DIGITAL AD-VENT

Online Advertising is fact catching on and is growing at the expense of traditional media such us print, radio and cinema.

Recently read an article on digital marketing saying that companies prefers now on digital marketing for their products and offerings to reach their target end users. The digital medium offers an opportunity to reach a section of audience in an innovative and engaging manner. It has become a key pillar in media planning now a days. Multinational companies like Cola, PepsiCo too are betting on digital for effective communication with part of their target audience in India- mainly the youth. However, television and print have not lost their effectiveness.

While television continues to be the bedrock of marketing investments, non-television investments have witnessed a significant shift in the mix. For example, Pepsi T20 Football tournament city specific campaign,  then relaying on radio and digital to derive participation while television was dedicated to thematic campaign.

With companies waking up to the potential of the digital medium, online advertising in India is on upswing and growing at the cost of other  media such as print, radio and cinema. The trend that began before the current economic downturn has only strengthened in recent times despite the economic slowdown.

Digital advertising spends grew at an average of 45% annually over the past three years and predicts the trend will continue- a report by Madison-Pitch. A second report by Internet and Mobile Association of India(IAMAI) and research firm IMRB says that digital spends is like grow 54% in the next 12 months.The industry generated revenue of Rs.2851 crore in 2011/12, which will grow to Rs.4391 crore in 2012/13. The growth is attributed primarily to the sustained rise in mobile and internet users penetration in India.

Digital advertising growth has been provided to be a boon for home grown advertising network such as Tyroo, Komli Media and Tribal Fusion among others with buy and sell online space for a host of websites.

But the digital medium still has a long way to go. According to Santosh Padhi- co-founder of Taproot advertising, most advertisers are currently doing only basic communication through this medium " There is no big innovation that is taking place. There are not too many players doing cutting edge work in this space." Adding to that digital could emerge as the most dependable channel for advertisers in next three to five years.

According to analysts a dearth of talent in the digital industry is also a big obstacle which need to be tackled for the medium to sustain its rapid growth in the future.