advertising - transformation from traditional to digital way

ADVERTISING : TRANSFORMATION FROM TRADITIONAL TO DIGITAL

WAYGiridharan.PBIM Trichy

WHAT DO U DO WHEN THERE IS A 30 SECOND AD ON TV?

Watch the AD? Change Channels? Check your phone/social media?

If your answer is changing channels / checking your phone, social media, this proves customers don’t prefer traditional Ads, and hence

TRADITIONAL ADS are DYING!!

$540 Billion is allocated for marketing and advertising initiatives.

Out of which 69% focuses on content management, performance optimization and website development.

While 53% focuses on driving customer engagement through mobile app development and social media.

CURRENT TRENDS IN ADVERTISING

This also proves the companies are also moving from traditional advertising to digital advertising

SO, WHAT IS TRADITIONAL ADVERTISING AND DIGITAL ADVERTISING?

a. Traditional Advertising are the usual venues of delivering commercial messages to mass audience.

b. For example, newspaper, radio, TVs, billboards etc.

c. It is a 1 way communication paradigm

a. Digital Advertising is when messages are delivered to target audience/mass audience using digital techniques.

b. For example, E-Mail, Social Media etc.

c. It is a 2 way communication paradigm

AD REVENUES IN INDIA

Content Marketing; 80%

Interactive Con-tent; 20%Customised Content; 90%

Relationship Marketing; 78%

Customer Expectations from an ADCustomers are looking for looking for marketers to establish relationships with them

People prefer going through articles before making any purchase decision.

People no longer prefer mass messages and want something more personalised

People want Ads to be interactive. Examples of interactive content are Surveys, Quizzes etc.

WHY IS TRADITIONAL ADVERTISING DYING?

• There is no specific targeted audience in traditional advertising.

• There can also be a confusion in the audience when broadcasted.

• Absence of analytics, makes the task of targeting the audience, even more difficult.

• Social Media has gained more power than expected with respect to brand promotion and creating awareness.

• Word of Mouth Promotions/Brand Advocates

• Facebook is considered the best social media platform for business and brand promotion

WHY IS TRADITIONAL ADVERTISING DYING?

With a number of brands increasing day by day, there needs to be a different way of reaching out to the prospective customers

For example, Xiaomi, LeEco etc.

• The Customers choose what AD they want to view

• The Customers choose when they want to view the AD

• The Customers are very fickle minded. So, there needs to be a constant surprise element

Traditional Advertising Digital

Advertising

WHY DIGITAL ADVERTISING ? 1. Drives Sales and ROI 2. Enhances the effectiveness of non – digital media channels

WHY DIGITAL ADVERTISING ? 3. Drives word – of – mouth at scale

Recommendations have more impact on a consumer’s purchase decision than both brand and price — 57% of decisions are based on this.

Online shares are almost as valuable as in-person recommendations — a consumer is 9.5% more likely to buy a product with an excellent shared recommendation compared with 10.6% more likely via an excellent in-person recommendation.

In contrast, a negative recommendation can reduce purchase intent by 11% for an online share and 11.2% for an in-person one.

The specific value of a share can be determined by measuring how much more a consumer will pay for a product if they have had an excellent online recommendation (via sharing). 

WHY DIGITAL ADVERTISING ? 4. More efficient than traditional media

WHY DIGITAL ADVERTISING ? 5. Reaching the right set of audience