Digital Marketing in India July 2015
Executive Summary Market
SAMPLE
Digital marketing is the promotion of a brand or a product through one or more forms of electronic media Digital marketing business in India is expected to reach ~INR x bn within 2019 at a growth rate of y% CAGR It is slated to generate around 40% of the revenues for the topmost companies in India
Drivers & Challenges
Drivers Huge Domestic Internet Base Growth in Access to Smartphones and Tablets Positive Consumer Attitude towards Online Media Growth in Demand for Rich Digital Content Proliferation of Revenue Streams
Trends
Advent of Mobile Marketing Content Marketing Emerges as the New Buzzword Video and Image-Based Marketing Real Time Marketing
Competitive Landscape
Challenges Measurement of Efficiency Inconsistent Internet Coverage Absence of Vernacular Support
Major Players Player 1
Player 2
Player 3
Player 4
Player 5
Player 6
DIGITAL MARKETING IN INDIA 2015.PPT
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•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
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SAMPLE
Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn
Q1
Q2 2010-11
2011-12
Q3 2013-14
2012-13
Q4
Inflation Rate: Monthly %
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
DIGITAL MARKETING IN INDIA 2015.PPT
Nov 2013 - Dec 2013
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•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
5
A comparison detailing the new component in the cycle that has evolved over time
SAMPLE
Online Marketing – Where it pitches Traditional Media Pyramid
Social Media Pyramid
Text
Text Text
Text
Text Text
Classical Awareness Process
Text
Building Engagement with Users
DIGITAL MARKETING IN INDIA 2015.PPT
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•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
7
Increased focus on digital platform is paving the way for digital marketing in India
SAMPLE
Digital Marketing – India Overview • India is considered to be emerging as a digital outsourcing hub for diverse services including online advertising, social media and website design • Online advertisement and mobile advertisement form the two major chunks of digital marketing • The digital marketing industry indicates a promising future with an annual growth rate of ~B% over the next five years • Rising demand for digital marketing is spurred by the increased use of the internet and mobile phones along with a fast growing e-commerce business • However, there is a dearth of skilled professionals in this space and companies are struggling to hire people • Areas for digital marketing growth include e-commerce, which is the chief taker of digital marketing professionals, along with social marketing, content creation and management, search marketing, email marketing, analytics and video production
Digital Marketing – Market Size and Growth INR bn
B%
2014
2015e
2016e
2017e
2018e
2019e
Note: Market size definition of Digital Marketing includes Online Advertisement and Mobile Advertisement, amongst the major components of Digital Marketing DIGITAL MARKETING IN INDIA 2015.PPT
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Digital Marketing – India Snapshots
SAMPLE
Digital Marketing – India Overview (2/4) Revenue Generation (2014) 10% 10%
Spend in Total Media Advertising (2015e)
40% 40%
Text
10% 10% Text
Percentage Share in Spending in Different Online Marketing Segments in India for 2013 Unit %
Social Media
Email Marketing
Search Marketing
Mobile Marketing
Website Development
DIGITAL MARKETING IN INDIA 2015.PPT
Video
Webcasts 9
•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
10
A snapshot that shows how much social media marketing gets translated into ROI
SAMPLE
Social Media Marketing (3/3)
How does social media influence users help in recommen ding and eventual purchasin g?
Try new things based on friends’ suggestions and then making a purchase
~A%
Encourage friends to try new products
B%
Stay more in touch with the brands one likes
Share any negative experience with brands or products Do not buy certain products because one learnt of a negative customer experience
More than
C%
~D% ~E%
• Text
DIGITAL MARKETING IN INDIA 2015.PPT
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Search engine optimization gives a cost effective way for driving traffic to the company’s websites and owned media
SAMPLE
Search Engine Marketing (2/2) Internet users who opt for search engines as the 1st step to look for a product
Purchases made online through sites that are listed on search engine result lists
Internet users depending on search engine for requirement of information
Users not finding what they are searching on internet and going away
Note: These graphs are based on 2013 figures DIGITAL MARKETING IN INDIA 2015.PPT
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Email marketing is the latest addition to the range of online marketing methods
SAMPLE
E-mail Marketing Types of e-mail marketing Text Text
• Text Text
Text Text Text Text Proportion in total marketing budget
• Text
DIGITAL MARKETING IN INDIA 2015.PPT
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BFSI and Travel industry remain the dominant advertisers on the online media in India
SAMPLE
Online Advertising (1/2) Display Advertisement – Overview
Text Advertisement – Overview
• Text
• Text
Spend
Spend Text
Text
14%
High Text
Text
High
Text
Text
Text
Text
Medium
Text
Text
Low
12% Text
Text
Text
Text
Medium
Text
Text 8%
Text
Low
High: more than 10%; Medium: 5-10%; Low: less than 5%
Display Advertisements Spends (2013)
High: more than 10%; Medium: 5-10%; Low: less than 5%
Text Advertisements Spends (2013)
DIGITAL MARKETING IN INDIA 2015.PPT
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Mobile ads are targeted at a number of platforms with top vertical focus areas being games and mobile devices
SAMPLE
Mobile Advertising (Ad) Overview • Text
• Text
• Text
Mobile Marketing Activities
Text
Text
Text
Text
DIGITAL MARKETING IN INDIA 2015.PPT
Text
Text
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For companies and brands, mastering the art of content marketing is equivalent to the Holy Grail of going digital
SAMPLE
Content Marketing
• Text
Tools in Content Marketing (2014) Unit %
10%
Blogs and Newsletters
White Papers
Search Marketing
Infographics
In-person Events
DIGITAL MARKETING IN INDIA 2015.PPT
Podcasts
Webinars and Webcasts
Traditional Media 16
•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
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Tools are also available for online advertising that facilitate…
SAMPLE
Online Advertising Tools (1/2)
• Text
Online Advertising Marketing Tools Google AdWords
• Text
Facebook Ads
• Text
Microsoft adCenter
• Text
DIGITAL MARKETING IN INDIA 2015.PPT
7Search
• Text
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•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
19
Drivers and Challenges – Summary
SAMPLE
Drivers
Challenges
Huge Domestic Internet Base
Measurement of Efficiency
Growth in Access to Smartphones and Tablets
Inconsistent Internet Coverage
Positive Consumer Attitude towards Online Media
Absence of Vernacular Support
Growth in Demand for Rich Digital Content Proliferation of Revenue Streams
DIGITAL MARKETING IN INDIA 2015.PPT
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Rise in availability of smartphones and sharp decline in prices have encouraged increase in data usage
SAMPLE
Growth in Access to Smartphones and Tablets
Impact
• India has witnessed significant increase in availability of smartphones and tablets, owing to competition from domestic brands and an influx of affordable Chinese mobile devices • In 2014, number of smartphones witnessed x% domestic growth, reaching y mn Smartphones are expected to grow significantly in circulation, reaching an estimated z mn in 2019
• In 2014, number of tablets in domestic circulation reached a mn, and it is expected to grow to more than b mn in 2019 • Increase in purchase of smartphones and tablets has been driven by a sharp decline in prices In 2014, the minimum price of a smartphone was INR m
• Smartphones and tablets adoption in India has also been facilitated by constant upgrade of operating systems and processors, improved camera features, fast connectivity, among others Smartphone Sales in India – Market Size and Growth mn B%
2014
2019e
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Calculation of ROI for digital marketing campaigns is difficult, despite presence of certain common metrics
SAMPLE
Measurement of Efficiency
Impact
• Text
Digital Marketing Metrics New Sessions
Text
Channel-specific Traffic
Text
Bounce Rate
Text
Customer Retention Rate
Text
Lead to Close Ratio
Text
Cost per Lead
Text
Projected ROI
Text
DIGITAL MARKETING IN INDIA 2015.PPT
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•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
23
SAMPLE
Trends – Summary Advent of Mobile Marketing
Content Marketing Emerges as the New Buzzword
` Key Trends
Video and Image-Based Marketing
Real Time Marketing
Online Marketing Evolving as New Stream of Study DIGITAL MARKETING IN INDIA 2015.PPT
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SAMPLE
Custom Content Development Process Content Marketing Emerges as the New Buzzword (2/2) Text
•
Text
•
Text
Text
Text
Text • •
Text
•
•
Text
Text
Text
Text
Text
DIGITAL MARKETING IN INDIA 2015.PPT
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•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
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Porter’s Five Forces Analysis
SAMPLE Impact
Threat of New Entrants • Text
Impact
Impact Impact
Bargaining Power of Suppliers • Text
Competitive Rivalry
Bargaining Power of Buyers • Text
• Text
Impact
Threat of Substitutes • Text
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Competitive Benchmarking (1/4)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) %
Net Margin
4 3 2 1 0
Player 1
Player 2
Player 3
• Text
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SAMPLE
Private: Domestic Company – Player 1 (1/5) Company Information
Offices and Centres – India
Registered Address Tel No. Fax No. Website Year of Incorporation Head Office
Products and Services Category Services
Products/Services
Key People Name
DIGITAL MARKETING IN INDIA 2015.PPT
Designation
29
SAMPLE
Private: Domestic Company – Player 1 (2/5) Shareholders of the Company Name
Ownership Structure No. of Shares held
Foreign holdings Directors or relatives of directors
Total
Note: Ownership structure corresponds to Date of AGM: 30/09/2014 DIGITAL MARKETING IN INDIA 2015.PPT
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SAMPLE
Private: Domestic Company – Player 1 (3/5) Financial Snapshot Total Income
Key Ratios Net Profit/Loss
Particulars
INR mn
INR mn
2011
2012
2013
2014
Financial Summary
2013
2012
2011
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• The company earned a net profit of INR -- mn in FY 2014, as compared to net profit of INR -- mn in FY 2013
Liquidity Ratios
• The company reported total income of INR -- mn in FY 2014, showing no growth in the average annual income from the last year
Leverage Ratios
• The company earned an operating margin of --% in FY 2014
Efficiency Ratios
• The company reported current ratio of -- in FY 2014, a decrease of --% over FY 2013
y-o-y change 2014 (2014-13)
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
DIGITAL MARKETING IN INDIA 2015.PPT
Decline
31
SAMPLE
Private: Domestic Company – Player 1 (4/5) Key Recent Developments Description
News
Overview
• Text
Solutions
• Text
Miscellaneous
• Text
DIGITAL MARKETING IN INDIA 2015.PPT
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SAMPLE
Private: Domestic Company – Player 1 – SWOT Analysis (5/5)
• Text
• Text
S
W
O
T
• Text
• Text
DIGITAL MARKETING IN INDIA 2015.PPT
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•Macro Economic Indicators •Introduction
•Market Overview •Digital Marketing Types •Digital Marketing Tools
•Drivers & Challenges •Trends •Competitive Landscape
•Strategic Insights •Appendix DIGITAL MARKETING IN INDIA 2015.PPT
34
SAMPLE
Strategic Insights (4/4) Viral Campaigns
• Text
Static Banners and Tele-marketing
• Text
DIGITAL MARKETING IN INDIA 2015.PPT
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