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INTRODUCTION

To begin why digital marketing? Because it is booming industry, the growth of digital
marketing is tremendous and expected to grow more. Due to this summer project, I learnt
every aspect of digital marketing include (business development process, content writing,
social media) Marketing practices have dramatically shifted with the rise of social media and
proliferation of devices, platforms, and applications. Your prospective and current customers
are trying to communicate with you, and you can listen and respond faster, and with more
personalization than ever before. This shifting environment presents new opportunities and
challenges for marketers. With digital marketing, it's easy to fall behind. Digital marketing
equips you with the tools you need to assess your organization’s social media and digital
marketing strategy and helps you identify areas of improvement. Useful for individuals from
small- to medium-sized businesses who want to use new media as a vehicle for growth.
Organizations are leveraging digital marketing methods for successful marketing strategy
implementation inbound marketing through publishing content online in the form of portals,
podcasts, e-journals, online campaigns, social media marketing, search services; and outbound
marketing including email marketing, RSS (Really Simple Syndication) feeds and others. A
recent survey of 3300 business executives from various industries indicates that on an average,
34% of a company’s leads come from inbound marketing verses 22% through outbound
marketing.

1.1 Digital Marketing:-

Digital marketing can be defined as the process of promoting of brands using digital
distribution channels comprising internet, mobile and other interactive channels. The basic
advantage in this form of advertising lies in its low cost model. Digital Marketing can be
classified into Pull and Push marketing.

I. Pull
Pull digital marketing technologies involve the user having to seek out and directly
grab (or pull) the content via web searches. Web site/blogs and streaming media
(audio and video) are good examples of this. In each of these examples, users have a
specific link (URL) to view the content.

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 II. Push
Push digital marketing technologies involve both the marketer (creator of the
message) as well as the recipients (the user).Email, SMS,RSS are examples of
push digital marketing. In each of these ples\, the marketer has to send (push) the
messages to the users (subscribers) in order for the message to be received.

III. Web Site Designing

From the initial process of taking inputs from clients, planning on the basis of
such inputs to final implementation and testing – all are done using latest web
designing techniques and skills. The services have the advantage of offering
clarity in its design style, which is backed up with an easy and free flowing
content and latest technical know-how. Not only it provides affordable web site
design and ecommerce web development services but also search engine friendly
designs. Its Service Includes
 Website Design
 Website Redesign
 Shopping Cart Web Design
 Detailed and Advanced Page Layout
 Custom Logo Design
 Banner Ads
 Custom Graphics Design using advanced design tools.

1.2 Digital Marketing Trends:

Organizations are implementing a wide range of digital channels so as to engage customers in
a more personalized way. Digital marketing trends that organizations are rapidly embracing
include
I. Mobility:
Business Insider's recent report indicates that globally, one in every five people owns a
smart phone, and one in every 17 owns a tablet. That's an increase of nearly 1.3 billion
smartphones in last four years. Therefore an increased user base accessing the internet
via smartphones has prompted many companies to optimize their online content for
mobile devices.
II. Social media:

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 Organizations are focusing on engaging with customers through social media to offer
real-time interactions. Social media helps organizations reach out to a vast pool of
potential customers by supplying them with medical and campaign-related information.
III. Social-Local-Mobile marketing:
The growing popularity of smart mobile devices, increasing location based social
activities like experience sharing, review reading via social media and the evolution of
Global Positioning System (GPS) are helping companies leverage Social-Local-Mobile
marketing activities.
IV. Personalized Content marketing:
Customer engagement, acquisition and retention have all taken on a new dimension
with the delivery of unique, personalized, and relevant messages through identified
digital channels. Email is one of the most preferred marketing channel to broadcast
targeted organization messages and campaigns to existing and prospective customers.
V. Advanced analytics:
Increased adoption of digital channels is generating large volumes of customer
behavioural data. Advanced actionable analytics can help organizations define targeted
marketing strategies.
a) Search Engine Marketing (SEM) / Search Engine Optimization (SEO)
Organizations are focusing on SEO efforts and paid search advertising for
enhancing the visibility of their products and services.
b) Advertising campaigns
One more trend that has been observed recently is the continually mounting costs
of pay-per-click (PPC) that has resulted in the increased disappointment with this
form of search engine Advertising. According to experts, the reason behind such
high costs is the huge investments made by large business concerns.
Consequently, online business owners have now turned to the organic search
results delivered through search engine optimization to enjoy so many
advantages. There is currently more emphasis given to user-generated content,
improved conversion rates, location- or language specific campaigns, and E-mail
newsletters.
c) Online Advertising
The future of online Advertising is going to be more interactive with elevated
bandwidth and computing speed. Viewing and transmitting videos will be a
cakewalk for web surfers. There is also every possibility of witnessing browser-

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 specific results in the coming days. Social media will consolidate their
dominance further. They will not only make more incomes, but will grab the
attention of more and more users as well. As far as search engine optimization
is concerned, the search engine algorithms and link determination factors will
be complicated.
Further, thereby giving a hard time to online Advertising companies. Websites
will be a lot slimmer to enhance user browsing experience. Last but not least,
video search will grow in prominence with the potentiality to dictate the terms
in the world of Internet advertising.

1.3 Business Model of Digital Marketing:

AD EXCHANGE
• DSP AD NETWORK • SSP
• DEMAND SIDE • ADVERTISING • SUPPLY SIDE
PLATFORM TRADING PLATFORM
DESK
ADVERTISER PUBLISHER
/AGENCY

Source: self

1.4 About Process

Clients would give authority to agencies, to wear the shoes of clients. Agency will create ads,
which may be banner ads or videos. After the creation and getting approval from clients, agency
while find out the portals or websites where the T.G is present. Later give the order to DSP or
ATD, this order contains details regarding where to place ads or which portal is requiring to
placing the ad. This DSP/ ATD will bid in ad exchange for that portal. otherwise agency can

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directly approach to ad networks and give orders. These ad networks buy the inventories from
publisher and give to agency. From publisher view he can sell inventories through Ad networks
or through SSP. If publisher give to SSP, they will place those space in ad exchange for bidding.
Through ad exchange DSP/ATD will buy those inventories. Bidding will not only for space
but also for T.G which required for clients.

Ad exchanges are technology platforms that facilitate the bids for buying and selling of online
media advertising inventory from multiple ad networks. The approach is technology-driven as
opposed to the historical approach of negotiating price on media inventory.

A demand-side platform (DSP) is a system that allows buyers of digital advertising inventory
to manage multiple ad exchange and data exchange accounts through one interface. Real-time
bidding for displaying online ads takes place within the ad exchanges, and by utilizing a DSP,
marketers can manage their bids for

The banners and the pricing for the data that they are layering on to target their audiences. A
supply-side platform or sell-side platform (SSP) is a technology platform, web publishers of
the world use a supply-side platform to automate and optimize the selling of their online media
space.

1.5 Porter’s Five Model Analysis of Digital Advertising Industry:

Porter’s model will help analysis the industry and understand where the power lies in the
business. Here I am using porter’s model to understand digital advertising industry in India.
Generally, in the Indian advertising industry, contracts are long termed, and customers are
likely to keep going back to the same advertiser so long as results were obtained the first time.

I. Threats of New Entry

a. Full service agencies have high demand in Market.
b. Lack of getting efficient work force is a threat in digital advertising.
c. Cost of setting up a digital agency is low. But agencies need to invest a huge
amount in backend function like technology.
d. Getting clients in the initial stage is a bit difficult, because clients will usually
look the past experience of agency.
e. Government regulations in the digital advertising are low. While comparing
with M&E industry.
II. Bargaining power of suppliers

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 a. Lot of suppliers are there, but some suppliers who have high reach and affinity
will charge high price for placing ads in their portals.
b. Real time bidding will lead to increase the demand of some portals.
c. Bargaining power of suppliers, who provide data and information are very high.
d. Seasonal campaigns put pressure on supply side to charge high.
e. Employee or work force with proper knowledge is limited.
III. Bargaining power of buyers
a. Buyer are the clients of agencies, basically buyers are high idea seekers.
b. Clients will choose agencies which have good experience in industry.
c. Clients like long term relationships with agencies, so they also try to adjust with
agencies.
d. Clients can ask agencies to change pattern of campaigns at any time.
e. Clients like MNC’s have high power over agencies, but SME’s will satisfy with
performance of agencies.
f. Backward integration by buyers is not possible.
IV. Threats of substitutes
a. No. of substitutes is high, substitutes include Print media, TV, ooH and Radio.
b. Substitutes are too popular among buyers. They had high demand in past years.
c. Main competitor for Digital advertising is TVC, but trends are now changing
FICCI-KPMG report of 2o14 showing growth of digital is very high while
comparing with others media.
d. But media consumption through radio is increasing now.
V. Rivalry by existing competitors
a. At present competitors are low, but it can be increase in future. Because lot new
players are coming to the industry.
b. Existing competitors have high profile clients and clients loyal toward them.
c. Most of the traditional agencies are now concentrating in digital also.
d. Existing firms in the Industry are creating variety and unique campaign for
clients.
e. Most of the firms have efficient backend support in technology.
f. Existing firms have the expertise manpower and firms giving good
remunerations to employees. So employees are loyal towards employers.
g. Some firms are popular due to execution of innovative campaigns.

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Conclusion of Porter’s Five Force Analysis

 Low threats for new entry.

 High bargaining power of suppliers.
 Bargaining power of buyer is medium, but in coming year there is chance for
increase. Due to lot of players are coming to industry.
 Threats of the substitutes are high, but it will change in coming years.
 Rivalry by existing competitors is high, but possible to break it by doing some
unique campaign for client.
 Indian market is a potential market for digital advertising due to high internet
and mobile penetration.

1.6 Need of the study :

Advertising is normally done by a third party known as advertising agency. An advertising

agency is a service based business dedicated to creating, planning, and handling advertising for
its clients. An ad agency is independent from the client and provides an outside point of view
to the effort of selling the client's products or services. An agency can also handle overall
marketing and sales promotions for its clients. Types of ad agencies are
 Full service agencies
 Creative agencies
 Specialized agencies
 In-house agencies
 Digital agencies or new media agencies
This report is completely discussing about digital or new media agencies. There was a time
when Television was the most popular medium for Marketer to promote, spread awareness and
generate leads for their products but now the trend has changed and Digital media has taken its
place. Main reason for this change was
 Traditional methods are expensive. Compared to digital marketing channels, you could
end up spending lakhs of rupees more.
 Traditional marketing channels fail to provide instant feedback and reports about who
saw or heard an ad, and took action. This data is collected long after the initial ad
impression is made (and still then, the statistics are far from exact numbers).
 Digital marketing, on the other hand, refers to marketing methods that allow

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 organizations to see how a campaign is performing in real-time, such as what is being
viewed, how often, how long, as well as other statistics such as sales conversions.

The digital landscape is moving at a lightning fast pace. Every industry has been affected
by the advances in digital. Digital marketing is an essential part of this for companies who
want to utilise the power of the internet in order to boost business. The tremendous scope
of Internet Marketing in India, we have to understand that marketing ,through the internet
can be an entirely different ball game. In fact it is a potent combination of technology and
marketing acumen.

Digital Marketing is like traditional form of marketing is a highly result driven and set
objective practice. One can’t begin a digital marketing campaign without setting the
campaign objectives. A digital marketer understands the needs of the clients and visualizes
their needs to deliver what they want.

Taking a look at last year’s figures, let’s see what AdAge discovered when looking at the
statistics:

Source: odigma sol. Pvt. Ltd.

so as a marketing management student it's very essential to research on such an important
marketing tool and study on its effect on income generation will help you to know about how
marketing agencies performing .

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1.7 Scope of the project:

I. To understand the digital marketing models:-As digital marketing consist different

models which can be adopted by the organisation as advertiser to get more traffic to
there websites, few which I considered in this project are PPC Model ,Fee based model.

II. To understand marketing effectiveness:- In today’s world where nearly every

generation knows how to access internet, marketing through digital mode have its
effects far better than the traditional marketing but this project will be getting us near
how far in what contexts.

III. To understand how digital marketing campaign's takes place :-As the requirement
of every individual is not same so that the advertisement provided to them must not be
same this study will consider how to create a fine structure of campaign that can effect
maximum no. of people .

IV. To understand how digital marketing agencies works and generating income :-
Agencies are the third party between the supply side and the demand side, who makes
both the advertiser and the Publisher, in meeting their demands and through a process
they generate income in today digital scenario are online Content marketing, online
advertising, social media marketing etc.

V. To understand how digital marketing has effect on income generation. :- With

everday4 plus Billion of searches the most convenient method of selling a product or
services with more satisfying consumers journey is the best way of revenue generation.

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 REVIEW OF LITERATURE
According to Nelia Arora (32) in his research article titled “Trends in Online
Advertising”. The global online advertising incomes are expected to touch US $10bn
by 2015. In India, the incomes at present are estimated to be Rs.80 cr. and are expected
to increase six times more within the next five years. In India, Internet as a medium is
accepted by a wider industrial segment that includes automobiles, telecom, education,
banking, insurance, credit cards, FMCG (Fast Moving Consumer Goods),
apparel/clothing, durables, media, business services and tourism. Out of these, it is
estimated that the banking, FMCG and insurance sectors together account for 45% of
the total advertising spend. In comparison to this, automotive, travel and retail spend
37% of the total advertising income and financial service companies spend 12% only.

Some of the top spenders in India are automobiles, followed by brands like Peps dent,
Kellogg’s, Cadbury, HDFC (Housing Development Finance Corporation Ltd.) loans
and Sun silk. In addition to these the early adopters in the field of finance and IT are
also increasing their spending. Globally, the trend is that almost 60% of the income
goes to five firms- Goggle, Yahoo, Microsoft, AOL (America Online Launchers), and
Overture. Approximately, 90% of the Goggle incomes come from advertising. In India,
portals like indiatimes.com, exchange4media.com, rediffmail.com, agencyfaqs.com etc
are attracting major online spender. This article explains demographic profile of Indian
users. It also gives the comparison between global trend and Indian trend, which is
useful for my research work.

According to Sumanjeet in his research article published on “On Line Banner

Advertising” in Indian Journal of Marketing. Online banner advertising has great potential
as an advertising medium. It is easy to create, place and use. It offers companies targeting well
educated, innovative, affluent males/females or students with great potential for success as their
segments are highly represented.

According to Jaffrey Graham in his published article entitled as “Web

advertising’s future e-Marketing strategy” Morgan Stanley Dean Witter published
an equity research report analysing the Internet marketing and advertising industry. The
report studies research from dozens of companies and calculates the cost and
effectiveness of advertising across various media. Branding on the Internet works. For

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existing brands, the Internet is more effective in driving recall than television,
magazines, and newspapers and at least as good in generating product interest.

In an Advertisement in social media: How consumers act after seeing social ads.
Adapted from Nielsen: Social media has not only changed how people communicate
online, but it has also changed the consumption of other media too. Online social
connections are used to filter, discuss, disseminate, and validate news, entertainment,
and products for consumption. (Ryan 2011: 15) The next chapters will explain more
about each of the world ‘s current most widely used social medias. There are, of course,
many other social networks and applications (apps) available but considering the study,
the focus is on the main Medias.

According to an article published by Vikas Bondar on “sales and marketing

strategies” Internet is a really good thing. The Internet gives people a greater amount
of information as we need. It is the best way to get a comparison of the products that
we need. If we are interested in buying, it is best for us to check the Web sites. Also, if
we would like to make our own Web page, we can do this, without paying a lot of
money. From where do we set all this information? The answer is from advertising,
which we see, everywhere: on TV, on the Internet, in the newspapers and more. Year
after year we get more and more new, interesting information and in the future the
Internet use will increase more than now. This article explains how internet is useful
tool for advertisement.

According to Grader’s survey (2013), the top priority in digital marketing

investment will be to improve commerce experiences through social marketing,
content creation and management and mobile marketing. Key findings also revealed
that a company’s marketing success relies mostly on their website, social marketing,
and digital advertising, which are all parts of digital marketing. In addition, savings
made by using digital marketing can be reinvested elsewhere. Normally, companies
spend 10 percent of their income on marketing and 2.4 percent on digital marketing,
which will increase to 9 percent in the future.

Indian Journal of Marketing, had published an article by J Suresh Reddy, Title of

article is “Effect of E-commerce on marketing”.

Marketing is one of the business functions most dramatically affected by emerging

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information technologies. Internet is providing companies new channels of
communication and interaction. It can create closer yet more cost-effective
relationships with customers in sales, marketing and customer support. Companies can
use web to provide ongoing information, service and support. It also creates positive
interaction with customers that can serve as the foundation for long term relationships
and encourage repeat purchases.

Economic times published article on “Indian companies using digital marketing

for competitive advantage” in Oct 2014.
According to this article a growing number of marketers in India are leveraging digital
marketing to increase their competitive advantage, a research by Adobe and CMO
Council has revealed. According to the study, India leads in the confidence in digital
marketing as a driver of competitive advantage. Ninety-six per cent of the Indian
marketers have high confidence in the ability of digital marketing to drive competitive
advantage. It is among the highest in Asia-Pacific APAC with only Australia leading
with 97 per cent, the research said. However, while Indian marketers believe that the
key driver to adopting digital is a growing internet population (70 per cent in India
against 59 per cent in APAC), their belief that customer preference and digital
dependence drive the adoption of digital, and that digital can engage the audience, is
lower than the APAC averages, it added.

The 2014 Adobe APAC Digital Marketing Performance Dashboard was compiled
through quantitative surveys with over 800 marketers across the region.

Marketers from Australia, Korea, China, India, Hong Kong, Singapore and other
countries were covered. "However, while India is an emerging leader in Digital
Marketing, it has dipped in its own performance this year as compared to the previous
year. It is important to note that India scored much higher than the APAC average last
year," it said.

Adobe Managing Director South Asia Umang Beedi said that customer preference and
digital dependence would increase along with the increase in penetration of internet in
the Indian market. "Therefore, what would matter is how the Indian marketers are able
to increase engagement and activate audience through digital marketing. This presents
challenges in programme planning, execution and most importantly measurement," he

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added. The study also revealed that compared to their APAC counterparts, Indian
marketers are receiving lesser support from channel and sales teams for increasing
digital spends. However, they are doing better as compared to last year suggesting that
departments that have a customer interface are realising the importance of digital
marketing in augmenting their effort.

Andy Mallinson in digital marketing magazine on Jan 23 2015 published article

titles how social media engagement will effect the retail space it says

This last statistic reveals just how powerful social media can be in terms of enticing
shoppers to make a purchase, both through its use of visual content and product
descriptions. But while many consumers still have reservations about purchasing items
through social channels directly, the social shopping phenomenon is clearly only going
to grow and it’s apparent that this growth will eventually have a positive effect on a
retailer’s bottom line.

One retailer which enjoyed success by promoting its products via social media is ASOS.
At the start of 2014, ASOS previewed their summer sale through a Facebook
application, allowing fans to play a series of games to accumulate points, getting them
to the front of the virtual shopping queue. The winners gained first access to the sale,
and through the support of sponsored ads ASOS was able to generate 1 million views
through the application, growing their fan base by 32%.

This example shows how much potential there is for brands to drum up organic
publicity for their products whilst engaging through fans across social media channels.
Furthermore, it proves that social media outlets have evolved not only as a tool for
driving community growth, but also as a income driving commodity to boost business
performance.

Retailers mustn’t underestimate the power of social engagement as a method of

generating sales. This was proved by Wanted Shoes, who recently worked with us to
design and integrate a ‘social catalogue’ onto their site. The social catalogue depicted
real-life images of products that customers had recently purchased. When hovering over
a post, users of the site were then directed to a link to buy the exact shoe displayed in
the picture, or alternatively, were able to shop for other shoes from that designer.

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 Supporting the concept that that social media engagement can facilitate purchase
orders, according to Nielsen, 77% of shoppers say ‘social exposure’ and validation to a
product is the most persuasive source of information, and does indeed drive them to
make more purchases. After all, we mustn’t forget how powerful the trust of our peers
can be, and this has a direct effect of driving income.

As Wanted Shoes experienced, by showcasing its products in a customer driven

catalogue, they were able to boost income and encourage more people to engage with
their brand. Following this example as well as the other retail giants that have enjoyed
impressive results through social channels, the retailer that ignores the power of social
engagement in 2015 could potentially miss out on a substantial income stream – one
that could decide the difference between success and failure in an increasingly
competitive retail landscape.

2.1. COMPANY PROFILE

OdigMa , a digital marketing firm with a performance-based pricing strategy, is Gearing up to
serve clients in over 150 cities in India, in addition to setting up shop in Singapore and the
Middle East by the end of next fiscal.
VISION
Odigma’s vision is to set the high standards for Digital marketing & Technology around the
world, across all industries through hard work, innovation and creativity until the preferred
outcome is achieved.
MISSION:

Customer Satisfaction is our primary objective and they strive for Excellence in it. End user
Contact and Immediate Problem Resolution is their Strength.

WHAT THEY DO

Odigma’s services entail Facebook brand building suite, Twitter strategy planning and
implementation, social media platform connect, strategy on social media applications and SEO
and Google AdWords PPC. Its clientele spans across sectors and includes companies such as
Myntra, Infibeam, Indus League, HI design, MakeMyTrip and Toyota, to name a few. While
75 per cent of its clients are acquired through referrals and online marketing.

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Digital Marketing and Customer Acquisition

source: Odigma sol. Pvt. Ltd.

 The Optimizing search campaigns and search engine optimisations are there to gain
maximum profits and a way to get more of traffic on the websites along with better
organic Rankings in the best possible way .

 Odigma plan companies social media campaigns to reach the exact target market with
right tools of Digital marketing while communicating right message .

 The speciality of Odigma is to understand brand message and creating interactive

videos to showcase brand presence.

 There inbound marketing strategy is to create custom mail marketing and executing
them .

 They have Created brand partnerships by leveraging an ecosystem with over 30,000
active partners.

Omni Channel Strategy and Business Solutions:

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  Odigma Design and develop, a visually appealing and functional websites which are
accessible to the audience across multiple platform .

 They ensure that whatever they deliver has the high quality of experience. they ensure
that whatever deliver has the highest quality of experience.

 Creating a integrated campaigns to create brand presence and recall in the mind of your
audience. They help understand the key pain areas of your CRM process and ensure the
elimination of negative impression of clinets brand across the web.

Mobile App Development:

 Specially designed enterprise and retail apps to ensure that buyers can easily find and
purchase products, leveraging technology in their favour to increase clients incomes.

 Odigma visualizers think out of the box every day, thus helping advertisers to leverage
on existing content through innovative concepts to gain income.

 Apps specifically conceptualized and designed to meet business objectives. It consist

a team of highly skilled visualizers, designers and developers, ensure that users will
experience only the best.

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Digital Media Distribution and Solutions:

 Brand campaigns using a mix of media and marketing. Odigma partners with some of
the largest music labels globally.

 Distribution of music, videos & other digital content across devices. It provides
platform and analytics power some of the largest labels globally.

 Want to launch a story telling campaign built around music/videos/films celebrities.

3.1 Major clients of the company:

Source: odigma sol. Pvt. Ltd.

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2.2. INDUSTRY ANALYSIS

The Indian Media and Entertainment (M&E) Industry, one of the most vibrant and exciting
industries in the world, has had a tremendous effect on the lives and the Indian economy. As
the M&E industry widens its reach, it plays a critical role in creating awareness on issues
affecting, channelling the energy of and building aspirations among India’s millions. As it
entertains and informs the country, the M&E industry has been a catalyst for the growth of
large parts of the Indian economy. M&E industry consist of TV, Print, Films, Radio, Music,
OOH, Animation and VFX, Gaming and Digital Advertising.

The FICCI-KPMG 2014 Report 'The Stage Is Set' showing the Indian media and
entertainment (M&E) industry has grown by 11.8 per cent in 2013 while comparing with 2012
and touched Rs 918 billion. It is expected to touch Rs 1785.8 billion by 2019, with a CAGR of
14.2 per cent.

By the end of 2014, the industry is expected to stand at Rs 1039 billion. Additionally, digital
advertising has shown promising growth in 2013 while comparing with 2012, which is about
38.7 per cent, followed by gaming which grew by 25.5 per cent. As for the 2019 prediction:
Digital advertising is expected to lead the CAGR with 27.7 per cent, followed by radio with
18.1 per cent. Gaming and television are expected to register a CAGR of 16.2 per cent each,
followed by growth rates of animation and VFX (15.9 per cent), music (13.2 per cent), films
(11.9 per cent) and OOH with 9.2 per cent expected CAGR.

Source: KPMG Analysis

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According to the annual advertising expenditure report from GroupM, The digital media
advertising incomes for the year 2013 is estimated at Rs 2,520.1 crore (around $405 million) ,
up 30% from Rs 1,938.6 crore in 2012,. Digital contributed to 6.5% of the total media
advertising expenditure in 2013, up from 5.5% share in 2012.

The agency estimates that the digital media advertising incomes to reach Rs 3,402.2 crore
($546 million) in 2014, registering a 35% growth year on year. This will represent around 7.9%
of the total media advertising expenditure in 2014, which is estimated at Rs 43,065.4 crore.
The company notes this will be driven by election spending by the government and political
parties across all media. GroupM made the prediction in the latest edition of its annual report
This Year, Next Year. Digital media were projected to increase 35%, with TV slowing to 12%
from last year’s 14.6% and print picking up to 8.5% from 4.6% in 2013.

Digital ad spends accounted for 8.3 percent of the total ad spends of Inr362.5 billion in 2013.
Digital media advertising in India is grown by 38.7 per cent in 2013, faster than any other ad
category. With the dramatic growth in mobile usage, content providers and advertisers are
seeking opportunities to get their message across on this preferred medium of the masses.
It is estimated that the total internet user base will reach 494 Million by the end of 2019 as
against 938 million TV viewers in the same year. This means that the internet user population
will be approximately 53 per cent of the total number of TV viewer in the country in 2019
compared to 27 per cent in 2013. This shift towards the digital media is important for digital
media strategists to consider, in order balancing their marketing budgets between online media
and traditional TV strategy.

IAMAI & IMRB report of March 2013 showing trends in breakup of Digital ad market among
various ad types like search ads, display ads, mobile ads, social media ads, email ads and video
ads. By seeing this breakup we can understand marketer are giving importance to all venues to
place ads.

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Some of the key players in the Digital advertising are Ogilvy & Mather, Web chutney, IBS,
Isobar, Maxus, 22 Feet, Grey Digital, Mind Share, Interactive Avenues, Omnicom Media
Group, Digital Law & Kenneth, Pinstrom.

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2.3.DIGITAL MARKETING IMPACT ON REVENUE

GENERATION

Digital marketing is a new trend in marketing, unlike traditional marketing most of companies
not use their own marketing channels for digital marketing mostly it can be outsourced to third
parties like digital marketing agencies like odigma consultancy ltd. Companies like odigma
generating revenue using digital marketing it has great impact on revenue model of these
companies. Spending’s of various companies on digital marketing is a revenue for digital
marketing agencies like odigma.
2.3.1 Digital agencies: types and services

Digital agencies are as varied as the needs of the advertisers and marketers who hire them. At
the high end, for global enterprises, are the agency holding companies with hundreds of full-
service digital agencies around the world. There are also boutique and specialty agencies that
provide channel-specific digital marketing services such as mobile messaging programs, social
media marketing, or SEo link-building campaigns. And there are agencies that focus on
strategy and professional services, such as branding or web design. Like any organization, each
type of agency has its own strengths, weaknesses, and culture. Digital agencies also can be
differentiated by their focus on professional services versus proprietary technology platforms.
Agencies that emphasize their professional services capabilities recommend and use third-party
technology such as PPC campaign management platforms, SEo tools, and social media
management platforms to manage their clients’ data and digital campaigns. These agencies
view their role as strategists that can analyse and interpret data to provide actionable results
and achieve their clients’ goals. Agencies that develop and offer proprietary tools view their
platforms as a competitive advantage over third-party toolsets that are widely available. The
plethora of digital channels has left many advertisers drowning in data. By providing
technology platforms that are built and customized to client needs, these agencies believe they
are providing unique and critical automation tools that collect, analyse, and optimize data for
their clients.

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2.3.2 The Benefits of working with a digital agency

Agencies owned by large media or holding companies can provide the following benefits:

 Diversity of capabilities from co-owned media properties.

 Built-in sister agency relationships and priority referrals.
 In-network efficiencies.

Working with a specialty or boutique agency offers unique benefits as well, including:

 More granular channel strategy and tactical expertise.

 Client access to agency decision makers and top personnel.
 Lower spending minimums

Various surveys showing that spending of companies on digital marketing is increasing every
year, here is survey says

2.3.4. Gartner Survey Reveals Digital Marketing Budgets Will Increase By

10 Percent in 2014
Digital marketing budgets will rise by 10 percent in 2014, following a double digit percentage
increase in 2013, according to a survey of marketing executives by Gartner, Inc. The survey
found that, on average, companies spent 10.7 percent of their annual 2013 revenue on overall
marketing activities, with digital marketing spending averaging 3.1 percent of revenue.
These findings are included in Gartner's Digital Marketing Spending report that is based on a
survey of 285 individuals but answering mainly for their entire organization. Respondents
represent organizations with more than $500 million in annual revenue (average revenue $4.4
billion) across eight industries: financial services and insurance, high-tech, communications,
manufacturing, media, retail, government and healthcare. The survey took place from July
through September 2013. The report examines how marketers are allocating their budgets, what
activities are contributing to marketing success and other factors.

"Marketing leaders are securing bigger budgets to define markets, develop offerings, and
attract, acquire and retain customers," said Yvonne Genovese, managing vice president at
Gartner. "Digital marketing is taking an increasing share of the marketing budget with annual

22
digital marketing operating budgets totaling 3.1 percent of a company's revenue in 2013, as
compared with 2.6 percent in 2012, representing a 20 percent increase."

Eleven percent of respondents said they spent more than half of their marketing budgets on
digital activities in 2013 compared with only 3.0 percent in 2012. Digital marketing represented
an average of 28.5 percent of the total marketing budget in 2013, as compared with 25.5 percent
in 2012.

A further survey finding was that 77 percent of companies have a chief customer officer (CCo)
or the equivalent. Customer touch points include websites, mobile apps, social profiles,
directory listings, on-site search, email interactions, communities, call center and more hence,
the increasing popularity of the role of the chief customer officer to help guide the customer
right through the buying cycle and beyond.Eighty-one percent of organizations were also found
to have a chief marketing technologist in 2013, up from 70 percent in 2012.

When it comes to budget allocation, marketing leaders support a diverse, and increasingly
complex, marketing mix. The survey found that 12.2 percent the biggest share of their digital
marketing budget was allocated to digital advertising in 2013, just as in 2012. However,
marketers continue to wrestle with digital advertising's effectiveness. Industry associations,
advertising agencies, media, technology, and metrics providers and brand advertisers are all
working to address this concern by improving attribution models and cracking down on phony
Web traffic. Design, development and maintenance of the corporate website account for the
second-largest share of digital marketing budgets as the increase of inbound marketing
channels such as social networks, customer forums and the blogosphere creates more traffic on
the corporate website. Digital commerce, social marketing and mobile marketing three
activities that increasingly overlap are closely tied for the third-largest share of digital
marketing budgets. In 2014, marketers plan to make long overdue expenditures for mobile
marketing tools and techniques.

This survey report shows market share of digital marketing budget in marketing budget
increasing every year, we can make money by utilizing the need of digital marketing. By
starting a digital agency you can generate large amount of revenue with less amount of
investment. odigma also did the same, CEO Advit Sahadev identified the opportunity and

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 started OdigMa which stands online digital marketing consultancy which fulfill digital
marketing needs of various companies they charge as per their performance and based on fee
structures as I mentioned above.
2.3.4 Digital agency fee structures

Agency free structures vary widely, even within client accounts. It is not uncommon for a client
to compensate their agency using different fee structures for different types of media
campaigns. For example, a common agency fee model for paid media work is percentage of
spend. Typically, an agency will be paid 1o-2o% of a client’s digital media spend on paid
search or display advertising campaigns. Smaller clients may pay a higher percentage, while
enterprise clients may pay a smaller percentage due to the larger dollar volume of their
accounts. Generally digital agencies like odigma charge their clients for maintaining their
digital presence this is how they make money, necessity of digital presence for companies let
the digital agencies to make money. Different sorts of agencies advertising agencies use
different models.

Methods of Charging Clients

I. Project based clients: often used for smaller agencies, smaller brands and typically for
agencies that do one specific part of the mix, e.g. A digital agency. But even a large
agency would have some clients on this basis. Normally there would be a Scope of Work,
this would come with an estimate to do that one set job. This estimate would normally be
based on the people, how many hours they work, and what their hourly rate is. But there
would like be Some pass through costs for physical goods, for services from other
companies etc. The profit the agency makes comes entirely from the gap between the
hourly rates of what they pay people.
II. Retained agencies: Sometimes there is a fee based on a percentage of media spend, but
this is largely dying. Sometimes it's a project team, where you buy a certain number of
people, a certain percentage of their time, for a quarter or year. These hourly rates work the
same way as the team for the SoW above. Sometimes there is an amount of money put
aside for time and costs and the Agency manages this time and cost to serve the client. A
sort of pay as you go model. With all of the above, there is an increasing move towards pay
for performance. So it's likely that any of the sorts of agreements in a retained structure,
will allow for a bonus to be unlocked.

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 This could come down to sales results, brand value, satisfaction levels, or other criteria,
and often a mixture of them.

 Fee-based or retainer-based models are quickly gaining traction, most often at the
expense of commission-based compensation among large brands and their agencies.
The Association of National Advertisers’ 2o13 Trends in Agency Compensation Survey
found that fee-based agreements have grown to 81% of all compensation agreements,
while commission-based compensation has fallen to just 5% of all compensation
agreements. The two compensation models have been on opposite trajectories since
1994, according to the ANA survey, when commission-based models represented 61%
of all agreements, and fee-based models accounted for 35% of agency compensation
agreements.

 Fee-based models have become more attractive because they provide predictable
expenses for marketers and advertisers, particularly on long-term accounts that require
ongoing maintenance, such as monitoring SEo rankings or social media content.
Retainers may also encourage agencies to test new campaign strategies and tactics,
knowing that they will be compensated for their time regardless of results. Digital
marketing budgets total 2.5% of revenue and will increase 9% this year. Marketing
leaders have secured bigger budgets to define markets and attract, acquire and retain
customers. Yet, increased funding is a double-edged sword. It brings new opportunities
but puts more pressure on marketers to deliver and prove a return on the investments.

Monetary term in Digital Marketing

 Cost –Per- Action (CPA): Cost of advertising based on a visitor taking some
specifically defined action in response to an ad. “Action” include such thing as a sales,
transaction, a customer acquisition or a click.

 Cost- Per -Click (CPC): Cost of advertising based on the number of clicks received.

 Cost- Per-Thousand (CPM): The standard unit for buying or selling Internet
advertising. The thousand stands for ‘thousand advertising impression or views’.

 Pay- Per- Impression: online advertising where an advertiser pays a pre-agreed price
each time a user clicks on their advertisement. The cost for the click is often negotiated
through auction, with ad placement determined by the relative size of the bid, as well

25
 as other factors.

 Pay-Per-Inclusion: Search engine marketing programs that guarantee web site listing
for specific keyword search term for a fee.

 Pay-Per-Lead: Paying to acquire leads from an outside party at a set rate or amount
per lead.

The growth of Digital marketing and its impact on the income generation
in 2019

The extraordinary growth of internet saturation and its adoption is shaping India and its
digital advertising industry. The cheap data and affordable smartphone revolution have driven
it, the digital advertising industry in India is expected to grow with a rate of 32% to reach
Rs.14,281 crore in 2019.

The industry which is now worth of Rs. 10,819crore is expected to grow with a CAGR of
31.96% to reach Rs. 24,920crore by 2021. These findings are part Digital marketing Report
of Indian advertisement and media industry which is unveiled this year. The report offers a
deep dive into the growth drivers, challenges, and trendsetting work executed by brands in
the digital space.

As per the report, the FMCG sector, which prefers to spend on traditional media has doubled
its digital spend in the last year. The BFSI and Consumer Durables sectors have been found
to have the highest share of ad spending on digital (38% and 36% respectively). And these
sectors have also seen the highest growth in the proportion of digital spending in the recent
past, the report pointed out. The e-commerce sector which has been increasing its spends on
television has witnessed a 4 per cent increase in digital spends over the last year going from
30 per cent to 34 per cent.

The report states that the mobile-first social platforms is the biggest source with video
content. The highest growth is in the spending on mobile videos, followed by display and
social media. A major part of spending on mobile are made on social media (29%), followed
by search and display.

This report states that “Today, you no longer have to sell ‘digital’ to a client. This is the only
medium which gives you a very authentic ROI, and almost an immediate impact. Its having
about 500 million people on the internet today and in the next three to four years, another

26
300-400 million people will join in. Concurrently, the next phase of internet users will speak
regional languages and as a result, people will probably see a lot more advertising in regional
languages on digital in the years to come.”

Consequently, media and advertisement industry is over-weighted on digital. Out of 3500

Employees of Odigma, more than 1600 are in digital agencies. Nearly 48% of our revenues
come from digital at a time when the market average in India is still 15-17%. The need for an
industry level research report which not only covers the market size but also gives a direction
towards which this industry is moving.”The lack of accurate and detailed Digital Advertising
spending’s is more surprising for a medium that lends itself to measurement.

To fulfil this gap that all the eight digital agencies i.e. Isobar, iProspect,Odigma, Merkle
Sokrati, WatConsult, Dentsu Webchutney, SVG Media/Columbus, Fractal and Amnet
collaborated again for the 3rd edition of Digital Report that extensively covers Digital trends,
spends and insights across all sectors. The report has now become the industry standard for
Digital Marketing.

The other sources like Video, voice and vernacular will define the internet ecosystem of
tomorrow. Digital transformation will be adopted at a considerable scale, which in turn, will
increase the adoption of digital media at a rapid speed.

The meteoric increase in the penetration of mobile devices and internet has led to 47% of
digital media spends on mobile devices and is expected to grow at CAGR of 49% to reach
spends share of 67% by 2021.”

3. RESEARCH METHODOLOGY

Research Design: Descriptive Study

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Nature and source of data/information: The researcher has used both primary and

secondary data.

Sample and sampling technique

 Sample Size: 55

 Sampling Technique: Random Sampling

 Sample size: 55 Employees

Tools and techniques to be used for data collection :

3.1 The primary data will be collected through questionnaire survey and the
observation techniques.

The researcher will prepare the structured questionnaire targeting the digital marketing.

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents.

Questionnaires have advantages over some other types of surveys in that they are cheap,

do not require as much effort from the questioner as verbal or telephone surveys, and

often have standardized answers that make it simple to compile data. However, such

standardized answers may frustrate users. Questionnaires are also sharply limited by the

fact that respondents must be able to read the questions and respond to them. Thus, for

some demographic groups conducting a survey by questionnaire may not be practical.

3.2 Secondary data will be collected from the following sources: -

 Website

 Newspaper

 Magazines

 Online Journals

 Project Material

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  Books

 The training programme of digital marketing through internshala.com is one of the

important source of data.

 OdigMa Solutions Pvt. Limited, a Digital marketing agency;

www.Odigama.com.The process and operations data collection from them is one of
the another source. Person contacted is HR of the Firm named abhishek sharma email
ID abhishek01@gmail.com

 Web analytics , Google Analytics etc are few more tools that I have adopted to gather
the information needed.

 Various social media marketing modes like Twitter, Facebook, LinkedIn , becomes a
great source to know about the revenue generation with them

 Few magazines that I preferred are digital marketing: strategy, implementation

& practice by Dave Chaffey & Fiona Ellis- Chadwick , the power of visual
storytelling by Ekaterina Walter , convert!: designing websites for traffic and
conversions by ben hunt , the social media bible: tactics, tools, & strategies for
business success by Lon Safko.
 Websites that is been taken into consideration are www.Odigma.com , www.omnicoreage
.com etc.

3.3 Limitations of this project:

 The time span for the project is limited:- As the digital world changes every day with
a more relevant upgradations so the study of this project work will be limited for the
implications till the time span.

 This income generation model completely with reference to OdigMa:- The income
generation Model which the project consist is fully based on the process or operations
of the company which is different from many other operating in the market

 Time of campaigns for some client is more than three month :- Basically in this
study the client considered are those who have a campaign time of 3 months not more
than that but the clients who needs campaign more than that are not covered in this
studies.

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 Advertising expenditure of some companies is confidential so it can’t be revealed:-
As the advertisement is more of based on Bidding system so most of the companies
keep it confidential so that is one of the reasons for not a exact picture.

4.RESEARCH PROBLEMS

Technical Aspects of problem:

30
  Finding the online presence of the client.
 Understanding why it is so weak.
 Identifying what solutions would be better for particular client.
 How to improve their presence, etc.

Managerial Aspect of the problem:

 To define SWOT for the client.

 To define their requirements and the corresponding solutions.
 To define the gap analysis for the client.

Business Aspect of the problem:

 To find better business opportunity for ROW.

 To resolve the client’s problem in terms of ROI.
 Competitive benefits and bets pricing offering.

5. FINDINGS
1. Most of the real sector people actually understanding the value and opportunities of
digital marketing.

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2. With the study of digital marketing I came to its emergence and extreme growth in
today’s scenario.
3. What I found in client servicing is convincing clients is bit complex as they too have
complete knowledge about the digital marketing and also explaining how one are better
than others.
4. Most of the sectors initially opt for the digital marketing channels name search engine
optimization, search engine marketing and social media marketing and later they will
think about other channels which mean these three channel high acceptance.
5. It is easier to approach a company’s if you first send them an E-mailer to related sector
and then call them in fact sometimes the company itself call having seen the E-mailer.
6. Indian customers are highly information seekers. They collect more information about
quality, price and refer customer’s experiences before purchasing a product.
7. Advertisements have high effect for creating stimulus in Indian customers. But this
stimulus will get in to action only through opinion leaders.
8. Indian consumers have high tendency to go for online purchase. They have high affinity
to go online for electronic products and apparels.
9. One of the current trends in Indian youth and young Indians are watching the T.V
programs via online portals. May be the main reason is convenience of time, they can
watch programs which they had skipped due to some reasons.
10. The same thing is happening for the newspaper also, people have more affinity towards
online news portals. Here's the reason maybe they can get news updates very early; they
don’t need to wait for daily newspapers.
11. In both of these cases, one opportunity is lost for marketer and one opportunity is
emerging for them to reach their T.G.
12. More than 90% of the samples have a mobile or Smartphone and laptops or PC. 96%
of samples have an internet connection is any of these gadgets, this showing the
penetration of internet in India.
13. If we take tablet, penetration in Indian is low. But it doesn’t mean that no one is using
tabs. More than 30% of samples have tablet. For brands they are getting three more
platforms to reach their T.G and engage them.
14. 33% of the samples are using these gadgets while they are with their friends, so just
think about the reach. If one person noticed something which is cool and awesome they
will surely communicate to others.

32
15. 25% of the samples are using these gadgets while watching T.V; it’s again a barrier for
brands which use TVC only. 21% of the samples are using this gadget for chatting and
16% are using for surfing. What they are surfing? It can be about a product, local events
or locations...etc.
16. In this situation, one opportunity is again losing to brands and one opportunity is
emerging for brands to reach their T.G.
17. More than 90% of samples are noticing ads, among them 35% of samples noticed ads
through online media, followed by TVC and Newspapers.
18. 48% of samples are telling they give more importance to online ads and 34 % of samples
give importance to T.V.C.
19. From the first part of this research itself, we know that customers are highly information
seeker. It may be the reason for high trust in online ads. They can search for more
information after seeing an ad or online is the only two way communication channel
for customers.
20. 22% of the samples do research through their lap or PC before purchasing a product
from the retail shop and 21% do research via mobile.
21. Most of the Indians prefer to purchase from a retail shop only, but before going to retail
shop they will seek information about the product through an online platform. Here is
actually change happens in consumer buying journey, early times consumer belief a
product only after seeing the product in a retail shop.
22. But now Indian customers want to get conviction about a product before going to retail
shop. So from a marketers view they want to convince their customers before going to
a retail shop.
23. Brands want to build a cool presence over digital platforms because the customer will
do research about the product after seeing an ad or after getting stimulated.
24. Brands are getting more touch points to reach target group in a cost effective manner.
25. How do you get information about new Products?

33
 Other Sources 7%

News 13%

Advertisements 40%

Family 10%

Friends 30%

 Samples showing that 40% of people get to know about new products through
advertisements and followed by friends means reference group

26. Do you Collect information before purchasing the products?

5%

Yes
No
95%

 Survey results showing that 95% of people collect information before

purchasing the products. Only few people don’t bother about info before
purchasing product.

27. What type of information will you collect?

34
 Customer's Experience 21%

Quantity 11%

Attributes 10%

Quality 32%

Price 26%

 Survey results showing that people who said they collect information before
purchasing product they mainly concern about the product quality and price
least concern about attributes.

28. Did you ever purchase from an online site?

19%
Yes
81% No

 Question asked to most of young people and 81% people said they buy from
online site and only few people said they never purchased from online because
of reliability issues.

29. If yes, then what type of product / services did you purchase online?

35
 Electronic 22%

Books 11%

Travel products 17%

Fashion accessories 19%

Kichen an home items 2%

Toys 2%

Sport equipments 11%

Gifts 13%

Automotives 3%

 People who said they purchase products from online they purchase electronic
products, followed by fashion and travel accessories through online.

30. Do you watch television?

7%

YES
NO
93%

 Question asked to various age people and most of them said yes about 93%
people said they watch television only 7% said NO to television.

31. Do you watch television programs through online?

47% Yes
53% No

36
  Survey results showing that almost equal percentage of results.53% people
watch TV programs through online.

32. Do you read Newspapers?

7%

YES
NO
93%

 Question asked to various age people 93% people said they read newspaper only
few people said no to reading newspaper

33. Do you read the News through online?

26%
YES
No
74%

 93% people said YES to reading newspapers, 74% are reading newspapers
through online portals and only 26% people said NO to read newspaper through
online.

34. Do you have mobile phone?

37
 1%

YES
NO

99%

 Question asked to various age people maximum number of people said yes that
they have mobile phone 99% answered YES that they have mobile phone.

35. Do you have a laptop or PC?

 This survey sample collected from students and working professional and 94%
people said they have laptop or PC.only 6% don’t have laptop or PC.

6%

YES
NO

94%

36. Do you have a tablet?

38
 30%

YES
NO

70%

 Question asked to same students and working professionals and collected results
that 70% people have tablet only 30% people don’t have tablet.

37. Do you have an internet connection in any of the above mentioned gadgets?

4%

YES
NO
96%

 Question asked to people who said YES to above asked questions and 96%
people have internet connection to any of those gadgets only 4% people using
gadgets without internet connection.

38. When do you use these gadgets?

39
 With friends 33%

College 26%

Office 16%

Watching T.V 25%

 Survey results showing that 33% of people using gadgets when they are with
friends and while watching TV.

39. What you do with these gadgets?

Chatting 21%

Watch Videos 14%

E- books 6%

Blogging 6%

News reading 11%

Shopping 12%

Surfing 16%

Games 14%

 Survey results showing that 21% use these gadgets for chatting, 16% for surfing
and 14% for watch videos & games.

40. Do you ever notice advertisement?

40
 3%

YES NO

97%

 97% of the samples are seeing ads, among them 35% of samples noticed ads through
online media, 22% on TVC and 17% on Newspapers.

41. If yes, from where?

Radio 6%

OOH 6%

Magazines 14%

Newspaper 17%

Online Ads (Banner & Videos) 35%

TV 22%

 35% People notice advertisements from online ads and TV and OOH takes less part.

42. Mention one from of media, which you give more importance?

41
 Radio 4%

OOH 3%

Newspapers 11%

Online 48%

TV 34%

 48% of the samples are saying they have trust in online ads, 34 % are saying they have
trust in T.V.

43. How do you normally purchase a product?

Visit and purchase from retail shop itself 19%

Visit the retail shop and purchase from laptop 7%

Visit the retail shop and purchase from mobile 4%

Research and purchase from laptop 11%

Research and purchase from mobile 6%

Research in mobile and purchase from laptop 10%

Research in laptop and purchase from retail shop 22%

Research in mobile and purchase from retail shop 21%

 22% of samples will do research on online and purchase from retail shop, 21% of the
samples will do research in mobile and purchase from retail shop. But 19% of the
samples will purchase directly from a retail shop only.

44. After purchase, what type of experience will you share with others?

42
 Nice deal, in terms of price 14%

Bad experience 2%

Good experience 17%

All the above mentioned 67%

 67% of the samples will like to express their experience with others; it may be a nice
deal, good experience or bad experience with product.

45. How will you share your experience with others?

Face to face talk 37%

In company website 4%

Write a blog 3%

Messaging 24%

Social networking sites 32%

 37% will share their experience through face to face talk, 32% through social
networking sites and 24% through messaging.

46. Digital Marketing Spending Averages 2.5% of Company Income

Customers are transitioning to communicating and buying through digital channels. That means
marketing spending is rapidly shifting to digital marketing. On average, annual digital marketing
operating budgets represented 2.5% of a company's income in 2014. These expenses include
personnel costs, contract labour, software as a service and external marketing services such as
agency creative services, search, website design, content creation and management, social and
mobile marketing. Three percent of the marketers responding to our survey said they are spending

43
more than half of their marketing budgets on digital activities. The majority spends between 10%
and 50% of their marketing budget on digital marketing activities the average is 25%.
It is becoming more difficult to count and allocate digital marketing spending as digital and
traditional marketing techniques are merging. For 20% of companies, digital marketing activities
have already been incorporated into each function within marketing, and budgets are no longer
broken out separately. We expect this trend to continue growth as areas such as second screen
TV, social TV and QR codes integrate with traditional channels.

Figure: Digital Marketing Budget as a Percentage of Company Income

 Data was gathered from responses to the following question: What percentage of your
organization's total marketing expense budget is allocated to digital marketing in 2014?

47. Digital Advertising Accounts for 12.5% of Digital Marketing Budgets

Marketing leaders support a diverse and increasingly complex marketing mix. We asked
marketers how much of their digital marketing budget they're allocating to different activities
such as mobile marketing or analytics.
Below Figure shows that marketers allocated 12.5% the biggest share of their digital marketing
budget to digital advertising. Still, marketers wrestle with digital advertising's effectiveness.
Advertising agencies, technology providers and brand advertisers are working to address this
concern by improving measurement standards and formats. Content creation and management
account for the second largest share of digital marketing budgets. This is driven, in part, by the

44
desire to populate the infinite appetites of inbound marketing channels. Social networks,
customer forums, and the blogosphere are examples that drive inbound inquiries or actions.
However, you need to create content that delivers the right message to the right person at the
right time, regardless of how the dialogue gets started. That means content is equally needed to
meet the demands of outbound marketing as well. The enormous pressure to create, manage and
distribute content for multiple marketing activities through the right channels will only increase
as customers use more digital channels for collaboration, researching and acquisition of products
and services.
Top priorities for increased budgets in 2014 are commerce experiences, social and mobile
marketing, and content creation and management. See "Digital Marketers Escalate Investments
to Support Commerce Experiences" to learn why enhancing commerce experiences is a business
imperative.
Figure: How Marketers Allocate Their Digital Marketing Budgets

 Data was gathered from responses to the following question: How much of the 2014
digital marketing expense budget is your organization spending on each of the activities
listed? This includes personnel costs, software and externally purchased services.

45
48. 41% of Marketers Say That Savings from Digital Marketing Are Reinvested.
We asked marketers to identify how they're funding their digital marketing activities. We found
that digital marketing's effectiveness helps stretch digital marketing budgets. Below Figure
shows that two in five marketers are realizing savings from digital marketing compared with
traditional techniques. And they're taking that money and reinvesting it into more digital
marketing. Fifty-nine percent of the marketers in retail organizations report that this is happening
compared with only 28% in manufacturing.
On average, 28% of marketers say they've reduced their traditional advertising budget to fund
digital marketing activities. Thirty-four percent of the marketers at high-tech companies are more
likely to take this approach compared with only 19% of the marketers at financial services and
insurance firms.
Reinvesting savings into digital marketing activities is a smart move. And it's a relatively new
activity in a corporate culture where technology has primarily been used in recent years to cut
costs. We don't recommend chasing shiny new objects unreservedly. Rather, we suggest
supporting a culture that is agile and keeps an open mind to testing new techniques and
underlying technologies. It's okay to fail as long as you fail fast in a program with a limited scope
and budget, and you intend to learn from these early failures.

Figure: Marketers flow Savings Back into Digital Marketing

 Data was gathered from responses to the following question: In order to fund digital

46
 marketing, which of the following statements are true?
49. Up to 50% of Digital Marketing Activities Are Outsourced.
The pace of change and needs for specific skills force marketing to seek services from external
providers. We asked marketers to estimate what percentage of the work is performed internally
by employees or contract labour, and what percentage is performed externally or outsourced.
Culturally marketing is accustomed to outsourcing. Working with agencies, data providers and
external technology providers are an intricate part of marketing processes. This hasn't changed
and may be increasing. The responses reveal that digital marketers need help lots of it with
specialized tasks such as search marketing, online advertising and mobile marketing. For the
most part, marketers outsource one-third or more of their work to an agency, digital services
organization or other external provider. Below Figure shows that, on average, marketers
outsource one-half of their search marketing the highest proportion of any marketing activity.
Media companies, financial services firms and retailers keep a majority of their search marketing
work in-house.
Digital marketers are more likely to maintain social marketing in-house, with one exception:
Marketers at manufacturers outsource 53% of their social marketing activities. We find that social
analytics, and content creation and management are areas of focus for outsourcing. Monitoring
and analysing social activities require time and new technologies. And keeping customers
interested through social channels requires constant feeding and nurturing with new content. As
a rule, outsourcing your digital marketing activities is a smart tactic when you don't have in-
house resources to stay on top of quickly changing technologies and techniques, or need
specialized talent. But you need to monitor results, ensure these providers have a stake in your
success, and assume some risks.

Figure: Marketers Outsource This Portion of Digital Marketing Activities

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  Data was gathered from responses to the following question: For the following list of
digital marketing activities, please estimate what percentage of the work is performed
internally by employees or contract labour and what percentage is performed externally
by some type of digital marketing services organization (agency, business process
outsourcer, specialty firms?
50. 70% of Companies Surveyed Have a Chief Marketing Technologist 80% of Them Report to
Marketing.
Marketing's dependence on technology results in new responsibilities and roles. We asked
marketers whether their companies have the equivalent of a chief marketing technologist and
where that person reports. Figure 6 shows that two out of three organizations have such a role.
Most of the chief marketing technologists report to a senior marketing executive and only 13%
report to the CIO.
Chief marketing technologists are familiar with marketing techniques as well as technologies.
They need to understand how to use technology to define markets, attract, acquire and retain
customers. They often have organizations that align this goal to areas such as marketing software,

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data and analytics, social and mobile platforms, digital advertising networks collaboration and
website design. This role may come under one of many different titles, including CTO of
marketing, chief digital officer, chief digital marketing officer, VP of e-business or even the
CMO.
What's driving the need for this role? Marketers are increasingly dependent on technology to:
 Design the customer experience across many channels social, mobile, commerce and
website.
 Integrate data from an increasing number of sources, including internal data (such as
transactions or on-site search) and external data (estimated household income) to get a
better understanding of customers.
 Support marketing campaigns and programs, such as a mobile app, paid search marketing
and social marketing.
 Hiring marketing technologists will help you achieve your tactics. But you need a senior-
level executive who can guide your customer experience strategy across many channels
and match marketing technologies to the organizational goals.
Figure: Companies Retain a Chief Marketing Technologist to Guide Strategies

 Data was gathered from responses to the following questions: Does your organization
have the equivalent of a chief marketing technologist today? If so, where does he or she
report?
51. The Top 3 Digital Marketing Activities Key to Marketing's Success Corporate Website,
Social Marketing and Digital Advertising.Marketers are focused on the marketing mix that will

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drive success. We asked digital marketers to identify the three digital marketing activities that
are most important to their success.
Below Figure shows that the corporate website and digital advertising share the distinction of
being the No.1 digital marketing activities that are important to marketing's success. Social
marketing emerged as the next most important activity.
Our survey results suggest that the corporate website will not be displaced by a brand's social
media presence anytime soon. That's all the more reason for marketing leaders to continuously
invest in testing and optimizing their websites, paying attention to all aspects from customized
landing pages to compelling content that encourage visitors to be engaged with your brand.
Only 9% of respondents said that analytics is most important to their success. We believe this is
an oversight. You need to use analytics to support continuous improvement, understand your
customers' requirements and drive results.
Figure: What Activities Contribute to Marketing Success

 Data was gathered from responses to the following: Please prioritize which of these
digital marketing activities are most important to your marketing organization.

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 6. LEARNINGS
 Get to know about challenges and opportunities for digital marketing in India.
 Gain basic understanding of SEO, SEM, SMM, ORM, etc.
 Fulfilling each and every requirement of client is very important regardless of
whether that requirement is small or big.
 It teaches me the importance of different digital world in buyers perecption.
 It gives me a good exposure of how internet works to make money.
 It make me put in practice what I have learnt in my first year of marketing
management curriculum.
 This Project taught me lots of things about how search engine optimisation, searches
and records every hour changes occurring in the digital world .
 Digital marketing brings healthy Competition which forces to do better job the
trickis to learn from your competitors quicker than they can learn from you. Always
look for your competitors’ strengths.
 Digital marketing work is all about a team work and it always try to give best out
of all.
 Time management is the big management lesson because when you are in Online
world every second matters,
 How to be a communicater, the way how to communicate with each level of
management to get work done and to customers for more satisfying results.
 Every day same task, but the situations are different in digital marketing.
 It’s not only from my experience, but also from my observation. All Publishers are
doing the same type of work, but the situation is different. Sometime they have
problem with a client, but on the next day the problems with vendors or with
creative team. Industry or clients are different or requirements of the client are
different, but contents or the flow of pitch presentations are same.
 Observation is the best teacher
 There are lots of situations where I am completely blank and I don’t know how to
do some task. In those situations I read various research papers to know how they
have done it and I understood the importance of observation.
 More Creative and Innovative work what people want is uniqueness in the work,
product or services.

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 7. CONCLUSION
The successful completion of this study indicates that the future of marketing is in the hands
of digital. Digital marketing is not only concerned with placing ads in portals, it consists of
integrated services and integrated channels. Marketers want to use these components in an
effective way to reach target groups and to build a brand. In this digital era marketer is not the
custodian for a brand, people who are connected across the digital platforms are the custodians.

Brands want to build their presence over digital platform, because customers have high affinity
towards digital media than other media’s. More than that customers are highly information
seekers and digital media is the only platform for two way communication between brands and
customers.

Digital media is the best platform to convert a product to a brand. Because it is more cost
effective and it provide lot of touch points to marketer. Brands can able to engage their target
group in an effective way through digital platforms. Digital media is not only for engagement,
brands can increase their customers or they can retain their existing customers. Digital
platforms help to increase the effect of brand recall in target groups.

Importance of digital presence increasing importance of digital agencies, so they are making
money through digital advertising raising of digital marketing consciousness making money
for digital agencies by which they are booming and making more money with small
investments.

I honestly believe that this project report will be at most useful for marketers to understand the
digital marketing and also to plan for future strategies.

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 BIBALOGRAPHY

 Damian Ryan; Understanding Digital Marketing :Marketing strategies for

Engaging the Digital generation;Jan 13 2019;
 www.Internshala.com; training program; Jan 25- February 28

 Research paper; Longitudinal Study of Digital Marketing Strategies Targeting

Millennials; by Dr. Katherine Taken Smith; February 25

 www.Odigama.com ; company wesite and interaction with employees ;March 3

2019

 Questionnaires ; filled by people preferring Digital marketing, March 10

 With a reference to Magazine’s like strategy, implementation & practice by Dave

Chaffey & Fiona Ellis- Chadwick , the power of visual storytelling by Ekaterina
Walter , convert!: designing websites for traffic

 According to Grader’s survey (2013), the top priority in digital marketing

investment

Economic times published article on “Indian companies using digital marketing

for competitive advantage” in Oct 2014.

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