Business Plan For Digital Marketing Company
- Executive Summary
- General Description
- Marketing Plan & Analysis
- Operational Plan
- Management and Organization
- Expenses and Capitalization
Digital footprint expanded exponentially in India and the evidence is there for all of us to see. From the old time shop keepers coming up with a website to the street smart businessmen selling stuff on Whatsapp, we saw the roots of digital marketing going deeper and stronger. 2015 was a year where we saw digital marketing take a coaster ride. It was a game changing year with facebook stamping its foot down as a major advertising player. Retargeting, Location Specific Ads, Real Time Bidding, Display, Video Ads – everything saw their share of changes compared to 2014 and triggered an ignition for changes expected in Next Year. Here is a quick recap for you of high impact changes in digital marketing for the year 2015 specific to India and its influence on businesses.
OFFLINE STILL ON THE HIGH
Offline marketing continued to rule the roost in the Indian Marketing scenario in spite of fast mobile and internet penetration. This is expected in a country where the internet penetration is still at only 34.8% (source: Internetlivestats) and the majority of the audience are still offline. While the digital advertising spends was able to reach approx $1 billion, traditional advertising spend was still a humongous $6.75 billion industry (Source: statistica). It’s a proven channel from what we had seen from the major giants who had penetrated the market with TV like makemytrip, jabong, flipkart and in 2016 brands continued to invest a lot in offline branding. Hike, WeChat, Bluestone, Lenskart, Yepme, Pepperfry, Zivame, Freecharge etc and many more entered TV & publishing media.
What to expect in Next Year?
- Mobile, Social and Content are going to be the focus points in digital marketing
- Mobile App market will dominate the online shopping behavior of the customer
- Local and Personalized advertising to take front seat both online and offline – we should see these through TV with highly targeted advertising through set up boxes.
- Reputation building and real time reputation management will take higher importance
- Brands investments on online advertising and Social going to be high
- Multi-channel advertising and re-targeting will see higher customization
2. Executive Summary
‘My Company'(Your Company Name) is a Digital Marketing Company, which is dedicated to the task of providing desired results to our customers. We set the highest standards for us which make our customers trust in us and revert to us for all their marketing needs. You can also include the fundamentals of the proposed business: About your services, Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry? Make it enthusiastic, professional, complete, and concise. If applying for a loan, state clearly how much you want, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.
3. General Description
‘My Company'(Your Company Name) provide numerous digital solutions for clients of all sizes across different sectors, ranging from small businesses to bigger one. From beginning to end, our own online and web solutions are targeted towards enhancing the online presence of our customers and making their business thrive to the core. Some reports says that in the next 5 year 70 to 80 billion dollar(7,000-8,000 Cr) business will come in to Indian e-commerce business.
Initially we will target X, Y and Z states. Apart from English our team will concentrate in Regional Language too. We can reach out and offer full assistance begins from Website Designing. The other areas we can explore are,
- Medical Field
- Hotel and Tourism
- Media and Publication
- Politics and Film
- Education and Consultancy
- Event Management and Public Relation
‘My Company'(Your Company Name) design digital marketing strategies, build websites, create plans and run digital campaigns. Optimize every pursuit with digital analytics and more. We offer an integrated package of services include- SEO, SEM, Re-Marketing, Social and Email. Our team thoroughly analyze about the Industry, product, service, customers, competition and needs in Digital Media. We are quite sure that it will help the client to increase the revenue.
Digital Media Strategy
‘My Company'(Your Company Name) planners decide the Media Strategy to be used by keeping the budget always in mind. We help startups and market leaders craft realistic and inspirational corporate and business unit strategies that focus their efforts, position the company for the future, and optimize every revenue opportunity.
Every company needs to evaluate their digital marketing performance on multiple dimensions to get the full picture. Creating and implementing an analytics program requires four steps:
- Defining website metrics and developing a plan
- Collecting the data
- Developing reporting features and capabilities
- Ongoing analysis and implementation
Understanding each of these core components enables a company to make the right investments at the right time to yield a Return on Investment (ROI). Successfully building a data plan is more than just identifying specific tools or learning how to interpret charts. Instead, it’s about creating a culture that values data, ensuring that key business decisions are data-driven, and consistently finding ways to drive data deeper into the DNA of your business.
We have many different strategies to reach our target audience. Some are listed below;
- Search engine optimization – Reaching the audience from organic search results.
- Pay Per Click advertising – Reaching the audience by paid advertising on search engines.
- Display Advertising – Target the audience using various websites.
- Re Marketing Advertising – Target that audience who already visited our website.
- Video Marketing – Target the audience on video networks like YouTube, Daily Motion etc.
- Mobile Marketing – To target the audience using mobiles, smart phones and Tabs.
- Social Media Marketing – Target the audience on Social Networks.
- Email Marketing – To reach the target audience via email platforms.
- Affiliate Marketing – To reach the target audience by using affiliate networks.
- Digital Analytics – To measure the success or failure of overall campaign.
Each strategy is implemented with certain goals and proper measurement metrics are tracked to understand the outcome of the campaign.
Tracking the Data That Matters
Measure what matters. With metrics, it’s easy to get caught up in vanity metrics. Vanity metrics are the things that make us feel good and may even give some idea of what’s happening, but they’re not really indicative of what’s happening to your business:
- Visits to your site
- Page views
- Number of newsletter subscribers
- Followers on social media
- Bounce rate
- Time spent on your site
Seeing growth in these numbers over time can be a useful trend, but for the most part, we’re instead looking for the kinds of metrics that show one thing: action.
Useful data tracking comes down to evaluating:
- Who is coming to the site, and what are those people doing once they get there;
- What channels are driving buying customers;
- Who is converting;
- What conversions are deepening relationships;
- What conversions are driving revenue;
- Who is buying multiple times;
- What’s the lifetime customer value;
- What are the churn rates (The percentage of subscribers to a service that discontinue their subscription to that service in a given time period)
Any solid analytics plan will take the business model into account and develop a set of metrics that maps to clients unique needs and buying funnel.
Social Media Marketing
Over a decade, Social Media has turned out to be a mainstream channel for most businesses. More and more people are using this medium to learn, share, connect, and buy/sell. People are now embracing the change and started to explore this new and exciting mode of communication with customers. But many companies end up making social media blunders by lacking knowledge. Because making an investment is just not enough without proper guidance when it comes to digital marketing Industry. ‘My Company'(Your Company Name) will ease this menace by giving proper advice.
Recent time proved the influence of Social Media in business. Many Indian brands employed in-house social media teams which manage branding, online reputation management, marketing campaigns and constant user engagement. The constant reduction of organic reach on Facebook made their priorities very clear. One can easily see the shift of organic to advertisements on Facebook, social for business became very important for any business. Face book’s announcement of “Facebook for work” launch and “product catalogue” advertisements had major influence in the online advertising industry. Even though Facebook was still the most dominant Social Media channel, we saw increasing influence of Twitter, Instagram, Google+, and LinkedIn on business throughout the year. Twitter adoption amongst users was under par in India, resulting in twitter advertisement itself not taking off, however brands continue to keep their handles active and are not ignoring it. At the same time penetration of internet and smart phones made the real time reviews about the brands and products possible. Reputation Management was high on the social channels and had an impact on business both positively and negatively; case in point was Flipkart’s ‘Billion Day Sale’.
Now we can monetize the content in Facebook, Twitter Like social media platforms. Others will follow them soon. Facebook Instant article, Twitter’s Amplifier publisher program are example. Facebook will also planning to give pre roll, mid role ad in their live videos, like Youtube.
Email marketing is directly marketing a commercial message to a group of people using email. It is the best practice to ensure the messages are delivered successfully to their intended recipients. Usually involves emails for sending ads, requesting business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness.
To get more out of email program, it is important to invest in analytics, use clean email lists, leverage technology that reformats content to end user devices, focus on relevant content before employing rich media, and incorporate social media. There are number of software products are available for this purpose including ‘Google Zoho’. Refer http://www.capterra.com/email-marketing-software/ for Email Marketing software products
Branding & Identity
How a business wants a brand’s name, communication style, logo and other visual elements to be perceived by consumers. The components of the brand are created by the business itself, making brand identity the way in which a business wants consumers to perceive its brands, not necessarily how it is actually perceived.
Today, however, the majority of websites and applications online are interactive. In turn, modern web designers are called upon to make a number of considerations drastically different than those made by traditional graphic designers. To bridge this gap, we call upon the discipline of interactive design.
It’s particularly needed for online retailers and is important for everyone. If you are selling the same product as many other retailers, it would be a great idea to write your own product descriptions and using the keyword research to target actual words that searchers use and make the product pages to blow the competition away. Whether a retailer or not, a great and unique content is a great way to get inbound links.
Content marketing was a buzzword for 2013. India still lags behind the adoption but in 2014 we saw the industry slowly embracing content marketing. Buying and research behavior of customers changed. It became very important to educate the customers about the value of what they purchase owing to the ever increasing smartness of online customer and the flexibility of the medium to allow thorough research before purchase. For many brands content marketing was no longer an accessory but occupied their core of branding and customer acquisition efforts. Think of the election campaigns of 2014, Urban ladder, Thrillophillia, Google Search. Most of the brands expanded their content marketing strategies through Social platforms, videos, pics, info-graphics and blogs.
Think global, serve local and act mobile: Mobile Advertising saw a rocket growth last year. With over 1 Billion in population and 65% of population under 35 years, India has unrivalled demography for Smartphone manufacturers. The stats from International Data Corporation (IDC) suggest that the smart phone Vs feature phone ratio grew at a rapid scale increasing the data accessibility on mobile. About 66% of the urban internet users had access to net on mobile while about 33% of the rural internet users had access to net on mobile. Focus on mobile stayed as a key marketing strategy to cover the width and depth of the market.
5. Marketing Plan & Analysis
Digital media is fast becoming a favorite with marketers. By 2017, digital advertising is estimated to be worth $171 Billion, accounting for more than a quarter of global advertising spend. This represents a 70% increase from current levels. In the US, ads spend on the Internet overtook all media except broadcast television in 2011.
There are currently more than 2.1 billion global internet users and 620 million websites all in a constant battle for Search Engine Visibility and User Impressions. Ensure that your business or niche website is getting the largest share of that traffic that it can with Professional Digital Marketing Solutions from Easy Walkers. Our unique strategies add value for our clients by driving more traffic to their websites and converting those visitors into revenue.
Digital Audience in India
In the today’s environment, the digital audience are growing at a very fast pace. Today India has a population of 1.3 billion and only 462 million is the online population (http://www.internetlivestats.com/internet-users/india/). Among them 64% is Urban and 36 is Rural. Out of 462 million Indian online users 66% (180 million Internet users in urban India ) use Social Media. The top Social Media Marketing tools in India are, FaceBook, Youtube, Twitter, GooglePlus, Instagram and LinkedIn. India has now become the largest population of FaceBook Users with more than 195.16 million. Twitter has 23.2 million and LinkedIn has 35 million respectively.
India’s mobile phone users are 1 billion. That is, the overall ratio of penetration is only around 20%. That means we still have a long way to go. India is expected to overtake the US as the second-largest smartphone market next year with robust annual growth, says a Morgan Stanley research report. There are only 225 million smartphone subscribers in the country, accounting for 18 percent of the total population.
As per 2016 reports the total Internet users in India are 462,124,989. As per the reports Indian internet users are growing @ 14%. India is adding 5 million new internet users every month. The interesting thing is, 95% of these new users access online from mobile. The number of mobile internet users estimated around 371 million. As the number of users is growing, Digital Marketing has become very crucial to reach these audiences.
Internet Growth in India
Digital Marketing Platforms
To reach our target audience we have many different channels in digital media. Every channel is used based on client business and target audience. Few of the important channels are,
- Search Engines
- Social Media Sites
- Mobile Apps
- Video websites
- Gaming Platforms
Growth of Digital Marketing Industry in India
Due to heavy growth in smart phones and tab industry, the digital audience is growing rapidly. As per an e-Marketer Reports the smart phone and tab penetration is growing in India, can expect high growth in next 3 years.
India’s 3G spectrum expanded and around 266 million enjoying the benefit from it. India’s e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US $2.3 billion. About 70% of India’s e-commerce market is travel related. According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016. Electronics and Apparel are the biggest categories in terms of sales.
According to a study conducted by the Internet and Mobile Association of India, the e-commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that online travel accounts for 61% of the e-commerce market.
By 2020, India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times in coming years.
India’s retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016 and $850 billion by 2020. Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites.
A new sector in e-commerce is online medicine, selling complementary and alternative medicine or prescription medicine online. There are no dedicated online pharmacy laws in India and it is permissible to sell prescription medicine online with a legitimate license.
Online sales of luxury products like jewellery also increased over the years. Most of the retail brands have also started entering into the market and they expect at least 20% sales through online in next 2–3 years
The marketing activity that creates maximum customer engagement in India is Social Media and Email Marketing (Octane Research). The other activities and ratios; News Letter- 10%, SMS- 5% and Blogs-5%.
The market Research predicts that India will reach 500 million online users in 2017 and in 2020 India will have 520 million mobile internet Users. According to Government of India’s Digital Plan, in 2019,
- 250k villages in India will have broadband connection
- 400k public internet access point
- Wi-Fi hotspot at various tourist and public places across India
- 250k Schools and all India Universities will have Wi-Fi
- Spend 1 Trillion in current schemes
- Everyone in India will have a smartphone
Some typical barriers to face in entering this market
- High capital costs and Best Resources
- Client acceptance
- Training and skills
- Unique technology and patents
- Tariff barriers and quotas
How to overcome the barriers?
- Change in technology
- Minimum employees but experts in the domain
- Ensure permanent Client base & long term contract
- Explore more target Regions
- Offer attractive Tariff to get more clients
- Set up In-house Training Programs
- Conduct Workshop and Seminars to create awareness
Advanced Keyword Research using Search Engine Marketing funnels
Since search is the main source of new sales and leads for many businesses, which get it right, the competitive landscape has become even more aggressive. Search terms, both organic and paid, are becoming increasingly difficult to target. This is due in large part to the following factors:
- Paid search traffic is getting more expensiveas an increasing number of companies compete to bid for top 3 positioning.
- Organic search algorithms have evolvedand become more difficult to ‘game’. Companies can no longer expect heaps of organic traffic just because their SEO firm has built-out a sophisticated back-link profile.
Because traffic acquisition has become such a competitive (and costly) activity, web marketers will need to place more emphasis on converting the traffic they already have. Additionally, marketers will need to start intercepting potential customers earlier in the buying process if they want to remain competitive.
These two objectives can be accomplished by building a search marketing funnel with highly targeted touch-points that guide the customer through the buying process. Each touch-point can also serve as a landing page where search traffic can be poured in at every step.
Understanding the buying process
Most purchases are made because someone has a problem. A problem can be obvious, such as a broken water heater, or the problem may be more subtle, as may be the case for purchasing the latest iGadget.
Whatever the case may be, consumers work through different stages or steps when evaluating a purchase:
- Identify a problem
- Search for solutions to the problem
- Compare different solutions
- Take action by purchasing the solution they feel is best
In order to target consumers effectively, a unique conversation should be crafted that appeals to each customer segment and their unique needs (problems) at any point in the buying process. We want to make the customer believe that we know exactly how to solve their specific problem – that our product or service was created just for them.
Building the Funnel
- Define the customer.Try to understand their needs and uses for the product or service you are offering. The most effective method involves a post-purchase survey that will help to reveal the need(s) your product or service fulfilled.
- Create a ‘conversation matrix’ that maps the advancement through different stages of the buying process for each customer’s unique need / problem.
- For each box in the matrix,conduct keyword research to discover the most popular search queries that customers use to navigate to the next step in the buying process.
- Develop targeted landing pages,based on the keyword research that is optimized for both organic and paid search. Each landing page should include a call to action inviting the user to move forward to the next step in the funnel or buying process.
Each box within the matrix represents an intersection of a customer’s problem or need with a stage in the buying process. These combinations will be used to drive the exact language or conversation used in each touchpoint / landing page within the funnel. This creates a highly targeted conversation that speaks to the customer’s precise needs, making the page more relevant and leading to higher conversions.
6. Operational Plan
Initially start functioning from one place, once the business hits through expand marketing operations to other places. Focus on Small business firms, Educational institutions & Consultants, Medical practitioners, Media & Publications, PR & Event Management, Hotel & Restaurants and NGO’s etc. The features and benefits of your service should include contract, support and follow‐up. Marketing team has to ensure that the company will get at least 1 year contracts from the Clients.
To get along with the day in day out work, you would need 4-6 full time resource (Resources who are well experienced in their respective domains), apart from administration & accounting. Day to day activity includes website designing,hosting, content management, analytics, SEO, campaign management, sales force automation and customer support. For details regarding roles and responsibilities refer Management and Organization section
Note: number of resources can be cut down to 3-4 from 4-6, if the content development and web designing part is taken care externally explicit from this work.
You will have to provide Organic (non-paid) and In-Organic Services (Paid Service), based on which a charge sheet will be prepared. Following which the Marketing Team will contact the clients in order to understand the client requirements on the services that they are looking for (Please refer section ‘Services’ for types of services provided). Advance payment mode is advisable. Once the agreement is finalized with client we will give a brief summary about the Job Description according to their needs. Marketing Strategy Report will send to the client in the first week itself, and will get update on weekly basis.
Without metrics, digital marketing is useless. It’s increasingly easy to measure anything, much of it with free (or almost free) tools. Every business is different, so while there’s no universally-applicable list of what to measure and with what depth, there is a short list of metrics that are actionable, and collectively paint a reliable picture;
- Traffic – what is the volume, where is it coming from, which content is most popular
- Leads – which programs/sources/offers are driving leads
- Conversions – traffic to leads, leads to prospects, prospects to sales; cost per customer acquisition
- Competitors – how do all the key players stack up in terms of traffic, reach, inbound links, key words rankings
You’ll want to drill down, looking beyond the aggregate stats. For example, in addition to looking at the big picture of monthly traffic/leads/opportunities pipeline, what might be particularly actionable is figuring out which content drove interesting volume of traffic and inbound links; or which community site drove visitors that ultimately had higher conversion rates. Some great tools are Google Analytics; the integrated analytics in Mozbar, SEO quake, HubSpot; and specialized tools such as ClickTale to really examine the visitors’ behavior, or Visible Measures for web video metrics.
Demand Generation Activities to drive leads and sales, a reasonable approach to take early is hedging your bets across three methods, each one employing a variety of content and offers:
- Inbound marketing
- Outbound marketing
- Sales prospecting
Each method has pros and cons, and until you have more data to rebalance the investment portfolio across these, starts with some of each. (Unless you’re building this plan very early, you are probably already late delivering leads to the Sales team!).
1. Inbound Marketing
Inbound marketing is about getting found by customers, with the following primary elements: creating remarkable content, optimizing that content for search engines, and promoting this content through Social media.
Unlike paid traffic – which disappears when we shut off the spending, inbound marketing content is a gift that keeps on giving, building barrier to entry. Some observation and suggestions;
- Although getting started is relatively easy (certainly easier than building your product), it’s interesting that a ton of start-ups have at best a beautiful website, but little content that attracts traffic and links. So don’t wait to come up with a comprehensive 12-month marketing plan of every activity – start publishing content, experiment, see what sticks, rinse and repeat. Search Engine Optimization (SEO) is not some complex black magic – there’s a relatively short list of things for a mere mortal to think about and spend a few minutes a week on in order to see real results.
- One common question is what is the right content to publish? The best thing on this is, “nobody cares about your products – people care about their problems.” So look beyond brochures and white papers, and think about creating content that’ll help your target customers solve their problems. (For example, look – the blog, e-Books, webinars – provide tips, best practices, industry information that’s useful)
- One cool thing about inbound marketing is that once we figure out what’s of interest to folks, we can repurpose content in a variety of ways. For example, a blog post can be leveraged in an e-Book, a short video, provide the basis for a tutorial, etc.
2. Outbound Marketing
Inbound often takes months to generate results – perhaps longer than we have to make our first sales, start figuring out and optimizing the sales process, and building the right tools and content. So outbound programs – in particular, pay-per-click (PPC), direct mail and email – provide an opportunity to do three things:
- Allow to pressure test list sources: Brainstorm a list of the possible list sources (e.g., trade publications, or consumer-focused vertical pubs) and job titles or demographics to test.
- Test several offers: Thinking about the steps of the sales process, probably want to have offers that help prospects at each step – addressing the particular questions and overcoming the hurdles.
- Quickly drive some leads: If you need 100 leads this month, you may not get there from a standing start using strictly inbound marketing. So while you wait for that flywheel to spin faster and faster, fund the direct marketing list/offer combinations with the best cost/sale. Hopefully, within a couple rounds of testing, you’ll know which direct marketing campaigns have enough life in them to fill your opportunity pipeline.
3. Sales Prospecting
The best sales guys are ones that are not counting on anyone else to bring them leads, and are willing to run through brick walls to make the first few sales. Marketing is working hard to build a lead generation machine, but assume all that will take time – so start calling, talking to people, knocking on doors. Talk to identified early adopters, and ask for referrals. There’s a myriad of sources for targeted prospecting.
7. Management and Organisation
Hierarchy; M.D, CEO, Marketing Head, Operation Head, Digital Media Consultant, Account Manager
Production Team: UX Consultant, UX Designers, Web Developers, Content Writers, SEOs, Digital Marketing Specialists,
Staffing- Alternative way for small players
You can adopt Four-stage process for staffing:
- You will have to wait for a bit to massive recruiting. Let’s observe the preliminary results.
- Add contractors: Once seen some success with initial experiments, it might be time to add contractors – freelance writers, marcom specialists, etc. This gives us the ability to cost-effectively get a lot of different kinds of talents on the team, and fund a variety of activities while still experimenting.
- Small full-time team: Once find yourself with contractors spending much beyond 15-25 hours per week, it might make sense to consolidate some of the activities. And so the first couple hires might be generalists.
- Specialize: Once your small team of generalists explores enough of the landscape, you’ll have a pretty good idea of where to invest further. And at that point, you can start hiring specialists. Let’s say you have found that videos work really well in our market – hire a video production expert. Or, you might have discovered that PPC campaigns are driving some really profitable leads and customers – perhaps that’s a sign that instead of logging into our AdWords account once a month for an hour to review your 5 ads and 80 keywords, you should hire a PPC expert who can manage the complexity of multiple campaigns with thousands of keywords, scores of ads and really targeted landing pages.
8. Expenses and Capitalisation
Average pay scale (source- http://www.payscale.com/)
- Digital Marketing Manager- The average pay for a Digital Marketing Manager is Rs 464,327 per year. i.e. 39,000/month
- Senior Web Developer- A Senior Web Developer earns an average salary of Rs 477,868 per year.i.e. 40,000/month
- UX Designer- A Graphic Designer earns an average salary of Rs 234,794 per year. i.e. 20,000/month
- Content Writer- The average pay for a Content Writer is Rs 202,871 per year.i.e.17,000/month
- SEO Specialist- The average salary for a Search Engine Optimization (SEO) Specialist is Rs 248,041 per year. I.e. 20,000/month
- Digital Media Specialist- The average pay for a Digital Media Specialist is Rs 377,297 per year. i.e. 31,000/month
- Social Media Specialist- The average pay for a Social Media Specialist is Rs 333,600 per year. i.e. 28,000/month
For to start a small Digital Marketing Company you need atleast 4 persons including web developer, UX Designer, SEO(who can write Content) and Social Media Specialist. So, you need minimum Rs. 6,72,000 as salary itself for 6 months.
|Web Developer||39,000*6= Rs. 2,34,000|
|UX Designer||20,000*6= Rs. 1,20,000|
|SEO Specialist||25,000*6= Rs. 1,50,000|
|SM Specialist||28,000*6= Rs. 1,68,000|
Note- Including Office Infrastructure, Devices, Softwares and Miscellaneous you will have to spend (get an Investment of ) 15 lack Rupees Minimum.
“Wish You all the Best !”- Sujith Nair