Social media marketing gains share of online marketing budgets in India: E&Y survey

Indian companies are beginning to get more social media savvy and increasingly allocating bigger chunks of their digital marketing spend to social media advertising, according to an Ernst & Young survey of 48  Indian enterprises with a robust presence in such media. Online marketing research firm has summarized the findings of this study titled “Social Media Marketing: India Trends Study 2013” in a brief news report.

The key findings from the survey as reported in the article are:

  • Companies are mainly using social media for promoting online campaigns/ contests and online branding purposes.  Interestingly, a little less than one-fifths of the respondents said that they use social media marketing for product lead generation or sales.
  • While the share of social media spend as a proportion of overall marketing budget seems to be increasing, for the vast majority, it still accounts for less than 10%.
  • While Facebook and Twitter are the main channels, with marketers putting up at least a couple of posts on a daily basis, companies are also reportedly turning to other popular social media avenues such as Pinterest, Google+ and FourSquare.
  • Companies are still not measuring or don’t know how to measure the effectiveness of their social media marketing and engagement efforts in terms of revenues or other business benefits. This is probably because companies are still getting their toes wet with social media, and for many, digital marketing in general.

Our view is that this study by Ernst & Young on Social media trends in India is based on a rather small sample size.  We doubt if it is truly indicative of how much companies are spending on social media and how they are using it to achieve their marketing objectives.

We believe that search engine marketing, be it SEO or paid search advertising, still accounts for the biggest chunks of online marketing spend. This is particularly true of companies with a lead generation/ sales as one of their key objectives. Marketers with the need to show an immediate correlation between digital marketing spend and ROI are turning to SEM and e-mail marketing, while those charged with brand awareness put more of their eggs in the social media bucket.


On Target provides social media marketing consulting and campaign management to companies in diverse sectors, including education and training, healthcare, online retail and hospitalityTo find out more about how we can help you with your social media campaign, contact us now!

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