MEDIA SCENE IN INDIA AND FUTURE TRENDS

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MEDIA SCENE IN INDIA AND FUTURE TRENDS
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Media buying agencies

• Agency of record (AOR)
• Central Media Buying (CMB)

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Media Purchases thru Media Buying Agencies

• 1980 1
• 2000 25
• 2006 33 (likely)

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4 out of 10 Indians are still not reached even
today
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Every 100 kilometers the dialect changes
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A country with many tongues

• 16 official languages
• Approx. 1000 dialects

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Geographical size

• 7th largest area mass
• Population/ Area mass India is No.1
• In comparision even USA is No.4

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Media target

• 15 million people are being added every year
• 5 14 age group 26 population
• lt 30 yrs - 70

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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.

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Market Penetration is far higher than media
penetration
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Growth of Media Expenditures

• 1994 Rs. 3500 crores
• 2000 Rs 9000 crores
• 2005 Rs 16000 crores

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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
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Types of Media used

• TV
• Press
• Radio
• Cinema
• C S
• Internet

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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
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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
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Top 10 brands 2004 BE

• Ponds
• Fair and Lovely
• Brittania
• Vicks
• Bata

• Colgate
• Lux
• Rin
• Dettol
• Tata salt

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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
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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 OM 4 3 Ponds (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)
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Media Reach (2000)()
Media Urban Rural
TV 79 40
Press 58 15
Cinema 29 14
Radio 18 19
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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
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Media Penetration NRS 2003
Media All India Urban
Print 25 46
TV 53 80
CS 20 46
Radio 22 25
Cinema 7 11
Internet 1
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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
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HH owning TVs
owned 1998 2000
1 97 96
2 3 4
3 0 1
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TV ownership (million)
1995 1998 2000
Total HH 159 174 180
TV owning HH 42.5 54.5 61.5
27 31 34
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Top 5 programmes in CS channels (2000)

• Kahani Ghar Ghar Ki
• Kabhi Saas Bhi Kabhi Bahu Thi
• Kasauti
• Son Pari
• Kahin Kissi Roz

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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

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Top 5 channels preferred

• Star Plus
• Sony
• Zee
• Regional
• Doordarshan

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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

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Top 5 revenue earning Channels General
Entertainment(2005)

• Doordarshan
• Star Plus
• Sun TV
• Gemini TV
• Zee Cinema

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Top 5 revenue earners in News channels (2005)

• DD News
• Aaj Tak
• NDTV India
• Star News
• Zee News

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Channel categories preferred

• Movies
• News
• Sports
• Music

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What does the future hold?
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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

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Press Readership()
Language Dailies Magazines Total
English 7 16 15
Hindi 45 40 41
Vernacular 48 44 44
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Print Penetration (NRS 2003)
Across SEC Penetration
Urban 46
SEC A 85
SEC B 69
SEC C 51
SEC D 33
SEC E 17
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Publications

• There are over 40000 publication being printed.
• 85 of these are language publications

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Readership()
Publications Total Male Female
Dailies 32 44 18
Magazines 18 23 13
Any Publication 34 46 21
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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.

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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.

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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

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Contd

• Segmentation
• Interest groups eg.men, women
• Content based business, sports, fashion
• Pampering the reader visual quality, features

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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

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Radio

• State run among the largest in the world
• 3 tier broadcasting system local, regional,
  national
• Programming in 24 languages and 146 dialects

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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.

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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.

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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.
  

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Outdoor

• Is still relatively unorganised
• Heavy usage for liquor and cigarettes
• Lack of monitoring services

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Technology is showing the way

• Hand painting to digital painting
• Metal to paper to PVC/vinyl
• Illuminated sites frontlit/backlit
• Vinyls to lenticulars (lustrous)

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INTERNET

• Net advertising comprises only 0.5 of the total
  adspend of the industry.
• Likely to grow upto 3.7 in year 2005

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Internet usage

• Major uses from Internet
• 1) e mail 37 now 32( inclusive of
  surfing)
• 2) chatting 15 (now 32 )

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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
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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

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Media knows no boundaries it is no longer
constrained by traditional choices