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Consumer engagement vital in digital world: Researchers
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As the digital world expands and grabs more users, market researchers are recommending that Indonesian companies spend more on digital marketing to maintain consumer engagement with their brands. (Moleskine/-)
W
hile consumer engagement has become vital in the digital era amid changes in consumer behavior, many corporations have yet to realize the need to spend more on digital marketing.
Engaging advertising is becoming more important as consumers now access many channels, sources of information and product substitutes. They can easily choose to skip ads on digital media such as YouTube, said MEC Indonesia Agency managing director Ajay Gupte.
However, he continued, many corporations were yet to allocate high budgets to digital requirements. On average, they spend 5 to 10 percent of their expenditure on digital marketing despite the fact that 50 to 60 percent of consumer purchasing is done in the digital world.
"They should add 10 percent more to their budgets for experimenting with consumer engagement. As the digital world is getting stronger and stronger, your brands will suffer even more if you don’t do that," Ajay told thejakartapost.com on Tuesday in Jakarta.
He cited several brands that were aware of the situation, such as Bukalapak.com and KitKat. Taking advantage of Indonesia’s preferences for comedy and humor, they created enjoyable ads, including those over three minutes in length.
TNS, a global market research company, reported in its latest study that a number of brands had seen consumer engagement drop from 60 percent to 50 percent in the last four years.
"There are many companies and consumers of digital brands that are very confused. They are using more platforms, but getting more confused and then starting to get disengaged. If you want to win, you need to understand consumers more deeply," said TNS Indonesia managing director Suresh Subramanian.
He recommended that the brands synergize with agencies, platforms and research companies to determine consumer segments, needs and engaging themes. Unlike on TV where strategies and advertising expenditure are wider, digital ads are segmented.
Frisian Flag Indonesia president director Maurits Klavert acknowledged that established brands, especially in consumer goods such as his firm, were increasing their spending on digital ads. "Right now we are facing generations who are eager to try new things," he said. (ags)
