ADVERTISING ON THE INTERNET

While the advertising industry is almost six decades old it is the online advertising that has caught the imagination of millions doing business across the world. In India itself, according to the latest Nasscom survey, the projected figures for the future speak volumes about the momentum at which this medium for advertising is catching up. From just about Rs. 24 crores in 1999, the online advertising will be Rs. 60 crore by the end of 2000 and will reach a whopping Rs. 750 crore by the year 2002.
Moreover, online advertising in Asia/Pacific is expected to exceed $1 billion by 2004. Many surveys show that companies are increasingly beginning to view the Internet as a viable means to reach new audience and advertise effectively.
In the next four years India too will experience a bullish growth. With the conventional media for advertising being equally popular what could be the major attraction of advertising on the Net? Atul Gupta, chairman and managing director, Pugmarks Inter Web Private Ltd., says, “the Internet is today the most reliable and accurate medium for advertising that is far more reliable than conventional media available”.
Adds Manu Dogra, co-founder of a customer loyalty program company, netcarrots, “the Internet allows marketers to deliver personalized and real-time messages to specific consumers and that too at a fraction of the cost and with greater measurability”.
Binod Choudhary, regional director, Rediffusion opines, “virtually every brand which has a far reaching presence can be advertised on the Net.” Agrees Siddharth Rao and Arindam, co-founders of Webchutney, “advertising agencies are looking at the Net for targeting niche audience that are hard to come by in the offline world. The interactive nature of this medium makes  it ideal for marketers to get instant feedback. Mainstream advertising in terms of the AIDA model can generate awareness, interest and desire but not action and that’s where the Net steps in”.
Says Osama Manzar, CEO, Inomy.com, “for the first time, there is an advertising medium which opens a sea of buyers and consumers for any ambitious company. Online advertising helps B2B firms discover newer marketing geographies. Imagine an Indian steel producer finding a market in Eritrea! For B2C companies not having an offline presence, building brand loyalty may be difficult. But as Indian Internet economy stabilizes online advertising will pick up. The salesman will not dies, but increasingly he will be reaching the consumer via the Net.
“Countries with large population like India are destined to have a large market online and hence greater avenues for Net advertisers. Currently only 15 per cent of ad spending on the Net is estimated to be delivering desires results. It is, however, expected to go up to 50 per cent by 2003! In a scenario like this will the direct marketing and print medium lose a pie of the revenue?
“No, not at all,” opines Preet Bedi, director, Lintas, “While on the Net you can focus a target audience but the numbers would be very small. Predictions about the growth are melodramatic. The growth is at a very small pace. In an estimated Rs. 8,000 crore total advertising market, online has only Rs. 50-60 crore. A time will come where the market share will increase by 15 to 20 per cent.
Even in the US, the online advertising share in only 6 per cent. Definitely the Internet can not replace traditional media for the simple reason that the other media too will improve and grow manifolds. For instance, the ratio as a medium was almost ticked off but hasn’t FM channel brought back this medium to us”.
Says Harish Vasudevan, country head, Ogilvy & Mather Worldwide, each medium ha sits set of unique attributes that enable it to deliver something that the other cannot. It is worthwhile to explore options beyond conventional advertising as along a it is relevant for the brand.”
Thus despite the fct that the online advertising future does look very rosy as it offers the advertiser the option to choose his audience and pay only for each them which is a definite advantage over conventional advertising, what is really needed is a judicious mix of online and traditional advertising. It is more of how companies can blend this unique and exciting media along with the traditional media and come up with the best communication skills.