Retail tops e-marketing investment, marketers want code of conduct with stronger anti-spam law: Octane Research

E-Marketing in India has witnessed phenomenal growth in recent few years as an efficient distribution channel to reach out to the consumers, offering a unique value generating proposition for all stakeholders. According to a research report released by , an email service provider cum on-demand multi-channel marketing campaigns platform, high adoption of online and mobile technologies in India are reasons for such growth. The internet usage in India has almost tripled over the last three years and there are more than 100 million internet users and 800 million mobile connections in the country.

As per latest IMRB estimates, out of the 35 Million Claimed Mobile Internet users, 26.3 Million (i.e.75%) are Active Mobile Internet Users. Internet & Mobile Association of India (IAMAI) justifies that lower subscription rentals, availability of feature-rich cell phones at cheaper prices, increased PC and digital literacy, greater awareness of the Internet medium are some of the reasons why mobile Internet penetration has risen in India. With the double digit rise in shipments of Smartphones in India in 2012, more and more users in India will have access to mobile internet at a price point lower than ever before.

Key findings of the Octane’s Annual India e-Marketing Research 2012 are given below:

  • The Top five industry verticals in India in terms of e-Marketing investment are: Retail & Distribution (including online retail and ecommerce), Media & Entertainment, IT & ITES, Services & Consulting (including marketing agencies) and Education
  •  Customer Acquisition continues to be the primary goal for marketing initiatives over the last 2 years
  •  Social media initiatives are gaining momentum and Email continues to be the most effective marketing channel. Social Media (68.8%) and Email Marketing (53.1%) emerge as the top 2 online marketing initiatives that will see an increase in marketing investments in 2012, as compared to 2011
  •  Majority of India marketers (36%) wanted a code of conduct by an industry body like IAMAI while 31.5% of participants who believe stronger anti-spam laws in India like CAN-SPAM would curb the SPAM campaigns.
  •  A high number of India marketers (62%) feel that the Email and SMS marketing programs are effective in meeting agreed goals
  •  Comparative analysis of data reveals that more that 80% of our respondents agree that integrated (Email and SMS) campaigns influence Conversion Rates.
  •  Research reveals that the majority of marketers (36%) wanted a code of conduct for Indian marketers by an industry body like IAMAI while 31.5% of participants who believe stronger anti-spam laws in India like CAN-SPAM would curb the SPAM menace.
  •  Reaching the Inbox (and not the Junk/Spam folder), increasing ROI and building Subscribers list are seen to be the top 3 challenges for the last two successive years.
  • Telecom Regulatory Authority of India (TRAI) has limited the number of SMS to 200 per day per SIM. As a result of this cap on SMS approximately 35.3% of our respondents plan to increase their budgets towards email marketing by more than 11% in 2012.
  •  In 2011, Octane sees an increased dependency on email service providers or ESPs (Email Service Providers) to provide assured inbox delivery of email messages (25.5% respondents in 2011 V/s 19.2% in 2010). It sees a decline in the role of IT in ensuring inbox deliverability over the last year.
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These findings clearly indicate a growing confidence and interest in online communication and e-Marketing, especially social media and email marketing. India Businesses are looking to target their communication, and are willing to invest more in order to get higher returns.

The report has tried to cover diverse industries, so that the survey would be able to represent the Indian industry’s opinion as accurately as possible. Some of the industries covered in the research are mentioned below in pie chart.

The Annual India e-Marketing Research  2012 conducted by Octane is based on surveys conducted with reputed market leaders. The primary objective of this research report is to provide insights to marketers on the trends and technologies impacting e-Marketing in India in the last two years.