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Digital Media | 3G will change the dynamics

Digital Media | 3G will change the dynamics
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First Published: Mon, Apr 27 2009. 08 30 PM IST

Updated: Mon, Apr 27 2009. 08 30 PM IST
The market
The digital media, comprising Internet and mobile phones, continues to be the fastest growing medium in the country, albeit a small contributor to the overall ad expenditure. In 2008, this medium grew by 74% to Rs680 crore. Digital media will be much less affected by the economic slowdown than other media.
Also See Room for Growth (Graphic)
The players
Web portals: Web portals can be divided into three broad categories—search engines such as Google.com, horizontal portals such as Yahoo.com and vertical portals such as MoneyControl.com.
Ad networks: Advertising networks have come up in the digital space in the last two-three years. There are 15 ad networks in the country.
Mobile phones: Though comparatively a nascent medium, mobile phones have the potential to become a stand-alone media option in the next two-three years, provided there is right service-provider support.
Social media: Social networking sites such as Orkut and Facebook continue to be a hub of youth activity. Communities and blogs continue to be popular, especially among the youth.
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The future
Growth will be driven by search-engine marketing, mobile advertising and content. Display advertising will continue to be a large contributor to ad expenditure, but will not grow much this year.
Search advertising: Search advertising will grow much more as advertisers look for performance advertising and also because it creates the opportunity for greater engagement compared to straight display advertising.
Social media: Social networking sites, blogs and communities will continue to grow and attract consumer interest.
Branded content: Opportunities to generate branded content will be sought by advertisers looking for engagement and interactivity.
Web portals: At present, there is no service provider-linked portal in the country which offers content across Internet and mobile phones. As 3G mobile devices and infrastructure improve, there is more incentive for leading telecom operators to launch such a portal. The longer-term drivers include:
• Government and global initiatives: Initiatives such as one-laptop-per-child and efforts to drive down prices with new technology will increase personal computer, or PC, penetration and literacy, and drive Internet consumption.
• Return on investment, or RoI, and engagement: Advertisers are likely to explore the media in the current economic scenario due to the high measurability and engagement offered.
• 3G and advanced mobile devices: Introduction of 3G, coupled with newer advanced handsets utilizing technology, will change the dynamics of the game drastically. This will blur lines between PCs, laptops and mobile phones.
• Regional language content: Availability of content in regional languages will drive usage.
Graphics by Ahmed Raza Khan/Mint
The report is based on spending data of marketeers. The data has been analysed by GroupM software METIS that uses ad volume data and then factors in rate discounts based on internal estimates. Live data from group agencies is pooled to arrive at estimates of the actual values realized by media brands.
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First Published: Mon, Apr 27 2009. 08 30 PM IST