Volume-05 ISSN: 2455-3085 (Online)

Issue-08 RESEARCH REVIEW International Journal of Multidisciplinary

August-2020 [Link][Peer Reviewed Journal]
DOI: [Link]

Impact of Digitalisation of Marketing: An Analysis

Dr. Abhishek Anand

Guest Asst. Professor, Deptt. of Economics, T.M. Bhagalpur University (India)

________________________________________________________________________________________________________

“Digital is no longer a medium, but a way of doing business” of the time i.e. online. Digital marketing is a must and need for
marketers to get connected to audience and communicate their
1. Introduction product in a more effective manner and cheaply compared to
According to prominent economist J.M. Keynes, “demand other medium of communication. Digital marketing is marketing
creates its own supply”, which means identifying consumers efforts which comprise the usage of electronic medium of
demand and delivering the desired product is the core of being marketing i.e. online such as e- mils, social media, search
more competitive and attain more profitability in the market. For engines, etc.
creating its own demand in the market, it is necessary for the
products to make their presence in a differentiated and superior 2. Purpose of the Study
manner in the eyes of consumers. E- Bay in the context The study is undertaken to analyse the scope and growth
understood the consumers demand that they were unable to opportunities of digital marketing globally and in context of
find the goods/ items which they desired, for this e- Bay India. The increase in internet penetration and cheap internet
created an online auction where people could have the product facilities has opened up new and innovative ideas of marketing
which they desired and was difficult for them to find in the through digital marketing, opening up the new dimensions of
market. So, to understand the demand through market study. Immense increase in per day data usage and
research is most prominent for the buying and selling of penetration of smart phones has made advertisers connected
products, which is called marketing. According to The to their existing and potential customers more easy. The study
American Marketing Association, “Marketing is an will identify the channels and opportunities I the market for
organisational function and a set of process for creating, advertisers in digital marketing so that they could know the
communicating and delivering value to customers and for market and its scope.
managing customer’s relationships in ways that benefit the
organisation and its stakeholders”. Marketing is the way 3. Past Literature
producers communicate to customers and tells about their Technological development have increased the power to
products specification, difference from other products, uses, customer through knowledge available (Urban, 2005) by new
advantages, etc. to attract customers towards their products communication technologies and information, which has
through innovative ways and different kinds of medium such as drastically changed the market dynamics (Porter,
print media, magazines, television, internet, etc. the concept of 2001).Thomson in 2008 advocated that the development of
marketing has emerged in 1950’s whose philosophy has technology and internet based online business and social-
changed over time. During the early phase marketing was media marketing have influenced the marketing strategies
product centred, means it followed “make and sell policy”, adopted by marketers presenting new opportunities, challenges
whereas now it has become consumer centred and believe in and choices. The accessibility of customers to every kind of
the philosophy of “sense and respond”. In the context of products have changed the habits of consumption and choice
medium of communication, internet has created a buzz and of goods (lbos, Rames, & Hervas, 2008). Social media as an
revolutionised the marketing strategy, which can be attributed effective medium of communication has led the communication
to the rapid digitalisation globally. On one side globalisation between consumer and producer which are essential for
has brought all the countries under one umbrella in context of building brand loyalty being more effective than that of
trade and business, and on the other hand, the fast internet traditional way (Mangold & Faulds, 2009). Further it also helps
facility and digitalisation has connected people, consumers, to increase awareness about the brand among customers and
producers, academics and professionals from each sectors brand recall (Genelius, 2011)
with each other. Digitalisation has also created new and
innovative marketing ideas which have marked its strong 4. Digital Marketing
presence among marketers in the process of branding and
For advertisers in digital marketing it is essential to identify
advertising their products.
appropriate channel for communication which would generate
Digital marketing is basically the result of technological
awareness about their product effectively, attract consumers
development which created innovative methods of marketing.
and boost up their sales through increased demand.
E- Commerce and M- commerce have developed at a rapid
According to survey done from people on Digital Marketing
rate due to digitalisation and penetration of smart phones,
, it indicates that in 2016, 34% of the countries were having
networks and broadband even to rural areas and untapped
digital marketing strategy, whereas, most of the advertisers and
markets. Marketing is focussed towards connecting the
marketing personnel believe that traditional marketing is no
audience at the right place and at the right time. So, it is
longer sufficient to survive in the market , and digital marketing
important to target the customers where they spend their most

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Volume-05, Issue-08, August-2020 RESEARCH REVIEW International Journal of Multidisciplinary

will boost up the revenue. According to a data on marketing technique. This means of marketing is considered
[Link], the cost of reaching 2000 audience through more effective as 94 per cent of the internet users have an e-
traditional channels such as broadcasts is $150, newspaper is mail account whereas, 61 per cent uses social media.
$250, magazine is $500 and through telegrams is $900. So, it is seen that e- mail marketing is more effective than
Whereas, in digital marketing channel, web search costs $50 social media marketing in the sense that, in social media
and social networking costs $75. So, this reveals that reaching advertisements and post may go unseen and unclicked,
out the target audience is cheaper than that of traditional whereas, in e- mail marketing it is there in the inbox list until
channels of marketing. There are several digital marketing read or deleted by the user. However, e- mail marketing along
channels as discussed below: with the combination of social media through like and share
button can be much more effective and sharpen the brand
1) Affiliate marketing connection with customers.
Affiliate marketing is a commission based marketing where But, e- mail marketing also becomes bothersome and
a person sells and earns profit by promoting other person/ irritating for the users or recipients who are new and potential
industry product. For example, Amazon is one of the biggest customers of the product filing up their inbox.
affiliate networks, where the programs let to promote the items
which are sold on their platform to the interested or potential 4) Search- engine marketing
customers. The person earns a commission if the product gets Search Engine Marketing is paying for ads on Search
purchased from the affiliate link generated by Amazon products Engine Result Pages (SERPs). Anytime you are targeting
generated to the person. So, by becoming an affiliate marketer keywords on a search engine ad, ad shows up then it is known
of several products a person can earn money through as search engine marketing. Ads which shows up on Google,
promoting and selling the product to the target customer. Bing and other search engines channels such as Pintrest Ads,
Yahoo Gemini, etc. comprises search engine marketing. You
tube Search Ads are one of the popular video and graphical
Publisher advertising method which pop- ups during the videos being
played on You tube.
Search engine marketing ads could be image or a video,
and the advertisement which pay more for ads or have the
highest quality ads appear first on the search engines.
Merchant Customer
5) Social media Marketing

However, affiliate marketing is prone to risk in terms of bad Channels such as facebook, twitter, instagram, etc. where
affiliates who often claim commission for the product which isn’t people spend their lots of time is social media where they
acquired actually. connect with people and share their moments. When we use
these channels form advertising our products, then it is known
2) Display Marketing as social media marketing. These platforms have created new
opportunities to the business for the industry, which was not
Display marketing is an online graphical advertisement
actually created for it. Social media marketing is becoming one
which includes banners, animations, videos etc. to attract
of the effective and popular channels of digital marketing due to
customers via. usage of devices such as desktops and smart
increasing number of the user and the time they spend on
phones. Display marketing basically aims at creating brand
them. The marketing is done through posting videos or images
awareness and reaching the customers. Advertiser and
to the potential customers on the page and websites by
publisher are the important part of display marketing, where
creating groups, close communities, branded channel,
publisher is having the responsibility of providing resources as
influencer outreach, co- creation and customer service.
well as website through which the campaign has to be started.
Whereas, advertiser is having the responsibility of preparing
5. Digital Marketing in context of India
promotional content of the brand through which awareness
could be made effectively through conveying appropriate India’s steps towards digitalisation and rapid internet
advertising message. Different formats of advertising through penetration has created immense opportunities for the
which publisher does digital marketing are banners, pop- ups, advertisers in the digital marketing channel in order to create
flash video, streaming video ads, content ads, etc. awareness, branding and connecting to their existing and
However, sometimes due to congestion and over content potential customers growth of digital marketing in Indi can be
written advertisement on a page, results in overlapping and attributed to the revolution in the communication sector which
hiding of the advertisements. It is also so annoying for the provides low cost internet facilities to the user along with low
users that they use ad blockers to prevent display marketing. cost smart phones. It has created about 600 million internet
users in the country and an attractive market place for
3) E- mail Marketing advertisers to market their product through digital marketing.
The data given below describes the growth of internet users in
e- Mail marketing is away to promote and communicate
India and globally creating new space in the place of digital
existing or potential customers rapidly and cheaply. It is a kind
marketing, and Indi is the country showing one of the fastest
of internet marketing which basically relies on the visual and
growths globally in terms of internet users.
graphical appeal. It is a cheap way of promoting and
advertising their products compared to other means of

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Volume-05, Issue-08, August-2020 RESEARCH REVIEW International Journal of Multidisciplinary

Countries with highest numbers of Internet users (2019) drastically by 3.5 GB in 2017 to about 17.5 GB in
Internet users Internet
Internet [Link] to Sanjay Kaul in a press release, “by 2022, the
Country growth (2000- smart phones data consumption will increase in 5X in India,
(2019) users (2000)
2019)
which proves the dominance of smart phones as the
China 8,29,000,000 22,500,000 3,854% communication hub for social media, video consumption,
India 5,60,000,000 5,000,000 11,100% communication and business applications, as well as traditional
United voice”.
2,92,892,868 95,354,000 207%
States
Brazil 1,49,057,635 5,000,000 2,881% 6. Initiatives and development
Japan 1,18,626,672 47,080,000 152% India is one of the fastest growing global market in the E-
Russia 1,92,552,842 3,100,000 3,434% commerce sector which is evident from the data that, the
Source: [Link] sector’s revenue is expected to increase from US$39 billion in
2017 to US $120 billion in 2020 and further to $200 billion by
The increase and growth of internet usage and users in 2026, which is about 51% of highest growth rate globally. The
India has also provided opportunity for digital marketers to development of the sector in such a rapid rate is not possible
develop and connect to their customers easily, cheaply and without foreign investment. In this context to increase the
effectively. Increase in smart phone users in India has investment and participation of foreign investors in Indian
increased the internet penetration even in rural areas and have market, government allowed 100% FDI (Foreign Direct
made people connected to each other and the world through Investment) in B2B E- commerce, and 100% FDI under
social media networks. The internet usage and smart phone automatic route is permitted in market place model of E-
are to grow immensely in the coming 4 years according to the commerce. Consumer Internet Company and E- commerce
estimates of Ananya Bhattacharya. industry received about $7 billion during 2015 in the form of
The large population of the country provides immense private equity and venture capital. Launch of more than 40
opportunity for the producers and advertisers to make their networks and increasing penetration of internet due to increase
presence in such a large market by penetrating to the untapped in smart phone usage has boomed the sector and related
market, as there has been an immense increase in internet industries providing new opportunities to create demand,
users. Digital marketing in India has experienced an impressive connect with customers and advertise their products through
growth and also possess great future ahead which is evident new means of communication effectively and efficiently.
from the data below. Government has also taken steps to create a land mark in the
sector by allocating Rs. 8000 crores to BhartiNet Project in
Digital Advertisement Market in India Union Budget of 2018- 2019 to provide broadband services to
Financial Year Data in crores Growth rate 1,50,000 gram panchayats.

2011 1140 -
Total Media, Digital and Mobile Internet ad Spending 2013- 19
2012 1750 54% (USD $ Billion)
2013 2260 29% Total
Year Digital media Ad Mobile internet ad
Media ad
2014 2750 22%
2013 5.56 0.57 0.03
2015 3575 30%
2014 6.11 0.74 0.08
Source: IMRD International Estimates
2015 6.4 0.94 0.17

Along with the growth of digital marketing sector in India, 2016 7.03 1.17 0.35
Indian E- commerce has also experienced growth in its size. 2017 7.49 1.46 0.59
The industry estimates show that in 2009 the E-commerce 2018 7.94 1.78 0.94
market size was $2.5 billion which increased to $16 billion in
2019 8.53 2.17 1.23
2013, and is estimated to increase up to $56 billion by 2023.
So the according to the data it can be said that there has been Source: eMarketer, March 2019
positive impact of growth of digital marketing on online sales.
th
According to Cisco’s 13 annual Visual Networking Index by The above data shows that the growth in digital media ad
2022, there will be 829 million smart phone users in India and mobile internet ad has been more significant than that of
counting to about 60% of country’s population. However just the total media ad spending. It is evident from the fact that
27% of Indians were using smart phones during the last year. there has been boom in digital marketing sector and provides
The predictions done by Cisco are based on the real world immense opportunities for the advertisers.
network usage data and the forecasts done by independent
analysts. 7. Conclusion
Further Cisco says that, the increase in the usage of smart The study undertaken describes digital marketing as a new
phones will increase the internet traffic in the country and opportunity for the advertisers in creating awareness,
estimates that by 2022 the internet will carry 646 petabytes of promoting, branding and connecting to their existing and
data daily which is about 1000TB. This prediction is 490% potential customers effectively. In comparison to traditional
more than that of the 108 petabytes in 2017. Talking about the channels of marketing, digital marketing has been proved to be
mobile data consumption on daily basis, it will increase cheaper, accessible, and more nearer to the audience. Digital

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Volume-05, Issue-08, August-2020 RESEARCH REVIEW International Journal of Multidisciplinary

marketing is the demand and need of today’s technical world, low cost and penetration of smart phones even in rural market
as people spend their most of the time being online. So, it is has attributed lot in the development of digital marketing by
important for an advertiser to be at the place where their connected even to the untapped rural market. In context of
audience spend most of the time the immense growth of India, it has shown fastest internet users and digital marketing
internet users globally and rapid growth of digital marketing has growth, and billions of investment in the sector.
proved its importance in the sector. High speed internet at the

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