The Decline of Traditional Advertising
By Dr. Yogesh Kumar Bhatt
Is Digital Marketing Putting Advertising in the Backseat?
India has the world’s second largest number of internet users and is also the biggest smartphone market after China. Keeping these statistics in mind, it is still a wonder that marketers are forced to rethink their advertising strategies. But then again, there’s the million dollar question that businesses and marketers might ask themselves: Is digital marketing the only safe bet in the modern age?
The utility of digital marketing was first noticed during the internet bubble burst at the turn of the century. That landmark moment in the field was the launch of the first ever mobile marketing campaign by Universal Music in the year 2001.
How is technology shaping the world around us?
From then on, the sheer rise and reach of social media platforms like Facebook, Twitter and Instagram has made it imperative for businesses and marketers to jump into the social media bandwagon. As of today, 60% of marketers across various industries have already shifted their efforts towards digital marketing and 80% of shoppers do their research online before investing in a product or service. Also, since the worldwide social media user base is going to rise to 2.95 billion by 2020, it would be fair to expect a substantial rise in the above-stated facts.
Looking back, technology has led the emergence of digital marketing, which is now growing by leaps and bounds. On the other hand, traditional advertising is feeling the heat of this development because it does not offer the USPs of digital marketing.
The great advertising boom!
The digital marketing and advertising industries worldwide have been witnessing exponential growth over the past few years. If you look at the graph below, it clearly shows that companies have started incorporating digital marketing as an integral part of their advertising strategies.
Source: Marketing Interactive
The penetration of high-speed internet due to the emergence of Jio and the subsequent price reduction by other telecom companies have been the key contributors to the amount of time people are spending on the internet. With this increase in the number of internet users, advertisers are finding it much easier to reach out to their target audience.
For instance, traditional methods like cold-calling and direct mailing have a success rate of 1.7% whereas it is a whopping 14.6% for digital marketing practices like Search Engine Optimization (SEO). Digital marketing statistics reveal that infographics are liked and shared on social media 3x more than any other type of content. The audience today is flooded with information and digital marketing offers advertisers the perfect platform to reach out to their audience who mostly rely on the internet for almost all their needs.
It’s also a win-win situation for marketers because digital marketing solutions not just deliver quick results, but are also cost-effective, which may not necessarily be the case with traditional advertising.
The future of advertising and digital marketing
A few months ago, I came across an article by Forbes that spoke about how we are entering the fourth digital marketing framework - Digital Marketing 4.0. While digital marketing seems to be growing at a rapid pace, I believe that this is just the beginning. Futuristic technology like AR/VR and 360-degree advertising will take online marketing to greater heights. Research firm IDC has predicted that over a billion people worldwide will regularly access AR and VR content by 2020.
The future looks exciting and it would be justified to expect a lot more innovation in terms of ad formats, placements, and concepts which will transform the ad and digital marketing world altogether. The dynamics of digital marketing are changing every day, and the future depends on how well our marketers adapt to these changes.
This article has recently been published in Mail Today.
About the Author
Dr. Yogesh Kumar Bhatt
Vice President and Director, Manipal ProLearn
Dr. Yogesh Kumar Bhatt is the Vice President and Director of Manipal ProLearn. He looks after the academic development and delivery of professional learning programs.
Dr. Bhatt has over two decades of rich experience involving employee competency development, education, training, delivery and consulting in the Information Technology sector.
Prior to this, he was associated with Infosys for over 16 years and in his last role was the Associate Vice President and Head of Consulting and Systems Integration Academy. In this capacity he headed the training and competency development requirements of Consulting and Systems Integration service which accounted for about 1/3rd of Infosys revenue and had employee strength of more than 30,000.
Dr. Bhatt is a Graduate from Indian Institute of Technology, Roorkee, Post-Graduate from CEPT University, Ahmedabad and Fellow (Doctorate) from Indian Institute of Management (IIM) Ahmedabad.