‘Mobile is the right choice for rural marketing’

Changes in consumer technology and convergence in the sector has played a crucial role in the development of the digital marketing industry, believes Neeraj Roy, managing director and CEO of Hungama Mobile, a division of Virtual Marketing India Pvt Ltd (VMIL). In this interview to DNA, Roy shared his views about the future of digital media in India and Hungama’s role in this rapidly-changing world of mobile communication. Excerpts:

As far as digital marketing goes, where do you think we are now and would be, say in five years?
Currently, there are 65 million internet users in India, which is likely to grow to approximately 200 million in the next three years. India is also the fastest-growing mobile market with over 400 million subscribers. International markets like the UK have reached a saturation point in terms of subscriber numbers, so the telecom operators bank on earning their revenues from mobile value-added services and that’s where the Indian market is also headed for after it reaches a saturation. Most brands today are extremely keen on exploring the potential of this medium that can reach audiences across age groups, segments, gender and geographies. These brands want to create a space in the audience’s minds that does not merely create awareness but goes a step further to ensure a ‘buy-in’ by creating a sense of excitement. Today, digital marketing has moved beyond being just websites and blogs. It is now a medium to connect the brand with the target audience. Today, the digital medium gives marketers the freedom to innovate and reach out to their audiences in an unparallel way. Marketers are growing increasingly aware of the potential of this media and rampantly seeking visibility across digital screens.

How has been the growth for the medium in the past five years?
Five years ago, there was a limited penetration across digital screens and the value-perception of the media was minimal to negligible. With changes in consumer technology, convergence has played a crucial role in development of the digital marketing industry. In the past 10 years, Hungama has managed more than 2,000 mobile and digital campaigns for as many as 300 brands globally and have been able to provide value to each one of them.

Can you say that digital media is a breeding ground of new ideas?
Yes, I do believe that there is an immense potential for innovation on digital media because of the dynamic nature of the media. There are limitless avenues that one can explore in this medium, be it social networking, video sharing or something else.

What are the learnings from your global experience?
In matured markets like the UK and the US, marketing spends on brands on the digital media are much higher because there is more awareness about the kind of value marketers can derive. In India, fewer brands realise the potential of the media. Having said that, I do believe that things are changing at a fast pace. Today, seven out of every 10 company in India is inclined towards being visible across various digital media.

Does digital media make more sense for clients who are particularly targeting the metros or NRIs?
Not really. Since internet penetration is deep in Tier-I & Tier-II cities, brands targeting these markets prefer using the online platform to create an experience for the consumer, which is both measurable and acceptable. Thus, brands across sectors are also looking at making optimum use of digital tools such as blogs, video, podcasts, interactive TV and social networking. These routes enable the consumer’s voice to be heard and allow the brand to respond in real time. With the increasing use of these tools, acceleration of the digital media will only increase. In rural areas, where PC internet penetration is not very high, the mobile medium has become the right solution to target the rural audience. According to a report by CII and Ernst & Young on the next 250 million Indian mobile users, approximately 100 million are likely to be from rural areas and by 2012, rural users will account for over 60% of the total subscribers.

What are the challenges going forward?
Going forward, digital marketers may be faced with unique challenges like their audiences being better connected. They have innumerable options for information and can switch resources and channels at will. So, one cannot ensure stickiness as far as the digital media is concerned. Secondly, unlike anytime in history, customers have on- demand access to information and peer influence. They can control and pull information to them rather than allowing you to simply push it upon them.

What are the online marketing initiatives you have undertaken for promoting films?
We have worked across 300-400 films in the last 10 years. This year, we have created some path-breaking initiatives on the digital space, which not only captured the essence of the films, but also encompassed all the key elements to attract mobile and internet users to the theatres. By creating a bouquet of digital services for films, we aim to give Bollywood fans across the world a glimpse of the film before it releases.

Earlier this year, we partnered with the film Billu to create a 360-degree digital campaign for the movie. We captured the theme of the movie and combined it with popular elements of the internet like social networking applications; contests etc to create a host of relevant products on digital media.

Similarly, we created the official website of the Ghajini, which is one of a kind and maintained the suspense of this much-awaited movie, while keeping the user engaged in a multitude of videos and images. Also, true to the theme of the film, the website refreshes itself every 15 minutes. No matter which section the user is accessing, every 15 minutes they are driven back to the homepage. The initiatives we took for Ghaijini also won us silver and a bronze award for the Creative Abby's ceremony at the Goafest 2009.

We have also tied up with the upcoming film Kambakkht Ishq. I am confident that the digital services created for the film will create fervour and excitement about the film through varied avenues like the Kambakkht Ishq mobile game, a mobile voice VAS, pre-recorded by Akshay Kumar and Kareena Kapoor, and a blog written by the film's director Sabbir Khan on Bollywood Hungama.

By creating a bouquet of digital services for films, we aim to give Bollywood fans across the world a glimpse of the film before its release.