Recession leads to increased spending on Digital Advertising in India

As recession starts hitting Indian companies hard and the marketing budgets go down they are starting to look at Online as a medium for cost...

As recession starts hitting Indian companies hard and the marketing budgets go down they are starting to look at Online as a medium for cost saving for targeting products at the 20-30year old urban youth segment. As a proven factor Google's pay for performance is much more measurable and a cheaper option if you are targeting youth in India as compared to print advertising to the scale of even 30-35% less. In this piece in ET Samsung's Director marketing says
Online advertising works very well for our technology-based products like MP3 players, notebook PCs, mobile phones, LCD and Plasma TVs. Our online campaign for notebook PCs in November, 2008 was a success as it doubled visitor traffic to one lakh in the following month,” he says. Online advertising comprises 1% of Samsung ad spend in India and is likely to grow to 2% this year.
However the key question is where is this money headed since Indian web companies like Rediff have been hit the hardest because of their use of impression based advertising and reluctance to lower prices but at google some categories are doing extremely well for example this search  done by me showed 10 ads on main google search. At google you pay on the basis of an auction so that depending on your category and the competition the spending may rise or fall so those categories who still have advertiser interest would still make money . The thing to watch out for is the rise of mobile based advertising predominantly in finance and travel verticals this primarily due to reach and engagement of the mobile medium for example this campaign conducted by HSBC recently for leads
HSBC conducted a mobile-based promotion with High Networth Individuals (HNIs) at international airports’s departure lounges, offering them applications that would be useful in the country they were travelling to—such as tips on communicating better in the new language or locating a bank branch. According to Vinod Thadani, regional head, mobile, Group M, South Asia, which conducted the campaign for HSBC, a valid database of 14,000 was generated of which almost 30% was converted.
So It seems that recession might be a pain for many but might to be a boon of sorts for digital medium which might gain more mainstream ad spend at the cost of the more expensive print media.
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VJ1681 said...

Adding-on to the topic I feel that Segmenting and Targetting the promotions to the correct audiance becomes more efficient and effective by digital marketing. In today's scenario where marketing budgets are shrinking 'precise targetting' has gained importance. Hence future looks pretty nice for Digital Advertising companies.