ISSN : 2348-6503 (Online) International Journal of Research in Management &

Vol. 4 Issue 3 (SPL 1) Jul. - Sept. 2017

ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017)

Growth of Online Marketing in India- A Study

M. Suginraj
Assistant Professor, [Link] college of Arts and Science, Karinkal,Tamilnadu, India

Abstract
The massive Indian market is changing fast. Internet access is mainstreaming among professionals and the use of mobile is intensifying.
The pace of change continues to be rapid with digital channels constantly growing in volume and strength. More people spend more
time online in India every year, and the digital tools and sites they use play an ever-growing role in their lives. Now Indian consumer
is spending more time on social media and internet surfing. Thus the visibility of any product is more through digital medium than
traditional marketing techniques. Digital marketing main growth comes from social media, people nowadays spend their time on
social media and that is a plus point for marketing, there are more than 82 million monthly active users for Facebook and in India it
is expected that the nation will have the world‟s largest Facebook population by 2017. Day by day growing Digital Market in India
is an evident that the Digitization is taking place with a high speed. E-commerce website are providing all the goods and services
through online portals online today. The increasing number of ecommerce websites. This paper is an attempt to study the growth
trend of digital marketing in India.

Keywords
Digital Marketing, Growth, Social Media, E-Commerce.

Introduction Stanford Artificial Intelligence Laboratory and the Massachusetts

E-Commerce industry is growing at an astounding rate in India Institute of Technology, the earliest example of electronics or
and is expected to account for 1.61% of the global GDP by 2018. digital commerce.
According to a report by Forrester, India is set to become the 1979: Michael Aldrich demonstrates the first online shopping
fastest growing market in the Asia-Pacific region with an expected system.
growth rate of over 57% between 2012 and 2016. The following 1981: Thomson Holidays UK is first business-to-business online
are the key drivers of ecommerce shopping system to be installed.
• Large percentage of population subscribed to broadband 1996: India MART B2B marketplace established in India.
Internet, rapidly increasing 3G internet users, and a recent 2007: Flipkart was established in India. Every E-marketing or
introduction of 4G across the country. commercial enterprises uses majorly digital means for their
• Explosive growth of Smartphone users. marketing purposes.
• Rising standards of living as result of fast decline in poverty In 2011, the digital marketing statistics revealed that advertising
rate. via the mobile phone and tablets was 200% lower than that of the
• Availability of much wider product range. following years. During this year, the net worth was $2 billion. The
• Competitive prices compared attractive to the customers. growth was in a geometric progression as it rose to $6 billion in
• Increased usage of online classified sites, with more consumers 2012. The competitive growth demands for more improvement in
buying and selling second hand goods. the career works and professionals are being added to the field.
From 2013 to March 2015, the investment total increase was
Objective of Study 1.5 billion dollars over the preceding years. There has been an
The following is the objective of the study impressive growth up till this present moment.
1) To study the growth trend of digital marketing India The report by the International Journal of Advanced Research
Foundation revealed that summarized that India is getting to see
Digital Marketing Industry in India the golden period of the Internet sector between 2013 to 2018 with
Digital Marketing industry in India is spread to almost all the incredible growth opportunities and secular growth adoption for
business sectors. Some of the applications of E-Marketing are E-Commerce, Internet Advertising, Social Media, Search, Online
shopping and order tracking, online banking, payment systems Content, and Services relating digital marketing.
and content management.  Total Media, Digital and Mobile Internet Ad Spending in India
The power of digital marketing allows geophysical barriers to (2013-2019).
disappear making all consumers and businesses on earth potential
customers and suppliers. It is known for its ability to allow business
to communicate and form a transaction anywhere and anytime.
Digital marketing industry in India is a booming career today. In
a country with a rapid growth economy, it is expected to have
a very high significant growth in Digital marketing career. The
growth in the digital marketing trends is making a very substantial
impact on marketing and advertisement. The big picture of Digital
Marketing industry in India cannot be complete if short preview
of the past digital marketing statistics is not made. Going back to
history, International Journal of Advanced Research Foundation
reveals the following in 2016. Between 1971 and 1972, The
ARPANET is used to arrange a sale between students at the

[Link] 9 © All Rights Reserved, IJRMBS 2014

International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 4 Issue 3 (SPL 1) Jul. - Sept. 2017
Business Studies (IJRMBS 2017) ISSN : 2348-893X (Print)

According to the research made by the Internet and Mobile

Today, digital marketing industry in India is growing at its peak, Association of India (IAMAI, 2008), communication has become a
and is still continuous. Many factors are responsible for this real mass communication tools having about 286 million accounts
growth. The use of communication tools has greatly changed in the in 2008. The Indian telecommunications market has tremendous
year past. No one ever thought to have a credible deal online. The growth opportunities and according to IAMAI is projected to
below figure indicates the digital marketing statistics.  exceed 500 million by 2010. According to TRAI, the numbers
The belief was that online information is virtual information full of mobile subscriber based in India grew to 980.81 million users
of lies. No one could listen to any online advertisement not to in the second quarter of [Link] for the mobile device is
talk of purchasing groceries, furniture or clothes. The story has getting higher day by day. SMS marketing is one of the true mass
really changed. Everything from marketing to sales can be done market media channels across many demographics before the
online. This is due to the trust that has been restored back to online convergence of mobile internet and mobile devices.
communication in India.  This has really helped the marketing Increase in Marketing Investment in 2017:
initiatives. The revolution is from the communication industries.
Low cost of handset is now available making it possible for
India to have about 600 million internet users which ultimately
creates a fascinating business opportunity to sell to a growing
population.
Moreover, the developments in the digital marketing industry in
India evident in the marketing shift from anonymity to identity.
Interaction on the Internet now looks more physical as opposed to
the anonymity of identity in the past. Also, marketing information’s
is moving along in the same line with entertainment. People of
India needed an exciting spirit always. This targets their interest Top three Primary Digital Marketing Activities in 2016:
into the marketing information.
Several factors have been found to contribute to the growth of
digital marketing in India. Before now, internet usage was only
meant for the wealthy. There is now a great change in the lifestyle
of the middle class. The Very majority now have access to the
internet in India. Internet and 3G penetration revolutionized the
marketing scenario for both consumers and the marketers. It was
discovered that changes in lifestyle and standard of living had
increased the level of consumption, quality and also the pattern
of consumption.  The quality of use in the urban centers of India
is on a high side. This is because majority doesn’t have time for
shopping. Apart from struggles to earn money, people want some Increase in Marketing Investment in 2017:
other things to be done at their own convenience.
The following survey from people indicates the size of Digital
Marketing industry in India:
• 34% of the companies already had an integrated digital
marketing strategy in 2016
• 72% marketers believe that traditional model of marketing is
no longer sufficient and this will make the company revenue
to be increased by 30% by the end of 2017.
Mobile Phone Subscribers in India

Source: Octane Research, January 2017

© 2014, IJRMBS All Rights Reserved [Link]

10
ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 4 Issue 3 (SPL 1) Jul. - Sept. 2017
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017)

From above data you can easily analyze the growth rate of digital marketing and its impact of online sales. With Digital marketing
growth E commerce is also booming and touching new heights.

[Link] 11 © All Rights Reserved, IJRMBS 2014

International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 4 Issue 3 (SPL 1) Jul. - Sept. 2017
Business Studies (IJRMBS 2017) ISSN : 2348-893X (Print)

From above both of the images you can compare the growth of digital marketing of Indian market compare to rest of world. India in
2016 became world no 2 in internet uses by no of people throughout the world. As we see in 2014 India was on 3rd position where
as now in 2016 it is on 2nd position.
According to a study conducted by the Internet and Mobile Association of India, the e-commerce sector is estimated to reach Rs.
211,005 crore by December 2016. The study also stated that online travel accounts for 61% of the e-commerce market. By 2020,
India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online
apparel sales are set to grow four times in coming years

With a penetration rate of 34.5% India is worlds 2nd most internet surfing population so its clear there are still lot to go. The growth
is rapid in this field and still a long way to go with higher pace that’s the reason every freshers and professionals looking to build
their career in digital marketing. USA has Internet penetration rate of 88% and even few of the European countries with more then 95%
of penetration rate where as India still at only 35%. This shows the future scope of Digitlization in India. Government Digital Literacy
scheme and many others factor are giving a boom to increase internet users in India. Online shopping industry is also growing with a
rapid pace which is still getting sales from major metros and mid level towns only. Digital Marketing and advertising is influencing
peoples to buy and sell online and e commerce is getting more and more sales. With a hi growth through Digital marketing in business
companies have starter spending more and more in Digital marketing as they are getting better ROI in Digital medium compare to

© 2014, IJRMBS All Rights Reserved [Link]

12
ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 4 Issue 3 (SPL 1) Jul. - Sept. 2017
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017)

traditional, another major benefits are all the expense and return are measurable  which is not possible in Traditional Marketing.
High Demand of Managing Companies activity over Online marketing and improve company visibility has opened a new door
or opportunity. Demand are higher then supply so Peoples have one new career stream as Digital Marketer which is flexible and
providing high career growth.
Digital Marketing is a rapid career growth not only in India but also throughout the world. Companies are getting more and more
dependent over internet to generate faster revenue for their business.

Source: Survey by [Link]

Brands and marketers believe that content, mobile, wearables, 72% more effective than magazine advertisements 64% of B2B
big data, and marketing automation tools are the more trusted marketers outsource content job.
and promising digital marketing activities of 2016
Video Marketing Facts
E-Commerce and Advertising Facts From India Adding Video while sending email can increase 200-300% of
E-commerce in India is said to be the largest and most profitable click-through rate Video on a landing page could increase 80%
for a new business start-up.  India’s Digital advertising market has of conversion rate. A full page ad with video can augment user
grown at 33% annually between 2010 and 2016. E-Commerce engagement by 20%. A real estate ad with video receives 403%
in India is currently at 2 Lakh Crores and is predicted to grow 5 more inquiries than a listing without video. 64% of users decide
Lakh Crores in 2017.77% of online users buy products exclusively to buy a product after watching video 96% of B2B marketers use
on Social Media.8% of Indian Internet Users has purchased at video somehow in their marketing campaign, which reports 73%
least one product online and by 2019 it is expected to grow by of positive response on ROI.
64.4%.  59% users shop on tablets, 69% shop on Mobile devices,
and 38% shop on weekly basis. 50% of shoppers buy products Conclusion
online based on recommendation through social media networks Day by day growing Digital Market in India is an evident that
and 74% of customers rely on social media for making their the Digitization is taking place with a high speed. All reports and
purchase decisions. The sale of physical goods via digital channels surveys conducted around the globe are showing that the digital
in India amounted to 16.8 Billion U.S dollars in revenues. marketing will grow more in coming years. Youth of India is very
much technology friendly. Mobile devices are expected to reach
Content Marketing Facts around 3 billion units worldwide. So as more people use smart
42% of B2B marketers are active at content marketing and call phones, tablets and other mobile devices, the potential of mobile
it effective.  93% of B2B marketers are using content marketing market continues to grow.
over traditional marketing. 60% of marketers create one piece of
content at least every day. 78 % of consumers understand that a References
organization offering custom content are interested in building [1]. Pratik Dholakiya (14 April 2015). “3 Digital Marketing
good relationship. Content Marketing is 3 times more effective Channels That Work for Every Advertiser”
and cost 62% less than traditional marketing. 78% of CMOs agree [2]. Mohammed R., ―Internet Marketing‖, McGraw Hill, New
that custom Content is the future of [Link] effective York, Vol. 4, 2001
B2B marketers are spending 39% of their marketing budget on [3]. Devi .C.S and Anita.M ( 2013) : ―E marketing challenges
content marketing. 73% of organization hires content strategist and opportunities‖pg. 96 – 105 retrieved from [Link].
to take care of content [Link] content are considered in

[Link] 13 © All Rights Reserved, IJRMBS 2014

International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 4 Issue 3 (SPL 1) Jul. - Sept. 2017
Business Studies (IJRMBS 2017) ISSN : 2348-893X (Print)

[4]. Shanker, Ravi (1998), Marketing on the Net, (Dissertation),

Banaras Hindu University, Varanasi, India.
[5]. Karakaya F., T.E. Charlton., ―Electronic Commerce:
Current and Future Practices‖, Managerial Finance, Vol.
27 (7), pp. 42-53, 2001
[6]. Krishnamurthy, S. & Singh, N. (2005), The International
E-Marketing Framework (IEMF):
[7]. Reedly, J., Schullo, S., And Zimmerman, K. (2000), Electronic
Marketing (Integrating Electronic Resources Into The
Marketing Process), Harcourt College Publishers.
[8]. Boudreau, M.-C. & Watson, R. T. (2006), Internet Advertising
Strategy Alignment Internet Research,16, 23 - 37.
[9]. “4 Important Digital Marketing Channels You Should Know
About”. Digital Doughnut. Retrieved 17 October 2015.

© 2014, IJRMBS All Rights Reserved [Link]

14