Microsoft, GM take to digital ads

KOLKATA: When Microsoft India late last year began revisiting its marketing strategy for gaming console Xbox, it decided not to invest in any media. The reason: Microsoft had commissioned a study by AC Nielsen, which revealed that Indian consumers, who buy gaming consoles, are heavy users of Internet.

Microsoft didn’t take much time to decide that it will invest all its above-the-line (advertising budget) on Internet.

And it’s not just Microsoft. General Motors, gift retailer Happily Unmarried, fashion brand Ed Hardy and headphone brand Skullcandy are some of the brands spending most of their advertising budget on digital media.
Microsoft India spends around 40% of its total marketing budget for Xbox on the digital media, and the balance goes in retail promotion, training sales staff and some below-the-line activities.

"The density of Internet usage is highest in the 14-20 age group, which is also our target group. We have decided that digital media will be the biggest vehicle of our marketing activities for this year and even the next," said Microsoft Corp India director marketing (entertainment and devices division) Ashim Mathur.

General Motors India is betting heavily on Internet advertising for its premium range of cars such as Captiva, Optra and Chevrolet Cruze. This is especially when the company launches a new top-end car. "It also justifies the marketing spend since sales volume of these cars are not too large," said a senior company official on conditions of anonymity.

Happily Unmarried, which runs a network of 80 franchisee stores and three company-owned ones, is devising a marketing plan which will be fully based on the digital media. It already has a Facebook forum with 5,000 members and looking at newer digital platforms like YouTube.

"We want to pull consumers into such forums rather than sending junk mails which can be irritating. But the sad part is most of the other brands are getting into digital media for the sake of it. This is unjustified as the media has a lot of potential and needs proper strategising," said Happy Unmarried Marketing director Rahul Anand.

Microsoft, for instance, has a 12,000-people strong Xbox community at Facebook and a equally vibrant company-owned online community. "We are betting on digital media for both communication and to generate demand. And initial results are excellent," said Mr Mathur.