The advertising industry is undergoing a transition phase with the emergence of the online media. The declining TV viewership and slowdown in the results derived from print and outdoor advertising are forcing the marketers to adopt online advertising. Internet and the Web have emerged as the critical platforms for online advertising and are being increasingly used by e marketers to deliver marketing messages and attract customers. While the western world has warmed up to the concept of online advertising, Indian consumers are still apprehensive about this medium.
What are the different challenges faced by online advertising in India?
The online advertising market in India has been flourishing of late, owing to the increase in the number of 4G connections and smartphones, time spent on mobile phones, and subsequent spends on digital advertising by companies operating in the automotive, food and beverages, and e-commerce industries. Despite the growing popularity of online advertisements in India, two problems threaten to take the sheen off.
What are the different challenges faced by online advertising in India?
The online advertising market in India has been flourishing of late, owing to the increase in the number of 4G connections and smartphones, time spent on mobile phones, and subsequent spends on digital advertising by companies operating in the automotive, food and beverages, and e-commerce industries. Despite the growing popularity of online advertisements in India, two problems threaten to take the sheen off.
Advertising fraud has been a serious issue in the digital space for some time now, and India has the highest rate of such fraud in the Asia-Pacific region. With mobile emerging as a distinct advertisement platform, there is a lot of impetus on mobile marketing for luring new users to download and open an app. There is a lot of incentive for advertising networks to game the system. Given the fact that agencies and their networks get paid per install, they often fake it and pretend that a real human downloaded and installed an app, when it was often just a bot.
Mobile commerce is hot right now in India, and there's a lot of investments made trying to get consumers to download an app from which transactions are made. But consumers with low-end devices that have limited memory or processing power keep deleting apps to save space. This high churn rate then forces mobile marketers to keep spending just to get those consumers to come back and reinstall. Not only does this result in a kind of double-spend, but it also interrupts the analytics, which is valuable to agencies and their clients.
Mobile commerce is hot right now in India, and there's a lot of investments made trying to get consumers to download an app from which transactions are made. But consumers with low-end devices that have limited memory or processing power keep deleting apps to save space. This high churn rate then forces mobile marketers to keep spending just to get those consumers to come back and reinstall. Not only does this result in a kind of double-spend, but it also interrupts the analytics, which is valuable to agencies and their clients.
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