Application of Statistics in Business
Posted by: Karunamoorthi P | Digital Marketing
Digital Marketing has become one of the most talked about topic in marketing over the past decade. Increase in smartphone adaption and exponentially increasing data speed has ensured that more than half of world population1 is connected with each other through Internet. This has opened up new marketing possibilities – market to the customers via interconnected devices. This phenomenon of digital marketing is generating tremendous new business opportunities and employment opportunities.
The shift to Digital: Redefining Business Models
Television had been the go to medium for brand building campaigns as it delivered desired results. Fevicol’s Fish catcher ad and other supporting ads are classic examples of TV Advertisement in brand building. This was because more people watched TV than listening to radio or reading newspapers and magazines or reading billboards & banners. But Digital has changed the landscape dramatically as people spend most of their time with their mobile devices.
Finally in 2017, Digital spending had overtaken Television ad spending. Digital Advertisement Spending reached $208 billion (41 % of the market) worldwide, while Television spending was $178 billion (35% of the market) – according to Magna, the research wing of media buying firm IPG Mediabrands. By 2020, Magna expects the total Digital spending to cross 50 percent of the market share, which is estimated to be more than $300 billion.
Global digital ad spending beat TV for the first time in 2017Source: https://datawrapper.dwcdn.net/fbqSH/6/
These facts are corroborated by eMarketer’s data about Digital ad spend vs TV Ad spend as well.
Mckinsey estimates that Digital Advertisement spending will cross $1 Trillion by 2020.
Advantages of Digital over Traditional Marketing
Digital Marketing as a channel is much more advantageous than traditional channels as listed in the table below.
Cost wise Digital Marketing is the cheapest and provides precise targeting as shown below:
It is easy to measure ROI. There is a saying about sales ‘only 50% of marketing spend is useful and 50% is waste, but no one knows which half is waste’. This is because it is not possible to track if the TV Ad had delivered the desired results or not. Digital marketing absolutely eliminates this wastage as everything on digital can be tracked precisely.
Take Advantage of the Opportunity: MBA in Digital Marketing
Tremendous opportunity for Digital Marketing
The below reasons make a strong case for the exponentially increasing opportunities in digital marketing. This will see multifold increase in Digital Marketing Companies alongside lucrative job opportunities for skilled professionals.
1.Increasing Internet connectivity will drive overall Digital SpendingWith the introduction of Jio, data usage has multiplied in India from 1GB per month to 1GB Per day. With more people having access to affordable smartphones, number of people with Internet access is going to increase multifold ensuring real time connectivity. Most of TV Viewing is also shifting to Mobile platform with apps like Netflix, Hotstar, Amazon Prime Video, Live TV are eliminating the time in front of Television.
2. Mobile will become principal digital platform
Though Internet connectivity to people started with desktop computers, it increased with the help of personal laptops. But it had seen rapid growth after the introduction of smartphones. Mobile has become the primary mode to access internet overtaking everything else as evidence by studies.
3. Companies are mandated to adapt to digital mediaAs people spend more and more time with digital medium, companies are forced to create presence in the digital platforms. They not only create well-designed websites, but also create profiles in Social media, relevant forums, etc., They also use Digital Media as an innovative tool to build brand like how BlendTec uses YouTube Videos in the name of ‘Will it Blend?’.
4. Job openings & Earning Potential
As the growth prospects of digital marketing are tremendous, it is expected to generate lucrative job opportunities alongside business opportunities for digital marketing agencies. Below are some of the articles on the scope and opportunities of digital marketing which confirms the growth in
demand for digital marketing.
As organizations invest more in digital marketing and branding, there has been a complementary surge in recruitment, with 150,000 digital jobs estimated to be created by 2020. This can be a frustrating experience for companies who find themselves in direct competition with one another to secure scarce digital talent. It is, however, a massive advantage for the in-demand digital professionals who can negotiate the best possible salaries and benefits.
It’s an undeniably lucrative industry, both for employers and employees, with some up-and-coming digital specialisms in particular enjoying significant profitability. – Digital Marketing Institute
With digital technologies getting more sophisticated, the opportunity for companies to engage with customers is extremely endless. In 2017, marketers will deal with marketing Return on Investment (ROI) and tangible growth. - 2016 Marketing Hiring Trends- Digital Jobs continue strong growth by Smart Insights
There are over 180,000 job postings for digital marketing skills, but not enough people to fill them.
Traditional marketing degrees aren’t preparing students for the real world. – The Future of Digital Marketing Jobs
LinkedIn lists More than 90,000 Digital Marketing Jobs – Jobs in LinkedIn