Internet Advertising
Web marketing
Our Clients About Solutionturf Creative Advertising Solutions
Internet marketing
For those who missed the Brand Equity Feature on Wednesday 22nd September, here is a chance to catch up.
Internet Advertising has traced a sinuous path since its inception. There were a few times it looked downwards but it bounced back to its rightful place. Over the past couple of years, it has firmly reestablished itself as a business model of the future. While other forms of media took decades to influence lives, the Internet in no time has become a supremely pervasive medium. The challenge for advertisers is to make sense of the strong commercial proposition it promises.
Since 2001, Internet usage in India has been growing at a breakneck speed, from 6.5 million users to over 24 million in 2004. To add to that over 75% of the Internet audience is in the SEC AB segment and 49% come from the top eight metros.

Mediaturf, since its origin has constantly added science to the business of marketing the Internet. The attractiveness quotient (AQ) is one such initiative. The AQ is developed to measure the buying propensity of online consumers. The data source for this is from both the IRS and the NRS. The exercise has thrown up some startling results. The analysis was conducted across various categories from packaged foods, personal care, financial products, white goods, travel habits, automobiles/2 wheelers and hardware/telecom. Internet users across the board show a higher consumption pattern than the non – Internet counterparts and prefer premium products to regular ones; quite clearly revealing their buying power. The comparison is between All Adults SEC AB: Wired vs. Unwired. An illustration is given below:
WHAT'S COOKING GOOD LOOKING?
Attractiveness Quotient
 
SEC
SEC AB
SEC AB
Attractiveness
  
AB
Wired
Unwired
Quotient
  
0% down
0% down
Index
0%
down
Index
Wired
Unwired
  
AC            
                      
 
Premium

1.7
6.0
365
1.3
80
4.6
Non Premium
2.7
9.0
338

2.2
82
4.1
Non Premium
MUSIC SYSTEM            
Premium
5.6
16.8
302
4.7
85
3.6
Non Premium
6.0
13.6
229
5.4
91
2.5
             
MOBILE PHONE            
Premium
1.8
9.8
541
1.2
65
8.3
Non Premium
0.7
3.6
515
0.5
67
7.7
Do Not Own
97.5
86.8
89
98.4
101
-
1.1
             
BIKES            
Premium Bikes
3.0
4.8
162
2.7
91
1.8
Non Premium
20.0
24.0
120
19.4
97
1.2
Any Bike
22.9
28.8
126
22.1
96
1.3
Non Bike
77.1
71.2
92
77.9
101
-
1.1
             
CARS            
Premium Cars
0.7
1.8
273
0.5
75

3.7
Non Premium Cars
10.0
23.4
233
8.1
80
2.9
Any Car
10.7
25.2
236
8.6
80
3.0
Non Car
89.3
74.8
84
91.5
102
-
1.2
 
To develop the attractiveness quotient (AQ) as a measuring parameter, in each category the percentage of SEC AB population consuming a particular product is obtained from the IRS/NRS figures. The process is then repeated across 2 parts i.e. ‘SEC AB Wired’ and ‘SEC AB Unwired’ consumers. An Index is then derived through dividing percentage for the ‘part AB’ groups by the percentage for the entire AB group. The AQ is then computed as a ratio of the indices of the wired population to the unwired one.
Beyond what the numbers throw up, every category is expanding constantly with ever increasing products competing for the same eyeballs. “Me Too” products have blurred brand distinction, thus creating purchase dissonance. Clients are hence forced to continuously increase media spends to retain their brand identity. Obviously, increasing media monies are hurting the bottom line; hence marketers find themselves in a Catch22 situation. Rationalizing media spends for short term profits will in turn erode brand value in the long run.

CATEGORIES
ATTRACTIVENESS QUOTIENT - WIRED SEC AB
 
Packaged
Food
Personal
Care
Automobiles
Financial
Services
Travel
White
Goods
Computer/
Mobiles
10+
Domestic PVT.
Airlines: 10.7
Prem.Laptop: 37.8
Pop.Laptop: 20.7
Prem.PC: 10.5
Abroad on work: 9.5
Pop.PC: 9.4
Prem.Mobiles: 8.3
Pop.Mobiles: 7.7
 
Deodrant:
5.2
    
Domestic Govt.
Airlines: 5.6
Elec.Shaver:
4.4
  
Car Loans: 4.6
Mutual Fund: 4.1
Abroad on Hol: 4.0
Prem.AC:4.6
Pop.AC:4.1
Mouthwash:
3.7
Facewash: 3.2
Prem. Car:
3.7
Shares: 3.2
  
Cheese: 2.8
Cornflakes: 2.7
Ketchup: 2.2
Aftershave:
2.9
Pop. Car:
2.9
   
Bikes: 1.8
Prem. Refrig: 2.0
Prem.TV: 1.5
9
8
7
6
5
4
3
2
1

In developed markets, this phenomenon has lead to companies moving to use the web as a branding mechanism, while reconfiguring the offline medium for sales promotions. A similar trend is beginning to emerge in India. With increasing usage, the web will soon overtake other forms of media as the dominant medium in terms of time spent and consumption. Globally XMOS studies show higher brand recall when Internet is clubbed with offline advertising. Some clients in India have already implemented these international learnings by creating a synergy between their offline and online advertising.
As a USP, there is a complete accountability of spends on the web. Targeting, tracking, optimizing are all real time. Thus, marketers can measure ROI in an improved manner. Among other benefits it allows marketers to distinguish their products using an abundance of interactive techniques. Placing comprehensive product information online and then driving traffic to this destination is the conventional practice.

Early bird users of the Internet continue to experience the impact on their businesses. Private Banks discovered that servicing customers through the web is manifold cheaper. Secondly, the affluent online TG ensures a better quality of customers who are more risk tolerant. The online consumer who has more to spare is a better prospect for investments as well as asset products. Data indicates that in the Investments as well as Loans category the promise of an Internet consumer is irresistible. Not surprisingly, the Automobile and the White Goods segments display a strong predisposition towards the online consumer. White Goods and Automobile purchases are preceded with high amount of product research. The medium facilitates comparisons across brands at the click of a button. The online consumer is thus makes a more educated purchase decision. It is not overwhelming then, to observe that the online consumer is focused towards superior technology. A similar pattern is also visible across other categories.
Similarly, travel/tourism companies and especially the private airlines have used the interactivity of the medium to create a better value proposition. Currently, financial institutions and travel/tourism companies account for about 55% of total spends. This skew has already started to normalize. White good marketers, automobile companies and FMCG clients realize that the Internet today has more than just critical mass. With over 27 million users by the end of the year and 100 million looking a reality by 2008, marketers realize that strategic supremacy in this space may well decide the future of their brands.
If you would no longer like to receive this E-zine, please click here to unsubscribe.