Monday, 8 December 2014

Brands Launching Online: A Positive Sign

Our MD Mr. Anurag Gupta's posts on Think Aloud!




We are witnessing an increasing trend of brands launching online first or even exclusively across various categories like apparel, electronic gadgets, books , home appliances etc.  Following are some examples we have seen in recent times
CategoryBrand /ProductDeal & E-commerce Player 
ApparelDorothy Perkins and Stanley KaneIntroduced In India Through Myntra & Jabong
Mobile/ TabletMotorolaExclusively sold through Flipkart
FMCGCoke ZeroExclusive sold through Amazon
Mobile/ TabletXiaomiExclusively sold through Flipkart
Book Half Girlfriend by Chetan Bhagat Introduced online first exclusively sold through Flipkart
Gaming Microsoft's X-Box Gaming ConsolesTo be sold exclusively through Amazon
Home UtilitiesWhirlpool's Kitchen Aid and Philips Lighting RangeTo be sold exclusively through Amazon
The brands are leveraging e-commerce channel due to following reasons:
- Massive reduction in time to market, by taking advantage of existing distribution structure of e-commerce companies across logistics and supply chain
- Test market at lower costs. Given the controlled environment in these cases, the ad spends are also more effective and efficient.
- Reach of an online audience of 300 million. Internet is no longer niche !
- Perceived rub off effects of being a modern brand. 
- National presence through one gateway
Apart from the benefits which the brands are deriving, this trend also reflects the choice of today’s customers. The disposable income of today’s youth  are at an all time high but they pressed hard for time and are looking for immediate gratification. Online  shopping helps them and is becoming a way of life in metros. For the tier 2 and tier 3 town shoppers, online shopping is giving them an opportunity to play on a level playing field with their metro counterparts. Same products are vailable to them at the same time and at the same cost. 
We are also witnessing huge channel conflicts due to predatory pricing being done by the online ecommerce companies. Brands are facing increasing heat from the offline channel protesting against the online discounting. We see some brands taking steps against the ecommerce players like asking them to sell at parity prices, giving users extended warranties of products bought offline etc. 
Current times are witnessing users buying on e-malls at cost of brick and mortal malls, buying choices are made on the go ; genuine products are delivered at doorstep at better pricing . This will mean that more and more brands will be moving online in bigger way. This will continue causing  offline retailers to feel threatened about losing their customers. 
Amidst all this debate there has been an intersting development – Future Group: India’s largest offline retailer & Amazon.in have signed a deal to jointly sell goods over the Internet.  This partnership will explore  several synergies in data sharing, co-branding, cross-promotion and distribution network sharing . Maybe they will set an example for rest of the brands and show how to  adopt different approaches  for both channels. 
We can only conclude that we will see brands will continue looking at e-commerce as an important sales channel in their mix and not a supplementary one anymore.

Wednesday, 20 August 2014

DGM India sets up dgLabs

DGM has set-up dgLabs a unique stay and work atmosphere.

dgLabs is aiming to create world class products in the digital (mobile & web) advertising area. dgLabs will push the envelope by engineering world class and cutting edge prototype technologies and components based on domain innovations, writing papers, and formulating patents. It will also be involved in the technical transfer of innovation into main DGM products, working with engineers and other roles across the company providing a great opportunity for knowledge gain and sharing, networking, and potentially being part of product definition.




dgLabs empower employees to achieve this by giving an unrestricted and free environment on their home. The employees live in a company guest house and work at the same place. The atmosphere is completely casual with no working hours. All the employees have to do is stick to the deadlines of the projects they are working on. In short it’s a hostel environment which they are used to while graduating from their engineering  courses. The employees in dgLabs are fresh engineers from Delhi College of Engineering and BITS, Pilani.

The employees do go to office which is nearby to attend meetings and other official work as and when required. However for the majority of time they work from the residential office only.



Management at DGM India believes that by providing the employees with the same environment which is unrestricted and casual, it will bring out the best in terms of innovations and delivery thereby achieving the vision of dgLabs.

Monday, 28 July 2014

DGM India’s latest offering dgXsell is going places



DGM has been one of the pioneers in performance advertising on Internet. To take this one-step ahead, DGM launched dgXsell a few months back.



dgXsell aims to fill the gap for small advertisers who want to get into performance advertising using mode of purchases like CPL, CPA apart from the usual CPM and CPC modes of purchases. 

It’s the first of its kind platform indigenously developed for small advertisers on a Do-It-Yourself model. It takes the DGM’s strength of having one of the largest networks of over 20,000 and offers it to the small advertisers.

dgXsell is a self served, 100% transparent affiliate marketing platform running on the nest Amazon EC2 servers that guarantees its robustness and reliability.



With the ecommerce exploding in India and many small players becoming active, it’s becoming impossible to run and manage campaigns with smaller budgets especially on a performance parameter.  On dgXsell one can set-up their campaign and generate sales or there e-store.

On the dgXsell platform advertisers can manage ad serving, sales tracking and publisher payments at the same place.  It offers content distribution through cloud front and is hosted on Amazon EC2 servers. dgXsell is being adopted by advertisers at a fast pace and it aims to become a network with 10,000 merchants in 18 months time.

Register to advertise or become a publisher on dgXsell: www.dgXsell.com 

Thursday, 8 May 2014

Effect of Air tickets Flash Sale

Effect of Air tickets Flash Sale on Business


DGM India is the largest performance ad network in India and works across industries for generating online traffic and sales. This unique position also gives DGM inside information on consumer insights and trends.

DGM has used this advantage and commissioned a study on the effect of flash sale for airtickets. DGM picked data for Jan and Feb in 2014 flash sales as well as the trend in 2013. This study revealed that tickets sales go up by 4-5 times during a sale period than a normal time.  See the below attached Info Graphic for the same.




To collaborate the findings, DGM spoke to Makemytrip.com and goibibo.com two of the largest travel portals and they also agreed with DGM’s findings.



observations were as follows:



Overall Trends:

These sales have helped bring many customers online for the first time. This augurs well for the Travel industry ecosystem in India. The Aviation industry will also continue to reap the benefits of this promotion as we expect to see better load-factors. We saw some enhancement in passenger-contribution in the last week of February – this was the first week where customers who would have booked during the first sale would have used their tickets for travel, indicating that these sales are indeed helping in increasing the load factors for airlines.

“We have seen a 25% jump in first time customers at MakeMyTrip during the sale periods, indicating that these sales are helping to get new fliers, which is good for long term growth of aviation industry in India.”  

Traffic jump to MakeMyTrip website during the last sale – 80% week on week.

January-March quarter is traditionally a lean period for leisure travel. After success with similar promotions last year, Airlines seem to have to have hit on a winning formula to energize the sector. Thus Airlines are able to drive purchases further out, improve forward-loads and yields by incentivizing earlier purchases and gain yield predictability by filling up seats earlier.



Observations:



The first sale in Jan 2014 saw numbers jump 8 times. and the next ones saw 4 - 6 times jump

Read about it in the coverage on Economic times by clicking here.  


Tuesday, 15 April 2014

5 Digital Trends for 2015

Anurag Gupta, Managing Director DGM India talks about the digital trends for the future...

Digital advertising spends in India: 

Digital advertising in India will continue to outpace the other media. I reckon that by 2015 Digital advertising will be well over 10% of total advertising from current 7% levels.

There will be continued dominance of performance metrics based pricing, however  mobile and video advertising will grow significantly.


Ecommerce: 

There will be thousands of ecommerce players emerging in India who will look at ecommerce from a sales/profitability angle. Indian buyers will slowly start shifting buying online for convenience as opposed to better deals/prices. Amongst the larger players we should see some consolidation.


Social Media: 

I see sustained interest in Social media. However the distinction between personal and professional usage of social media will continue to blur. For e.g. I see facebook being used significantly for business purpose in times to come.


Mobile Internet: 

More and more Indians will access Internet through their mobile phones. There will be a growth in WAP but an explosion in Applications & App traffic.  What will be interesting to watch out is the App v/s WAP consumption behaviour of users specially when about 155 million people are using mobile internet now.

Connected devices:

We should see more and more devices being ‘connected’ in times to come. 10% of internet usage in India will move to these connected devices in the near future.

Innovations & Entrepreneurship: 

We should see continued environment of entrepreneurial ideas & innovations in India. With number of incubator cells and accelerators growing and a large number of International accelerators setting up in India; we should see some real good innovations and products along with an exponential rise in number of entrepreneurs.