Despite brand managers being buoyant about the advent of yet another media for connecting with end consumers, India’s internet numbers may not present a rosy picture for mass market products. According to the Internet and Mobile Association of India (IAMAI), India had nearly 37 million internet users till the latest count, which is still considered a small number for brands to sash in on marketing through the Net. Out of the 37 million a mere 14% of the netizens are active bloggers. Also, in a market like India, being on-line does not necessarily equate with blogging or accessing community websites. The IAMAI says that nearly 45% of the internet users primarily access the internet for using e-mails. While in the macro picture for Asia, 40- 50% of internet time is spent on instant messaging and e-mailing, says an Indiatimes spokesperson.
"The numbers game works both ways. On one hand, such type of online advertising can only release its true potential in India, when the country’s internet population reaches a critical mass. At the same time, blogs and community websites run by brands are a way to attract more internet users and improve the numbers in cyberspace and in turn improve the marketing prospects on such channels.”
While India is still getting its act together for such a move, globally such marketing strategies have already crept into marketing mix of various companies consider this. By the start of 2007, it is estimated that nearly $ 280 million will have been spent on advertising and marketing on social network sites in the US alone. The total marketing spend on social media is forecast to grow at a CAGR OF 106.1% FROM 2005 TO 2010, reaching $ 757 million by 2010, says a research report from PQ Media. Online advertising via blogs and social networking websites has garnered huge support in developed markets. However, not all brand promotions on the web seem to have worked very well for brands like Levis, Harley Davidson and GM, the same may not be true for Wal Mart’s efforts towards driving a community- driven pull. Explains marketing consultant Harish Bijoor: “Such type branding activity works better for single product brands, rather than multi-product brand names.”
"The numbers game works both ways. On one hand, such type of online advertising can only release its true potential in India, when the country’s internet population reaches a critical mass. At the same time, blogs and community websites run by brands are a way to attract more internet users and improve the numbers in cyberspace and in turn improve the marketing prospects on such channels.”
While India is still getting its act together for such a move, globally such marketing strategies have already crept into marketing mix of various companies consider this. By the start of 2007, it is estimated that nearly $ 280 million will have been spent on advertising and marketing on social network sites in the US alone. The total marketing spend on social media is forecast to grow at a CAGR OF 106.1% FROM 2005 TO 2010, reaching $ 757 million by 2010, says a research report from PQ Media. Online advertising via blogs and social networking websites has garnered huge support in developed markets. However, not all brand promotions on the web seem to have worked very well for brands like Levis, Harley Davidson and GM, the same may not be true for Wal Mart’s efforts towards driving a community- driven pull. Explains marketing consultant Harish Bijoor: “Such type branding activity works better for single product brands, rather than multi-product brand names.”
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