B-Cognizance
IIITA e-Magazine
October - December 2006 Vol 2 Issue 11
Companies want greater ROI on the money they spend in advertising. Advertising through the old mediums, i.e., television, print, banners, etc are expensive and fleeting in nature. For example, for a 30 seconds clip on television, the advertiser would have to pay in tens of thousands. On the other hand advertising on the internet would be a lot cheaper.
A research by the Internet And Mobile Association of India (IAMAI) predicts that Rs.218 crores will be spent on advertising online in 2006-2007.
The IAMAI study reveals that there are 38.5 million Indians online and the number is set to bulge to a 100 million by 2007-2008. 93% of the users lie in the 18 – 45 years age bracket. This segment represents the disposable income group with a high purchasing power. With so many Indians online none of the advertisers can ignore this medium. Studies reveal that 31% of users found a shopping site through word of mouth and 18% shopped on a particular website because it was referred.
People are hesitant in believing the advertisers because the message conveyed in most cases is outrageous. Who will believe that a particular star achieved fame only by using a particular brand of hair oil or that you will become a dancer if you start eating a particular biscuit? Therefore, people turn towards friends and relatives before spending their hard earned money on a particular good or service. This is where Person 2 Person Referrals come in.
Surveys reveal that a large part of the population watches the movies their friends recommend. With e-mail, online reviews and online communities, the scope for effective advertising by the entertainment industry has greatly increased. But, the scope is not limited to only this sector. The success of ebay (India) is a pointer in this direction.
Online communities are an advertising medium that should not be ignored. Online Communities like Orkut, Myspace, gazzag, etc are getting increasingly popular and the preferred means of staying in touch with friends by millions online. For example, there are currently 10,29,572 Indians on orkut. Of these nearly 60% i.e. 6,17,743 are between the ages of 18 to 25, nearly 14% i.e. 1,44,140 are between the ages of 26 to 30, nearly 7% i.e. 72,070 are between the ages of 31 and 35, and the rest 1,95,619 people are 36 and above. The percentage of people lying within the 18 – 45 age are the preferred audience for most advertisers.
Referrals given by online shoppers hold weight because they come from a trusted source. The consumer is more receptive to another consumer’s suggestions rathet than to an advertiser’s gimmics.
Through p2p referrals advertisers would benefit with an increase in the ROI and the consumers would derive greater satisfaction, knowing that the product or service they have bought had been previously tried and tested by others. Therefore, with both the advertisers and consumers being in a win-win situation, p2p marketing is sure to take off.
Submitted by – Garima Agarwal, MBA IIITA.
X'Pressions
P2P Advertising in India
Companies want greater ROI on the money they spend in advertising. Advertising through the old mediums, i.e., television, print, banners, etc are expensive and fleeting in nature. For example, for a 30 seconds clip on television, the advertiser would have to pay in tens of thousands. On the other hand advertising on the internet would be a lot cheaper.
A research by the Internet And Mobile Association of India (IAMAI) predicts that Rs.218 crores will be spent on advertising online in 2006-2007.
The IAMAI study reveals that there are 38.5 million Indians online and the number is set to bulge to a 100 million by 2007-2008. 93% of the users lie in the 18 – 45 years age bracket. This segment represents the disposable income group with a high purchasing power. With so many Indians online none of the advertisers can ignore this medium. Studies reveal that 31% of users found a shopping site through word of mouth and 18% shopped on a particular website because it was referred.
People are hesitant in believing the advertisers because the message conveyed in most cases is outrageous. Who will believe that a particular star achieved fame only by using a particular brand of hair oil or that you will become a dancer if you start eating a particular biscuit? Therefore, people turn towards friends and relatives before spending their hard earned money on a particular good or service. This is where Person 2 Person Referrals come in.
Surveys reveal that a large part of the population watches the movies their friends recommend. With e-mail, online reviews and online communities, the scope for effective advertising by the entertainment industry has greatly increased. But, the scope is not limited to only this sector. The success of ebay (India) is a pointer in this direction.
Online communities are an advertising medium that should not be ignored. Online Communities like Orkut, Myspace, gazzag, etc are getting increasingly popular and the preferred means of staying in touch with friends by millions online. For example, there are currently 10,29,572 Indians on orkut. Of these nearly 60% i.e. 6,17,743 are between the ages of 18 to 25, nearly 14% i.e. 1,44,140 are between the ages of 26 to 30, nearly 7% i.e. 72,070 are between the ages of 31 and 35, and the rest 1,95,619 people are 36 and above. The percentage of people lying within the 18 – 45 age are the preferred audience for most advertisers.
Referrals given by online shoppers hold weight because they come from a trusted source. The consumer is more receptive to another consumer’s suggestions rathet than to an advertiser’s gimmics.
Through p2p referrals advertisers would benefit with an increase in the ROI and the consumers would derive greater satisfaction, knowing that the product or service they have bought had been previously tried and tested by others. Therefore, with both the advertisers and consumers being in a win-win situation, p2p marketing is sure to take off.
Submitted by – Garima Agarwal, MBA IIITA.