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With intensifying usage of internet by users, around 87% of brands are electing for digital marketing, for customer engagement and brand promotion, says a report.

The Digital Marketing Industry Report 2016 released by Social Beat, 87% brands prefer digital marketing and 38% of them assign a one- third of its budget to digital marketing.

The Digital Marketing Industry Report 2016 was released in May and June 2016 with participation of 376 Chief Marketing Officers and marketing heads in India.

Vikas Chawla, Co-Founder, Social Beat, said, “The report highlights the rise of digital marketing though brands continue to use television and print mediums to have a 360-degree approach.”

“It was encouraging to see that 87 per cent of the brands surveyed leverage digital marketing. While brand awareness and lead generation/sales seem to be the primary goals set by the CMOs, digital marketing is increasingly being leveraged for customer engagement (46%) and customer service (35%) too,” he added.

Social Beat Co-Founder Suneil Chawla said, “Around 10 per cent brands surveyed spend more than INR 1 crore annually on digital marketing while around 50 per cent brands spend more than INR 6 lakh annually.”

“Overall, 20 per cent brands plan to increase their digital marketing spends by 25 per cent in the next financial year,” he added.

He further noted that, “this is important in the context of growing internet and digital penetration in India – brands understand that digital is the way forward. With an expected 500 million internet users in India by 2017, brands understand the massive opportunity to reach out to their consumers.”

Most of the companies said they focus on Social Media Marketing, Search Engine Optimization, Content Marketing and E-mailers for marketing their brand online.

Social media site Facebook (89%) and Google (78%) have emerged as the most popular platforms followed by Twitter (56%) and LinkedIn (51%) for taking up digital promotion.

High usage of smartphones, faster internet connectivity and exciting video content have resulted in 51% brands targeting YouTube for marketing their brand.

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