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Maruti Suzuki takes digital campaign to next level, relies more on paid search

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Maruti Suzuki, India’s largest automaker, plans to spend more on “paid research” in the next financial year. Since the pandemic, most brands have relied heavily on paid searches to attract qualified consumers to their websites in a more personalized and targeted manner. Maruti currently spends 25-30 percent of its digital advertising budget on paid searches only.

“This is likely to rise in 2022 given the high return on investment,” Shashank Srivastava, CEO of Marketing and Sales, Maruti Suzuki, told e4m.

The annual advertising spend for Maruti Suzuki was around Rs 560 crore in fiscal year 2021. Srivastava confirmed that nearly 29 per cent of this amount, Rs 162 crore, was spent on digital advertising. This means that the amount spent on paid research alone could be around Rs 49 crore, which is likely to rise in the coming months considering the higher ROI it offers.

Aside from the 30% on paid search, the company spent an equal amount – roughly 30% of digital AdEx on short video ads, while social media got more than 35% of the personalization. The rest went on display ads.

Paid search is one of the cornerstones of digital marketing as search engines like Google and Bing allow advertisers to display ads on their search engine results pages (SERPs). “Payed search on Google works on a pay-per-click model. This means that until someone clicks on your ad, you don’t need to pay for the ad. This is unlike Facebook, where one has to pay for ads even when users don’t click on them,” he explains Deep Mehta, co-founder of DigiChefs.

Why paid search?

Search engines are a fertile move for brands looking to expand their customer base. Google alone handles more than 3.5 billion searches per day, proving that search engines always have a guaranteed flow of quality traffic available for selection. Given that 93% of all website traffic comes from search engines, it makes sense for D2C brands to take advantage of this resource for potential customers.

But how can a marketer take advantage of search engines to increase website traffic when there are millions of websites?

“On Google, consumers search for keywords if they intend to buy some products. On Facebook, people may come across ads even when they have no intention of buying those products or services,” Mehta explains.

With the highly targeted nature of paid search ads, brands end up targeting shoppers who will have shorter customer journeys. It is a cost effective campaign. Besides, companies can quickly see high quality and measurable results. Pay Per Click Statistics A 2020 report revealed that companies generate an average income of $2 for every $1 they spend on Google ads.

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