Amid downturn, online media may reap ad revenues

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New Delhi, Nov 24: “Half the money I spend on advertising is wasted; the trouble is, I don't know which half.” This popular axiom has been describing the woes of the advertising world for a long time. However, as recessionary trends lead to tightening of advertising budgets across the board, the online medium, which boasts of a higher return on investment and is far more measurable, is expected to get renewed attention from marketers.

What makes the case stronger for the web is the fact that it is far cheaper than traditional media like television and print. Consider this: Google, which controls a major chuck of the online advertising market, says that the last few months have seen many new advertisers in the space. According to Narasimha Jayakumar, business head, travel, Google India, “Scarcity always brings more clarity. With the economic slowdown intensifying, the need for promoting brands is strong.”

Jayakumar said that in the travel vertical, budget hotels, travel companies and offline travel agencies have started advertising online.

“There is more efficiency in the medium as it is measurable and you pay per click. Moreover, it is more targeted,” he added. Despite its advantages, Internet advertising constitutes a very small chunck of the overall ad pie in India, due to low penetration levels. But, industry experts opine that this is set to change.

Marketers are not shying away from using social networking sites to promote their products. For instance, FMCG company Marico has just launched a co-branding exercise with a games application of Games2win on Orkut for its premium hair-care brand Hair & Care. “The youth is using social networking sites to keep in touch with friends and family. The application has a viral effect built into it and aims to connect with the youth in a never-done-before format,” said Suvodeep Das, category head, Marico.

“Such branding initiatives offer a clutter free opportunity, which is interesting in a way that it helps connect with audiences without barging into their private space,” said Alok Kejriwal, Founder and CEO, Games2win.com.

“There has been a general awakening across markets with respect to the online medium as companies try to engage more with their customers,” said Kaizad Pardiwalla, president OgilvyOne. However, according to industry experts, the decision to sign up or sign out will vary according to product categories.