Today when we meet Publishers and Online Advertising Agencies everyone talks about lack of even 1% proportionate spend by Brand – FMCG advertisers like Nestle, Pepsi, Unilever etc on online medium for reach out to masses.
At a recent discussion organized by Nikhil Pawha – Mediamnama i meet couple of people which were indicating why brands dont spend online due to lack of performance metrics or sheer scale of medium as always indicated as “New Media or Alternative Media” with just access to 30 million active users in India when compared to TV & Print which has access to 400 million users.
Being in Online Industry for almost 10 years i have personally been firm believer or positioned the medium as most performance measurable due to automated intelligence and sheer capability to collect data. But the kind of data we collect or metrics people look into like CTR(Click through rate), Impressions served are the just functional data points which were created by us marketers to bring some audit ability to our medium instead we started to use this to compare ourselves to print and TV where lack of such data from publishers perspective makes it harder to define.
On the other hand if you look from perspective of the advertiser like a big telecom giant or big toothpaste brand which caters to mass audience just dont just consider them foolish when they only get excited by wow factor shown by a publisher like a rich media ad communicating to user about their brand or sponsorship to a section against measurement of traffic to their micro site talking about their product as for them being on the online medium is to give user to talk to their brand or be wherever their potential product user.
We as online marketer need to show potential to online brands somewhat similar to how offline medium agencies work where they try to understand the pain point of the brand in terms of market positioning, reach to consumer, brand message, channel problem etc which a brand face and give solution through medium of advertising to solve these problems and show RoI in simple brand recall + most important increase in sales perspective. This is something very similar to what Naukri’s of the world may do Cost per Resume or as one online marketer was suggesting going Cost per Pizza sold to an International Food Chain present in India it sounds very foolish but its very practical in all sense.
Why cant campaign for a women cosmetics product measure increase in sales or give feedback to brand on lack of availability of their product by sheer interest shown from one region etc.
The WPP and Publicitas of the worlds have for long been measuring performance for brands in offline world and we as online marketers need to come out from our measurement of CTR is what brands are looking for answers and need to get more innovative to drive more media spends online.
In answer to later question which talked about scale which medium provide you are right when some one in discussion from audience mentioned that 90% of audience online already has access to a mobile phone and a telecom brand advertising online will not really benefit in terms of RoI by asking user to subscribe or change providers but knowing so much about our users online give the marketer an edge where we can address specific pain points of our brands like increasing ARPU per subscriber already in a telecom circle where they find potential exist but not been able to crack it via the offline medium etc.
We need to evolve the medium bring in more technology metrics for increasing measurements in simple terms which offline world provides to brands to get access to more money power but another question needs answering do we have capacity to consume a 20,000 crores budget online per year. Answer is NO and we need to grow the medium users or evolve as medium for other mediums to integrate to us. Lets cross the 100 million user mark soon to stay in this race otherwise technology and business models will get too evolved without test user base for measuring their scale and may lead to early collapse of lot like the dot com bubble burst where lot of entrepreneurs replied with answers of their models being too early for that time.