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SINGAPORE : Digital marketing is attracting a growing number of companies keen to slash their advertising budgets amid tough economic conditions.
Experts said the market in the US alone is set to grow by 10 per cent in the first quarter of this year, compared to the previous three months. But Asia will see a slower growth rate, as digital access varies across the region.
Experts said businesses which listen and engage users through marketing efforts will stand to gain, without having to splurge on their campaigns.
"Who can afford a focus group anymore? You don't need to. You go on Twitter, you go on social network (sites) and find out what people think about your brand and get a lot of suggestions for free," said David Rogers, executive director of Global Brand Leadership Centre, Columbia Business School.
Such cheaper alternatives are what 150 marketing executives in Singapore are exploring in the one-day "Branding Innovation Technology" conference in Asia for the first time.
But one challenge in Asia is the lack of equal digital access across the region.
Professor Rajendra Srivastava, Provost & VP, Academic Affairs, Singapore Management University, said: "Asia is a big market, but a lot of Asia isn't necessarily that well-connected.
"If you look at penetration for the Internet, it's very high in Singapore and South Korea, and China has caught up fast but not all the households in China are connected. And India's Internet penetration is about 2 or 3 per cent."
According to experts, senior marketing executives will also have to change their mindsets and adopt the new strategies.
"Senior marketing people might have been brought up in a particular way of communicating. What we're finding is when it comes to using twitter, Facebook, we need that 20-something kind of thinking," said Professor Srivastava.
Still, experts said companies with reserves should cash in now during the recession to expand their reach.
Professor Srivastava explained: "When there are 10 of us talking, each one of us have a little difficulty in being heard. On the other hand, 8 out of the 10 people have pulled themselves out of the media, because they have to cut back on their marketing.
"There are only two people left, therefore the likelihood that you're going to have an impact is going to increase."
In today's price-sensitive market, experts said effective digital marketing can help companies gain market share and mitigate the effects of a price war. But it will take Asia another 5 to 10 years to reach the levels of growth in digital marketing now seen in the West. - CNA /ls
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