Explained: Why is Digital Marketing Booming in India?

During its 5-month ban, Nestle relied on social media, including Facebook and Twitter, to reassure customers that its product was safe. They also tried responding to each & every comment on social media directly and created a section on their main website to share customer updates consistently.

Later, when the ban was lifted, Maggi went blazing all its guns and released digital marketing campaigns. Two of them were "WeMissYouToo" and "DilKiDeal."?

In the former campaign, Maggi asked people to share their stories on various social media platforms, making them brand ambassadors. The hashtag caught fire and became trending on Twitter with over 4.5K tweets.

Maggi wasn't done here!?

It took one step further and joined with Snapdeal and asked them to sell their Maggi kit, which they named "DilKiDeal." Within 5 minutes, 60,000 units were sold on Snapdeal. And within 10 days, it sold over 3.3 crore units of Maggi. And soon enough, "DilKiDealWithMaggi" started trending on Twitter.

If Nestle wanted, they could've followed the traditional path of only TV ads, but they didn't.?

Why??

Here's what Nestlé’s MD of India, Suresh Narayanan, said,?

"Digital and social media is central to our brand-building process. We believe that big things happen for brands when these two are in synergy. For us, the concept is not just digital media, but of competing in a digitally-connected age."

Maggi lost 500 crores during its ban, but leveraging digital marketing, it bounced back and regained its 57% market share in July 2016. It is one of many examples of how effective digital marketing has been and continues to be in India.?

A Brief History of Digital Marketing in India

The credit for launching the Internet Service for digital marketing in India is often given to Videsh Sanchar Nigam Limited, also known as VSNL.?

Soon after, the Indian business community began exploring the potential of Internet marketing in India in 1996, which led to the launch of IndiaMart and the beginning of digital marketing in India. It was the first company to launch e-commerce in India.

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But it wasn't until 2007 that e-commerce took off in India. Pioneering e-commerce for B2C, Flipkart emerged on the scene with a wide range of products at the most competitive prices and hassle-free ordering with secure payment methods. This was unheard of at the time.?

While the expectations piled up, Flipkart’s growth did not meet the expectations of the government. And so, in 2010, the government launched plans to revitalise broadband connectivity. As a result, the number of internet users in India increased to 28% in 2012 and 39% in 2013.?

Since then, India has been on the path of exponential growth in digital marketing and continues to do so.?

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Many brands like RedBus, Zomato, OYO, Ola, Myntra, and Nykaa have changed the digital marketing landscape in India.

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Why is Digital Market Booming in India?

Traditionally, word-of-mouth advertising and door-to-door sales were the only forms of marketing. With time, marketing has become more digital as people seek instant access to everything.?

Let's explore a few reasons behind the growth of the digital marketing industry in India.

1. Increase in the Number of Active Internet Users

Since the global pandemic, digital adoption has been on a steady incline. Internet has reached the remotest towns in the country.?

The ‘ICUBE 2020’ report by IAMAI and Kantar revealed that “While internet users grew by 4% in urban India, reaching 323 million users in 2020, digital adoption continues to be propelled by rural India – registering a 13% growth in internet users over the past year.” And the number is growing year by year.?

Today, India has an enormous market of over a billion people, of which 600 million are under the age of 20, contributing to the country's high consumption power.?

Globally too, the number of people using the Internet is rising steadily. In India alone, there are currently 692 million active internet users.?

The penetration rate in India increased from just 4% in 2007 to more than 47% in 2021. According to the report, India will have 900 million internet users by 2025. As more and more people get access to the Internet, the number of active users is going up. Whether it’s OTT services, online gaming, e-commerce, budget-friendly smartphones or more, there is no going back.?

The positive and ongoing growth of internet users creates ample opportunities for businesses of all sizes. This is opening doors for many digital marketing jobs in the country.?

2. Digital is Bringing Higher ROI

“If you cannot find something online, does it even exist?”

In today’s business landscape, going digital is not a strategic move for a company but a necessary one if it wants to avoid extinction.?

Sulekha, a platform connecting consumers and service providers, is a brilliant example of going digital first.?

At a time when people were sifting through Yellow Pages to find plumbers, tutors, mechanics, and other service providers, Sulekha was offering a convenient way of searching for them online. Started in 2007, it has become an end-to-end local service fulfilment brand today.?

If a business doesn’t have a presence online, it will lose customers to businesses that do, as most customers are looking for a product/service online. This is why digital marketing has become non-negotiable.?

It isn’t solely about selling a product or service anymore, but about creating exciting content that will attract the attention of their audiences. And so, over the coming years,? digital channels will become the only channels to interact with customers and build a resilient brand.?

In comparison to traditional channels like print and TV, digital channels are also bringing in better revenue at lesser costs. This is another reason why digital marketing is taking off in India.

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