Smartphone brands step up digital marketing spend by 20%

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Updated: April 3, 2019 7:19:28 AM

This will be followed by social marketing (26%), performance (24%), programmatic (10%) and influencer marketing (6%). The report noted digital marketing spends would surpass the budget earmarked for print and radio.

This becomes critical as video and photo are increasingly becoming the main forms of content.

With millennials increasingly turning to internet as a favoured shopping destination to buy everything under the sun, the digital space is cashing in on the trend to emerge as a lucrative mode for brands to connect with consumers. Even, smartphone companies are no exceptions in increasing their digital marketing spend, which is expected to grow by a healthy 20% year-on-year in the current calendar year.

A report by techARC revealed that smartphone brands would cumulatively spend more than `330 crore in 2019 on digital marketing in India — 20% growth since last year. While marketing over mobile platforms will consume 72% of the budget, the remaining will be spent on promotional activities on web platform, it added.

“Digital is increasingly becoming the preferred mode for marketing of smartphones as it helps brands establish an engaging connect with millennials, who are either buyers or influencers for smartphones,” said techARC founder, Faisal Kawoosa. Breaking down the budget, Kawoosa said 34% of the digital marketing spend this year would be used to improve search results, including keyword bidding and search engine optimisation (SEO). This will be followed by social marketing (26%), performance (24%), programmatic (10%) and influencer marketing (6%).
The report noted digital marketing spends would surpass the budget earmarked for print and radio.

“There is a call to action option in digital marketing channels that helps brands initiate a customer transaction. This increases the return on investments (RoIs) on marketing activities,” the report said.

Digital marketing also compliments online channel sales, which is primarily pushed through Flipkart and Amazon. It helps marketers use rich media content to engage with audiences, giving them better visibility of the product and its capabilities. This becomes critical as video and photo are increasingly becoming the main forms of content. Elaborating on the challenges that brands could face in digital marketing, the report revealed that a simple banner engagement was not going to work any more for smartphones.

“Ad-fraud is on the rise, and adversely impacting brand initiatives. There is still limited understanding of ad-fraud issues in the smartphone industry. Offline will play a significant role in smartphone growth in 2019 and digital marketing initiatives will have to be re-engineered,” it added.
to compliment this offline market growth,” it added.

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