the reach usage patterns of digital marketing among the global youth

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1 THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH PROJECT REPORT ON THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH SUBMITTED BY CRYSTAL D’SOUZA MICHELLE FERNANDES FRANKLIN FERNANDES M.M.S. SEMESTER II ACADEMIC YEAR 2012-2013 PROJECT GUIDE DR. PANKAJ NATU SUBMITTED TO DON BOSCO INSTITUTE OF TECHNOLOGY - MMS 5 TH APRIL, 2013 DATE OF SUBMISSION:

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The Reach Usage Patterns of Digital Marketing Among the Global Youth

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Page 1: The Reach Usage Patterns of Digital Marketing Among the Global Youth

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

PROJECT REPORT ON

THE REACH AND USAGE PATTERNS OF DIGITAL

MARKETING AMONG THE GLOBAL YOUTH

SUBMITTED BY

CRYSTAL D’SOUZA

MICHELLE FERNANDES

FRANKLIN FERNANDES

M.M.S. SEMESTER II

ACADEMIC YEAR 2012-2013

PROJECT GUIDE

DR. PANKAJ NATU

SUBMITTED TO

DON BOSCO INSTITUTE OF

TECHNOLOGY - MMS

5TH

APRIL, 2013

DATE OF SUBMISSION:

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

D EC LARATION

WE, CRYSTAL D’SOUZA, MICHELLE FERNANDES &

FRANKLIN FERNANDES, STUDENTS OF DON BOSCO INSTITUTE

OF TECHNOLOGY-MMS, STUDYING IN M.M.S. SEM-II HEREBY

DECLARE THAT WE HAVE COMPLETED THIS PROJECT ON “THE

REACH AND USAGE PATTERNS OF DIGITAL MARKETING

AMONG THE GLOBAL YOUTH ” DURING THE ACADEMIC

YEAR 2012-2013. THE INFORMATION SUBMITTED IS TRUE AND

ORIGINAL TO THE BEST OF OUR KNOWLEDGE.

DATE: 5TH

APRIL 2013

PLACE: MUMBAI

CRYSTAL D’SOUZA MICHELLE FERNANDES FRANKLIN FERNANDES

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

C ER TIFICA TE

I, DR. PANKAJ NATU, HEREBY DECLARE THAT CRYSTAL

D’SOUZA, MICHELLE FERNANDES & FRANKLIN

FERNANDES OF DON BOSCO INSTITUTE OF TECHNOLOGY

– MMS, STUDYING IN M.M.S. SEM II HAVE COMPLETED

THEIR PROJECT ON “THE REACH AND USAGE PATTERNS

OF DIGITAL MARKETING AMONG THE GLOBAL

YOUTH” DURING THE ACADEMIC YEAR 2012-2013. THE

INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO

THE BEST OF MY KNOWLEDGE.

DR. PANKAJ NATU

SIGN OF PROJECT GUIDE

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

TA BLE OF CON TENTS

ACKNOWLEDGEMENT 5

EXECUTIVE SUMMARY 6

DIGITAL MARKETING : AN INTRODUCTION 7

THE GLOBAL SCENARIO 9

THE INDIAN STORY 12

RESEARCH METHODOLOGY

Objectives

Hypotheses

Background Of The Problem

Scope

Research Instruments

Sampling

14

THE ANALYSIS 18

FINDINGS & RECOMMENDATIONS 28

CONCLUSION 30

BIBLIOGRAPHY 31

APPENDIX 32

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

AC KN OWLED GEM EN T

This project would have not been possible without the tremendous support and

assistance of a number of people to who we are eternally grateful.

Firstly, we would like to thank our mentor, Dr. Pankaj Natu, for bearing with our

ambitious plans for the project and then gearing us towards a better way in which we

could do our project. His assistance has been much appreciated.

Secondly, we would like to thank Mr. Gaurav Jhamb, Executive, Google India for

his valuable inputs regarding the Digital Marketing Universe and the time taken out to

talk to us is much appreciated.

In the end, we would like to thank our family and friends for being ever encouraging

and supporting throughout the project.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

E X E C U T I V E S U M M A R Y

Digital Marketing is a phenomenon which is changing the playing field. While most people

on Social Media like Facebook and Twitter, Digital Marketing is much broader. It’s the use of the

internet to help build brand leverage and reach out to customers wherever they are, whenever they

want and for whatever they want.

With the growth of Smartphones and Tablets, Marketers use the Digital Marketing tools like

social media, email, mobile, SEO, Blogs, etc to reach out to the customer and involve him in the

buying process. Our research shows that more than 56% of respondents are always connected

through their smartphones or Tablets. In the last two years, the cost of entry level smartphones has

decreased by 135%. The number of mobile web users has risen from 70 mn to 132 mn between 2011

and 2012.

The Mobile Application Market in India grew by almost 125% during 2011-12. Almost 77%

people in India have up to 30 Apps on their smartphone. The most downloaded Apps are for Instant

Messaging, Social Networking, and Gaming & Music. Women use Social Networking Apps (48%)

as compared to Men (38%)

The age group of 18-24 years are the majority who download and use Instant Messaging and

Social Networking Apps. 58% of the people surveyed know that the Apps used will benefit their

lives and 48% like being in tune with the latest applications.

In spite of this, TV still remains the media channel which has the greatest reach when

compared with the print media and internet on the computer and internet on the wireless device. The

majority of people are irritated with advertisements and barely notice them. Hence, there is a need to

find innovative ways to get the message across and increase the reach.

Finally, with all the impacts of digital technology, most people are still unclear about the

effect such mobile functionality has on our lives. However, there is a need to be more responsible

and use technology in a useful and safe way.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

D IGITA L M A RKETIN G : AN

IN TR ODUC TION

“Almost overnight, the Internet’s gone from a technical wonder to a business must”

There was a time when life was simpler. One’s relationship with people was stronger yet

limited in scope. Businesses followed a certain type of strategy for a considerable period of time and

were relatively successful. Brands survived for decades. Marketers focused on building brand

awareness, mainly through TV campaigns. While some energy went into tactics farther down the

line, the thinking was that ‘awareness’ was a tide that lifted all boats. The consumer wasn’t in a

position to demand the service he felt he deserved. It was all about ‘Making It Simple Yet

Significant’. The future of the world was predictable. And then, the internet arrived.

The world grew smaller. Globalisation grew stronger. It became possible to connect with

people across the globe at the click of a button. Companies started looking at international markets to

increase both, market share and sales. Consumers started gaining more importance and the entire

scope of Marketing from the company’s orientation was overturned. The view of Marketers about

brand awareness was broken because 60% of TV viewers are surfing the Internet while they watch,

so the action that a TV ad is most likely to elicit is not a trip to the store, but an Internet search. And

such data was collected long after the immediate advertisement was made. With digital marketing,

these limitations disappear.

Digital Marketing is the new media to market a brand/product/organisation and so on.

Though there are a lot of activities that can be done, but digital marketing these days relies on the

internet. It is used as a promotional tool/place to retrieve information to educate the public. Creating

an online identity for a brand helps increase the brand image and awareness. And it facilitates in

reaching a wider target audience with efficiency.

Today's empowered and connected customers have the brand in their hands and they share

their views. Following are the top 6 factors impacting marketing:

Fig (1): Factors Affecting

Marketing

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Laptops, smartphones, and tablets have allowed users to bring the web with them wherever

they have cellphone reception or Wi-Fi (even on buses, trains, and airplanes!). The current

generation of videogame consoles (Xbox 360, Playstation 3, Wii), Blu-ray players, and TVs now

come with seamless internet integration, which will help get internet media, such as YouTube, off of

small laptops and tablets and onto much larger displays. These tech marvels are continuing to change

the way that people interact with and absorb media and information. This, in turn, has opened the

floodgates of new and innovative advertising and marketing strategies.

Following are some possible trends to be seen with respect to promotion by Marketers 1:

A greater number of advertisements on the web & fewer on Televisions and non-digital

media

Advertisements that know ‘Who’ we are (e.g. Facebook and Google ads linked to profiles or

email addresses)

Advertisements that know ‘Where’ we are ( e.g. GPS and other location services)

Ad-subsidized products that are cheaper (e.g. free iPhone apps and cheaper Kindles)

The marketing world, in large part, can be split into two camps. The traditionalists believe

that nothing has really changed except the tools. Digital advocates, on the other hand, are sure that

the realm of communication has changed so completely that the old rules have lost relevance. The

actual answer lies between these two extremes 2.

In contrast to the old model, where marketers strove to come up with a “big idea” which they

could promote with massive ad spending on TV, now marketers need to create pervasive brand

experiences that keep consumers engaged even after they have made the sale.

To succeed in this new environment, marketers need to move away from one-way

communication and towards a true value exchange, where consumers interact with the brand

continuously because they are getting more than just a slogan, but an experience that transcends the

product itself.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

THE GLOBA L SC ENAR IO

100 Million Households worldwide own at least one connected TV. 50 % of the world’s

population own smart phones, 19% own tablets and almost 80% multitask on these devices while

watching TV. And this is just the nascent stage. By 2016, there will be 10 Billion mobile connected

devices, almost exceeding the global population of 7.3 billion people. With such numbers in play, it

is of supreme importance to reach out to this category of digitalized people.

Fig 2 : The ‘Connected’ Consumer

Fig.2 describes the current global scenario of the 'connected consumer'. The time spent on

digital media like smartphones, Tablets, Kindles, Playstations, etc has increased tremendously.

According to our research, almost 56% of our respondents are always connected through the

different digital devices they use.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

With businesses looking for growth in stagnant economies their gaze turns to digital not just in

their home markets, which are becoming more mature and saturated, but they see digital as the

obvious route to international expansion and growth. Brand building and differentiation are the top

reasons for digital marketing, followed by customer communication and assessment of customer

satisfaction of a product, according to a survey of 250 firms with over $500-million in annual

revenue by Gartner 3.

Media consumption has evolved due to increased internet access, the narrowing of the age gap

in usage across platforms, and the way geography influences media orientation. By understanding

that these seismic shifts reflect an evolving balance of cross -platform media usage, marketers and

advertisers can better craft their marketing mix and appeal to more diverse audiences.

Social media has grown by 238% between 2009 and 2012. 42% of adults in a survey

conducted by Scarborough agreed that the internet is their main source of entertainment. 14% of

adults think social media is important for them to show support of their favourite companies and

brands. In fact, in our research, the most time spent by people after instant messaging apps like

Whatsapp is Social Media like Facebook and Twitter

Fig 3: The digital media

trends in USA

As Fig 3 shows, this

trend is now being

observed in many

developed countries and is

slowly spreading to almost

all emerging countries.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Another key aspect we have taken into consideration is the Advertising on the digital media. As Don

Draper from Mad Men notes, “Advertising is based on one thing, happiness. And you know what

happiness is? Happiness is the smell of a new car. It’s freedom from fear. It’s a billboard on the side

of the road that screams reassurance that whatever you are doing is okay. You are okay” While

traditional media helps bring about resonance of the brand with the increased exposure to digital

devices, it is important to tap customers at each and every point of contact.

Fig 4: The Changing Face Of

Advertising

As seen in the alongside

figure, the digital environment is

increasingly being given

importance. With traditional

marketing channels unable to get

the same level of involvement

from the audience, digital

marketing takes up where

traditional marketing falls out.

In our research, a relationship between the time spent with respect to the different media channels

was compared, and it was found that, in spite of the high connectivity with mobiles, TV still retains

the greatest reach, followed with a marginal difference with time spent on the Internet.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

THE INDIAN STORY

As over 150 million Indians surf the internet, Indian marketers are losing sleep in their

attempts to catch them young, in their mid-life crisis or even after hanging up their boots. The

challenge is immense. From the $5bn Indian advertising industry, $90m goes to digital marketing 4.

And, this digital share is poised to grow larger every year and slated to become 30 percent of the

total market by 2015. Marketers need to keep their finger on the pulse of the consumer and try to

understand what will be the next big idea to engage them.

Today’s consumer is both everywhere and nowhere and his/her attention is divided between

multiple screens and platforms. Marketers like to speak about TV, desktop and mobile as ‘three

screens’, but adding tablet into the mix as the fourth screen will be a wise move to reach those

fragmented souls who are always on the target list as the “elusive on-the-go customer”. In terms of

platform, consumers are watching more and more content, but that viewing is dispersed across

different outlets, from cable TV, online streaming and video on demand, to Podcasts and webinars.

Although some western markets are going through the cord cutting phenomena, the Indian

market is going through what is called as a “cord extension” phase, where consumers are adding

broadband, mobile, DTH, DVR and IPTV connections over their existing cable TV. The mantra of

content everywhere and anywhere, on any device and any screen, has played its role in helping to

fragment consumption, which in turn has made it necessary for marketers to shift both strategy and

focus if they that want to keep up with their audiences.

Fig 5: Mobile Users in India

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

An Ericsson research 5

identifies that the near future will see residents of India using

smartphones as the primary means of internet access rather than broadband or fixed line connections.

Indians consumers access the internet through their smartphones at least once a week. Following are

some key trends as identified in the Indian market:

The usability, functionality and a fast internet connection are a few of the main reasons

why consumers are adopting smartphones and apps so quickly.

Apps are seen by users as tools that make them independent. They serve as a guiding light

to complete any given task. That’s why there is a certain amount of loyalty and emotional

connection that Indians have to particular apps that they use.

Many first time smartphones users are unable to separate the concept of apps from their

smartphones. For them, apps are the reason why they purchased their smartphone in the

first place!

Indians use apps that particularly help them to strengthen their identity or enhance their

mobile browsing experience.

Games and social media apps remain increasingly popular for Indian smartphone users,

with a special interest in downloading wallpapers, screen savers and other such media.

This make Indians stand out in their smartphone usage.

68 % of new users spent at least 50 % of their time online on their smartphones. Android

users in India spent almost 3 times of their time on apps

The bottom line of all these reports is that Indians are consuming more content, more Internet

and more mobile services that ever before. With banking, shopping, medical services, entertainment

and social interaction made easily available on smartphones with a tap, there’s no reason why

Indians should not subscribe to the ‘anywhere-anytime’ policy.

Another reason why many Indians in the 40+ age category are adapting to preloaded

smartphones is because it doesn’t even require basic computer literacy. It’s all self guided and self

intuitive. And with Android smartphones as cheap as Rs. 6,000 flooding the market, it help paves the

way for a digital age.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

R E S E A R C H M E T H O D O L O G Y

Step 1

Define the Problem/Research Objective:

Key Research Objective: To study the reach and usage patterns of the global youth with respect to

digital marketing.

Secondary Research Objectives

To understand the exposure of the audience with regard to digital device exposure

To draw a correlation between usage patterns and time spent on the device

To understand the relationship between Applications used and the time spent on the

device

To understand the degree of exposure of advertising with the audience

To study the exposure of the audience with regards to the media channels

To study the involvement of audience with respect to usage of digital media

Hypotheses of the Study

The occupation of a person and his ability to purchase a digital device is independent

The gender of a person and the time spent on the digital device is independent.

The occupation of a person and the purchase of Applications are independent. .

The most amount of time spent on devices is for gaming

People mainly operate through their device for work and entertainment needs

Television is the most preferred medium of communication

People welcome advertisements on their device

Digital Technology will harm human relationships.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Scope:

Unit of Analysis: Individuals.

Time boundaries: 1st January 2013 – 15

th March 2013

Step 2

Determine the Nature of the Topic:

The project is an exploratory research. The main aim of this project is to understand the awareness

of the youth towards digital media as well as study the effectiveness of advertising done on these

digital devices. The research is qualitative as well as quantitative in nature. A survey/Questionnaire

has been used to gather information for the study and trends have been sourced from various sites on

the World Wide Web.

Step 3

Develop the Research Plan Data Sources & Research Instruments

Primary data has been gathered for the research project. A questionnaire (see Appendix) has been

formed to help aid in research. It has been given to an audience between the ages of 13-40 years. It is

assumed that these set of people have access to digital devices and are relatively tech savvy

Step 4

Collect the information & Analyse the same

A total of 200 respondents have been recorded. There is a balance of male and female respondents.

Since this is a youth oriented survey, the majority of the respondents are from the age group of 20-26

years of age. The data has been analysed suitably and the Chi Square Test has been used to study

dependence between variables.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Background of the Problem:

1. Unit of Analysis:

People

Since our topic is an exploratory research, which is concerned with identifying the awareness and

exposure of the youth to digital marketing and the effectiveness of promotion on it, we have reached

out to a tech savvy, informed youth from different parts of the world that is in possession of any

digital device.

2. Characteristics of interest:

Our project is focused on the Awareness and usage patterns of the global youth. Thus, our main areas

of interest are the amount of time they spend on the device, their usage patterns and also an inkling

of an e-commerce angle which is a necessary part in order to close an online sale.

3. Environmental Conditions:

The people approached for this project are ordinary residents of countries across the world, falling in

the age category of 18- 30 years of age. It has been assumed that they are knowledgeable about the

digital devices they use, spend a limited amount of time on it and have been exposed to

advertisements on any channel of media.

Scope:

Digital Marketing is a growing field, yet is unknown territory for many a person. This project aims at

shedding light on the recent usage of the youth to the efforts made by the Marketers. By

understanding the usage patterns and awareness levels, companies can be able to change their

strategies and target their potential customers much better. In case, their presence has already being

felt, they can identify better ways to retain the attention of the audience and convert them into being

loyal customers.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Research Instruments & Procedures

The following instruments would be used:

Questionnaire for Sample Survey

Sampling Size & Methods

Population

The population comprises of a person who is exposed to digital marketing and are reasonably tech

savvy.

Sampling Frame

The sampling frame comprises of individuals who reside across the globe and fall within the age

group of 13- 45 years of age. They mostly possess at least one digital device.

Sample Size

200 respondents

Sampling Methods

The sampling methods used are snowball sampling and judgement sampling and random sampling.

Method of Analysis

The method of analysis used has been Observations, Graphical Representations & Chi Square

Test. The questions have been formed using the Likert Scale, Multiple Choice Questions and

Open Ended Questions. Suitable inferences have been understood from the responses given and

are shown in the data below.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

THE AN ALY SIS

"India’s rapidly growing mobile user base presents marketers and businesses with an opportunity

to improve the precision with which they reach out to the new Indian consumer. Today, younger

Indians for instance, prefer texting and chat over voice communications and understanding this

behavior better can define data consumption and customer acquisition strategies for operators and

handset providers" said Farshad Family, MD – Media, Nielsen India.

India shows tremendous potential for the hooks of Digital Marketing to sink in. With a tech savvy

population, rising disposable incomes and an improvement in the telecom infrastructure, all makes

the possession of digital devices easy and increases the scope of digital marketing as it provides more

interfaces for the Marketer to come into contact with customers.

The respondents are

mostly falling in the age

category of 20-26 years of

age irrespective of

country as the survey is

aimed at finding the

awareness and usage of

the global youth. Almost

1/4th

of the respondents

are from countries other

than India.

Exhibit 2 as seen below shows the occupation break up with respect to gender. A majority of both

female and male respondents are students. With this project being focused primarily on the youth,

Strategies to reach out to students can prove to be a benefit to the company if they are planned and

executed well. Students, relatively, have more time to spend than a working person and hence have

more of a leisure time to explore different avenues and try new things.

0

20

40

60

80

100

120

140

India Foreign

R

e

s

p

o

n

d

e

n

t

s

Country & Ages

Ages & Country Of Residence

13-19 20-26 27-33 34-40 40 onwards

Exhibit 1: Ages & Country Of Residence Of Respondents

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Exhibit 2: Gender & Occupation Of Respondents

After the basic profiling of the audience

has been seen, we will know identify

relationships between two or more

variables. Figure 6 alongside shows the

ownership of digital devices as seen by the

respondents. Smartphones are the main

digital devices used to keep in connect

with friends, family and work.

In Exhibit 3 as seen below, the Hypothesis was derived.

H0: The occupation of a person and his ability to purchase a digital device is independent

H1: The occupation of a person and his ability to purchase a digital device is dependent.

On doing a Chi Square Analysis 8, it is seen that the table value (15.5) exceeds the calculated value

(13.16), thus we Accept H0. .

0 20 40 60 80

100 120 140 160

Student Self Employed

Employed Other

Occupation

Gender & Occupation

Female

Male

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

The above analysis shows that usage of devices doesn't fully depend upon earning pattern. Students

own all the devices more than Employed and self-employed class of society

Exhibit 3: Relationship Between Occupation And Ownership Of Digital Devices

The time spent on a device is an important factor which has been considered by us in order to

identify the usage of the respondent. Exhibit 4 as shown below has the following Hypothesis:

H0: The gender of a person and the time spent on the digital device is independent.

H1: The gender of a person and time spent on the digital device is dependent.

On doing a Chi Square Analysis 9, it is seen that the table value (9.48) exceeds the calculated value

(6.20), thus we Accept H0. .

The research shows that respondents are always connected through their gadgets, irrespective of

males and females; the usage pattern doesn't changes for smartphones/cellphones.

Tablet Smartphone CellPhone Game Console

Kindle/IPod

18 40

36 22 24

3

12

5 4

5

8 39

13 5 10

Nu

mb

er

Of

Re

spo

nd

en

ts

Digital Devices

Occupation & Ownership of Digital Devices

Student Self Employed Employed

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Exhibit 4: Gender & Time Spent On Device

Figure 7 below shows the breakup of the usage patterns of the respondents with respect to the

Applications used. Text Messaging (Including Instant Messaging) is the most used application.

Check Emails

132 66%

Text Messaging

174 87%

Calls

157 79%

Gaming

91 46%

Browsing

119 60%

Reading

56 28%

Social Networking

121 61%

Internet TV and Video

47 24%

Other

7 4%

0

20

40

60

80

100

120

Nu

mb

er

of

Re

spo

nd

en

ts

Time Spent On Device

Gender & Time Spent On Device

Female

Male

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

However, in a research conducted by Nielsen, Users spent more time on entertainment and internet

based content as compared to voice calling and text messages. The average Smartphone user spends

2.5 hours a day using their phones with 72% of their time spent on activities such as gaming,

entertainment, apps and internet related content. Only 28% of their time is now used for voice calls

and text messaging.

Key Findings by Nielsen Informate Mobile Insights

Smartphone users in India are using their phones for more than 2.5 hrs per day, of which

communication (calls, SMS, emails) accounts for only 28% of usage

Younger Smartphone users (15-25 yr olds) spend more than 3 hrs per day on their phones

and spend 60% of the time on entertainment & browsing e.g., gaming, surfing the net and

multimedia

68% of 15-24 year olds used a chat app last month as compared to 42% for the 31+ year olds;

This can be proven with the help of the following graphs. Social Networking and Instant Messaging

are the most common used.

Figure 7: Social Networking Figure 8: Gaming

Figure 9: Instant Messaging

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Exhibit 5 as shown below has the following Hypothesis:

H0: The occupation of a person and the non purchase of Applications are independent. .

H1: The occupation of a person and the non purchase of Applications are dependent

On doing a Chi Square Analysis 9, it is seen that the table value (18.3) exceeds the calculated value

(9.68), thus we Accept H0. .

The research shows that respondents don’t really purchase Apps if they’re Students. Reasons like

‘Not Having A Credit Card’, ‘Getting an App from another source’ all contribute to non purchase.

Students don’t have the purchasing power to buy Apps and mostly use Free Apps or atmost Trial

versions.

Exhibit 5: Occupation And Reasons For Non Purchase Of Apps

51 31

16 13

17

8

5

3

2 3

1

2

21 7

5 4 3

8

Happy with current version

Online sec. No credit card

Another Cource

No device Other

Nu

mb

er

Of

Re

spo

nd

en

ts

Reasons For Non Purchase Of Apps

Occupation & Reasons For Non-Purchase

Of Apps

Student Self Employed Employed

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

In the Exhibit 6 as shown below, it is seen that the majority of Apps purchased are as by Students

and these are specifically Apps which entertain, like Games, and Apps which help to organise and

schedule things which are most useful by students.

Exhibit 6: Comparison Of Occupation & Purchase Of Apps

As seen in the Exhibit 7 below, the category of Apps purchased has been showed. As seen Instant

Messaging is the top favourite, with Apps like Whatsapp being the most popular App. Following this

is the Gaming Category wherein Temple Run is the most downloaded App. A full list of Apps

purchased by Respondents has been shown in the Appendix22

. An upcoming trend which can be

seen is that of SoLoMo (SOcial,LOcal,MObile) which are basically Apps used to “check in” and

help in identifying the places most frequented by the customer.

Organise Entertain

Connected Not Bought

37 47

10

2

14 13

8

13

5 7 2

7

Nu

mb

er

Of

Re

spo

nd

en

ts

Reasons For Purchase Of Apps

Comparison of occupation &

purchase of apps

Student Self Employed Employed

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Exhibit 7: Category of Apps Most Purchased

Exhibit 8 as seen below deals with Advertising Exposure with respect to different media

channels. It can be seen that Televison still rules the roost when it comes to exposure to Ads. The

criteria given is time spent on the media channel. When the most number of time, it helps the

Advertisement to reach the audience due to exposure . However, the next category is the internet on

the computer which is a signal for a change in the Marketing Communications in the future.

Books 2%

Games 24%

IM/ Phone 28% Social

Media

Productivity 13%

Photography 7%

Health 1%

Sport 1%

News 6% Music

7%

SoLoMo 3%

Category Of Apps Purchased

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Exhibit 7: Advertising Exposure

However, even though the Internet has received a number of votes, it doesn’t mean that the

customers welcome such advertisements. As our research shows, most respondents term it as a

“Constant Irritation” as seen in Exhibit 8. Thus, there is a need for Advertisements to be catchy yet

not unwelcome and this a challenge to be accepted.

Exhibit 8: Perception Of Advertising

22 26 40 60 52

25 46 51 51 27

9 32 37 75 47

31 38 43 49 39

1 2 3 4 5

Time Spent On The Medium

Advertising Exposure

Television Print Internet on Computer/Laptop Internet on Wireless

1 2 3 4 5

79

50 50

7 9

Common Perception on Advertisement

Range Of Acceptance By Customers

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

One of the most important questions our group has asked has to do with the the constant use of these

digital devices and the opinions of our respondents with regards to the future. There is a close race

between people and most feel it can go either way, but it depends on the person.

Exhibit 10: Mobile Functionality & The Future

The following research by EURO RSCG WORLDWIDE 6 helps shed a bit more light to this

fact. We are entering the post-technology era - an age in which digital tools have become so infused

into our daily lives that they cease to offer

meaning beyond their utilitarian functions.

Widespread dissatisfaction with the direction

in which society is moving (socially,

economically, politically, environmentally) is

leading people to question whether we can

put the brakes on our current dizzying rate of

"progress" and find a better , healthier, more

satisfying way in which to move forward.

While only 10% of the population

think digital technology is making life on

planet earth worse right now, 42% think it's

too soon to tell whether technology as a

whole will make life better or worse

Yes 38%

No 35%

Maybe 11%

Depends on person to

person 16%

Mobile Functionality And The Future

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FINDINGS AND R ECOMM E NDA TIONS

The figure above helps in summing up the entire gamut of activities as taken up by an individual..

The average youth uses Instant Messaging Apps like Whatsapp the most , followed by Gaming

Apps. He is exposed to a variety of multi-media devices and has the urge to be connected with the

outside world. While on one hand, the use of technology is beneficial and has helped life get easier,

on the other side of the spectrum, is the danger that people will become less social and live in an

isolated virtual world and forget the natural way of life

The following are some of the trends which have been derived from the study 7:

There is growing evidence that consumers don’t want to manage and maintain presences

across all the platforms and networks available. It’s just too much effort, too many logins to

remember, too many profiles to try and reconcile etc. So perhaps most will settle on only a

couple. In such cases, it becomes increasingly important for marketers to reach people

effectively.

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The technology to deliver the enterprise with digital at its core is here now. The main

challenges are around leading and marshalling the talent and innovative culture needed to

make it a reality.

There is a need to deliver outstanding customer experience across all channels and touch

points. They should be personalised intelligently, relevantly, responsively, in real time. The

customer journey should be seamless across channels and each should play to its strengths.

Use Native Advertising (Native ads are those formats designed for a specific platform and

which only exist on the platform: iAds, promoted tweets, Facebook ads, Adwords in Google

search, Foursquare etc) in the best possible way to get one’s message across to the consumer.

Integration across all marketing channels , digital or traditional, in order to give the

consumer a delightful, consistent message.

Aim to create digital services that are self-aware and personalised to the point that, for the

customer, they just seem to magically know what they want and make things generally easier

and more enjoyable.

These trends may seem difficult in theory but it’s through the integration of these ideas that one can

help deliver a successful digital campaign to the consumer and build on the awareness which has

been generated through the use of digital marketing.

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C ONC LU SION

Digital Marketing is a phenomenon which is changing the playing field. While most people on Social

Media like Facebook and Twitter, Digital Marketing is much broader. It’s the use of the internet to

help build brand leverage and reach out to customers wherever they are, whenever they want and for

whatever they want.

With the growth of Smartphones and Tablets, Marketers use the Digital Marketing tools like social

media, email, mobile, SEO, Blogs, etc to reach out to the customer and involve him in the buying

process. Our research shows that more than 56% of respondents are always connected through their

smartphones or Tablets. In the last two years, the cost of entry level smartphones has decreased by

135%. The number of mobile wev users has risen from 70mn to 132 mn between 2011 and 2012.

The Mobile Application Market in India grew by almost 125% during 2011-12. Almost 77% people

in India have up to 30 Apps on their smartphone. The most downloaded Apps are for Instant

Messaging, Social Networking, Gaming & Music. Women use Social Networking Apps (48%) as

compared to Men (38%)

The age group of 18-24 years are the majority who download and use Instant Mesaging and Social

Networking Apps. 58% of the people surveyed know that the Apps used will benefit their lives and

48% like being in tune with the latest applications.

In spite of this, TV still remains the media channel which has the greatest reach when compared with

the print media and internet on the computer and internet on the wireless device. The majority of

people are irritated with advertisements and barely notice them. Hence, there is a need to find

innovative ways to get the message across and increase the reach.

Finally, with all the impacts of digital technology, most people are still unclear about the effect such

mobile functionality has on our lives. However, there is a need to be more responsible and use

technology in a useful and safe way.

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

B I B L I O G R A P H Y

The following references were used for the project:

www.tumblr.com

http://www.nasdaq.com/article/mad-men-20-advertising-in-the-digital-age-

cm84528#.UV5JYpNTCSo

http://www.forbes.com/sites/gregsatell/2013/02/01/what-makes-digital-marketing-fundamentally-

different/

http://articles.economictimes.indiatimes.com/2013-03-22/news/37936942_1_mobile-applications-

social-media-revenue

http://www.next15.com/2013/02/04/digital-marketing-trends-2013-perspective-from-india/

http://trak.in/tags/business/2012/04/20/indians-buy-smartphones-apps-faster-internet-access-report/

www.brightcove.com/futureproof

http://digitalmarketingtrendseo.blogspot.in/

http://spotlightideas.co.uk/?p=2810

http://trak.in/tags/business/2012/09/05/airtel-smartphone-growth/

http://www.nielsen.com/in/en/news-insights/press-room/2011/indian-smartphone-users.html

http://econsultancy.com/in/blog/61806-17-digital-marketing-and-ecommerce-trends-for-2013-by-

econsultancy-ceo-ashley-friedlein

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

A P P E N D I X

ANNEXURE I – QUESTIONNAIRE

A Digital Marketing Awareness Survey

A Market Survey to Find Out the Awareness of Digital Media and Its Reach among the Youth

1. Your Name*

2. Do you own /use either of the following?*

Tablet (e.g. I pad/ Galaxy)

Smartphone

Cell phone

Game Consoles (PSP, Nintendo)

Any other wireless device (Kindle, IPod, etc)

I I don't own any as such.

Other:

3. I am*

Ο Male

Ο Female

4. What is the average time you may spend accessing any of the above mentioned

devices? * I am always connected and on the go

During hours of Work/Study

Between 3-5 hours

For 1-2 hours

Just use it for basic messaging and calling

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5. Which of the following do you access the most on your device?

Rate "1" for least use and "5" for most use

1 2 3 4 5

6. Have you bought Apps online? This includes free apps but not the "for trial" Apps. If No,

please enumerate why.

If yes, go to the Next Question

I'm happy with my current free/ trial version

I have concerns about Online Security

I don't have a Credit Card and I hence, I can't purchase Apps

I would rather download an App from another source and use it on my device

I don’t have a device which supports such Apps

Social Networking Apps like

Face book, Twitter, LinkedIn, etc

Ο

Ο

Ο

Ο

Ο

Newspaper Apps like NY Times,

TOI, ET, etc

Ο

Ο

Ο

Ο

Ο

Newspaper Apps like NY Times,

TOI, ET, etc

Ο

Ο

Ο

Ο

Ο

Gaming Apps like Temple Run,

Angry Birds, Word Games,

Simulation Games, etc

Ο

Ο

Ο

Ο

Ο

Sport related Apps like ESPN,

Live Score, Fantasy Football etc

Ο

Ο

Ο

Ο

Ο

Photography Apps like

Instagram, Vintique, Camera, etc.

Ο

Ο

Ο

Ο

Ο

Blogging Apps like Word press,

Tumblr,etc.

Ο

Ο

Ο

Ο

Ο

Music related applications Ο Ο Ο Ο Ο

Reading Applications like

Kindle, Wattpad, I books, etc...

Ο

Ο

Ο

Ο

Ο

Watching Internet TV, Videos

and News Online, etc

Ο

Ο

Ο

Ο

Ο

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Other:

7. What are the reasons for buying the “full "Apps online? This includes free and full

Apps

I purchase Apps which help in organizing my schedule and make work easier

I purchase Apps which entertain me (Games, Music, etc.)

I purchase Apps which help me stay connected with my friends and colleagues

Other:

8. Which was the last App bought for your device? Please cite the last 2 Apps purchased

9. How do you feel about advertisement done on your device?

Rate "1" for least receptive and "5" for most receptive

1 2 3 4 5

It is a constant irritation Ο Ο Ο Ο Ο I wholly welcome it

10. How receptive would you be if a certain application sends alerts about content or a

product specific to your interests?

Rate "1" for least receptive and "5" for most receptive

1 2 3 4 5

I try to block these alerts Ο Ο Ο Ο Ο I try to activate alerts for the same

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

11. Rate the following on perceived advertising Exposure/ Effectiveness *

Rate "1" for being least time spent with and "5" for most time spent with

1 2 3 4 5

12. Which was the last advertisement you remember on your device?

Enumerate at least 2

13. Do you see yourself depending completely on your device for all your required work

and entertainment needs? *

Ο I mostly operate all activities from my Device

Ο I balance it between my Device and Computer

Ο I only use my device to call and text, and access my computer for most other

Needs

Ο Other:

Television

Ο

Ο

Ο

Ο

Ο

Print (Newspapers, Magazines)

Ο

Ο

Ο

Ο

Ο

Internet on Computer/ Laptop

Ο

Ο

Ο

Ο

Ο

Internet on Wireless Device

Ο

Ο

Ο

Ο

Ο

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

14. Do you feel that increasing mobile functionality will harm future generations, and in

turn cause a time when people will try to get back to a simpler, less connected way of

life? * Please Comment

15. Your Age *

Ο Less than 13

Ο 13-19

Ο 20-26

Ο 27-33

Ο 34-40

Ο 40 onwards

16. Occupation *

Ο Student

Ο Employed

Ο Self-Employed

Ο Other:

17. Country of residence *

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

References Used:

1. http://www.nasdaq.com/article/mad-men-20-advertising-in-the-digital-age-

cm84528#.UV5JYpNTCSo

2. http://www.forbes.com/sites/gregsatell/2013/02/01/what-makes-digital-marketing-fundamentally-

different

3. http://articles.economictimes.indiatimes.com/2013-03-22/news/37936942_1_mobile-applications-

social-media-revenue

4. http://www.next15.com/2013/02/04/digital-marketing-trends-2013-perspective-from-india/

5. http://trak.in/tags/business/2012/04/20/indians-buy-smartphones-apps-faster-internet-access-

report/

6. http://www.prosumer-report.com/blog/

7. http://econsultancy.com/in/blog/61806-17-digital-marketing-and-ecommerce-trends-for-2013-by-

econsultancy-ceo-ashley-friedlein

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

Chi Square Analysis

1. The occupation of a person and his ability to purchase a digital device is independent

Gender Always

Connected Work/Study

3-5 hrs 1-2 hrs Basic Total

Male 58 7 17 11 7 100

Female 54 4 20 6 16 100

112 11 37 17 23 200

Expected

56 5.5 18.5 8.5 11.5

56 5.5 18.5 8.5 11.5

2 1.5 -1.5 2.5 -4.5

-2 -1.5 1.5 -2.5 4.5

4 2.25 2.25 6.25 20.25 4 2.25 2.25 6.25 20.25

0.071428571 0.409090909 0.121621622 0.735294118 1.760869565 3.098305

0.071428571 0.409090909 0.121621622 0.735294118 1.760869565 3.098305

6.19661

9.48 Accept H0

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THE REACH AND USAGE PATTERNS OF DIGITAL MARKETING AMONG THE GLOBAL YOUTH

2. The gender of a person and the time spent on the digital device is independent

Tablet Smartphone CellPhone Game Console Kindle/IPod Total

Student 18 40 36 22 24 140

Self Employed 3 12 5 4 5 29

Employed 8 39 13 5 10 75

29 91 54 31 39 244

Expected

16.63934426 52.21311475 30.98360656 17.78688525 22.37704918

3.446721311 10.81557377 6.418032787 3.68442623 4.635245902

8.913934426 27.97131148 16.59836066 9.528688525 11.98770492

Accept HO

15.5

O-E

1.360656 -12.2131 5.016393 4.213115 1.622951

-0.44672 1.184426 -1.41803 0.315574 0.364754

-0.91393 11.02869 -3.59836 -4.52869 -1.9877

O-E square

1.851384 149.1602 25.1642 17.75034 2.633969

0.19956 1.402865 2.010817 0.099587 0.133046

0.835276 121.632 12.9482 20.50902 3.950971

0.111265 2.856757 0.812178 0.997945 0.117709 (o-e) sq/E

0.057898 0.129708 0.313307 0.027029 0.028703

0.093705 4.348454 0.780089 2.152344 0.329585

13.15668

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3. The occupation of a person and the non purchase of Applications are independent

Student

Self Employed

Employed Total

Happy with current version 51 5 21 77

Online sec. 31 3 7 41

No credit card 16 2 5 23

Another Cource 13 3 4 20

No device 17 1 3 21

Other 8 2 8 18

Total 136 16 48 200

Expected

52.36 6.16 18.48 77

27.88 3.28 9.84 41

15.64 1.84 5.52 23

13.6 1.6 4.8 20

14.28 1.68 5.04 21

12.24 1.44 4.32 18

O-E -1.36 -1.16 2.52

3.12 -0.28 -2.84

0.36 0.16 -0.52

-0.6 1.4 -0.8

2.72 -0.68 -2.04

-4.24 0.56 3.68

O-E ^2 1.8496 1.3456 6.3504

9.7344 0.0784 8.0656

0.1296 0.0256 0.2704

0.36 1.96 0.64

7.3984 0.4624 4.1616

17.9776 0.3136 13.5424

O-E^2/E 0.035324675 0.218442 0.343636

0.349153515 0.023902 0.819675

0.008286445 0.013913 0.048986

0.026470588 1.225 0.133333

0.518095238 0.275238 0.825714

1.46875817 0.217778 3.134815

9.686521 18.3

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