Transcript MEDIA SCENE IN INDIA AND FUTURE TRENDS

MEDIA SCENE IN INDIA AND
FUTURE TRENDS
Media buying agencies
• Agency of record (AOR)
• Central Media Buying (CMB)
Media Purchases thru Media
Buying Agencies
• 1980
• 2000
• 2006
1%
25%
33% (likely)
4 out of 10 Indians are still not
reached even today
Every 100 kilometers the dialect
changes
A country with many tongues
• 16 official languages
• Approx. 1000 dialects
Geographical size
• 7th largest area mass
• Population/ Area mass – India is No.1
• In comparision even USA is No.4
Media target
• 15 million people are being added every
year
• 5 – 14 age group – 26% population
• < 30 yrs - 70%
Rural Urban Divide
• 20 to 30 % of the population, with the urban %
growing every year
• 39% urban population are concentrated in the top
35 towns (towns over 1 million)
• 52% of the rural live in the smallest villages.
• 4 out of 5 HH have an HHI of less than Rs. 2000
p.m.
Market Penetration is far higher
than media penetration
Growth of Media Expenditures
• 1994
• 2000
• 2005
Rs. 3500 crores
Rs 9000 crores
Rs 16000 crores
Time spent on Media
Press (cr)
Time spent
TV (cr)
Time spent
Radio (cr)
Time spent
Internet (cr)
Time spent
min
min
min
min
2000
23.2
32
33.3
113
12.2
64
0.3
65
2001
23.3
31
34.3
110
10.5
63
0.5
65
2002
23.1
30
35.0
112
10.1
66
0.8
66
03-04
25.2
29
37.0
108
13.8
80
1.2
58
2005
36.0
35
38.6
106
15.3
80
1.2
60
Types of Media used
•
•
•
•
•
•
TV
Press
Radio
Cinema
C&S
Internet
Share of expenditure by media (%)
Year
TV Press Radio Cinema Outdoor Internet
1990
23
63
4
0
9
0
1995
29
59
3
0
9
0
2000
46
45
2
1
7
0
2005
41
49
2
1
6
1
Top ad spends by category (rank)
category
2001
2002
2003
2004
2005
Soft Drinks
1
3
9
10
7
Soaps
2
1
1
2
1
Automobiles
3
7
7
5
2 wheelers
4
8
6
6
Toothpaste
5
5
5
8
4
Shampoo
6
6
3
1
2
Corporate
7
4
2
3
TV
8
Comp Edu
9
Website
10
Detergents
2
4
4
Hair Oils
7
Fair creams
9
Mosq. Rep
10
10
Cell Phone Ser
8
Biscuits
10
Cell phones
3
5
6
8
9
9
Top 10 brands – 2004 BE
•
•
•
•
•
Ponds
Fair and Lovely
Brittania
Vicks
Bata
•
•
•
•
•
Colgate
Lux
Rin
Dettol
Tata salt
Top 10 Advertisers
Company
2002-2003
2003-2004
% Change
HLL
842
759
(9.8)
MUL
384
516
34.3
ITC
219
267
21.7
RIL
160
221
37.9
Ranbaxy
131
182
39.5
Dabur
160
155
(3.1)
ColgatePalmolive
185
148
(20.1)
Nestle
151
136
(9.7)
Bharti Cellular
118
133
12.6
Bajaj Auto
129
129
0.2
Top Trusted Agencies – 2004 BE
Rank
Agency
No.of top 20
brands -2004
No. of top 20
brands -2003
Top brand
1
Lowe
6
6
Fair and
lovely (7)
2
3
4
JWT
O&M
TBWA
5
4
2
7
3
0
Lux (2)
5
6
7
Rediffusion
1
Bates
1
Ambience 1
1
1
1
Colgate (1)
Pond’s (6)
Zandu balm
(16)
Tata Salt (4)
Vicks (9)
Media Reach (2000)
(%)
Media
Urban
Rural
TV
79
40
Press
58
15
Cinema
29
14
Radio
18
19
Media Reach (2000 – 2005)
Media
TV
Urban
2000
79 (56)
2005
83 (65)
Rural
2000
40 (18)
2005
(28)
Press
58
45
15
19
Cinema
29
10
14
5
Radio
18
33
19
28
Media Penetration NRS 2003
Media
All India
Urban
Print
25
46
TV
53
80
C&S
20
46
Radio
22
25
Cinema
7
11
Internet
1
Share of Adspend by media (%)
Media
2003
2004
TV
45.2
44.8
Print
42.5
42.5
Radio
2.2
3.0
Cinema
0.1
0.2
Outdoor
9.3
8.9
Internet
0.6
0.7
% HH owning TVs
owned
1998
2000
1
97
96
2
3
4
3+
0
1
TV ownership
(million)
1995
1998
2000
159
174
180
TV owning 42.5
HH
54.5
61.5
%
31
34
Total HH
27
Top 5 programmes in C&S
channels (2000)
•
•
•
•
•
Kahani Ghar Ghar Ki
Kabhi Saas Bhi Kabhi Bahu Thi
Kasauti
Son Pari
Kahin Kissi Roz
Top 5 serials (2003)
•
•
•
•
•
Kyunki Saas Bhi Kabhi Bahu Thi
Kahani Ghar Ghar Ki
Kasauti Zindagi Ki
Des Mein Nikla Hoga Chand
Jassi Jaise Koi Nahin
Top 5 channels preferred
•
•
•
•
•
Star Plus
Sony
Zee
Regional
Doordarshan
Top 5 Revenue earning channels
(2005)
•
•
•
•
•
Zee Telefilms – 1360 cr
Star India – 1300 cr
SET India – 1000 cr
Doordarshan – 665 cr
Sun Network – 300 cr
Top 5 revenue earning Channels
General Entertainment(2005)
•
•
•
•
•
Doordarshan
Star Plus
Sun TV
Gemini TV
Zee Cinema
Top 5 revenue earners in
News channels (2005)
•
•
•
•
•
DD News
Aaj Tak
NDTV India
Star News
Zee News
Channel categories preferred
•
•
•
•
Movies
News
Sports
Music
What does the future hold?
TV and C& S
• Fragmentation of viewership
• DD will counter this with more private
participation
• Satellite TV will provide further growth
impetus through regional /niche channels
Press Readership
(%)
Language
Dailies
Magazines
Total
English
7
16
15
Hindi
45
40
41
Vernacular
48
44
44
Print Penetration (NRS 2003)
Across SEC
Penetration %
Urban
46
SEC A
85
SEC B
69
SEC C
51
SEC D
33
SEC E
17
Publications
• There are over 40000 publication being
printed.
• 85% of these are language publications
Readership
(%)
Publications Total
Male
Female
Dailies
32
44
18
Magazines
18
23
13
Any
34
Publication
46
21
English vs. language (2000)
• Among the dailies, the first 8 are vernacular.
TOI comes 9th.(TOI is now No.3)
• Among the magazines, INDIA TODAY is
2nd. All other nine publications are
vernacular.
Print - NRS 2003
• TOI is No.3 in the top 10 publications. The first
two are vernacular – Dainik Bhaskar and Dainik
Jagran (DJ is now No.1 – 2.2 crores circulation)
• Among the English Dailies, TOI, HT and The
Hindu are the top 3. For the first time an afternoon
daily, Mid-day is No.8 in the top 10 dailies.
• ET is the only business paper to make it to the
English top 10 at No.6.
The future
• Had to pull up its socks, Satellite TV was
hitting it. Had to resort to better analysis,
packaging, layout.
• Reshaping – layout , colour, spl. Issues,
local editions
• Aggressive Marketing – invitation pricing,
freebies, subscription drives
Cont’d
• Segmentation
Interest groups – eg.men, women
Content based – business, sports, fashion
• Pampering the reader – visual quality,
features
Vision
• Current – monopolies weakening, niche
publications
• Future – further fragmentation, press barons
entering radio /TV, innovate beyond space with
advertorials, promotion events, sponsorships
• Exploit emerging opportunities in cross media
ownerships
Implication – striking cross media deals,
leveraging spends
Radio
• State run – among the largest in the world
• 3 tier broadcasting system – local, regional,
national
• Programming in 24 languages and 146
dialects
What is the present status?
• Reaches a very large audience.
• A very important vehicle for the rural
market
• Impact however has been going down
because of TV.
Future
• Huge resurgence because of FM.
• Mobile audience
• Large media groups and channels entering
the fray.
• Local ethnic stations to spring up
• 70% of non TV HHs do not own radio or
have access to radio. Huge potential for
growth.
Cinema
• Current status
Reach going down owing to theatre viewership
going down. However, South is the only exception
where cinema is next to TV in reaching audiences.
• Future – High impact but stagnant medium.
a small revival is expected in
larger cities with multiplexes and better
viewing facilities.
Outdoor
• Is still relatively unorganised
• Heavy usage for liquor and cigarettes
• Lack of monitoring services
Technology is showing the way
•
•
•
•
Hand painting to digital painting
Metal to paper to PVC/vinyl
Illuminated sites – frontlit/backlit
Vinyls to lenticulars (lustrous)
INTERNET
• Net advertising comprises only 0.5 % of the
total adspend of the industry.
• Likely to grow upto 3.7% in year 2005
Internet usage
• Major uses from Internet
1) e – mail 37% now 32%( inclusive of
surfing)
2) chatting 15% (now 32% )
Time spent on the Internet
Base
(million)
All
Cybercafe
Home
Office
62.5
21.2
(32)
15
20.3
21
21.0
(30)
19
1.3
1.8
0.6
Avg. times 20
accessed/
month
Avg. no. of 1.2
hours/day
Media access for the average
consumer
•
•
•
•
•
Cinema – 5 visits/year
Press – 22 min/day
TV – 64 min/day
Radio – 17 min/day
Outdoor – 15 panels /day
Media knows no boundaries; it is
no longer constrained by
traditional choices