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Evolution, Need, Role and Relevance
Digital Marketing Evolution, Need, Role and Relevance
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Topics Emergence and evolution of digital marketing
The need and relevance of digital marketing Advantages and pitfalls of digital marketing
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Evolution of Internet Evolved from the ‘highway’ of telegraphy and telephony to the ‘super highway’ of internet (a game of bandwidth) Technically, it represents ‘transmission of digital packet- based information over a network of (powerful) computers’ Driven by the need for ‘instant communication’ - the need to ‘stay connected’ conveniently
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Important Milestones 1969 Originated as ARPANET 1971
Connection of two computers between University of California and Stanford Research Institute 1971 as the 1st net application Advent of symbol in the ids 1974 Coining of the term ‘Internet’ By US computer scientist Vinton Cerf (referred to as the ‘father of the internet’) – 46 interconnected institutes by now 1983 System of domain names came in .com, later followed by .org, .net,…… 1989 Concept of www by Tim Berners-Lee World Wide Web - the idea of linking documents stored on different computers across the now rapidly growing internet 1991 The 1st web page went online Beginning of the world of web browsers, web servers and websites as we know them today 1990’s Text & Graphic websites mushroomed 1998 Launch of Google Search Internet advertising bloomed Google AdWords, AdSense and Ad Networks start emerging Early 2000’s Broadband internet begins High-speed 24*7 connectivity and audio-visual content 2004-5 Social Media & Videos emerge Facebook and Youtube launched Today Audio-visual and Mobile driven World of videos, apps, sharing, social media,……… Near Future AI/AR and Touch & Gesture driven Eventually One ‘converged’ interactive digital medium across multiple digital devices
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Impact of Internet on Marketing
More integrated and interconnected markets Triggering a more on-the-move and digital lifestyle driven consumption world From communication led to interactivity and engagement led marketing The ‘individualized’ mass medium of marketing Communication + MarComm + Marketplace
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Evolution of Digital Marketing
First glimpses around 1995 (20,000+ active websites). In India, Modern ‘digital marketing’ avtaar in with emergence of Google TV took 22 years to reach 50 mn households, internet took just 5 Early popular digital brands - Yahoo, Hotmail, AOL, Google, Amazon, eBay,…. Dot Com ‘boom’ in late 1990’s, followed by ‘bust’ from late
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Evolution of Digital Marketing
Has evolved from only a ‘marketing communication’ medium to a ‘marketing communication’ cum ‘consumer engagement’ (CRM/CEM) medium as well as a ‘marketplace’. Communication + Direct Marketing + Retailing
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Evolution of Digital Marketing
Content Marketing Websites, Portals, Vortals Search Marketing SEO + SEM (AdWords, AdSense) Display Ads Ad Networks Ad Marketing + Affiliate Marketing Links Engagement Marketing Social media, Videos,…. Product Marketing e-Commerce + Information Communication Engagement Buying
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Technology Power - Cost Theory
Growth Drivers ing Search Engines Broadband Games, Videos Mobile tech integration E-commerce Social Media Internet usage Technology cost Technology Power - Cost Theory Network Theory
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Digital Marketing - Role and Relevance
The ‘medium of choice’ of the new generations 'The’ medium for building tomorrow’s brands The ‘individualized mass marketing medium’ and the mass marketplace of tomorrow Making marketing a more ‘micro’ level game rather than a ‘macro’ level one (also making it more measurable) Making marketing more ‘engagement’ driven (interactive) rather than ‘communication’ driven (passive)
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A Marketing Medium-cum-Marketplace
Communicate Share - Promote Interact Engage Search - Shop Transact (buy-sell) Re-engage (feedback/remind/build loyalty)
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Key Advantages It is the only medium with the ability to inform, interact, engage, persuade, convert and re-engage with consumers – a truly end-to-end marketing medium (enabling both ‘pull’ and ‘push’). Has lowered the ‘cost of entry’ of marketing noticeably. Provides a technology-enabled platform to undertake marketing in a more automated, individualized, faster, direct and interactive/engaging manner.
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Key Challenges Brand building ability (especially for offline brands)
Authenticity of content Ability to (damage) control Short life cycles – rapidly changing technologies Profitability
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Pitfalls of Digital Marketing…
Too much focus on ‘lead generation’ – used more as a tool of direct marketing/selling rather than marketing Lack of brand building initiatives, especially in communication – product pushing more than consumer pulling Still viewed and used as a ‘text’ medium rather than an ‘a-v’ medium – lacks larger than life impact/punch as of now
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Difference from Conventional Marketing
More technical and complicated More measured and rational More direct and conversion driven It is like playing T20 vis-a-vis Test Cricket!
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