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Indian market for Conversational Advertising will be worth $238 mn by 2015: Study

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Indian market for Conversational Advertising will be worth $238 mn by 2015: Study

A recent research report on Conversational Advertising commissioned by mobile messaging advertising network SinglePoint has revealed that the Indian market for Conversational Advertising will be worth $238 million by 2015. The research, conducted by mobileSQUARED, provides insight on the growth and drivers of Conversational Advertising in India.

The report defines Conversational Advertising as “the agreed messaging-based communication between the consumer and a brand to deliver consumer benefits”. In Conversational Advertising, consumers knowingly provide their mobile number to a particular brand or brands specifically for a continued interaction.

Mobile subscription in India is forecasted to cross the 1 billion mark in 2013. This indicates a huge growth potential in mobile advertising in the country. According to a consumer survey conducted as part of the report, it has been revealed that almost 60 per cent of India’s mobile population would be willing to receive mobile advertising in exchange for free voice and SMS on a monthly basis.

Commenting on the Indian consumer’s behaviour, Raghu Kumar, Managing Director, SinglePoint, said, “India is a market driven by cost, where 70 per cent of the population is rural. With limited income to spend, the mobile device may be the only screen they have access to. This makes mobile a very compelling medium to brands and businesses, especially given that SMS spend is much higher than voice spend in India.”

As per the report, Conversational Advertising will grow exponentially in India from the current 0.5 per cent of total mobile marketing messaging revenues to almost 40 per cent by 2015. The concept of Conversational Advertising evolves beyond the traditional campaign ideology that has become the cornerstone in advertising. Explaining the point further, Kumar said, “Campaigns are limited in their ability to encourage ongoing interaction and engagement that brands desire. Conversational Advertising, on the other hand, encourages the brand to regularly communicate with the consumer, thereby ensuring capturing their mind share for the required sale of the products/ services.”



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