Session 5: EadvertisingSession 5: Eadvertising http://www.youtube.com/watch#!videos=hzNw3OXVrDM&v=5wx0GfbC0BA

http://www.youtube.com/watch#!v=yfHsMDo-N4E&feature=channel http://www.youtube.com/watch#!v=yfHsMDo-N4E&feature=channel http://www.youtube.com/watch#!v=ohfaO5wEA9g&feature=relatedhttp://www.youtube.com/watch#!v=ohfaO5wEA9g&feature=related

http://www.youtube.com/watch#!v=VSwWyNFjdXI&feature=related http://www.youtube.com/watch#!v=VSwWyNFjdXI&feature=related http://www.youtube.com/watch#!v=5rtiHiGmoxk&feature=related http://www.youtube.com/watch#!v=5rtiHiGmoxk&feature=related

http://www.youtube.com/watch#!v=G1TW5cCdSiY&feature=relatedhttp://www.youtube.com/watch#!v=fclYmVaORbM&feature=related

10 - 10 - 22

Key TermsKey Terms Ad viewsAd views ButtonButton PagePage ClickClick CPMCPM Conversion rateConversion rate Hit Hit VisitVisit Unit VisitUnit Visit StickinessStickiness

10 - 10 - 33

Email AdvertisingEmail Advertising Banner Swap and ExchangeBanner Swap and Exchange Pop up ad(ad spwaning)Pop up ad(ad spwaning) Pop under adPop under ad InterestitialsInterestitials Email AdvertisingEmail Advertising Search Engine AdvertisementsSearch Engine Advertisements Advertisement in chat roomsAdvertisement in chat rooms Permission advertisingPermission advertising

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Why Internet AdWhy Internet Ad Television : 36%Television : 36% Newspapers: 33%Newspapers: 33% Magazines: 13%Magazines: 13% Radio: 10%Radio: 10% Internet Advertising: 8%Internet Advertising: 8%

10 - 10 - 55

Why Internet AdWhy Internet Ad Users spend more time on internetUsers spend more time on internet Heavy usage of internet enabled cell Heavy usage of internet enabled cell

phonesphones CostCost Richness of formatRichness of format PersonalizationPersonalization TimelinessTimeliness Location-basisLocation-basis Digital brandingDigital branding

Why Internet AdWhy Internet Ad

Works 24 hours a dayWorks 24 hours a day Offers 2 way communicationOffers 2 way communication Unlimited accessUnlimited access Interactive advertisingInteractive advertising Supports current marketing effortsSupports current marketing efforts

Current UsersCurrent Users As per a Lintas media As per a Lintas media

report, Internet advertising report, Internet advertising in India is Rs 215 crores ( a in India is Rs 215 crores ( a 43% Y-o-Y growth)43% Y-o-Y growth)* Possibility of the market * Possibility of the market growing to Rs 2500 crores growing to Rs 2500 crores by 2011by 2011* Current mobile * Current mobile advertising in India is Rs advertising in India is Rs 40 crores, expected to 40 crores, expected to grow to Rs 500 crores by grow to Rs 500 crores by 20112011

Technology UpdateTechnology Update(It took this many years to reach 50 million (It took this many years to reach 50 million

users)users)

Radio - 38 yearsRadio - 38 years Television - 13 yearsTelevision - 13 years Internet - 4 yearsInternet - 4 years

Promoting Your HomepagePromoting Your Homepage

Why Do You Need Why Do You Need Promotion?Promotion?

Just because you build it, doesn’t Just because you build it, doesn’t mean they will come.mean they will come.

You are competing against not only You are competing against not only your market area, but the entire your market area, but the entire world.world.

Your current & future customers Your current & future customers need to be able to find you.need to be able to find you.

HOW?HOW?

List homepage List homepage address on all address on all current advertising.current advertising.

On all publicityOn all publicity• newslettersnewsletters• letterheadletterhead• business cardsbusiness cards• billing statementsbilling statements• fax cover sheetsfax cover sheets

Register with Register with search engines.search engines.

Link to other sites Link to other sites and your and your association sites.association sites.

Advertise on the Advertise on the web.web.

Link to?Link to?

Your trade associationsYour trade associations SuppliersSuppliers CustomersCustomers Complementary productsComplementary products

Advertising on the WebAdvertising on the Web

To build awarenessTo build awareness Develop prospectsDevelop prospects Meet customer Meet customer

needsneeds Generate ordersGenerate orders Build customer Build customer

relationsrelations Test marketTest market

Good Internet Advertising Good Internet Advertising Includes:Includes:

Clear message and identification on 1st Clear message and identification on 1st page.page.

Facilitates easy access to further Facilitates easy access to further information.information.

The advertisement downloads quickly.The advertisement downloads quickly. Provides the right information.Provides the right information.

• Product description, payment options, and Product description, payment options, and contact information.contact information.

Common Search EnginesCommon Search Engines ALTA VISTA

AOL SEARCH ASK JEEVES DOGPILE EBAY EXCITE GIGABLAST GOOGLE IWON JOEANT JOEANT LYCOS LYCOS MAMMA MAMMA MSN MSN NETSCAPE NETSCAPE OPEN DIRECTORY OPEN DIRECTORY WEBCRAWLER WEBCRAWLER WIKIPEDIA WIKIPEDIA YAHOO YAHOO

Advertising Expenditure by Type (2009)

Why is Internet Advertising still so small?Why is Internet Advertising still so small?

Myth #1:Internet Advertising Market is still small

because the number of users on Internet is <5% of population

Internet needs to monetize betterInternet needs to monetize better

0

10

20

30

40

50

2009 (MM Users)

English Newspapers Internet

0

1000

2000

3000

4000

5000

6000

7000

2009 (INR Crores)

English Newspapers Internet

No. of Users (MM) Ad Revenue (INR Crores)

Myth #2:Advertisers allocate resources based on

quantitative logic

•A leading auto manufacturer in India, stated that over 80% of their consumers & prospective consumers are online.

•Yet, less than 3% of their budget is invested online!

•What’s worse, that online budget is primarily to purchase leads @ INR 150 per Test Drive form filled up (for a 15Lac car) !

•A leading auto manufacturer in India, stated that over 80% of their consumers & prospective consumers are online.

•Yet, less than 3% of their budget is invested online!

•What’s worse, that online budget is primarily to purchase leads @ INR 150 per Test Drive form filled up (for a 15Lac car) !

Advertisers haven’t seen basic rationale for advertising online

Myth #3:We can test the waters with Internet

Advertising with small budgets

Can we test the effectiveness of Radio medium with 5 lacs?

Can we put up 2 billboards in a city and test whether outdoor works or not?

Every medium needs a minimum threshold level before an advertiser can evaluate

Myth #4:Effectiveness of Creative Strategy is the responsibility of the advertiser

•Publishers & Agencies must invest much higher quality resources to build powerful campaigns online.

•Advertisers must remunerate agencies in a fair manner to encourage such investments

Myth #5:Advertisers judge the effectiveness of advertising based primarily on data.

Internet has an advantage because it is a measurable medium

TV Advertising Works!

Print Advertising Works!

Outdoor Advertising Works!

Does Internet Advertising Work?

• Can we prove it without any numbers?

• Can we recall any memorable online campaigns?

• Is there any consumer brand that is widely recognized as “built by the Internet medium”?

Sum UpSum Up

Internet Medium is large enough Internet Medium is large enough todaytoday

We must demonstrate the ability to We must demonstrate the ability to build brands online and not just build brands online and not just deliver clicks and leads, if the big deliver clicks and leads, if the big bucks have to come onlinebucks have to come online

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Interactive MediaInteractive Media

Communication systems that permit Communication systems that permit two-way communicationtwo-way communication

Believed to be the most persuasive Believed to be the most persuasive type of communication available to type of communication available to marketersmarketers

Not limited to the Internet – also Not limited to the Internet – also includes telephone and e-mailincludes telephone and e-mail

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Internet AdvertisingInternet Advertising

Primary PurposesPrimary Purposes Provide a brand Provide a brand

reminder messagereminder message Deliver Deliver

informational or informational or persuasive persuasive messagemessage

Drive trafficDrive traffic

Types of Internet Types of Internet AdsAds

Banner adsBanner ads SkyscrapersSkyscrapers Pop-ups/Pop-behindsPop-ups/Pop-behinds MinisitesMinisites SuperstitialsSuperstitials Rich mediaRich media Streaming videoStreaming video

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The InternetThe Internet

The Internet The Internet AudienceAudience

The Internet is the The Internet is the leading tool for leading tool for information information searching by all searching by all agesages

Teens spend more Teens spend more time online than any time online than any other age groupother age group

Measuring Measuring AudiencesAudiences

HitsHits• The number of The number of

times a particular times a particular site is visitedsite is visited

Click-throughClick-through• The number of The number of

people who click on people who click on a banner ada banner ad

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Internet AdvertisingInternet Advertising

AdvantagesAdvantages Relatively Relatively

inexpensiveinexpensive Can also deliver Can also deliver

businessbusiness Advertisers can Advertisers can

customize and customize and personalize personalize messagesmessages

Can provide sales Can provide sales leads or actual salesleads or actual sales

DisadvantagesDisadvantages Inability of experts Inability of experts

to consistently to consistently produce effective produce effective ads and to ads and to measure their measure their effectivenesseffectiveness

Clutter may even Clutter may even be worse than in be worse than in other mediaother media

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The Web in International The Web in International AdvertisingAdvertising

Not everyone around the globe has Not everyone around the globe has the access or ability to use the the access or ability to use the InternetInternet

Advertising and sales promotion laws Advertising and sales promotion laws differ from country to countrydiffer from country to country

Language barriersLanguage barriers Exchange ratesExchange rates Technological differences among Technological differences among

worldwide Internet audiencesworldwide Internet audiences

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E-Mail AdvertisingE-Mail Advertising

SpamSpam• Unsolicited Unsolicited

messages sent to e-messages sent to e-mail in-boxesmail in-boxes

Opt-inOpt-in• Bulk e-mailers have Bulk e-mailers have

to get permission to to get permission to sendsend

Opt-outOpt-out• E-mailers have to E-mailers have to

have an option to have an option to say no to further e-say no to further e-mailsmails

Viral MarketingViral Marketing• Uses e-mail to Uses e-mail to

circulate a message circulate a message among family and among family and friendsfriends

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Alternative and New MediaAlternative and New Media

AdvertainmentAdvertainment When companies When companies

integrate brands into integrate brands into the content of showsthe content of shows

Also called branded Also called branded entertainmententertainment

Situational adsSituational ads• Harder for the viewer Harder for the viewer

to dismiss as ads to dismiss as ads • Product is a character Product is a character

in the programin the program

New Internet New Internet PracticesPractices

Brand experiences on Brand experiences on the Webthe Web• Companies making Companies making

their Web sites more their Web sites more engaging and engaging and entertainingentertaining

WebisodesWebisodes• Recurring episodes in a Recurring episodes in a

developing storydeveloping story• Blends advertising and Blends advertising and

entertainment to entertainment to attract audiencesattract audiences

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Alternative and New MediaAlternative and New Media

Video GamesVideo Games Opportunities to Opportunities to

create online games create online games as well as place as well as place products within video products within video gamesgames

Planners and buyers Planners and buyers are asking for are asking for standardized standardized independent data that independent data that prove effectivenessprove effectiveness

Wireless Wireless CommunicationCommunication

Links the common Links the common phone to a phone to a computercomputer

The most The most important change important change in communication in communication systems in the new systems in the new millenniummillennium

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Alternative and New MediaAlternative and New Media

Nonelectronic New Nonelectronic New MediaMedia

Ads appearing in Ads appearing in unexpected new unexpected new placesplaces

Guerrilla MarketingGuerrilla Marketing Unconventional Unconventional

marketing marketing communication communication activitiesactivities

Intended to get a Intended to get a buzz on a limited buzz on a limited budgetbudget

NEWEST NEW MEDIANEWEST NEW MEDIA

SMS JOB TO 566776SMS JOB TO 566776

Please Call Mobile Please Call Mobile Anything Except NEW Anything Except NEW

MEDIAMEDIA

移动 移动 الجوالالجوال मो�बा�इलमो�बा�इल mobilnímobilní

ΚινητόΚινητό סלולריסלולרי モバイル モバイル 모바일 모바일 мобільниймобільний

NEW MEDIA is a 4 letter wordNEW MEDIA is a 4 letter word Internet was LABLED new media 10 Internet was LABLED new media 10

years ago & see where that got it!years ago & see where that got it!

Active Users Active Users : 47 million: 47 million Average Cost Per Thousand Average Cost Per Thousand : Rs 150: Rs 150 Total Internet Advertising Total Internet Advertising : 600 cr: 600 cr

Times of India NewspaperTimes of India Newspaper Total ReadershipTotal Readership : 6.7 million: 6.7 million Average Cost Per Thousand Average Cost Per Thousand : Rs 289: Rs 289 Total AdvertisingTotal Advertising : Rs XYZ : Rs XYZ (definitely more than online (definitely more than online

industry) industry)

Can we call it just Can we call it just MEDIA?MEDIA?

移动 移动 الجوالالجوال मो�बा�इलमो�बा�इल mobilnímobilní

ΚινητόΚινητό סלולריסלולרי モバイル モバイル 모바일 모바일 мобільниймобільний

Mobile is a complex Mobile is a complex ecosystemecosystem

The operators sits on the most valuable and granular The operators sits on the most valuable and granular User DataUser Data

• Focus on VAS ie. Ring back tunes, caller tunes, game Focus on VAS ie. Ring back tunes, caller tunes, game downloads downloads

• Advertising potential not strong enough to excite operatorsAdvertising potential not strong enough to excite operators

The device manufacturerThe device manufacturer

• Increasingly open to bundle Applications / Games onto the Increasingly open to bundle Applications / Games onto the handsethandset

• Tough to gauge LTV of such an initiativeTough to gauge LTV of such an initiative

Did we forget the Customer?Did we forget the Customer? The Customer has found the ultimate Swiss The Customer has found the ultimate Swiss

KnifeKnife

• Watch + Alarm clockWatch + Alarm clock• Portable Media PlayerPortable Media Player• Internet BrowserInternet Browser• Ticket substituteTicket substitute• Gaming deviceGaming device• Search deviceSearch device• Camera + Photo albumCamera + Photo album• Pen drivePen drive• GPS + MapGPS + Map• Cricket / Stock UpdatesCricket / Stock Updates

Leveraging the Swiss Leveraging the Swiss Knife for MarketingKnife for Marketing

移动 移动 الجوالالجوال मो�बा�इलमो�बा�इल mobilnímobilní

ΚινητόΚινητό סלולריסלולרי モバイル モバイル 모바일 모바일 мобільниймобільний

Four Broad ApproachesFour Broad Approaches

SMSSMS

Huge volume of SMS Alert Footer Huge volume of SMS Alert Footer inventory is availableinventory is available

Supply outstrips demandSupply outstrips demand

Typical ProposalsTypical Proposals

Take part in a short quiz for a chance to win a scholarship for your child. Reply YES

Q1. What is the current cost of college education Reply EDU <cost>

Q2. How many years before your child goes to college Reply TIME <years>

Q3. What is the average cost of an MBA today Reply MBA <cost>

Q4. What is the best city for higher education in India Reply CITY <name>

Thank you for participating. To allow a manager to speak to you Reply OK

Common Sense SMS MarketingCommon Sense SMS Marketing

User customized SMS Chasers based on User customized SMS Chasers based on details in the SMS alertdetails in the SMS alert

Account Bal in A/c xxxxx137 is Rs 100,000 on 8th Oct 2008

SMS Alert

Best interest rates on FD 10.5 % for 400 days. For more details visit nearest branch

SMS Chaser

Offline Media Mix Evaluation

By Using Mobile Responses

As An Indicator

Mobile InternetMobile Internet

Mobile InternetMobile Internet

Over 2 billion monthly Banner impressions available Over 2 billion monthly Banner impressions available Think as Online with greater focus on customer Think as Online with greater focus on customer

relevancerelevance Keep focus on smaller formats & crisp messagingKeep focus on smaller formats & crisp messaging

Crystal gazing – mobiles will have browsers Crystal gazing – mobiles will have browsers rendering normal web HTML pagesrendering normal web HTML pages

Examples- Dell & ICICI Examples- Dell & ICICI LombardLombard

Homepage Download Page

Google Mobile SearchGoogle Mobile Search

Specify where to direct user traffic:

•Mobile Site (CLICK)

•Call Center Number (CALL)

•Both

•Mobile Site (CLICK)

•Call Center Number (CALL)

•Both

[Ad] Home Finance – Approved Projects – XYZbank.com – Call: 080-123-2431

Generate Calls to Client Call Center Via

Advertising On Google Mobile

Reaching HNI / Business UsersReaching HNI / Business Users

Surrogate TargetingSurrogate Targeting Handset model targeting on WAP Handset model targeting on WAP

BannersBanners

• Business UsersBusiness Users• Blackberry / E Series NokiaBlackberry / E Series Nokia

Cost Per Click pricingCost Per Click pricing

Applications – Mature in 2011Applications – Mature in 2011

Marketer applicationsMarketer applications• Store LocatorsStore Locators• CataloguesCatalogues• Mobile GamesMobile Games

It will take 3G rollout for this space to It will take 3G rollout for this space to mature outmature out

Mobile AdvergamingMobile Advergaming

Mobile game Mobile game created for Colgate created for Colgate MaxFreshMaxFresh

Promoted through Promoted through website and WAP website and WAP campaign.campaign.

Promoted both Promoted both online and through online and through SMS pushSMS push

VOICEVOICE

How LOUD will Voice get?How LOUD will Voice get?

Voice is currently the most underutilized for Voice is currently the most underutilized for Mobile MarketingMobile Marketing

IVR – yet to be monetizedIVR – yet to be monetized Click2Call- suits our call center cultureClick2Call- suits our call center culture

• Tech glitches will iron themselves outTech glitches will iron themselves out Players like Just-dialPlayers like Just-dial

• (IVR+ Listings+ SMS)(IVR+ Listings+ SMS)

Model not evolved significantly even GloballyModel not evolved significantly even Globally

Some Quasi Mobile Options Some Quasi Mobile Options Already MatureAlready Mature

SMS as a response mechanism as SMS as a response mechanism as mature as Toll Free usagemature as Toll Free usage

CRM system alerts for customers eg. CRM system alerts for customers eg. Premium Due / Flight StatusPremium Due / Flight Status

SMS Short Code, Coupons & Loyalty SMS Short Code, Coupons & Loyalty points on Packaged Goods (about points on Packaged Goods (about halfway there)halfway there)

Parting ThoughtsParting Thoughts

The question is not The question is not “if” “if” but but “when”“when” Mobile Mobile will become the most important vehicle will become the most important vehicle

in your media mixin your media mix

in marketing we talk about offering a "value proposition" on mobile we need to start thinking about the

"value obligation."

You are on my phone. Tell me why.

Thank YouThank You