Techno Driven Local Market Towards a Better Future
Convergence between new media (mobile and Internet) and old media (TV, Print and Radio) will give rise to new business models for customer acquisition, retention and monetization. The online advertising industry concerns buying and selling advertising space that is accessed by viewers through the Internet. The portion of advertising that is done through new media (it is any media like Special audiovisual effects of any kind, Larger than 17 inch displays, streaming and streaming audio, 3-D and virtual reality environments and effects, Highly interactive user interfaces (possibly including mere hypertext or not), Mobile presentation and computing capabilities, Any kind of communication requiring high-bandwidth CD and DVD media, Telephone and digital data integration, Online communities, Micro devices with programming, Live Internet broadcasting as on the MBone, Person- to-person visual communication (as in CU-SeeMe), One-to-many visual communication) is expected to increase significantly over time as web-based content and services expand and people are able to access the web through more devices such as mobile telephones and televisions.
Everyone knows that India has a large population. This large population offers huge opportunities in different demographic segments. One of such attractive segment is the youth or teenage population one knows that India has a large population. This large population offers huge opportunities in different demographic segments. The teenagers in India pose an immense market potential for a whole lot of products: Fashion accessories, Fast foods, books, education, clothes, music, and electronics, Sports, entertainment.
India is home to the largest population of teenagers anywhere in the world. India has about 115.3 Million teenagers. This number even surpasses the number of teenagers in the US, Canada, UK, France, Germany Japan. Youth forms the major chunk to the growing Internet user base in India.
Youth are already having an awful impact: on the economy, on companies hiring to sell them products, on the media, and on the culture.
Some 47% of India's current 1 billion population is under the age of 20, and teens among them about number about 160 million. Already, they wield $ 2.8 billion worth of discretionary income, and their families spend an additional $ 3.7 billion on them every year. These youth will demand a more cosmopolitan society that is a full-fledged member of the global economy. The teenage population, some 22 million belong to the urban middle class and are in a position to influence the economy dramatically as they grow older. Many young people are having their first taste of rising prosperity and expectations. spending power of about $ 6.5 billion – their own discretionary income plus what their families spend on them – they carry considering economic clout, as well as the power to influence their parents' purchasing decisions on items ranging from computers and cars to watches and TVs . Indian teens alike buy almost 60% of the fizzy drinks, chocolates, and jeans sold in India. Every company is planning its future growth looking at the youth market,
Market Potential
Old-line Indian family-owned companies are also increasingly catering to the youth market.
Few early investors are already reaping the benefits of this huge teenage population Levi's, Adidas, Nike, MTV, Disney Mc Donald, Pizza Hut to name a few. The market is still wide open for others to enter and capitalize on the potential. The year 2007 has been declared as the 'Broadband year' by Indian government. Various initiatives are being endeaken to increase PC and Internet penetration.
The local marketer
Thus new media advertising is the solution for the local merchants, retailers & brands especially belonging to smaller towns who have always struggled with the expensive forms of advertising and promotions. Consumers are now faced with many avenues to shop from – there are many outlets stocking the same product – each offering different value propositions & offers. So how does the consumer then get hold of the best possible deal – that's where new media comes in. The shoppers will no longer have to spend too much time in searching for the right deals and will be able to save a lot of time by utilizing new media devices. The primary service will be query or SMS-based deal search service.
According to a mobile advertising company the consumer has to send a query to the SMS code 6767777 for getting the deals. For example, if a consumer living in Lucknow East is thinking of buying Shoes, all he has to do is SMS "Deal Shoes Lucknow E" to 6767777 and he would get a list of 3-4 "top deals" in the category of ' Shoes' from 'Lucknow East.' The new media advertising is suited for all marketing budgets and is contextual, as only relevant consumers get the advertising messages. It ensure minimal waste of their marketing budget as the brand / retailer is charged only when a consumer sees their advertisement. That's not possible in any other medium. Also it is seen that there have been 30% -35% conversion, which is significantly higher than any other medium. The mobile Ad market is expected to be over USD 11 billion globally in 5 years and India will own a significant share of it because of the sheer number of mobile phones (over 400 million by 2011) in the country.
WHY NEW MEDIA ADVERTISING
o The small Indian cities like Lucknow have good local brands which also attract people from all over the world eg Sewa chikan, Tunde, Parag Dairy etc.And other local brand like Jashn are reputed for the unique woman wear they sell to their customers. The fabrics have been thoughtfully chosen to ensure maximum comfort, and subtle touches of embroidery and embellishment add that extra sparkle that's just perfect to help you leave your personal signature in the crowd. And with film stars like Celina Jaitley as their brand ambassador their advertising budget can not be underestimated.
The local brands in Lucknow make money equal to many MNC brands present in the city. They have a loyal group of customers and also they have bought big shops inalls. However the local brands use the traditional method of advertising and do not use the new media devices; because of these they are not able to tap the benefits fully. They should be informed of the significant benefits of new media advertising which will help them to serve a large group of customers all over the world and minimize their advertising budgets. By 2010, the Internet ad market (globally) will be worth almost $ 61bn, compared with the magazine market at around $ 60.5bn (29.3bn) (source Business India) Online advertising is slated to rise by 3.1 per cent in the financial year 2008 -09 and by 7.1 per cent in the financial year 2010-11 (source Business India)
Bluetooth or Proximity advertising solutions
Another new media advertisement used in North India is Bluetooth or Proximity advertising
All that people need to do is to switch on the Bluetooth option on their handsets and they get the announcements and promotions pushed to their handset which they can further download if they like. This has provided good advertising medium in the below mentioned category,
o Movie Theater Complexes
o Pubs and Bars
o Retail locations
o Banks
o Restaurants
There are very few mass media avenues available for local advertisers in India today with the exception of Print. We believe there will be a tremendous equity value creation in this space in the near-term. The new media tools should be used by local advertisers as
74% of the urban teens have cell phones
81% of the urban teenage use computers.
It is the "internet era". In the new-media era, audiences will often be large, but often small, and usually tiny. Instead of a few large capital-rich media giants competing with one another for these audiences, it will be small firms and individuals competitive or, more often, collaborating. It is time now for the local Indian market to expand and take on the growing MNCs in India by using technology which is both affordable and easy. The global image of India is that of an upcoming and progressive nation. India should educate the masses about new media technology if its hope of becoming the global knowledge superpower is to become a reality. A series of ambitious economic reforms aimed at deregulating the country and stimulating foreign investment has moved India firmly into the front ranks of the rapidly growing Asia Pacific region and unleashed the latent strengths of a complex and rapidly changing nation.
Today, India is one of the most exciting emerging markets in the world. Skilled manager and technical manpower that match the best available in the world and a middle class provide India with a distinct cutting edge in global competition. India is now riding on the wave of a gigantic boom in computer driven new economy. With improvements in the technical and artistic aspects India can well give a stiff competition to western productions. Indian culture is influencing the western world in dress, food and festivals. The Indian Diaspora is increasing in economic prosperity and status. India has a promising future, given the unprecedented growth in economy. The 21st century could well belong to India if it fully utilize its resources and expertise ie the resources of manpower and local brands to name some.