Why digital is not an option, but a necessity for brands today

On the occasion of World Internet Day, BestMediaInfo.com spoke to digital experts to understand if brands are on course in their usage of the online medium or if there is a need for a course correction

Sarmistha Neogy | Mumbai | October 29, 2014

What if one day you wake up and find all your social messaging apps and the internet not working? Not only will you feel lost and disconnected, but you'll also wrack your head trying all possible means available to restore connectivity immediately. Brands too will go berserk if they lose touch with the online world.

In an era where brands are launching their advertising campaigns first on the online medium and then on traditional media, and where consumers can rant and complain about brands that don't please them, at the click of a mouse, brands have become extremely cautious and highly dependent on this medium. With the digital explosion, the mentality of both brands and marketers has changed tremendously, which is why we see a surge in online advertising in India.

According to the MindShift Interactive study, it is projected that the size of the online advertising market in India will be Rs 2,938 crores by FY13-14. On an average, this market has been growing at 30%, year-on-year, from FY10-11 to FY13-14. The growing FMCG spends on online advertising represents an increasing opportunity for digital marketers to tap into the enormous potential of online advertising.

On the occasion of World Internet Day on October 29, BestMediaInfo.com spoke to digital experts to understand if brands are using the online medium in the right measure and direction, and if there's a need for any course correction.

The digital effect

Zafar Rais

Zafar Rais, Founder and CEO, MindShift Interactive, said, “The online world has certainly evolved and there is now more acceptance and education in this domain. We are certainly moving in the right direction. There are a few obstacles in the path which, I believe, will diminish gradually, and right now we are part of the evolution and learning phase.”

Rais further added, “Around five to six years back, majority of the brands didn't have any idea of the digital world. Their priority was to just have an online site, but now the major chunk of the industry has turned digital. I can attribute the rise of online marketing spends to mainly two factors – one that it is a cheaper medium and secondly, it helps brands to gauge the market sentiments easily. In the years to come, there will be higher budget allocation in this domain, serious players will last and the industry will stabilise for sure.”

Gaurav Pathak

Gaurav Pathak, COO, Razorfish, observed that digital has fundamentally changed the way brands behave, as well as the way they organise and optimise their marketing efforts. “While the personalities of individual brands are varied and unique, there are certain key factors which brands need to keep in mind in the new marketing landscape. One must be a conversationalist, discoverable, content creator and always be constant,” he suggested.

“You will always find early adopters and laggards. But, given the changing marketing landscape, every brand will have to think about their digital strategy sooner than later. Digital is no more an option but a necessity, if the brands have to stay relevant in today's' scenario, given the way consumers are consuming data,” he added.

Ahmed Naqvi, CEO and Co-founder, Gozoop, believes that today, the offline & online world are in sync more than ever. “Some call it the internet of things, but I prefer calling it the 'new world'. No doubt, we are heading in the right direction. The only thing we should be cautious of is the urgency in replacing human factors?with everything digital at a speed that causes imbalance. From a brand's perspective, digital is a large part of the present and a larger part of the future. The things that fill the rest should not be ignored,” he stated.

While many brands have taken to the digital world, there are some who still adhere to old school advertising. Naqvi said, “Almost all brands have realised the importance of digital, and for the few who haven't, it's better late than never. For most of our global clients, the digital spend has comfortably reached double figures of their total spends, and Y-o-Y we are seeing it grow exponentially. And this will continue.”

Vinish Kathuria

Vinish Kathuria, COO, Digital Quotient, said, “Think about the time when India won the 1983 Cricket World Cup. At that time, other than TV and radio, there was no way of reliving the joyous moments. But today, in the internet era, in a gap of not more than 30-40 seconds, an update is always available. Therefore, access to information has become so much easier, not only for those sitting in front of the computers, but also for people located in any corner of the country – be it the farmer or the pregnant lady getting health tips on her mobile.”

Despite the surging popularity of digital among marketers, the medium is still not given its due share in terms of ad spends. The primary reason for this, Kathuria said, is that fact that India has several family-owned businesses, and many brands are still in their 'safe zone' where they hesitate to experiment with new means of advertising. However, he is hopeful that things will change. “In the years to come, the entire pyramid can just get reversed, with digital getting the highest budget share,” he remarked.

On Course

Sumanta Ganguly

Sumanta Ganguly, Senior Vice-president, LinTeractive, believes that brands have actually no other way but to get digital friendly, because it is where the consumers are and, by rule, brands should follow their consumers. “The world is complicated and will continue to remain complicated; businesses won't get back to where they started. In the same way, the online domain is in the stage of VUCA - volatility, uncertainty, complexity and ambiguity. I don't feel the need for any course correction, as you can't change anything, but what is in your hand is to craft your presence better in this era,” Ganguly stated.

Pratik Gupta

Echoing similar thoughts, Pratik Gupta, Co-founder, Director – New Business & Innovations, FoxyMoron, said, “Surely, we are moving in the right direction. The simplest example would be the fact that, we (FoxyMoron) started six years back with four people and now we are a strong team of more than 200 people. Things are changing in this fast-paced era at a phenomenal pace. Communication has now got a new meaning, where digital communication stands for more of storytelling and where the targeting effects are immediate. I don't need to wait for TRPs and GRPs; I know what is working for the brand and what is not. Therefore, conversations have changed and different parameters have come into the scene.”

Matthijis Klinkert

Matthijis Klinkert, Strategist & Partner, Fabrique, part of Brand Dialogue group in India, said, “We do not believe there is a right or a wrong direction. Social media has found a place in the daily lives of people the way it is. And, it has changed many people's lives (for better or for worse). Just look at the revolutions in the Middle East right now and the role social media played in it.”

The challenges

Anything which grows fast also stands at the risk of falling faster. What challenges does digital pose to brands and marketers? According to Naqvi, brands and marketers need to be realistic of what they expect from each channel of digital marketing, and how they can be mapped back to their business KPIs. “There is no 'one size fits all' and smart brands & marketers should know how to get this right. ?Another challenge is personalising every customer interaction with relevant brand experiences. Meeting the expectations of the always-connected customer is at times difficult, but definitely achievable,” Naqvi stated.

Kathuria of Digital Quotient, said, “The challenges in this medium are that it still hasn't caught up, and the quality of all the content produced is not of superior quality. For instance, a brand can have one TVC in a following quarter, as against Facebook posts, which are updated daily. Therefore, it is obvious that the quality will not be the same for every post. Quality check is something that brands need to work on.”

Klinkert gives a more optimistic view and chooses to look at the opportunities rather than the challenges or dangers. “The only threat digital holds for existing brands is that it tends to make their products look enormously outdated overnight. In Europe, we saw the complete disappearance of travel agencies for holidays. Virtually no one books their holiday or flight tickets at an office, you just do that online. The same goes for banks. Many bank shops changed radically or disappeared from the streets, while the only contact for people with their banks is via their website or mobile apps.”

He offers a few words of caution to brands. “Stay agile; be prepared to change your business. Never think, 'this will not apply to me', because it will,” he said.

Info@BestMediaInfo.com

Info@BestMediaInfo.com