YouTube brand channel is a smart bet.
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The ease to use it Though we all get motivated enough to cross all hurdles and do hard work, when we decide to do some serious business but why to choose a harder path when similar results can be achieved with an easy and fair option. This is the reason why YouTube is a favourite option. All you need is to follow some very basic and simple steps to upload your video(s). Create an account, sign-in, upload and before you blink you are on YouTube. You can easily upload a video via a flip video camera or your smartphone within minutes. In fact if user is interested in just watching a video no registration is required. Yes! It is as simple as that. Links and Web Traffic Not only sales but web traffic for the video (actually website) is also very important for any business based on web. You don’t have to bring people to visit your video instead YouTube brings them for you and if you are lucky enough and your content go viral (i.e. your content liked by (exponentially increasing) high number of people) then if you are on YouTube other website will embed your video to make themselves more optimized for searches. As mentioned earlier YouTube is owned by Google who is Father of all search engines also uses its owned sites for searches so definitely your network is quite strong, when you are on YouTube. Large Bandwidth and sustainability YouTube is a dedicated website from the well-established giant Google, and it has its own dedicated servers to handle hell load of traffic (hundreds of thousands or millions of visitors over a short period of time). Consider the case when your video goes viral and you start getting whooping number of hits, then will arise the need of substantial amount of bandwidth to handle such a heavy traffic. So if you are not using YouTube, you are in trouble, and unfortunately instead of being happy you would be in a panic situation due to the potential low bandwidth of your website. Of course, it is wise to use YouTube when the whole world is interested in your video(s). Number, length, size of Videos Today YouTube if the world’s dominant resource and repository for videos and luckily there is no limit on the number of videos you can upload, which is not possible if you are using some other licenced video platform. You may say 15 minutes which is the current allowed length of a video is less for your content. Is it really? Anything effective can be presented even in lesser time but if you think otherwise then all you need to do is to break your content in different videos logically and upload them in parts instead of a single video. Is it not cool? For video, 2GB size is good amount and it is the current size you can upload on YouTube. Basically a standard sized video will easily fit on YouTube. Feedback is Important If we don’t listen to others and analyse their suggestions or comments about our work, we can’t learn and survive in this competitive environment. YouTube allows viewers to provide comments for the videos and hence you are in direct touch with live audiences and potential customers. Importantly al the comments are emailed to you and in case you want to delete any comment, you can do it easily. 52
Easy navigation and supported Formats There are several ways one can search for videos on YouTube – by keyword, by topic or by simply scanning the most popular video’s list. If you like the work of some producer, simply subscribe and no more searching would be required for that producer. YouTube uses Adobe Flash to play back videos which is a standard format supported by most browsers (IE, Firefox, Safari, and Opera). You can upload most popular video formats: .WMV, .AVI, .MOV, and .MPG files which are automatically converted to flash. People can reach YouTube videos through their mobile devices as well. Point is, when a popular service is easy and can be commonly used then it is wise to host your videos on that website.
Cons: Concept overrides content Good content is not as necessary as good concept in video-making. To get thousands of views and drive visitors to your YouTube video, you have to inject a great concept that makes them almost forget how they were led to the site. Learn how to remix videos and audios and create the element of surprise. Break down long clips to shorter and bite-sized ones to appeal to a larger audience. Make your ads outright and amazing. You can use title optimization by using intriguing headlines that would make them want to find out more about your topic. Requires more attraction Users of the Internet usually just scan text-based content to find the information and get to the core of the content immediately. Realize that in videos, this cannot entirely be applied. Viewers watch videos from beginning to end and not jump from one segment to another to find meaning in the video. Hence, the intro of your video must be alluring enough to get them continue watching until the end or until you have made your point get across. Make it snappy and no longer than three minutes. Else, especially for those with slow Internet connection and those with shorter attention spans, users will more likely to just press the X button and move on to the next video. Fresher uploaded videos result from the search hits Typically in Google searches, the more aged the blog post is, the more it gets brought up to the top results page. This is because the page has incurred more backlinks and has increased credibility rate online. In comparison, YouTube searches don’t act that way. Rather, it considers the newest videos as the top-rated hits. There is what’s called the “freshness” factor in every video. So in order for your videos to rank high and produce the honors, you must either resubmit or re-upload them whenever you got the time and remove the older video. Note also that in YouTube, videos only have a shelf life of two days before it is moved out from the Daily Most Viewed list to the Weekly Most Viewed. So the key here is to make sure that it’s getting viewed more and more each day, to stay on top. Marketing through YouTube videos can be one of the effective ways on how to take advantage of the fact that people are visual. 53
Videos can entertain your viewers or followers than textual content. However, when done wrong, they will only be bored and may hit on the Unsubscribe button.
4. ODA (Online Display Ads): Display advertising is a type of advertising that is located on websites. It can be seen in a wide range of different formats and contains items such as texts, images, flash, video and audio. The main purpose is to deliver general advertisements and brand messages to the plus 40 million people connected to the Internet each month. It is important to choose the right format because it will help to make the most of the medium. It is also possible to add:
Video
Expendables: flash files that expand when the user interacts on mouse over
Overlays: ads that appear and that it is possible to remove clicking a close button;
Sponsorship: including a logo or adding a brand to the design of a web site.
To help to better selecting the right format for type of ad, Interactive Advertising Bureau has realized a Display Standard Ad Unit Portfolio that works as guideline that can be followed by the creative.
Standard size IAB has also created a universal standard for display ad sizes Page text. There are four dimensions that have been decided as universal and are respectively:
Banner 728 x 90
Rectangle 336 x 280
Skyscraper 160 x 600
Square 250 x 250
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5. ORM (Online Reputation Management) Online reputation management coined by the public relation. Basically ORM is a process include
Undertake the comprehensive research and analysis the online content. Track your users’ actions and opinions about brand. Reduce your risk of featuring amongst the negative user sentiments. Enhance your web presence and create positive perceptions.
6. MMT (Mobile Marketing): Mobile marketing is marketing on or with a mobile device, such as a smart phone. Mobile marketing can plague customers with time and location sensitive, personalized information that promotes goods, services and ideas. In a more theoretical manner, academic Andreas Kaplan defines mobile marketing as "any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device". Mobile marketing via SMS has expanded rapidly in Europe and Asia as a new channel to reach the consumer. SMS initially received negative media coverage in many parts of Europe for being a new form of spam as some advertisers purchased lists and sent unsolicited content to consumer's phones; however, as guidelines are put in place by the mobile operators, SMS has become the most popular branch of the Mobile Marketing industry with several 100 million advertising SMS sent out every month.
6.1Ways of mobile marketing: MMS MMS mobile marketing can contain a timed slideshow of images, text, audio and video. This mobile content is delivered via MMS (Multimedia Message Service). Nearly all new phones produced with a color screen are capable of sending and receiving standard MMS message. Brands are able to both send (mobile terminated) and receive (mobile originated) rich content through MMS A2P (application-to-person) mobile networks to mobile subscribers. In some networks, brands are also able to sponsor messages that are sent 55
P2P (person-to-person). Good examples of mobile-originated MMS marketing campaigns are Motorola's ongoing campaigns at House of Blues venues, where the brand allows the consumer to send their mobile photos to the LED board in real-time as well as blog their images online.
Push notifications Push notifications were first introduced to smartphones by Apple with the advent of the iPhone in 2007. They were later further popularized with the Android operational system, where the notifications are shown on the top of the screen. It has helped application owners to communicate directly with their end users in a simple and effective way. If not used wisely it can quickly alienate users as it causes interruptions to their current activities on the phone. It can be much cheaper if compared to SMS marketing for the long run, but it can
Become quite expensive on the short run, because the cost involved in application development. Once the application is download and installed provided the feature is not turned off it is practically free, because it uses internet bandwidth only. SMS and push notifications can be part of a well-developed inbound mobile marketing strategy.
APP Based marketing With the increasingly widespread use of smartphones, app usage has also greatly increased. Therefore, mobile marketers have increasingly taken advantage of smartphone apps as a marketing resource. This allows for direct engagement, payment, and targeted advertising. There is a lot of competition in this field as well. However, just like other services, it is not easy anymore to rule the mobile application market.
In game mobile marketing There are essentially three major trends in mobile gaming right now: interactive real-time 3D games, massive multi-player games and social networking games. This means a trend towards more complex and more sophisticated, richer game play. On the other side, there are the so-called casual games, i.e. games that are very simple and very easy to play. Most mobile games today are such casual games and this will probably stay so for quite a while to come. Brands are now delivering promotional messages within mobile games or sponsoring entire games to drive consumer engagement. This is known as mobile advergaming or Ad-funded mobile game. 56
Mobile web marketing Google and Yahoo! as on web pages specifically meant for access by mobile devices is also an option. The Mobile Marketing Association provides a set of guidelines and standards that give the recommended format of ads, presentation, and metrics used in reporting. Google, Yahoo, and other major mobile content providers have been selling advertising placement on their properties for years already as of the time of this writing. Advertising networks focused on mobile properties, SMS resellers and advertisers are also available. Additionally, web forms on web pages can be used to integrate with mobile texting sources for reminders about meetings, seminars and other important events that assume users are not always at their computers. In addition Mobile websites are another aspect of mobile web marketing and can be a tool than can used to help make purchasing goods and services easier as well as create better communication opportunities between trades.
QR codes QR codes allow a customer to visit a web page address by scanning a 2D image with their phone's camera, instead of manually entering a URL. The resultant URLs typically include tracking features which would be unwieldy if typed by the customer. Originally approved as an ISS standard in 1997, Denso-Wave first
Developed the standard for tracking automobile parts in Japan. QR codes have been growing in popularity in Asia and Europe, but have been slow to be adopted in North America. Some high-profile QR campaigns in the United States have included billboards by Calvin Klein in Times Square, QR codes for every SKU in Home Depot and Best Buy stores, and a scavenger hunt promoting Starbucks and Lady Gaga. Apple pass book Implemented as a native app for iOS6, has employed QR codes as one of the ways that the iPhone (or iPod Touch) users can take a real world action. I.e. scan the Barcode on their Passbook Pass. In addition to QR codes, the Passbook (application) also supports PDF417 and Aztec 2D Barcodes.
Bluetooth The rise of Bluetooth started around 2003 and a few companies in Europe have started establishing successful businesses. Most of these businesses offer "hotspot" systems which consist of some kind of content-management system with a Bluetooth distribution function. This technology has the advantages that it is permission-based, has higher transfer speeds and is also a radio-based technology and can therefore not be billed (i.e. is free of charge). The likely earliest device built for mobile marketing via Bluetooth was the context tag of the AmbieSense project (2001-2004). More recently Tata Motors conducted one of the biggest Bluetooth marketing campaigns in India for its brand the Sumo Grande and more of such activities have happened for brands like Walt Disney promoting their movie 'High School Musical'.
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Mobile marketing via proximity systems, or proximity marketing, relies on GSM 03.41 which defines the Short Message Service - Cell Broadcast. SMS-CB allows messages (such as advertising or public information) to be broadcast to all mobile users in a specified geographical area. In the Philippines, GSMbased proximity broadcast systems are used by select Government Agencies for information dissemination on Government-run community-based programs to take advantage of its reach and popularity (Philippines has the world's highest traffic of SMS). It is also used for commercial service known as Proxima SMS. Bluewater, a super-regional shopping Centre in the UK, has a GSM based system supplied by NTL to help its GSM coverage for calls, it also allows each customer with a mobile phone to be tracked though the Centre which shops they go into and for how long. The system enables special offer texts to be sent to the phone. For example, a retailer could send a mobile text message to those customers in their database who have opted-in, who happen to be walking in a mall. That message could say "Save 50% in the next 5 minutes only when you purchase from our store." Snacks company, Mondelez International, makers of Cadbury and Oreo products has committed to exploring proximity-based messaging citing significant gains in point-ofpurchase influence.
Location Based services Location-based services (LBS) are offered by some cell phone networks as a way to send custom advertising and other information to cell-phone subscribers based on their current location. The cell-phone service
provider gets the location from a GPS chip built into the phone, or using radiolocation and trilateration based on the signal-strength of the closest cell-phone towers (for phones without GPS features). In the United Kingdom, which launched location-based services in 2003, networks do not use trilateration; LBS services use a single base station, with a 'radius' of inaccuracy, to determine a phone's location. Some location-based services work without GPS tracking technique, instead transmitting content between devices peer-to-peer.
User controlled media Mobile marketing differs from most other forms of marketing communication in that it is often user (consumer) initiated (mobile originated, or MO) message, and requires the express consent of the consumer to receive future communications. A call delivered from a server (business) to a user (consumer) is called a mobile terminated (MT) message. This infrastructure points to a trend set by mobile marketing of consumer controlled marketing communications. Due to the demands for more user controlled media, mobile messaging infrastructure providers have 58
responded by developing architectures that offer applications to operators with more freedom for the users, as opposed to the network-controlled media. Along with these advances to user-controlled Mobile Messaging 2.0, blog events throughout the world have been implemented in order to launch popularity in the latest advances in mobile technology. In June 2007, Air wide Solutions became the official sponsor for the Mobile Messaging 2.0 blog that provides the opinions of many through the discussion of mobility with freedom. GPS plays an important role in location-based marketing.
7. EMT (Email Marketing) Email marketing is directly marketing a commercial message to a group of people using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to either sold lists or a current customer database. Broadly, the term is usually used to refer to sending email messages with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business, acquiring new customers or convincing current customers to purchase something immediately, and adding advertisements to email messages sent by other companies to their customers. Types of email marketing Email marketing can be carried out through different types of emails:
Transactional emails Transactional emails are usually triggered based on a customer’s action with a company. To be qualified as transactional or relationship messages, these communications' primary purpose must be "to facilitate, complete, or confirm a commercial transactions that the recipient has previously agreed to enter into with the Sender", along with a few other narrow definitions of transactional messaging. Triggered transactional messages include dropped basket messages, password reset emails, purchase or order confirmation emails, order status emails, reorder emails and email receipts. The primary purpose of a transactional email is to convey information regarding the action that triggered it. But, due to its high open rates (51.3% compared to 36.6% for email newsletters), transactional emails are an opportunity to engage customers: to introduce or extend the email relationship with customers or subscribers, to anticipate and answer questions or to cross-sell or up-sell products or services. 59
Many email newsletter software vendors offer transactional email support, which gives companies the ability to include promotional messages within the body of transactional emails. There are also software vendors that offer specialized transactional email marketing services, which include providing targeted and personalized transactional email messages and running specific marketing campaigns (such as customer referral programs).
Direct emails Direct email or interruption based marketing involves sending an email solely to communicate a promotional message (for example, an announcement of a special offer or a catalog of products). Companies usually collect a list of customer or prospect email addresses to send direct promotional messages to, or they can also rent a list of email addresses from service companies, but safe mail marketing is also used.
7. AIDMA AS AISAS IN DIGITAL ERA AIDMA widely accepted model describing the psychological process leading up to the consumer’s decision to purchase a product. This model is similar to AIDA model. The AIDMA Model was first advocated by Roland Hall, an American economist, around 1920. According to this model, there are five key processes: Attention, in which the consumer first notices the product or advertisement, followed by Interest, Desire, Memory, and Action. This model has been used extensively in the advertising and marketing industries.
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Attracti on
Interest
Desire
Memory
Action
AISAS is a process model of consumers purchasing activities in the Internet age. AISAS is a consumption behaviour model that has been advocated by Dentsu since 2004. It was developed to observe behaviours based on the understanding that the Internet has become prevalent, and that consumers now have access to environments in which they can obtain and transmit information themselves. In this model, the key processes are: Attention, in which the consumer first notices the product or advertisement, followed by Interest. After this, the consumer Searches for information, and then makes a purchase (Action), after which information is shared with others. In comparison to “AIDMA,” the psychological process has become more compact, and the Action process has expanded.
Attracti on
Interest
Search
Action
Share
These changes are shown how presences in digital are important for brands. Brands can able to create awareness and internet without digital. But it will not lead to action in current scenario. Customers need more information in present era; they are information seeker and always search for best deal. Brands can’t sustain without digital media.
Advantages of Digital Marketing Digital Advertising is increasingly an inherent budgetary component of many organizations today. Organizations of all sizes use the medium to promote their products and services. So well, why do so many organizations use the medium? Simply put, it is due to the numerous advantages that online advertising offers. These are discussed in the paragraphs ahead. Reach The ability of the online medium to target a certain demographic of users is one of the greatest advantages of digital advertising. In addition, the geographical reach of the online medium is far greater than that of traditional media. It’s not only cost effective to achieve a wider geographic area but the ads can also be targeted to the desired audience. For example, if an advertiser is keen on selling his or her products targeted to a certain demographic of people, it is quite possible through online advertising. Digital advertising has matured to the extent that web publishers, media agencies and advertisers themselves know the optimal ways 61
and websites for a certain category of products or services. Measurement With various tools becoming available, tracking effectiveness of ad campaigns is becoming possible today. In other words, measuring Return of Investment (ROI) is increasingly possible today. Organizations that were previously reluctant to spend online, now realize that the online medium does offer means to alleviate any such fears. Moreover, when properly designed online marketing campaigns generate the desired results, advertisers are further encouraged to continue advertising online. Interactive and Engagement The Internet is arguably the most interactive and engaging medium among various others. Interactive campaigns have become a norm with the power of the online medium. One such advertisement worth mentioning is the campaign by AXE where the end user could alter the smile of a woman as he/she liked to i.e. in an interactive framework. The advertisement struck an instant chord with the youth to which AXE the brand is positioned for Customers are basically just a click away from the advertisers. In other words, direct response between end users and advertisers is possible through the online medium. Time Through the Internet, an advertiser can reach a desired target group or demographic in a much shorter time frame. For example, if an advertiser needs to plan some sort of ambush marketing, the online medium can be an effective means of achieving it. Even otherwise i.e. for regular marketing campaigns, the total time necessary to complete an online advertising campaign is less than that of traditional advertising methods.
Cost When compared to traditional forms of advertising, digital advertising is cheaper. Various payment models are available between the advertisers and publishers. Many a time, advertisers are charged only when visitors click on their ads. The various payment models are discussed in detail in the next section.
7.1 Monetary term in Digital Marketing Cost –Per- Action (CPA): Cost of advertising based on a visitor taking some specifically defined action in response to an ad. “Action” include such thing as a sales, transaction, a customer acquisition or a click. Cost- Per -Click (CPC): Cost of advertising based on the number of clicks received. Cost- Per-Thousand (CPM): The standard unit for buying or selling Internet advertising. The thousand stands for ‘thousand advertising impression or views’. Pay- Per- Impression: Online advertising where an advertiser pays a pre-agreed price each time a user clicks on their advertisement. The cost for the click is often negotiated through auction, with ad placement determined by the relative size of the bid, as well as other factors. 62
Pay-Per-Inclusion: Search engine marketing programs that guarantee web site listing for specific keyword search term for a fee. Pay-Per-Lead: Paying to acquire leads from an outside party at a set rate or amount per lead.
8. DIGITAL MARKETING IMPACT ON REVENUE GENERATION Digital marketing is a new trend in marketing, unlike traditional marketing most of companies not use their own marketing channels for digital marketing mostly it can be outsourced to third parties like digital marketing agencies like odigma consultancy ltd. Companies like odigma generating revenue using digital marketing it has great impact on revenue model of these companies. Spending’s of various companies on digital marketing is a revenue for digital marketing agencies like odigma.
8.1 Digital agencies: types and services Digital agencies are as varied as the needs of the advertisers and marketers who hire them. At the high end, for global enterprises, are the agency holding companies with hundreds of full-service digital agencies around the world. There are also boutique and specialty agencies that provide channel-specific digital marketing services such as mobile messaging programs, social media marketing, or SEO link-building campaigns. And there are agencies that focus on strategy and professional services, such as branding or web design. Like any organization, each type of agency has its own strengths, weaknesses, and culture. Digital agencies also can be differentiated by their focus on professional services versus proprietary technology 63
platforms. Agencies that emphasize their professional services capabilities recommend and use third-party technology such as PPC campaign management platforms, SEO tools, and social media management platforms to manage their clients’ data and digital campaigns. These agencies view their role as strategists that can analyse and interpret data to provide actionable results and achieve their clients’ goals. Agencies that develop and offer proprietary tools view their platforms as a competitive advantage over third-party toolsets that are widely available. The plethora of digital channels has left many advertisers drowning in data. By providing technology platforms that are built and customized to client needs, these agencies believe they are providing unique and critical automation tools that collect, analyse, and optimize data for their clients.
8.2 The Benefits of working with a digital agency Agencies owned by large media or holding companies can provide the following benefits:
Diversity of capabilities from co-owned media properties.
Built-in sister agency relationships and priority referrals.
In-network efficiencies.
Working with a specialty or boutique agency offers unique benefits as well, including:
More granular channel strategy and tactical expertise.
Client access to agency decision makers and top personnel.
Lower spending minimums Various surveys showing that spending of companies on digital marketing is increasing every year, here is survey says
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8.3. Gartner Survey Reveals Digital Marketing Budgets Will Increase By 10 Percent in 2014 Digital marketing budgets will rise by 10 percent in 2014, following a double digit percentage increase in 2013, according to a survey of marketing executives by Gartner, Inc. The survey found that, on average, companies spent 10.7 percent of their annual 2013 revenue on overall marketing activities, with digital marketing spending averaging 3.1 percent of revenue. These findings are included in Gartner's Digital Marketing Spending report that is based on a survey of 285 individuals but answering mainly for their entire organization. Respondents represent organizations with more than $500 million in annual revenue (average revenue $4.4 billion) across eight industries: financial services and insurance, high-tech, communications, manufacturing, media, retail, government and healthcare. The survey took place from July through September 2013. The report examines how marketers are allocating their budgets, what activities are contributing to marketing success and other factors. "Marketing leaders are securing bigger budgets to define markets, develop offerings, and attract, acquire and retain customers," said Yvonne Genovese, managing vice president at Gartner. "Digital marketing is taking an increasing share of the marketing budget with annual digital marketing operating budgets totaling 3.1 percent of a company's revenue in 2013, as compared with 2.6 percent in 2012, representing a 20 percent increase." Eleven percent of respondents said they spent more than half of their marketing budgets on digital activities in 2013 compared with only 3.0 percent in 2012. Digital marketing represented an average of 28.5 percent of the total marketing budget in 2013, as compared with 25.5 percent in 2012. A further survey finding was that 77 percent of companies have a chief customer officer (CCO) or the equivalent. Customer touch points include websites, mobile apps, social profiles, directory listings, on-site search, email interactions, communities, call center and more hence, the increasing popularity of the role of the chief customer officer to help guide the customer right through the buying cycle and beyond. Eighty-one percent of organizations were also found to have a chief marketing technologist in 2013, up from 70 percent in 2012.
When it comes to budget allocation, marketing leaders support a diverse, and increasingly complex, marketing mix. The survey found that 12.2 percent the biggest share of their digital marketing budget was allocated to digital advertising in 2013, just as in 2012. However, marketers continue to wrestle with digital 65
advertising's effectiveness. Industry associations, advertising agencies, media, technology, and metrics providers and brand advertisers are all working to address this concern by improving attribution models and cracking down on phony Web traffic. Design, development and maintenance of the corporate website account for the second-largest share of digital marketing budgets as the increase of inbound marketing channels such as social networks, customer forums and the blogosphere creates more traffic on the corporate website. Digital commerce, social marketing and mobile marketing three activities that increasingly overlap are closely tied for the third-largest share of digital marketing budgets. In 2014, marketers plan to make long overdue expenditures for mobile marketing tools and techniques. This survey report shows market share of digital marketing budget in marketing budget increasing every year, we can make money by utilizing the need of digital marketing. By starting a digital agency you can generate large amount of revenue with less amount of investment. Odigma also did the same, CEO Advit Sahadev identified the opportunity and started odigma which stands online digital marketing consultancy which fulfill digital marketing needs of various companies they charge as per their performance and based on fee structures as I mentioned above.
8.4 Digital agency fee structures Agency free structures vary widely, even within client accounts. It is not uncommon for a client to compensate their agency using different fee structures for different types of media campaigns. For example, a common agency fee model for paid media work is percentage of spend. Typically, an agency will be paid 10-20% of a client’s digital media spend on paid search or display advertising campaigns. Smaller clients may pay a higher percentage, while enterprise clients may pay a smaller percentage due to the larger dollar volume of their accounts. Generally digital agencies like odigma charge their clients for maintaining their digital presence this is how they make money, necessity of digital presence for companies let the digital agencies to make money. Different sorts of agencies advertising agencies use different models.
Methods of Charging Clients 1.Project based clients: Often used for smaller agencies, smaller brands and typically for agencies that do one specific part of the mix, e.g. A digital agency. But even a large agency would have some clients on this basis. Normally there would be a Scope of Work, this would come with an estimate to do that one set job. This estimate would normally be based on the people, how many hours they work, and what their hourly rate is. But there would like be
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Some pass through costs for physical goods, for services from other companies etc. The profit the agency makes comes entirely from the gap between the hourly rates of what they pay people.
2. Retained agencies: Sometimes there is a fee based on a percentage of media spend, but this is largely dying. Sometimes it's a project team, where you buy a certain number of people, a certain percentage of their time, for a quarter or year. These hourly rates work the same way as the team for the SOW above. Sometimes there is an amount of money put aside for time and costs and the Agency manages this time and cost to serve the client. A sort of pay as you go model. With all of the above, there is an increasing move towards pay for performance. So it's likely that any of the sorts of agreements in a retained structure, will allow for a bonus to be unlocked. This could come down to sales results, brand value, satisfaction levels, or other criteria, and often a mixture of them.
Fee-based or retainer-based models are quickly gaining traction, most often at the expense of commission-based compensation among large brands and their agencies. The Association of National Advertisers’ 2013 Trends in Agency Compensation Survey found that fee-based agreements have grown to 81% of all compensation agreements, while commission-based compensation has fallen to just 5% of all compensation agreements. The two compensation models have been on opposite trajectories since 1994, according to the ANA survey, when commission-based models represented 61% of all agreements, and fee-based models accounted for 35% of agency compensation agreements.
Fee-based models have become more attractive because they provide predictable expenses for marketers and advertisers, particularly on long-term accounts that require ongoing maintenance, such as monitoring SEO rankings or social media content. Retainers may also encourage agencies to test new campaign strategies and tactics, knowing that they will be compensated for their time regardless of results.
Digital marketing budgets total 2.5% of revenue and will increase 9% this year. Marketing leaders have secured bigger budgets to define markets and attract, acquire and retain customers. Yet, increased funding is a double-edged sword. It brings new opportunities but puts more pressure on marketers to deliver and prove a return on the investments.
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9. RESEARCH PROBLEMS Technical Aspects of problem:
Finding the online presence of the client. Understanding why it is so weak. Identifying what solutions would be better for particular client. How to improve their presence, etc.
Managerial Aspect of the problem:
To define SWOT for the client. To define their requirements and the corresponding solutions. To define the gap analysis for the client.
Business Aspect of the problem:
To find better business opportunity for ROW. To resolve the client’s problem in terms of ROI. Competitive benefits and bets pricing offering.
10. FINDINGS 68
1
Most of the real sector people actually understanding the value and opportunities of digital
2 3
marketing. With the study of digital marketing I came to its emergence and extreme growth in today’s scenario. What I found in client servicing is convincing clients is bit complex as they too have complete
4
knowledge about the digital marketing and also explaining how we are better than others. Most of the sectors initially opt for the digital marketing channels name search engine optimization, search engine marketing and social media marketing and later they will think about other channels
5
which mean these three channel high acceptance. It is easier to approach a company’s if you first send them an E-mailer to related sector and then call
6
them in fact sometimes the company itself call having seen the E-mailer. Indian customers are highly information seekers. They collect more information about quality, price
7
and refer customer’s experiences before purchasing a product. Advertisements have high impact for creating stimulus in Indian customers. But this stimulus will get
8
in to action only through opinion leaders. Indian consumers have high tendency to go for online purchase. They have high affinity to go online
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for electronic products and apparels. One of the current trends in Indian youth and young Indians are watching the T.V programs via online portals. May be the main reason is convenience of time, they can watch programs which they
had skipped due to some reasons. 10 The same thing is happening for the newspaper also, people have more affinity towards online news portals. Here's the reason may be they can get news updates very early; they don’t need to wait for daily newspapers. 11 In both of these cases, one opportunity is lost for marketer and one opportunity is emerging for them to reach their T.G. 12 More than 90% of the samples have a mobile or Smartphone and laptops or PC. 96% of samples have an internet connection is any of these gadgets, this showing the penetration of internet in India. 13 If we take tablet, penetration in Indian is low. But it doesn’t mean that no one is using tabs. More than 30% of samples have tablet. For brands they are getting three more platforms to reach their T.G and engage them. 14 33% of the samples are using these gadgets while they are with their friends, so just think about the reach. If one person noticed something which is cool and awesome they will surely communicate to others.
15 25% of the samples are using these gadgets while watching T.V; it’s again a barrier for brands which use TVC only. 21% of the samples are using this gadget for chatting and 16% are using for surfing. What they are surfing? It can be about a product, local events or locations...etc. 16 In this situation, one opportunity is again losing to brands and one opportunity is emerging for brands to reach their T.G. 17 More than 90% of samples are noticing ads, among them 35% of samples noticed ads through online media, followed by TVC and Newspapers. 69
18 48% of samples are telling they give more importance to online ads and 34 % of samples give importance to T.V.C. 19 From the first part of this research itself, we know that customers are highly information seeker. It may be the reason for high trust in online ads. They can search for more information after seeing an ad or online is the only two way communication channel for customers. 20 22% of the samples do research through their lap or PC before purchasing a product from the retail shop and 21% do research via mobile. 21 Most of the Indians prefer to purchase from a retail shop only, but before going to retail shop they will seek information about the product through an online platform. Here is actually change happens in consumer buying journey, early times consumer belief a product only after seeing the product in a retail shop. 22 But now Indian customers want to get conviction about a product before going to retail shop. So from a marketers view they want to convince their customers before going to a retail shop. 23 Brands want to build a cool presence over digital platforms because the customer will do research about the product after seeing an ad or after getting stimulated. 24 Brands are getting more touch points to reach target group in a cost effective manner. 25 How do you get information about new Products? Other Sources News
7% 13%
Advertisements Family
40% 10%
Friends
30%
Samples showing that 40% of people get to know about new products through advertisements and followed by friends means reference group
26. Do you Collect information before purchasing the products? 5%
95%
70
Yes No
Survey results showing that 95% of people collect information before purchasing the products. Only few people don’t bother about info before purchasing product. 27. What type of information will you collect?
Customer's Experience
21%
Quantity
11%
Attributes
10%
Quality
32%
Price
26%
Survey results showing that people who said they collect information before purchasing product they mainly concern about the product quality and price least concern about attributes. 28. Did you ever purchase from an online site?
19% 81%
Yes No
Question asked to most of young people and 81% people said they buy from online site and only few
people said they never purchased from online because of reliability issues. 29. If yes, then what type of product / services did you purchase online?
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22%
Electronic 11%
Books
17%
Travel products
19%
Fashion accessories Kichen an home items
2%
Toys
2% 11%
Sport equipments
13%
Gifts Automotives
3%
People who said they purchase products from online they purchase electronic products, followed by fashion and travel accessories through online. 30. Do you watch television?
7% YES NO 93%
Question asked to various age people and most of them said yes about 93% people said they watch
television only 7% said NO to television.
31. Do you watch television programs through online?
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47%
53%
Yes No
Survey results showing that almost equal percentage of results.53% people watch TV programs
through online. 32. Do you read Newspapers?
7% YES NO 93%
Question asked to various age people 93% people said they read newspaper only few people said no to reading newspaper 33. Do you read the News through online?
26% YES No 74%
93% people said YES to reading newspapers, 74% are reading newspapers through online portals and only 26% people said NO to read newspaper through online.
34. Do you have mobile phone?
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1% YES NO 99%
Question asked to various age people maximum number of people said yes that they have mobile phone 99% answered YES that they have mobile phone. 35. Do you have a laptop or PC?
6% YES NO 94%
This survey sample collected from students and working professional and 94% people said they have laptop or PC.only 6% don’t have laptop or PC.
36. Do you have a tablet?
74
30% YES NO 70%
Question asked to same students and working professionals and collected results that 70% people
have tablet only 30% people don’t have tablet. 37. Do you have an internet connection in any of the above mentioned gadgets?
4% YES NO 96%
Question asked to people who said YES to above asked questions and 96% people have internet connection to any of those gadgets only 4% people using gadgets without internet connection. 38. When do you use these gadgets? With friends
33%
College Office
26%
16%
Watching T.V
25%
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Survey results showing that 33% of people using gadgets when they are with friends and while watching TV. 39. What you do with these gadgets? Chatting
21%
Watch Videos
14%
E- books
6%
Blogging
6%
News reading
11%
Shopping
12%
Surfing
16%
Games
14%
Survey results showing that 21% use these gadgets for chatting, 16% for surfing and 14% for watch videos & games.
40. Do you ever notice advertisement?
3% YES
NO 97%
97% of the samples are seeing ads, among them 35% of samples noticed ads through online media, 22% on TVC and 17% on Newspapers
41. If yes, from where?
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Radio
6%
OOH
6%
Magazines
14%
Newspaper
17%
Online Ads (Banner & Videos)
35%
TV
22%
35% People notice advertisements from online ads and TV and OOH takes less part. 42. Mention one from of media, which you give more importance? Radio OOH Newspapers
4% 3% 11%
Online
48%
TV
34%
48% of the samples are saying they have trust in online ads, 34 % are saying they have trust in T.V.
43. How do you normally purchase a product?
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Visit and purchase from retail shop itself
19%
Visit the retail shop and purchase from laptop
7%
Visit the retail shop and purchase from mobile
4%
Research and purchase from laptop
11%
Research and purchase from mobile
6%
Research in mobile and purchase from laptop
10%
Research in laptop and purchase from retail shop
22%
Research in mobile and purchase from retail shop
21%
22% of samples will do research on online and purchase from retail shop, 21% of the samples will do research in mobile and purchase from retail shop. But 19% of the samples will purchase directly from a retail shop only. 44. After purchase, what type of experience will you share with others? Nice deal, in terms of price
14%
Bad experience 2%
Good experience
17%
All the above mentioned
67%
67% of the samples will like to express their experience with others; it may be a nice deal, good experience or bad experience with product.
45. How will you share your experience with others?
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Face to face talk In company website Write a blog
37%
4%
3%
Messaging
24%
Social networking sites
32%
37% will share their experience through face to face talk, 32% through social networking sites and 24% through messaging. 46. Digital Marketing Spending Averages 2.5% of Company Revenue Customers are transitioning to communicating and buying through digital channels. That means marketing spending is rapidly shifting to digital marketing. On average, annual digital marketing operating budgets represented 2.5% of a company's revenue in 2014. These expenses include personnel costs, contract labour, software as a service and external marketing services such as agency creative services, search, website design, content creation and management, social and mobile marketing. Three percent of the marketers responding to our survey said they are spending more than half of their marketing budgets on digital activities. The majority spends between 10% and 50% of their marketing budget on digital marketing activities the average is 25%. It is becoming more difficult to count and allocate digital marketing spending as digital and traditional marketing techniques are merging. For 20% of companies, digital marketing activities have already been incorporated into each function within marketing, and budgets are no longer broken out separately. We expect this trend to continue growth as areas such as second screen TV, social TV and QR codes integrate with traditional channels.
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Figure: Digital Marketing Budget as a Percentage of Company Revenue
Data was gathered from responses to the following question: What percentage of your organization's total marketing expense budget is allocated to digital marketing in 2014? 47. Digital Advertising Accounts for 12.5% of Digital Marketing Budgets Marketing leaders support a diverse and increasingly complex marketing mix. We asked marketers how much of their digital marketing budget they're allocating to different activities such as mobile marketing or analytics. Below Figure shows that marketers allocated 12.5% the biggest share of their digital marketing budget to digital advertising. Still, marketers wrestle with digital advertising's effectiveness. Advertising agencies, technology providers and brand advertisers are working to address this concern by improving measurement standards and formats. Content creation and management account for the second largest share of digital marketing budgets. This is driven, in part, by the desire to populate the infinite appetites of inbound marketing channels. Social networks, customer forums, and the blogosphere are examples that drive inbound inquiries or actions. However, you need to create content that delivers the right message to the right person at the right time, regardless of how the dialogue gets started. That means content is equally needed to meet the demands of outbound marketing as well. The enormous pressure to create, manage and distribute content for multiple marketing activities through the right channels will only increase as customers use more digital channels for collaboration, researching and acquisition of products and services. Top priorities for increased budgets in 2014 are commerce experiences, social and mobile marketing, and content creation and management. See "Digital Marketers Escalate Investments to Support Commerce Experiences" to learn why enhancing commerce experiences is a business imperative.
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Figure: How Marketers Allocate Their Digital Marketing Budgets
Data was gathered from responses to the following question: How much of the 2014 digital marketing expense budget is your organization spending on each of the activities listed? This includes personnel costs, software and externally purchased services. 48. 41% of Marketers Say That Savings from Digital Marketing Are Reinvested. We asked marketers to identify how they're funding their digital marketing activities. We found that digital marketing's effectiveness helps stretch digital marketing budgets. Below Figure shows that two in five marketers are realizing savings from digital marketing compared with traditional techniques. And they're taking that money and reinvesting it into more digital marketing. Fifty-nine percent of the marketers in retail organizations report that this is happening compared with only 28% in manufacturing. On average, 28% of marketers say they've reduced their traditional advertising budget to fund digital marketing activities. Thirty-four percent of the marketers at high-tech companies are more likely to take this approach compared with only 19% of the marketers at financial services and insurance firms. Reinvesting savings into digital marketing activities is a smart move. And it's a relatively new activity in a corporate culture where technology has primarily been used in recent years to cut costs. We don't recommend chasing shiny new objects unreservedly. Rather, we suggest supporting a culture that is agile and keeps an open mind to testing new techniques and underlying technologies. It's okay to fail as long as you fail fast in a program with a limited scope and budget, and you intend to learn from these early failures.
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Figure: Marketers flow Savings Back into Digital Marketing
Data was gathered from responses to the following question: In order to fund digital marketing, which of the following statements are true? 49. Up to 50% of Digital Marketing Activities Are Outsourced. The pace of change and needs for specific skills force marketing to seek services from external providers. We asked marketers to estimate what percentage of the work is performed internally by employees or contract labour, and what percentage is performed externally or outsourced. Culturally marketing is accustomed to outsourcing. Working with agencies, data providers and external technology providers are an intricate part of marketing processes. This hasn't changed and may be increasing. The responses reveal that digital marketers need help lots of it with specialized tasks such as search marketing, online advertising and mobile marketing. For the most part, marketers outsource one-third or more of their work to an agency, digital services organization or other external provider. Below Figure shows that, on average, marketers outsource one-half of their search marketing the highest proportion of any marketing activity. Media companies, financial services firms and retailers keep a majority of their search marketing work in-house. Digital marketers are more likely to maintain social marketing in-house, with one exception: Marketers at manufacturers outsource 53% of their social marketing activities. We find that social analytics, and content creation and management are areas of focus for outsourcing. Monitoring and analysing social activities require time and new technologies. And keeping customers interested through social channels requires constant feeding and nurturing with new content. As a rule, outsourcing your digital marketing activities is a smart tactic when you don't have in-house resources to stay on top of quickly changing technologies and techniques, or need specialized talent. But you need to monitor results, ensure these providers have a stake in your success, and assume some risks.
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Figure: Marketers Outsource This Portion of Digital Marketing Activities
Data was gathered from responses to the following question: For the following list of digital marketing activities, please estimate what percentage of the work is performed internally by employees or contract labour and what percentage is performed externally by some type of digital marketing services organization (agency, business process outsourcer, specialty firms? 50. 70% of Companies Surveyed Have a Chief Marketing Technologist 80% of Them Report to Marketing. Marketing's dependence on technology results in new responsibilities and roles. We asked marketers whether their companies have the equivalent of a chief marketing technologist and where that person reports. Figure 6 shows that two out of three organizations have such a role. Most of the chief marketing technologists report to a senior marketing executive and only 13% report to the CIO. Chief marketing technologists are familiar with marketing techniques as well as technologies. They need to understand how to use technology to define markets, attract, acquire and retain customers. They often have organizations that align this goal to areas such as marketing software, data and analytics, social and mobile platforms, digital advertising networks collaboration and website design. This role may come under one of many different titles, including CTO of marketing, chief digital officer, chief digital marketing officer, VP of ebusiness or even the CMO. 83
What's driving the need for this role? Marketers are increasingly dependent on technology to:
Design the customer experience across many channels social, mobile, commerce and website.
Integrate data from an increasing number of sources, including internal data (such as transactions or onsite search) and external data (estimated household income) to get a better understanding of customers.
Support marketing campaigns and programs, such as a mobile app, paid search marketing and social marketing.
Hiring marketing technologists will help you achieve your tactics. But you need a senior-level executive who can guide your customer experience strategy across many channels and match marketing technologies to the organizational goals.
Figure: Companies Retain a Chief Marketing Technologist to Guide Strategies
Data was gathered from responses to the following questions: Does your organization have the equivalent of a chief marketing technologist today? If so, where does he or she report? 51. The Top 3 Digital Marketing Activities Key to Marketing's Success Corporate Website, Social Marketing and Digital Advertising. Marketers are focused on the marketing mix that will drive success. We asked digital marketers to identify the three digital marketing activities that are most important to their success. Below Figure shows that the corporate website and digital advertising share the distinction of being the No.1 digital marketing activities that are important to marketing's success. Social marketing emerged as the next most important activity. Our survey results suggest that the corporate website will not be displaced by a brand's social media presence anytime soon. That's all the more reason for marketing leaders to continuously invest in testing and optimizing their websites, paying attention to all aspects from customized landing pages to compelling content that 84
encourage visitors to be engaged with your brand.
Only 9% of respondents said that analytics is most important to their success. We believe this is an oversight. You need to use analytics to support continuous improvement, understand your customers' requirements and drive results. Figure: What Activities Contribute to Marketing Success
Data was gathered from responses to the following: Please prioritize which of these digital marketing activities are most important to your marketing organization's success by choosing three and ranking them most important, second most important and third most important.
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11. LEARNINGS
Get to know about challenges and opportunities for digital marketing in India. Gain basic understanding of SEO, SEM, SMM, ORM, etc. Fulfilling each and every requirement of client is very important regardless of whether that requirement
is small or big. I learned how to pitch the client while meeting. I experienced the corporate feeling which gives me a good exposure.
I was able to put in practice what I have learnt in my first year of marketing management curriculum.
Leadership quality, it’s all about the impact you have on other people. You need to have leaders within an organization. Leaders will deal with the customer, project, etc. as a leader.
Healthy Competition forced to do better job the trick is to learn from your competitors quicker than they can learn from you. Always look for your competitors’ strengths.
Digital marketing work is all about a team work and it always try to give best out of all.
Time management is the big management lesson I have learnt as make individual more divert to words it work.
How to do a formal communication, the way how to communicate with each level of management to get work done.
Every day same task, but the situations are different It’s not only from my experience, but also from my observation. All colleagues are doing the same type of work, but the situation is different. Sometime they have problem with a client, but on the next day they problems with vendors or with creative team. While coming to me, my first month was more concentrated with pitch presentation. Industry or clients are different or requirements of the client are
different, but contents or the flow of pitch presentations are same. Observation is the best teacher There are lots of situations where I am completely blank and I don’t know how to do some task. In those situations I observed my colleagues to know how they are doing it and I understood the importance of
observation. Work life balancing This is the most important learning for me. This internship thought me how to balance your personal responsibility and professional responsibility together and how to enjoy life even after getting a job. Working in an agency is not an easy task, the person wants to face a lot of stress and challenges. I am the only person in my office leaving early, while comparing with others. Because my colleagues have lots of work, sometime they will leave by late night only. But they are really enjoying all the moments in their life. They don’t have any difference between professional life and personal life. 86
12. CONCLUSION The successful completion of this internship indicates that the future of marketing is in the hands of digital. Digital marketing is not only concerned with placing ads in portals, it consists of integrated services and integrated channels. Marketers want to use these components in an effective way to reach target groups and to build a brand. In this digital era marketer is not the custodian for a brand, people who are connected across the digital platforms are the custodians. Brands want to build their presence over digital platform, because customers have high affinity towards digital media than other media’s. More than that customers are highly information seekers and digital media is the only platform for two way communication between brands and customers. Digital media is the best platform to convert a product to a brand. Because it is more cost effective and it provide lot of touch points to marketer. Brands can able to engage their target group in an effective way through digital platforms. Digital media is not only for engagement, brands can increase their customers or they can retain their existing customers. Digital platforms help to increase the impact of brand recall in target groups. Importance of digital presence increasing importance of digital agencies, so they making money through digital advertising raising of digital marketing consciousness making money for digital agencies by which they are booming and making more money with small investments. I honestly believe that this project report will be at most useful for marketers to understand the digital marketing and also to plan for future strategies.
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SUGGESTIONS
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