Processing .....please wait.. 
The article has been forwarded.... 
Firms take to online advertisement to cut cost
By siliconindia
|
Friday, 16 January 2009, 23:12 IST
Mumbai: Advertisements in the web portals have seen a significant rise as firms, in a bid to cut cost, have started preferring online media over newspapers for placing their advertisements. A month's campaign on an online portal costs 
25-50 lakh, while only a few days of full page advertisement is possible in the newspapers with the same amount.
The deal is also seen to be better in comparison to static advertisements on a hoarding which costs 18 to 20 lakh a month, as reported by Business Line. "There was around 60 percent growth in direct marketing during the early 1990s. This time direct marketing has been replaced by online advertising as they seek to optimize profits by slashing ads in outdoor media, television and other media," said Prasanth Mohanachandran, Executive Director, digital services, Neo@Ogilvy, the digital arm of Ogilvy and Mather. A 10-second advertisement on television costs more than 4 lakh. The company's online advertising has gone up 30 percent in the last quarter.
The ones who are raking in the real money are those web portals which offer advertisers the ability to target certain customer segments such as the youth. Commenting on the shift towards the net, Diptarup Chakraborti, Principal Analyst with Gartner Research asserted that the increased interest in social networking and blogging last year, has forced several brands to rethink online as a serious medium. Several automobile companies and customer services firms are doing soft branding, while others are doing entire campaigns of several of their products online. "Clients are now asking for annual advertising plans, something that has been completely unheard of in the Indian space," said Rishi Khiani, Chief Operating Officer of Web 18. Even video ads on the web has gained prominence which surged by over 70 percent in 2008.
25-50 lakh, while only a few days of full page advertisement is possible in the newspapers with the same amount.
The deal is also seen to be better in comparison to static advertisements on a hoarding which costs 18 to 20 lakh a month, as reported by Business Line. "There was around 60 percent growth in direct marketing during the early 1990s. This time direct marketing has been replaced by online advertising as they seek to optimize profits by slashing ads in outdoor media, television and other media," said Prasanth Mohanachandran, Executive Director, digital services, Neo@Ogilvy, the digital arm of Ogilvy and Mather. A 10-second advertisement on television costs more than 4 lakh. The company's online advertising has gone up 30 percent in the last quarter.
The ones who are raking in the real money are those web portals which offer advertisers the ability to target certain customer segments such as the youth. Commenting on the shift towards the net, Diptarup Chakraborti, Principal Analyst with Gartner Research asserted that the increased interest in social networking and blogging last year, has forced several brands to rethink online as a serious medium. Several automobile companies and customer services firms are doing soft branding, while others are doing entire campaigns of several of their products online. "Clients are now asking for annual advertising plans, something that has been completely unheard of in the Indian space," said Rishi Khiani, Chief Operating Officer of Web 18. Even video ads on the web has gained prominence which surged by over 70 percent in 2008.
