digital dharma 2015
TRANSCRIPT
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2015: Digital shall become the client’s Dharma
Guest Column: Vivek Bhargava
CEO, iProspect Communicate2
Collated for public info by Kiran Mandrawadkar
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Digital Revenues shall cross the Conventional
• This year, the revenues generated from digital media for the agencies should be able to supersede the total revenues that shall stream in from Conventional Media.
• And while I do know that Digital is less than 20% of the total advertising revenues in India, I shall still stand by this prediction and let me tell you why! Let’s say a client runs a campaign that’s worth Rs 100.
• Here, the conventional agency generally gets about 2 % for media and 1 % for creative. Evidently therefore, almost 97 % of the revenues that they spend end up with the publishers.
• Now, when that client spends that same Rs 100 on digital, the agencies end up with a 15% commission apart from charging for other services too such as content creation, social media, SEO, analytics, social media listening, web design, usability and multivariate testing amongst others.
• Consequently, digital agencies end up attracting as much as 30% of the client’s media budget towards these services.
• Thus even with 20% of the billing, digital revenues would be Rs 6 out of Rs 20 ( 30%) while conventional media revenues would be Rs 2.4 out of Rs 80. (3 %).
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Digital will move beyond marketing
• Consider this: a couple of months back, iProspect Communicate2 helped one of its partners acquire as many as 125 customer relationship managers.
• Now generally, this client would invest up to Rs 40 lakhs for such talent acquisitions.
• Now with iProspect Communicate2 on board, we were able to help them achieve that same number in less than Rs 1.5 lakhs – the investments made by them toward digital media.
• Now, this experience allowed iProspect Communicate2 to setup a new division that specializes in leveraging Digital Marketing toward talent acquisitions for HR departments across companies.
• This division’s expertise shall help companies acquire talent, craft education initiatives of talent and understand the talent landscape through social media listening.
• Understand. We are living in the Digital Age and agencies will have to help clients use Digital beyond Marketing.
• For instance, clients can use digital for product development, information dissemination, understanding consumer trends and many more.
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Conventional Consulting Companies shall enter the Digital Consulting space and face huge challenges
• Currently, most conventional consulting companies are used to creating a strategy-led blue print solution for their clients which the client are expected to implement over a stipulated number of years (anywhere between 1-5 years).
• Now, this is quite unlike Digital, which is too dynamic a medium.
• Here, one needs to take a compass-led approach to get the direction right.
• Not to forget, it also needs to handhold the client through their entire journey.
• Therefore, only companies who are open to getting their hands dirty through “execution of strategy” will be able to deliver value to their clients.
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Agencies will have to move beyond Digital Platforms
• When one devises a Digital Strategy for a client, that strategy should never be limited to Digital Platforms alone.
• That strategy has to combine both the Digital and the Physical world and thus become, what I call, a “DigicalStrategy”.
• Here is an example: Currently, we are helping a partner execute a ‘physical’ competition between stand-up comedians, singers etc.
• Here, while the auditions and selections would be made on the digital medium, the actual competition will be held on “Physical” grounds.
• Yes, the promotions and video views of the competition would be digital again.
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Age of Collaboration
• We are living in an age where collaboration between companies is critical to success and agencies are in the best place to guide these collaborations.
• For example, we have helped our real estate clients such as Lodha collaborate with Remit2India to reach out to the NRIs; we have also helped non-competitive clients to share their cookies for more targeted advertising.
• Our ability to think of innovative collaborations gives us a huge competitive edge.
• The collaboration can be physical, digital, data and knowledge-led and not just limited to collaborations for customer acquisitions alone.
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Competition will not be about clients but talent
• I started this company more than 17 years ago.
• Competition always meant someone taking our customers away, But from hereon, the next few years is not going to be about losing customers; instead it will be more about losing talent.
• Agencies who are able to acquire and retain talent shall rule the world.
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Stay Tuned for more gyaan on Digital
#mandrawadkar