Digital marketing cuts through clutter of traditional media

BY VERONICA SILVA-CUSI, BusinessWorld Online Editor Internet and mobile marketing are seen to remove the information clutter from traditional media. Marketers trying out this "whole new world of marketing" said in a conference last week that the individualized nature of the Internet and mobile gadgets such as mobile phones are more effective in some marketing campaigns. In fact, speakers at the recently concluded First Internet and Mobile Marketing Summit last week were armed with statistics to prove that tapping the Internet and mobile tools is what some consumers prefer these days. Mobile marketing, for instance, can reach as much as 50% of a campaign’s target audience, said Bong Mojica, division head for the Wireless Consumer Division of Smart Communications Inc. He noted that the Philippines has an estimated 48 million mobile phone subscribers today sending more than one billion short message service (SMS) daily. Furthermore, Smart’s own market research showed that 74% of Filipino consumers are ready to accept advertising through their mobile phones. For promotions requiring submissions of entries, 94% of respondents said they want to register via SMS against only 4% who said they prefer to join promos through the traditional drop box. Ferdinand de la Cruz, head of the Consumer Business Group of Globe Telecom Inc. added that the logistics behind the traditional drop box method are so cumbersome and expensive compared to SMS or mobile phone promotions. Matec Villanueva, chief executive officer (CEO) of Publicis Manila, said digital marketing "is probably better for ’special’ products and not [the] fast moving consumer goods." She noted that compared to traditional media channels which have become cluttered, the digital medium may be geared towards special markets like mothers and housewives, and the young generation. "Online phenomena" such as social networking, blogs and podcasts, and online gaming are just examples of how companies can tap the Internet for their marketing campaigns. Michael Palacios, managing director of Havoc Digital and general manager of online community Pinoy Exchange, said social networking is a potent marketing tool with millions of page views globally. Citing data from ComScore Media Metrics, Mr. Palacios said "social networks represent the single largest growth venue for online ad inventory." Given that the growth in spent time in Friendster — a 74% year-on-year growth from May 2006 to 2007, according to ComScore — Mr. Palacios noted that "time spent on social networks equals time spent away from traditional media." Companies such as Havoc Digital and Internet marketing company Yehey! offer ads to social networks or Web sites to target the online market. Enrique Y. Gonzalez, CEO of listed technology firm IPVG Corp. sees opportunities in online gaming through one of its subsidiaries, IP Interactive. Given the $2.73-billion worldwide market for online gaming, among the opportunities IP Interactive is offering are strategic ad placements in the gaming scenes — such as a character wearing a branded T-shirt — and online shopping featuring products of the advertiser. Ms. Villanueva noted that there are "no sure templates, no formula" when it comes to digital marketing. What is definite is that "the digital medium is here so [we should] embrace it." - BusinessWorld