April 9, 2013

Corporates are fast learning to use digital, social media

The Economic Times carried a report 'HUL Jumps on the Digital Bandwagon' yesterday. It tells how more and more companies, including Indian companies and MNCs, are adopting digital media strategies to engage customers.

In short, companies like HUL have started spending more and more on web media, so much so that it is now an important part of their overall media / ad strategy. HUL - the major consumer goods company from Unilever stable - now spends close to 10% of its media budget on digital media. The marketing teams are fast learning the tricks of the trade, nudged and guided by internet biggies such as Google. A number of digital initiatives taken by these companies have been successful in a way traditional means could not have been.

Indian Top Blog's view:

We had earlier carried a post on how big companies deal with social media, provoked by an article in the same newspaper. If companies are becoming professional about engaging with the new media, it is the sign of the times. They know that they would lose out to competition if they ignore the digital platforms. e-trade is growing by leaps and bounds and it will take a long time for the markets to saturate - in fact it will only grow in the next one decade. So, it makes good sense not only to be aggressively there in the digital world, but also to invest in market research focused on this.

Big companies, we reckon, will focus only on what they perceive as profitable to them. In their priority list, therefore, mass-mailing and mass-messaging, intrusive advertisements on utility / service websites, market surveys laced with goodies and various types of 'promotions' will occupy the top slots. Less 'instant' and 'social' places such as blogs may be left out when it comes to giving display advertisements. [Affiliate ads and AdSense ads do find place on blogs but do they really pay, especially in India?]

Another point, which we brought to your notice in our post, Blogs score over Facebook,..., is worth repeating here: that when it comes to what influences a buyer's mind, companies seldom learn. They tend to  believe in what their marketing teams and media companies tell them. So they end up spending on trendy mediums, oblivious of the ones that may give them better value in lesser money.

PS:
What a coincidence! The Financial Express has carried a report, 'Bilseri bets big on digital media in marketing revamp' just one day after the above article!

Not much information here except that cold-drink and bottled-water biggies are planning to spend more on advertising on social networks. They feel that this would help them better engage with young population.