Advertising has always been an essential facet of establishing the success of your product. Although, the way entrepreneurs used to do advertising has tremendously been changed. Advertisers are now giving preference to digital medium over traditional medium for advertising their products. The fact can’t be overlooked that the world is rapidly shifting from analog to digital.
The Impact of the Internet on Advertising
Earlier advertising your product via traditional medium was a tough nut to crack; specifically for a startup that would need to spend a great amount of money. Towards the end of the twentieth century, an altogether new medium of communication came into existence. The world called it the ‘Internet’. No one then realized, the kind of unprecedented change it would bring into everyone’s lives.
Digital Media is a byproduct of the internet and it has breached many barriers that were present in the traditional medium. Since there are no geographical barriers and hence, reaching your target audience has become easier. It also offers you to market your product/business free of cost.
According to a report:
The number of internet users in India was expected to reach 500 million by June 2018.
Also, a Google report says that the number of Internet users in Indian languages is expected to reach 536 million by 2021, contributing 35 percent of the $4.4 billion digital ads spend in the country.
Why Digital media over Traditional Media:
With the growth of social media and the internet becoming the first mode of information exchange, the role of traditional media in delivering information is getting reduced. The advent of social media, mobile penetration and now affordable internet prices have played a significant role in the boom of the digital advertising industry. Have a look at the below data to get a gist:
while a user base of 1.47 billion people visits the social media platform on a daily basis. India is the largest market for WhatsApp with over 200 million monthly active users as of February 2018. With such an enormous usage of digital media, online advertising offers you many benefits over traditional advertising.
With such an enormous usage of digital media, online advertising offers you many benefits over traditional advertising:
To get the advertisement for your product done through traditional media, you usually need to burn a hole in your pocket. On the other hand, digital advertising gives you financial freedom where you don’t need to have a heavy budget to run an ad. At very minimal cost, sometimes even for free, you can reach your target audience and fulfill your business goals.
Traditional media comes with carpet bombing (you don’t have any control over target audience) whereas digital media gives you the platform for precision targeting, hence becomes cheaper and affordable. To advertise a 30-second commercial on a local cable television channel, it might cost you somewhere between Rs. 12,000 to Rs.90,000 and a satellite tv broadcast sometimes as expensive as Rs. 30,000 per second. A print advertisement on a regional newspaper costs anywhere between Rs. 5,000 to Rs. 50,000 depending on the page of publishing and a national publication is much higher. Whereas, Facebook cost per click (CPC), on average, is around Rs. 10 upwards, and the budget is dependant on a number of factors including the audience that is being targeted.
It, therefore, offers an ample amount of opportunities, especially to small businesses and startups to showcase their product without having to worry about over-stretching their limited budget.
Traditional media is restricted to geography. One can not have a specific target audience. Traditional media does not offer you the facility of demographic profiling.
However, Digital media is not limited by geography and offers demographics for precision targeting. You pay only for the audience who are relevant to your product/business. In short, you get to choose your own set of audience. Hence you derive better ROI.
Access to data and Insight
It is highly essential for an entrepreneur to keep an eye on how the ad is performing among its target audience. Digital advertising gives you the privilege to analyze your ad’s performance in real-time. Whenever you put an ad on Google, Facebook, Instagram, etc. you can analyze how the ad is performing and who is the audience getting engaged with the ad.
All these insights would help you gather the required data and change your ad if required, all in real-time. This is not possible with traditional advertising media where results and analytics are available only after the entire campaign is finished and budgets exhausted, that too by post-release surveys which are not always accurate.
Helps Building Up Engagement
While opting for traditional media advertisements, there is no way of getting engaged with the customer. This, however, is not the case with digital advertising. It gives you an enormously big platform to connect with your customers and get instant engagement. The online advertisement provides you an interactive mode with your customers. This, in turn, gives the customer a sense of reliability and satisfaction towards the advertiser.
Today’s customers believe in voicing their opinion and want to be heard and that is exactly what online advertisement provides us.
Broader Geographical reach
While using traditional media, one might reach a specified number of the audience; digital media gives you an ocean of audience which enormously increases the probability of your product is more highlighted. You can get to choose your audience irrespective of their age, gender, geographical landscape and much more.
Direct contact with the Customer
While exercising the traditional format of advertisement, it becomes really difficult to keep an eye on your customer’s response. On the other hand, digital media offers you a platform to be in direct contact with your audience. Doing digital advertisement also gives you a scope of improving marketing strategy using the customer’s feedback.
The digital landscape gives you an opportunity for real-time assistance to the customers. It, therefore, increases the level of satisfaction amongst customers as their issues get addressed faster. According to research, 89% of companies believe customer service is their main point of competition and many have had to make a drastic shift in resources.
Presently, most of our internet users are digital natives. Digital natives, a term used to describe those who are born or bought up during the age of digital technologies and are technology and computer efficient. They tend to spend a very large amount of time surfing on the internet and chatting on social media. The only way to communicate with this dynamic new audience who can be critical for your business is through digital media.