India
News Hyderabad: Reliance Jio’s disruptive offer of free voice calls
forever and data at just 5 paise per MB is expected to open up the digital
marketing space in the country in a big way, a top expert has said.
According
to Suresh Reddy, Chairman and Chief Executive Officer of Lycos Internet Limited
which is a pioneer in the digital marketing space, at $1 billion, the digital
marketing in India currently accounts for a small pie of the global market
pegged at $200 billion.
“With
this shift, the Indian market can have a significant portion of the huge global
market,” Reddy, whose firm is into internet advertisement since 1998 and has
global presence, told.
The
Indian advertisers largely spend their money on television and hoardings. “The
next generation of users will be mostly on mobiles. Everyone is looking at
smartphones and nobody has time to look at hoardings anymore. So you need to go
where they are,” Reddy added.
Low
internet penetration and the reluctance by customers to spend extra money for
data plans is behind India being at the bottom of digital marketing spends.
But
with the latest development, said Reddy, there will be a shift towards more
data-based work and, as a result, the market will grow.
India
News : Digital Market
The
US currently accounts for 50 percent of the digital market, Europe 20 percent and
South America, 16-17 percent.
What
has happened with Jio was on the cards for almost five years. “Every phone line
has a voice channel and a data channel. It was just a matter of time the two
converge and become one,” Reddy told.
“Reliance
has laid everything fresh. Their core is data and on top of it, they have given
some voice as opposed to the other telecos like Airtel, Vodafone or Idea where
voice was core and data was peripheral. This is a big shift,” he pointed out.
How
will Reliance make money by giving voice for free and charging only a little
for data? | Big India News
“Exactly
same question was propped up when internet first came in the 1998-2000 period.
So far, they have been charging user per call per megabyte basis. Now you have
common pricing,” Reddy informed.
There
will be multiple streams of revenue. Since Jio is a convergence of a telephone
company and internet service provider (ISP), it is going to make money through
advertising and subscriber service.
This
is only the beginning as other players will follow soon and it will ensure
‘reachability’ to the remotest places in the country.
Lycos,
which is in internet advertising since 1998 and forayed into Internet of Things
(IoT) last year, believes that for internet-based players, this is often
excellent direction during which the business goes.
“Advertising
isn't one person’s job. This is just a platform. It will not hurt anyone and
the size of market will only grow. This will put the country on the global map
if it works the way it should,” Reddy said.
India
News : Profit - Growth
Lycos
earned a net profit of Rs 405 crore for the financial year 2015-16, reporting a
growth of 18.5 per cent over Rs 342 crore earned in the previous fiscal year.
The
global internet brand reported an annual revenue of Rs 2,256 crore during
2015-16, up from Rs 1,957 crore in the previous financial year.
For
More Information Visit : http://www.vishwagujarat.com
Jio Move Set to Boost Digital Marketing Space: Lycos CEO
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Hello Admin
ReplyDeleteThe Indian promoters to a great extent spend their cash on TV and hoardings. "The up and coming age of clients will be generally on mobiles.Low web entrance and the hesitance by clients to go through additional cash for information plans is behind India being at the base of computerized promoting spends.
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Vinita