Financial Daily from THE HINDU group of publications
Thursday, Feb 03, 2005
Financial Daily from THE HINDU group of publications Thursday, Feb 03, 2005 |
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Catalyst
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Advertising Marketing - Insight Bookmarks from 2004! Atul Phadnis
Ad industry grew the fastest in the last three years. Large volumes of growth came from the unorganised sectors.
The worst, it seems, is over. Reflecting the upbeat mood of the overall economy, the ad industry this year has grown by 13.4 per cent, up from 9.5 per cent last year.
The year ended with the ad industry being worth Rs 11,800 crore (as per industry estimates compiled by AdEx India). Interestingly, however, the growth has come from sectors largely unorganised and localised as is explained later. Hence, it's quite possible that the Mumbai- and Delhi-based advertising agencies did not actually see that money pass through their hands.
Print's growing faster than TV!
After losing share to television for years due to TV's faster growth rate, the print medium seemed to be holding out in 2004. Print grew faster than television, just managing to pip the electronic broadcast media by a whisker. With 46 per cent of the Rs 11,800-crore ad pie, print continues its lead over TV (41 per cent), Outdoor (7 per cent), cinema (3 per cent), Radio (2 per cent) and Internet (0.5 per cent).
Retail, elections, education, tourism and realty boost Press fortunes
It's an uncanny twist of fate that there have been five or six key sectors that boosted Press in 2004 and that none of these sectors really are known to favour television or the organised ad agencies. As a result while Press has reaped the benefits during this boom time, the organised media industry was largely oblivious to these goldmines' discovery!
A category such as `Display-Retail Shops' has moved up from the 115th Rank to Rank 11! Similar is the case for `Vocational Training Institutes', `Professional Services' and `Public Issues.'
General elections produce extraordinary viewership; Rail Budget sets new record
The run-up to the elections was fairly dull with news channels' viewership share remaining stagnant at 6-7 per cent.
The India Shining campaign had been talked about for six months and viewers assumed a particular result. But the final results that came in on the counting day left everyone in shock and viewership rose to record highs as the number of viewers on news channels doubled. Time spent watching news channels rose by five times. Share for news channels quadrupled.
The UPA's victory was not the only political event that propelled viewership or created a record!
From a more anecdotal standpoint, Laloo's maiden Rail Budget in 2004 in Parliament recorded a steep rise in viewership to the extent of 72 per cent, indicating the sensitiveness of viewership during events as well as the power of the personality.
India-Pakistan cricket series
This was a dream come true for the advertisers that participated in the tournament. Viewership levels were expected to be high but with a splendid performance by both teams in a tightly-fought one-day series, the ratings continued their bull run!
Music channels get into the soap-making industry; reality shows stage a smart comeback
Cross-overs and experimentation are increasingly the buzzwords in the television industry these days. Music channels launching soaps and serials, news channels into lifestyle shows and TV soap reviews - the experimentation continues unabated.
What's also heartening is that large-canvas gameshows and reality shows are again doing the rounds. Indian Idol, Cinestar Khoj and Supersinger contests are reality cum gameshows.
Viewer walk-ins for all these shows were fairly strong, indicating that there is an audience out there seeking these format shows.
Media stocks ride boom on bourses
Media stocks have been regularly featuring on the top performers' list on the stock exchanges reflecting the positive sentiment in the market place about their earnings as well as their future. What was also a significant development was that newer companies from the media world went public in 2004 and more are speculated to do so in 2005.
FMCG continues retreat from mass media
While some of the earlier highlights were largely positive for the media industry, now for some bad news ...
Fast moving consumer goods, which account for the bulk of TV advertising, once again cut spends across foods & beverages.
Personal care increased spends but by a below-industry average 9 per cent. The only exception was household care that increased TV-Press spends by 20 per cent.
The net effect: FMCGs reduced share in both TV (once at the 65 per cent mark, now down to 55 per cent) and print (only 9 per cent share).
Radio ad trends look healthy as Chennai and Delhi lead the way in garnering local advertising.
Slew of new channels in 2004; more expected in 2005
Lifestyle channels, entertainment channels, spiritual, travel, news, regional, kids - all the genres that one couldn't have thought of a couple of years ago are here! But 2005 is not going to be easy.
More than 50 channel launches already having been announced/ indicated, this year seems just as eventful! However, the newer channels coming in are complicating an already messy distribution game.
The stakes for these channels are getting high - being on the key frequencies that the cable operator gives out is resulting in a precarious squeeze.
The last year ended with a host of positive developments for the media industry. It has by far been the best year in the last three in terms of real growth. This year looks good in the backdrop of a good economic environment!
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