History Of Digital Marketing In India

History of digital marketing in India can be traced back to 1996 when internet services were launched. The next decade saw several technological developments that paved the way for online marketing in India.

Let’s take a brief look at the history of digital marketing in India.

Growth of Digital Marketing In India (1996 – 2005 and 2008 – Till Date)

Digital marketing started in India between the period 1996 – 2005. However, the real growth of digital marketing started in 2008 when internet services reached the masses and people started using search engines like Google.

Back in 2000, few people knew SEO, and there were just a handful of companies offering digital marketing services in India. By 2008, several new digital marketing agencies started operating in India. Many business owners now understood the importance of gaining higher visibility for their brand on Google.

By 2010, both small and large companies started running organic and paid campaigns to generate inbound marketing leads. After 2010, there was a rapid boom in the digital marketing sector in India and this continues till today.

Launch of Internet Services In India

The history of digital marketing in India can be traced back to the year 1995 with the launch of internet services. This was the first baby step that led to the digital marketing revolution in India.

The Internet service was launched in India on August 15, 1995, by VSNL (Videsh Sanchar Nigam Limited). VSNL was acquired by Tata Group and renamed Tata Communications in 2008.

However, until 2000, internet services were used just by 0.5% of the population in India. It was after the year 2008 when the real growth of internet usage started in India. The period between 2008 – 2010 saw the highest jump in the number of new digital marketing companies being launched and thousands of new recruitment in the digital marketing sector.

In 2013, the internet user base in India touched 193,204,330 which covered around 15% of the Indian population. By 2019, there were around 525 million internet users in India. This number is expected to grow and reach 666 million by 2023. (Sources: Internet live stats and Statista)

Hence, we can assume that the future of digital marketing is really bright in India just like its history.

Companies That Build the Roadmap for Digital Marketing in India (1996 – 2007)

The dot com boom was at its peak in the world in the 1990s. However, there were around 15,000 internet users in India during this period. 

Yahoo was launched in 1994, and Google in 1998. Following that, businesses around the world started realizing the potential of online selling and marketing. However, internet penetration was still extremely low, and ecommerce was still unknown in India.

India MART was launched in 1996 in India. India MART, running even today, is a B2B marketplace to connect manufacturers and buyers. It was the first company to launch ecommerce shopping in India.

In 2007, Flipkart was established in India and it made the way for other ecommerce businesses to thrive.

Fast Internet Penetration (2004 – Onwards) 

The government of India formulated its first broadband policy in 2004. From 2005, the country saw the growth of the broadband sector. However, the growth remained below the estimates of the government.

Related: Best Digital Marketing Stats

To tackle this issue, the government auctioned the 3G spectrum in 2010. It set the platform for a competitive environment and revitalized the wireless broadband market.

During this period, more people started using smartphones. They started opening their accounts on various social media platforms such as Facebook and LinkedIn. 

In 2012, the numbers of internet users in India were 17.6 million. However, in the current scenario, it is increasing at a rate of 31%. India has now become the world’s third-largest internet population. Mobile internet users grew by 111% in 2012, and during 2013 the growth was 63%. 

As per the report by IAMAI, India registered a YoY of 28% in 2012 and YoY growth of 39% in the number of internet users in 2013. In 2018 the strength of internet users crossed 500 million. 

Digital India Program by Government of India

Digital India is a program launched by the government of India in 2015. It was launched with a vision to make India a digitally empowered society and knowledge economy.

The Digital India program is to prepare India to become empowered socially and economically. The government decided to provide Broadband Highways, Universal Access to Mobile Connectivity, Public Internet Access Programme, and E-Governance.

Related: Salary of SEO Professionals in India

Here are some of the advantages of the Digital India program on the digital marketing industry:

• The customer acquisition of the online marketing field increased because more people started using the internet. 
• Earlier, e-Marketing activities were contributing only 10% of the total revenue generated. However, people started showing more interest in new technology with the launch of digital India by the government. Thus, 85% of marketers are now generating revenues through e-Marketing activities.
• Now, around 80% of Indian marketers use integrated campaigns such as email, social, and mobile to enhance conversion rates.
• Half of the Marketers are now getting inclined to digital marketing and planning to increase investment in online marketing activities.

Digital Marketing Trends in India (2012 – 2019)

Simplify 360, a Social Business Intelligence company headquartered in Carrollton, Texas with global clients and operations reported that India took the third position in the top ten countries with most Facebook users in 2013. India has 61.7 million registered accounts.

According to Jeff Weiner (then Chief Executive Officer), as on 24th April 2012, LinkedIn’s Indian user base had grown 300% in the last three years. 

As per a survey by EY in 2013, 89.6% of all surveyed organizations placed Facebook as the most important platform for engagement. The below picture ranks the social media platforms that are used for social media marketing by the surveyed organizations.

A report by the International Journal of Advanced Research Foundation claimed 2013 to 2018 as the golden era of digital marketing in India. It showed incredible growth opportunities and secular growth adoption for ecommerce, internet advertising, social media, online content, and services related to digital marketing.

The below graph shows the online marketing activities that see an increase in marketing investment in 2019.  

Businesses, of almost all sizes, are increasing digital marketing investment year on year to improve the quality and frequency of engagements with their consumers. 

Major Ecommerce Players That Sparked The Digital Marketing Revolution In India

The digital marketing industry in India started to gain popularity with the entry of Indian ecommerce players like Snapdeal, Flipkart, Myntra, Jabong, etc.

Related: How To Sell On Myntra and How To Sell On Flipkart

These Indian e-commerce websites, along with other big internet startups like RedBus, Zomato, OYO, Ola, have changed the digital marketing landscape in India.

Thus, increasing the number of people using smartphones for online activities such as online shopping, internet banking, and home delivery services.

What’s Next?

After the history of digital marketing in India, we need to move forward towards the future of digital marketing in India.

The internet penetration rate is expected to reach above 55% by the end of 2025. It is because of the fast development of telecommunications infrastructure.

As per the ‘2020 digital trends in Asia Pacific’ report by Adobe, India is one of the countries where interesting tech developments are happening. The Asia Pacific is a region that is in the league to become a leader in IoT by 2025. Such figures give a clear indication that digital marketing services will continue to experience growth and changes in India.

Therefore, businesses in India should accept digital changes and adopt trending innovations to accommodate a large number of internet users and to stay competitive.