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The Rise Of Digital Marketing In Pakistan


Posted On Express Tribune: http://blogs.tribune.com.pk/story/159/hello-digital-world/

As we celebrate almost two decades of the internet’s presence in Pakistan, intuitively it makes sense to believe that as the consumer in Pakistan gets ‘Digital’ and the technologies mature, there would have been innovations & change of behaviors in the marketing practices of companies. Yet astonishingly despite the fact that the computing grid is now increasingly available all around us via GPRS / EDGE Services, Wireless Broadband, DSL, etc, there is still a parallel and increasingly irrelevant universe which is inhabited by marketers and their agencies still clinging on to practices & notions of a pre-digital world where even in the best of times marketers used to admit that only 50 percent of their advertising worked and even then they weren’t sure which 50% it was.

As Pakistan comes close to approaching almost 20 million of its residents having access to and using the internet, instead of the gap between the consumer and the marketer shrinking, it only seems to be getting wider by the day. Marketers seem impervious to the fact that with over 80 broadcast channels catering to the masses, over 12 channels on the radio, over 4000 publications, such media onslaught is causing unprecedented fragmentation in media habits of a precedent which have never been seen before and still insist on doing things the traditional way. Add new channels such as internet, gaming, mobile, DirectToHome and activations and we can see why the number of touch-points to reach the average consumer have exploded making the job of the average marketer is now so much harder than the time not so long ago when you could have reached the entire country by advertising on the 9.00 pm news.

Traditional advertising models developed because the economics of the industrial era demanded it. Interaction was expensive, so information about the expected benefits of consumption of products had to be squeezed into slogans, characters, and logos, compressed into thirty-second TV ads and radio spots. Customer was not as much aware since means of peer to peer advocacy were expensive thus believed whatever the advertiser wanted them to believe. With the advent of the information age however and cheap digital interaction, these models are falling apart. What’s replacing it is digital media models where consumers are now in control. They can and do debate and discuss expected costs associated with and the benefits of the brand in incredibly rich details. The more cheaper this interaction gets, the more connected consumers become and the more they will talk to each other – and the less time they will spend listening to the often empty promises of advertisers. The information gap created in the past too disappears in these circumstances and marketers are left scrambling.

Increasingly marketers will start realizing that the multi-tasking, instant-messaging, e-mailing, cell phoning, emoticoning ;-) , always on, gaming, Web-searching, blogging, social networking customers are for real and as they will scramble to find their footing in this new hyper-fragmented world, they will become painfully aware of the fact that customers are increasingly ignoring their marketing efforts. The traditional marketing model has been broken and it is digital marketing that will increasingly become the means of tapping onto such a consumer base, which has little time for TV, Print or Radio.

Of course the next question arises, what is Digital Marketing? Is it this thing called SEO? Is digital marketing having a website? What about this Facebook phenomenon is that digital marketing too?

I like the following definition and I use it in all of my seminars and workshops.

Digital marketing Is:

Applying interactive technologies to Contribute to marketing activities Through Developing a planned approach to improve customer knowledge to Deliver communication & services that matches Individual’s needs.

This means that whilst Digital marketing depends on tools such as websites, banners, SEO, Facebook, Mobile, Email, Digital Signage etc, these are not digital marketing itself. Digital marketing is about using these tools to reach customers in a timely, relevant, personal and cost effective manner through Engaging the customer with your brand. How to do so will be covered in the future topics in this blog. We will also cover the forms of insights & information available to advertisers thank to new media. Before advertisers had focused heavily on measuring the means of awareness such as reach, frequency, etc (which too were theoretical) rather than the economic value they gained from traditional advertising such as ‘Advocacy Rates’, ‘Sales Conversion’, ‘Sales Uplift’, etc because with the limitations of traditional media there were simply very few other metrics possible. However common sense dictates that just because I’m aware of something, doesn’t mean I want it (Guy Soap, anyone?). Marketers still do not fully understand this especially with regard to new media. Digital media is not shackled by this lack of data which pervaded traditional media and allows for metrics far beyond awareness, is superior and can be measured from the instant the user sees the advertised message up to the moment of sale and afterwards as well. Digital is the most accurate, transparent, and reliable type of media. The simplest metrics e.g. can enable the calculation of the cost of acquisition of a customer giving you a rupee for rupee analysis of your spending in real-time.

Most marketers  still work at siloed organizations that are built in a hierarchical and vertical way, reflecting an ancient management paradigm whilst the customer is leap-frogging ahead. Alvin Toffler said that “the illiterate of the 21st century will not be the ones that cannot read or write, but those who cannot learn, un-learn and re-learn.” I believe this perfectly encapsulates the zeitgeist and for many marketers this will be the last iceberg they will ever see, if they do not learn to grasp this technology.

 
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Posted by on June 25, 2010 in Media

 

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Marketing 2.0 – Leveraging Facebook For Brand Building


Facing Up To Facebok

Published Dawn, Aurora Magazine, Jun-Jul, 2009 Issue.

Facebook

Facebook

Media has been leveraged for sociable purposes since the caveman first discovered walls. Thus it can be said that the phenomenon of social media and social networks is not new. Even in Pakistan, the most popular applications that were ever installed on PCs were framed around communication and sharing – bulletin boards, mIRC, instant messaging through software like MSN Messenger, AOL or ICQ, chat-rooms, etc were very popular in the last decade.

In recent times, however technology has enabled the twin modes of communication and sharing on an unprecedented scale on what are called social networking sites examples of which include MySpace, Zedge, LinkedIn, Orkut and Facebook. These are changing the human fabric of the Internet in Pakistan with over 1.83 m users on Orkut and over 500,000 users on Facebook alone.

Pakistani marketers are eager to tap into these platforms. They have realized that it’s critical for them to reach the tech-savvy youth demographic that thrives on these sites. On Facebook e.g. out of the total 574,740 (Figure: May, 2009) people from Pakistan, 436,680 are between the age of 18-30. Thus social networks do have the potential to pay off big for marketers if they learn how to use it properly.

There has been ample growth in advertising on these sites and the figures speak for themselves. Eyeblaster Pakistan, a leading internet marketing company reports Adex on Facebook in 2008 was USD 150,000 out of the total USD 1.6 million (some sources cite USD 3.0 m) spent on online advertising and increasing every year.

Facebook Apps

Facebook Apps

However if we take advertising on Facebook (the most advertised site) as a case study, it has continuously produced less than stellar results for advertisers. Facebook is a social network site that brings friends together according to interests, existing connections, networks and groups. Yet while the targeting on the site is phenomenal, Facebook users are more engaged by the content within the site rather than the advertisements. It can even be said that Facebook is a little too engaging. The metrics tell the story. With historically high CPMs (current avg. CPM on Facebook for Pakistan is $0.95) and historically low click-thru, Facebook is facing a challenge to produce effective campaigns for the marketers. The graph below highlights the problem with objectives set around CTR.

EyeBlaster Data of Various Campaigns runs on FB & Zedge

Description

Facebook.com

Zedge.net

Standard Banner – Average CTR Range

0.10 % to 0.12%

0.4% to 0.75%

Rich Banner – Average CTR Range

0.53% to 2.67%

0.95% to 4%

Average Dwell Time

0.41 Seconds

0.44 seconds

User Engagement (Brand interaction Rate)

10% – 40%

30% – 75%

Source: Eyeblaster, Pakistan

However this same graph might be viewed differently if the objectives of the campaigns were to be changed to ‘User engagement’ or ‘Brand awareness’ instead of how many leads were generated through CTR. e.g. in terms of branding efficiency, you’re getting your name, logo and ad in front of thousands of people for pennies per thousand. If such were the objectives, then the efficacy of campaign will boil down to the advertised content – what do you advertise that works and what sort of rate do you get? However even then it’s not as simple. The world average of User Dwell Time on FB is around 20 minutes a day (Figures: Jan 2009) with global 50% daily logins (both numbers for Pakistan are not available). The peak amount of time spent on the site tapers off at 190 minutes. That means that a ridiculous number of impressions are being spent on the same user and that will understandably will generate low click-through rates.

Another thing marketers need to realize about social networks like Facebook is that unlike say Google, users on Facebook don’t want to leave the site. With Google the goal is to redirect the user to another site as quickly as possible. Facebook’s goal is to hold the users attention as long as they can.

Tip: When creating ad campaigns on Facebook, consider linking it to your Facebook company page instead of an off page website.  This way the user remains within Facebook and can continue utilizing the full functionality.

Facebook advertising also will never be truly effective for the users who have even a tiny bit of knowledge about PCs. For example any display banner can simply be blocked automatically with the Firefox Browser’s adblock feature.

Facebook Pages

Facebook Pages

Thus keeping the above in mind, advertisers need to approach the Facebook medium differently. There’s a lot of focus on advertising, banner ads and the amount of traffic but to really connect to your customer it’s important to look beyond traditional forms of web adverting to see the real potential… that Facebook is a great place for relevant traffic, without the need to pay for ads! There are millions of groups associated with all kinds of subjects in the Facebook empire, so whatever niche you specialize in there is usually a collection of individuals talking about it somewhere in that world. The challenge is leveraging the connectivity of the sites and using them to form communities around products, media or services. This approach will also ensure that you are actually connected with your users.

It would be wise for marketers to take a page out of the history of MySpace, another very popular Social Network. MySpace when launched was effectively ignored by the press and digerati. They gained traction with the musicians who were just starting to get that social network sites were valuable. Based in Los Angeles, they had an upper hand. They managed to attract club promoters and others catering to 20-something urban hipsters who were looking for a tool for coolhunting. Slowly, a symbiotic relationship emerged on MySpace as bands and fans became mutually dependent on one another. Against this backdrop, the youth phenomena emerged.

What companies can learn from this case is that social networks have the power beyond ad revenue to act as a customer relationship management (CRM) tool for them. As in much of media, creativity is the key here. If you can find the type of ad that Facebook users will click, that’s one thing, but if you can build something they’ll click, engage with (or buy) and help you spread, you’ve got something far more exciting

FB Users

FB Users

and effective. One campaign that used this technique very successfully was the Burger King “Whopper Sacrifice” application, which recently also earned a Grand CLIO in Interactive. BK developed a Facebook app that once installed promised to give the user a coupon for a free hamburger if they were to delete 10 people from their friend’s list to prove how they preferred the Whopper over their friends. The “sacrifices” showed up in the activity feed. So it said, for example, “Caroline sacrificed Josh for a free Whopper.” Facebook ended up disabling the WHOPPER Sacrifice, after the love of the user for the WHOPPER Sandwich proved to be stronger than 233,906 friendships.

All things said it also has to be remembered that not all products can be successfully marketed on Facebook. A new company or a brand that’s not a household name will have a tough time jumping into the mix, but so will established companies that don’t necessarily have public opinion on their side. It’s tough to get the conversation started when no one’s primed to talk about it and this is the challenge on Social Networks that brands must muster. They must remember that it’s not the marketers who are powerful on these sites, it’s the people and people empowered by technology won’t always go along.

Media isn’t neatly boxed into little rectangles called newspapers, TV or magazines anymore. People now connect to other people and draw power from crowds, especially IN crowds. If you want to be part of the Social Networks marketing process, than you have to be part of the conversations – that’s when real marketing takes place.

 

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