MEDIA SCENE IN INDIA AND FUTURE TRENDS.ppt

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 1%

• 2000 25%

• 2006 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 Rs. 3500 crores

• 2000 Rs 9000 crores

• 2005 Rs 16000 crores

Time spent on Media

2000 2001 2002 03-04 2005

Press (cr) 23.2 23.3 23.1 25.2 36.0

Time spent min 32 31 30 29 35

TV (cr) 33.3 34.3 35.0 37.0 38.6

Time spent min 113 110 112 108 106

Radio (cr) 12.2 10.5 10.1 13.8 15.3

Time spent min 64 63 66 80 80

Internet (cr) 0.3 0.5 0.8 1.2 1.2

Time spent min 65 65 66 58 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 3

Hair Oils 7

Fair creams 9 10

Mosq. Rep 10

Cell Phone Ser 8 5 6

Biscuits 10 8

Cell phones 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)

Colgate- Palmolive

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 JWT 5 7 Lux (2)

3 O&M 4 3 Pond’s (6)

4 TBWA 2 0 Zandu balm (16)

5 Rediffusion 1 1 Colgate (1)

6 Bates 1 1 Tata Salt (4)

7 Ambience 1 1 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 Urban

2000 2005

Rural

2000 2005

TV 79 (56) 83 (65) 40 (18) (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

Total HH 159 174 180

TV owning HH

42.5 54.5 61.5

% 27 31 34

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 Publication

34 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

All Cybercafe Home Office

Base (million)

62.5 21.2

(32)

20.3 21.0

(30)

Avg. times accessed/month

20 15 21 19

Avg. no. of hours/day

1.2 1.3 1.8 0.6

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