Recession: a boost for online marketing

06 February 2009

Despite its vast potential, 'social marketing' through the internet and mobile phones is still at a nascent stage, as marketers are still clueless about how to optimise the tool. Atul Hegde, head of the successful Ignitee India, offers his insights to Dhruv Tanwar

It's an ill wind that blows nobody any good. That old adage is certainly true of online advertising, which is seeing growth despite, or perhaps because of, the downturn in other advertising media. Ignitee India (formerly Connecturf) is getting its fair share of action, says Atul Hegde, the online ad agency's CEO.

He would know, having started out as the first employee of Mumbai-based EuroRSCG during its startup days in 1996, and rising from trainee to vice-president in just six years. In April 2008, he took over as CEO of Ignitee, with the challenge of making it the leader in digital media.

"The economic downturn has actually added a lot of business,'' Hegde admits candidly. So the economic downturn is really working for the online media business? ''It's the wrong way to put it, but yes,'' he says. ''Clients are now going to look at the digital medium more seriously, and the guys who were thinking about it will now start acting on it.''

Cost effectiveness is just one part of the story, he says. ''It is also because the entry barriers are low - you don't have to invest huge amounts of money to get in. It also gives an opportunity for one-to-one interaction, and is far more accountable [than other media]. So it's a gamut of reasons, and I think at this point of time when everybody is looking to cut corners and think twice before they spend, an advertising medium like this really helps.''

Setting up shop in the year 2000 in Mumbai as Connecturf, the company was renamed Ignitee, reportedly on account of ''a flash of inspiration'' that sparked off a revolution by offering 360-degree interactive solutions. Asked what exactly this means, Hegde says, ''Different models for different consumers.''

He elaborates, ''In the media buying model, the agency is a go-between for publisher and the advertiser. However, web development is something we do directly with the client, and there is no publisher involved. Similarly, Search is another different model. Web development, web applications, online search, and direct client engagement - it really depends on how we're engaging the client and with what model.''