Shrinking Advertising Spends Make Way for the Rise of Online Marketing

by Shveta Singh 8. July 2009 11:15

In a recent announcement, ZenithOptimedia, a unit of French advertising group Publicis, has revised its global advertising growth forecast. They now predict that the global advertising market to decline 8.5% this year, compared to its previous forecast of a 6.9% decline. The worst hit are the North American and European markets with US leading the way with a sharp 10.6 percent decline. China and India seem to be the only promising markets as of now, with ad spends still on their way up.

However, globally internet ad spending is the sole media likely to grow in 2009. A rise of almost 10.1% is expected for online spends, which ZenithOptimedia has attributed to this medium’s inherent virtues of transparency, accountability and flexibility. Another recent study conducted in India, suggests a whopping 40% growth for digital media in India, even as the offline spend falls by 10%.

Good news for all stakeholders of the online media industry!

But what does this really mean for us? While such reports & predictions sound music to recession hit ears, we need to go beyond these numbers. We need to understand the present scenario and look at ways to leverage this trend.

When it comes to marketing online, most Indian brands are very myopic and unwilling to tread the road less traveled. For them Online Marketing is limited to homepage banners on Yahoo, Indiatimes and the likes.  Little do they know that display is the least targeted, low on ROI tactic amongst the bouquet of online activities available.  But now that the rupee is shifting online, brand marketers need to understand the medium better and look at it holistically, as a part of the complete strategy rather than a banner here or an email shot there. They need to look at online plans that ensure a consistent presence through a varied mix of tactics and channels available instead of a standalone activity.

Therefore, a clear responsibility for digital agencies like iStrat is to steer the marketers’ money in the right direction, so that they derive maximum returns and develop trust on the medium. And in the long run, create evangelists for this medium, who will not shift the budgets back to the traditional media even after the economy has recovered.

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Online Marketing | Web Trends & Analysis

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