The response to this marketing initiative was unprecedented. Usually reluctant to meet with insurance agents, over 75 per cent of the 4,500 parents who received the mailers agreed to meet the company's representative and find out more about the SmartKid plan. Of these, nearly 10 per cent of the people actually took the insurance policy, compared with 1-2 per cent that usually respond to general marketing campaign. A marketing initiative that cost just Rs 2 lakh had generated business in double-digit multiples for ICICI Prudential.

ICICI's success is just one of the many instances of the growing popularity of non-traditional advertising-also called below-the-line or experiential or interactive marketing-among the big advertisers. Comprising direct marketing, in-programme placements, events, sponsorships and digital advertising such activities contributed 10 per cent to the total revenue of advertising agencies five years ago. Today their share is estimated to be 30 per cent. "Non-traditional advertising in India is growing at three times the rate conventional advertising is," says John Goodman, CEO, Ogilvy & Mather, India and South Asia. The reasons are clear: non-traditional forms of advertising are more economical and effective and the response to such activities is easier to measure.

Whether you are watching cricket, surfing the Net, having lunch at office, attending a fashion show, even running a marathon, such promotions can catch your attention. And that works very well in urban India's always-on-the-move lifestyle where an increasing number of people find it difficult to spend as much time reading newspapers or watching TV as they did before.

When they do watch TV many people jump to another channel once the commercial break is on. A study by televisions ratings company tam shows that while the number of brands advertising on television increased from 3,906 in 1994 to 10,914 in 2003, the percentage of viewers switching to another channel during commercial breaks increased from 8 per cent in 2002 to 19 per cent in 2003.

No wonder the golden goose for advertising agencies-big-time ad spenders like Hindustan Lever Ltd, Samsung, LG, Nokia and ICICI Bank-are investing 30-40 per cent of their advertising budget on interactive marketing. In 2003, Hindustan Lever Ltd cut its mass media advertising budget by 30 per cent but went hammer and tongs with its below the line activities, such as tying up with dabbawallas in Mumbai to promote Surf Excel to office goers.

The main draw for non-traditional advertising is the advertiser wanting to get more out of each rupee it spends on marketing. "The perennial question in the boardroom is: are we getting the bang for our buck?" says Neeraj Roy, ceo and managing director, Hungama, a company that organises ground events and promotions for various companies, including Nokia, Bluestar, Bharat Petroleum and ESPN. "Engaging the consumer is the key," says Abhishek Bhatia, marketing head, ICICI Prudential Life Insurance.

BREAKING TRADITION

Non-traditional advertising is fast becoming popular. ESPN used the stars of Dhoom to advertise the English Premier League football championship. Such advertising now accounts for about 30 per cent of total revenue of advertising agencies. Five years ago, it contributed 10 per cent. ICICI Prudential Life Insurance got a huge response to personalised mailers sent to parents with portraits of their children in Harry Potter costumes. The cell phone is now a handy marketing tool. SMS is used to push brands and interact with customers through stock prices, news updates, opinion polls and contests.

This would explain the popularity of SMS marketing, which along with event advertising has emerged as the fastest growing method of non-traditional advertising. SMS jokes and forwards have become passé as SMS contests and marketing campaigns sweep through the media, making this a unique market to tap. "For any marketeer, the ability to reach out immediately to consumers without any delay and having them respond immediately is a dream," says Rajiv Hiranandani, head of operations, Mobile2Win India, a leading wireless marketing solutions provider. Besides immediate response, the cell phone also increases interactivity between the consumer and the brand, believes Hiranandani, whose company has partnered with more than 75 brands like Coke, HSBC, Fosters, Thomas Cook, Sony TV, IBM and Lufthansa.

The cell phone is used not only to push brands and advertise events and promotions but also to engage the customer in a dialogue. Prizes for the most prolific SMS sender (The Shaz and Waz Show), freebies for early birds and the chance to air opinions on national television are just some of the ways big brands are ensuring that they stay ahead of their rivals.

Balu Nayar, head of value-added services at Orange, says his company has partnered close to 90 marketing ventures so far. "Most contests and ad campaigns are pull-based, wherein we invite customers to participate through advertisements and promotions," he says, combating detractors who accuse service providers of spamming.

Not only are SMS contests and promotions gold mines for the brands and service providers, they are also the new tickets to the good times. But service providers and marketing solution providers are in conflict as to who is benefiting more. Nayar insists that the numbers involved are too small to actually generate revenue and Orange's main aim is to provide benefits to subscribers. Hiranandani, on the other hand says, "Operators take 75-80 per cent of the revenue from SMS marketing campaigns. The balance 20 per cent comes to us."

But in a market that is still tapping into its potential, there is room for caution. Hiranandani says, "Marketeers should be careful in not tying up with vendors who promise them bulk messaging to millions of consumers. This is SPAM and a nuisance value with no targeting possible." For the moment, however, companies are ringing in profits.

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