Why Digital Marketing is Becoming Threat to Traditional Advertising in 2016?
Digital marketing is purely an online advertising in which we promote our brand online by social media platforms, search engines, emailers, blog, forums etc. Digital Marketing is become more popular from past 5 years. Big brands like Lakme, Loreal, Colgate, Pepsodent, Pepsi, Amul etc. are becoming more active on digital marketing platforms like Facebook, Twitter and YouTube. Even small and medium enterprises in India are now spending on digital media to reach target audience. Digital media offers a two way communication between user and brand itself. SMEs are now concentrating more on social media like social sites, forums, groups and communities to get connected with users.
We can have full control on digital media while running campaigns as it gives real time data. We can pause or edit campaign at any time when campaign is live on medium like Print, Radio, Outdoor, TV etc. Digital marketing is quite cheaper than traditional advertising where you need to spend lacs of rupees on one minute ads. The reach of traditional media is still bigger than digital media that is why traditional media still help in brand awareness. If you want your products or services to be sold in market then digital media is best in terms of cost, targeting, reach, and conversion.
Let’s take an example of Print Ads in Real Estate business. Suppose you are taking one page full ads in TOI in Mumbai edition then you would be charged more than 60 lacs per day and you would reach to 8 lacs people in Mumbai, Thane, and Navi Mumbai. If we calculate cost per user reach which is more than 8 rupees and it gives around 300+ enquiries. The cost per enquiry for real estate project in Mumbai is more than 20,000 rupees. If you would have done the same ads on digital media then cost per enquiry was less than 3,000 rupees and cost per user was less than 1 rupees i.e. cost per enquiry generate through digital media is 7 times cheaper than traditional media.
Why Digital is Threatening Traditional Media?
Real estate developers used to promote their projects through Print, Radio, Exhibition, Outdoor, Road Shows etc. This advertising was very expensive though reach was massive. You can’t select the audience based on their particular location, age group, interest, preferences etc. while targeting through Print, Radio, and Outdoor etc. You can target users on digital media based on their interest, mobile device, age group, preferences, location etc. Digital media cost effective in terms of budget and reach where you can reach niche audience based on your product or service. You need to spend crores of rupees on Print, TV, Outdoor and Radio ads to reach mass audience. If you calculate the enquiries generate through these media then it might let you down. Suppose you spend 1 crore rupees on digital media then you can target more than 10 digital media to reach right audience at right times. You can spend more money on social media by running contest for brand awareness. Brands have started spending heavily on digital media to mass audience as cheap cost. Digital marketing helps brand to interact directly with users by social media profiles which is not possible with traditional advertising. Brands are now started to create group, forum and communities to get the feedbacks of their product or services. It helps big brands to know the merits and demerits of their products or services. It also helps them to make products more advance or innovative.
Popular Digital Media Activities:
Search Engine Optimization
Social Media Marketing
Pay Per Click Advertising
Search Engine Marketing
Mobile App Advertising
Real Estate Marketer’ Conclusion:
We recently had a discussion with real estate marketer in Mumbai regarding performance of online and offline ads and then he said that they used to get cost per enquiry at 30,000 or more rupees for real estate project in Mumbai and now getting online enquiries at Rs. 3000 which is 10 times cheaper than offline advertising enquiries. This is why most of the real estate brands are more spending decent money on digital media rather than traditional advertising platforms like Print, Radio, and Outdoor.