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Digital agency Sapient Interactive has released the findings of a survey, titled Digital Marketing: The CMO perspective. The survey figures out the views of chief marketing officers (CMOs) or marketing heads of 52 organisations represented by sectors such as automobile, airlines, telecom and FMCG on various aspects of digital marketing and commerce. The findings are based on interviews conducted among respondents.
The report indicates that digital media is the third most preferred option after print and television for advertising. In an average CMO advertising budget, 17 per cent of the overall advertising spend goes to digital media, while 24.7 per cent and 19.4 per cent of the total advertising amount is allocated to print and TV respectively. Outdoor gets 10 per cent, while 4.5 per cent ad spend is allotted to radio.
All (100 per cent) of the airline and telecom marketing heads, more than 80 per cent of the respondents from FMCG, insurance and automobile sectors agreed that they have used digital advertising in the past.
On the basis of results delivered by different advertising formats of digital media, maximum number of CMOs rated website advertising or product based microsites as most effective. Viral campaigns are regarded as the least effective way of digital advertising. Website advertising and viral campaigns get an average weighted score of 100 and 30.7 per cent respectively.
Search marketing campaigns (score of 94) and e-mail marketing (score of 90) are considered as the second and third most effective ways of digital advertising respectively. Banner ads have received a score of 78.
Almost 100 per cent of the respondents agreed that the main constraint in adoption of the digital medium for advertisement is the lack of understanding of metrics used to measure the effectiveness of digital advertisement. Another interesting hurdle mentioned by CMOs in adoption of digital media is the inability to adapt traditional media practices to new media.
About 59 per cent of the respondents said that they would invest less in traditional media as new advertising formats emerge within digital media.
Sapient Interactive conducted the survey in partnership with IMA India.
© 2010 afaqs!From Tara Gale, Sat 27 Mar 2010 06:36:10 PM My question goes to Anuj Madan. If the Boss ka Boss video is a great example, why does it have only 12000 views? and most comments portray that people think it is a stupid video. Funny thing is companies, even today, have continued to make such poorly animated videos in the name of virals. Case in point Amaron Battery Ad, Reliane Bol India Bol etc. I'm doing my thesis on finding out more on consumer response to viral ads. Anyone knowing about where I can find info, please let me know!
From Anuj Madan, Tue 20 Oct 2009 03:39:43 PM I somehow vary in opinions presented in this article. One I think this (Internet) is the only medium that is completely measureable, be it in terms of the number of impressions or the clicks or other benchmarks as per the campaign..Two, viral campaigns turn out to be very cost effective if we look at the kind of engagement and the user participation involved, the brand recall is very high... Undoubtedly the message has to be direct, strong and fun so as to engage the consumer and introduce the viral element...virals like the bosskaboss for IDBI is a v good example of the same...
From Ajay Gupta, Tue 20 Oct 2009 12:27:49 PM I’m a bit of a viral video nerd. I like following the trends, seeing what videos are exploding versus those that are not, and then the real fun- trying to figure out what makes one work where another fails. It’s a very inexact science.
From Ishan, Mon 19 Oct 2009 02:16:52 PM I agree with Jitesh...Viral Campaign need not to be pushed...it reaches out on its own...and yes it is the most effective form of Marketing'
From Jetesh , Thu 15 Oct 2009 02:35:21 PM A viral cannot be termed a viral if it fails to create buzz! An ideal viral campaign is low on cost and big on impact like Navin said. While the report seems pretty accurate w.r.t India (where marketers are yet to understand the concept). It remains the most effective form of marketing. The sooner we learn the better.
From Prasanth, Thu 15 Oct 2009 10:41:59 AM Two questions. Is this India specific? Then 17% on digital seems hard to digest.
What's the measure of effectiveness? Cause you ask the makers of Paranormal Activity and they would say WOM has been most effective. Or better still ask Apple.
From Navin Kansal, Thu 15 Oct 2009 10:28:01 AM Virals campaigns will have minimal impact if they continue to be animated spoofs or slapstick gags on Bollywood/television shows with low production values as is the case with many a campaign in India. Typically in such cases the brand/product has at best a remote connection with the creative execution. For a viral campaign to succeed the brand/product needs to be integrated in way that makes it interdependent with the viral itself.
