With eCommerce ruling the industry, online advertising and marketing is being aggressively pursued by retailers to push their brands on the web platform.
High online and offline purchasing power, brand awareness and multiple selling channels has kept the retail industry on its toe. Many offline retailers are now-a-days aggressively pushing their brand and products online. Such high growth potential in customer spending has opened doors for the digital advertising industry to step in and foster the ecosystem.
During the Indian Retail and eRetail Congress and Awards 2015, Anubhav Sonthalia, Co-Founder & COO, Sokrati spoke to Retailer Media on the same. Sonthalia said, "The market is worth $700 million in India and is expected to cross a billion in a couple of years. If you think about it internationally, the online ad industry is one of the fastest growing industries with a global worth of $40 billion."
Sokrati being a digital advertising firm, aims to democratise advertising and bring as many channels to a same platform and build it as a single one-marketing platform which allows for easy access, easy advertising and intelligent marketing customers on the web. It basically spans across clients from very large customers to mid/small customers, said Sonthalia.
The service provided by many digital marketing agencies cater to all channels of advertising such as Google Ads, Facebook Ads, Twitter Ads, display Ads, Email ads and many more. The demand of online advertising started picking pace from 2010 and grew up to 35 per cent in the same year. This hike surpassed growth rate of other advertising formats like TV, print and radio.
Increase in easy adaptation of mobile devices, Internet penetration, popularity of social media platforms and the eCommerce helped digital advertising to grow at such an exponential rate. Display advertising has always been a leading category in online advertising space. As per the current scenario, display advertising acquires 30 per cent whereas display advertising acquires 23 per cent of the total online ad market of India.
2015 and the ride ahead...
When asked about how has 2015 been in terms of growth and opportunity for Sokrati, Sonthalia said, "eCommerce has been really good for us. A lot of our clients are from that space so obviously as they have grown, we have grown too. Year 2015 has been an exciting year and the coming couple of years will be as exciting as this."
Further elaborating on the mCommerce trend that has started eating up eCommerce, he said, "eCommerce and mCommerce are not different. Commerce-on-the-Internet is what it should be called as. Both of them are touted to be very important. mCommerce is important in a country like India where large number of people are accessing the Internet through mobile phones. But we will have to figure out that how we use both of them together."
Sokrati is further looking to target the SME space in India. The company already has about 3,000 advertisers on the platform and it is fast aiming at growing them over the next couple of years with very heavy goals.
The online ad market is very nascent at this point of time, but with Internet share in total advertising revenue expected to grow two-fold from 8 per cent in 2013 to 16 per cent by 2018, the industry will have a rollercoaster ride in the coming time. This growth will be directly proportional to the growth in the modern retail sector. SMEs, Rural market and tier II and III cities can be potentially profitable targets..
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