2014 buoyantbuoyant fantastic 2014/13 2013 2014 at par with our earlier forecast
TRANSCRIPT
2014 Buoyant
2014 Fantastic
2014/13
16.4%+31,877 cr
2013
37,104 cr2014
At par with our earlier forecast
MAIN CONTRIBUTORS TO GROWTH IN 2014
Elections 2,300 cr 7.2%
E-commerce 1,150 cr 3.6%
Existing categories 1,777 cr 5.6%
TOTAL 5,227 cr 16.4%
What’sOur
Growth Forecast?
2013 Lucky 13
2014 Fantastic2015 Bullish
2015/14
9.6%+37,104 cr
2014
40,658 cr2015
27.5%+Over 2 years
2015/14
9.6%+37,104 cr
2014
40,658 cr2015
• Biggest cricketing event ICC World Cup is expected to earn a revenue of under Rs 1,000 cr– Rs. 500 crores is likely to be additional,
balance as part of organic growth across sectors
WHY 9.6%
• Other contributing factors to growth: – New advertisers – Separate sales of HD channels– Facility of Geo targeting ads will attract more, local and
retail advertisers on TV– New channel launches from existing networks– Further push by E-commerce companies and mobile and
social apps– Spends on Assembly elections in Delhi and two other
states– Increased government spending on print– Launch of phase 3 in Radio expansion
WHY 9.6%
Spends in INR crores
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
939410444
12036
14662
17976
2138219470
24898
2728228694
31877
37104
40658
11.2
15.2
21.8 22.6
18.9
-8.9
27.9
9.6
5.2
11.1
16.4
9.6
A 13 year Review Growth Rates
Source: Pitch Madison Media Advertising Outlook 2015
6 billion
411 billion
+16.4% + 5.3%
US$
US$
Source: Warc, International Ad Forecast 2013/14 (October 2013)
India maintained its 12th position in global advertising market
US; 41.30%
Japan; 12.80%China; 10.70%
UK; 6.50%
Germany; 6.10%
Brazil; 4.70%
France; 3.90%
Canada; 3.70%
Australia; 3.70%
Russia; 3.00%Italy; 2.20% India; 1.40%
Source: Warc, International Ad Forecast 2014/15(December 2014)
US; 42.50%
China; 13.70%Japan; 9.30%
UK; 7.20%
Germany; 6.30%
Brazil; 4.50%
France; 4.00%
Canada; 3.20%
Australia; 3.00%
Russia; 2.50%Italy; 2.30% India; 1.50%
Source: Warc Consensus Forecast January 2015India figures as per Pitch Madison Media Advertising Outlook 2015
India was the fastest growing ad market in 2014 but has slipped to the second fastest growing market in 2015, just below China
Current prices, y/y % change
Country 2014 Russia 3.1 India 16.4 China 11.4 Brazil 12.7 UK 7.1 US 4.4 Japan 2.3 Australia 0.8 Canada 2.5 Germany 1.5 France -1.3 Spain 3.6
Italy -1.8
Global 5.3
20151.49.6
10.37.15.73.51.92.73.41.5-0.14.51.1
5.1
Source: Pitch Madison Media Advertising Outlook 2015
Press41.2
TV38.2
Digital10.7
Outdoor6.0
Radio3.5
Cinema0.5
Rs. 37,104 crores
Print widens gap with TV and is the largest contributor at 41.2%
Digital – the only medium to gain share
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
0.0
10.0
20.0
30.0
40.0
50.0
60.0
TV Press Radio Cinema OUTDOOR Digital
Source: Pitch Madison Media Advertising Outlook 2015
Digital Share greater than combined share of OOH + Radio + Cinema
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
9.8 10.2
10.0
9.7
0.7
9.6
10.7
12.6Others – OOH + Radio + Cinema
Digital
Source: Pitch Madison Media Advertising Outlook 2015
% increase in 2014 and 2015Highest growth expected in Digital
TV Press Outdoor Radio Internet Cinema
1416
13
17
30
1010
5 6 6
29
9
14,15815,503
15,27416,086
2,2332,371
1,2851,362
3,9705,135
184201
20142015 P
20142015 P
Source: Pitch Madison Media Advertising Outlook 2015
TELEVISION
TV Trend over the yearsTV has grown at the rate of 14% and will grow by 9.5%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
4104 43505003
600071108318.699999999
988492
10530.0811477.787211477.7872
12418.9657504
1415815503.01
Source: Pitch Madison Media Advertising Outlook 2015
Contribution by TV Genres by spendsHindi GEC contributes nearly 27% of the overall TV revenue and
continue to remain the leader of the pack
Source: Pitch Madison Media Advertising Outlook 2015
TV Genres Contribution 2013 2014Hin GEC 28.2% 27.0%TN CS 7.2% 8.5%
Hin News 8.0% 7.6%Eng News 5.9% 5.8%
AP CS 4.6% 5.2%Hin Mov 5.6% 5.1%Mah CS 4.4% 4.6%Sports 3.9% 4.4%
Info 4.2% 4.1%Kids 4.3% 3.9%
Kan CS 4.1% 3.7%Music 3.7% 3.4%Ben CS 2.3% 3.3%
Eng Mov 3.4% 3.3%Ker CS 2.9% 3.0%
Eng Ent 2.5% 2.7%DD 2.6% 2.6%
Other Regionals 1.9% 1.4%Others 0.3% 0.6%
2012 2013 2014
FMCG 54.4 56.6 53.3Telecom/Digital/ Ecommerce 9.4 10.3 13.6Auto 6.0 7.5 7.2BFSI 4.3 3.8 3.8Clothing Fashion Jewellery 3.7 3.5 3.2
Real Estate & Home Improvement 3.7 3.6 3.1
Contribution of Top categories by spendsFMCG continues to dominate TV
Source: Pitch Madison Media Advertising Outlook 2015
Total FCT grows by over 18%
2006 2007 2008 2009 2010 2011 2012 2013 20140
200
400
600
800
1000
1200
1400
1600
21.00
21.50
22.00
22.50
23.00
23.50
24.00
300401
512
671
822
9481038
1164
1379
22
23 23
2323
23 23
24 24FCT (Mil sec) Avg Dur (sec)
* FCT excludes channel promosSource : TAM, Adex
FCT on similar channels of 2013 grows by 6.4%Avg Dur has remained constant at 24 in 2014
Marginal increase in TV Viewership in 2014
Source : TAM, Adex TG : 4 years+ Market : All India
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20145
6
7
8
9
10
11
12
10.2 10.3
9.79.9
9.3 9.39.5
9.9 10
10.5 10.6 10.7
10.0610.4
11.1
Any TVR
Print Trend over the yearsPrint grew 10% and expected to grow faster than TV
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj0
2000
4000
6000
8000
10000
12000
14000
16000
18000
43034961
57007000
8514
10050
8073
1048711509 11970
13167
1527416086
38774470
5119
6328
7837
9264
7448
958710359 10768
11905
1393614731
426 491 581 672 678 786 624 899 1150 1202 1262 1338 1355
Total Print Dailies Magazines
Source: Pitch Madison Media Advertising Outlook 2015
Total Space Consumed in Dailies decreased by 2%
* excludes in-house ads by DailiesSource : TAM, Adex
2006 2007 2008 2009 2010 2011 2012 2013 20140
50
100
150
200
250
300
350
30
32
34
36
38
40
42
44
46
168 158177
199231
272288 316
31044
45
32
4241
4242
4345
Space Consumed ( Million Cc ) Avg Size (cc)
Contribution by languages in Dailies in terms of Volume CC
Hindi Dailies continue to be ahead of English Dailies
Source: Pitch Madison Media Advertising Outlook 2015
Languages Contbn Contbn GrowthHindi 36% 35% -3%
English 24% 24% -4%
Marathi 8% 9% 9%
Tamil 8% 7% -13%
Telugu 7% 7% 0%
Gujarati 5% 5% 3%
Kannada 4% 4% 8%
Malayalam 4% 3% -9%
Oriya 2% 3% -1%
Bengali 1% 1% 3%
Assamese 1% 1% -4%
Punjabi 1% 1% -7%
Dailies 2013 2014 2014/13
Product Catg 2012 2013 2014
FMCG 10.4 12.3 13.6 Auto 11.4 11.7 11.9 Education 10.6 9.7 9.4 Real Estate/ Home Improvement 8.6 8.7 8.1 Clothing / Fashion / Jewellery 7.1 6.1 6.1 Retail 5.8 5.7 5.3
Contribution of Top CategoriesFMCG, Auto & Education - the 3 lead Categories
Source: Pitch Madison Media Advertising Outlook 2015
Hindi Dailies continue to overtake English Dailies in 2014
2009 2010 2011 2012 2013 20140%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
49 48 45 39 36 35
26 27 31 35 38 38
25 25 24 26 26 27
% Share of Print Spends
English Hindi Others
Source: TAM, Adex
RADIO
Radio rings in 17% growth on the back of Lok Sabha & Assembly elections
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
0
200
400
600
800
1000
1200
1400
1600
125 150 200285
480
662.4680.8928
885.16064902.863852799
998929.949768383
997
1097
12851362
Source: Pitch Madison Media Advertising Outlook 2015
Product Catg Contbn Contbn GrowthReal Estate & Home Improvement 12% 12% 10%FMCG 13% 12% -3%Telecom/Digital/ Ecommerce 8% 9% 34%BFSI 8% 8% 4%Media 6% 7% 31%Auto 5% 6% 34%Retail 6% 5% -3%Clothing Fashion Jewellery 5% 5% -1%Travel & Tourism 5% 5% -1%HH Durables 3% 3% 8%Education 4% 3% -1%Election - Political Ads 1% 3% 160%
Contribution of Top Categories by spendsReal Estate & Home Improvement sector continue to lead the pack
contributing to 12%
Source: Pitch Madison Media Advertising Outlook 2015
Radio 2013 2014 2014/13
CINEMA
Cinema has grown by 10.4%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
0
50
100
150
200
250
19 23 3255
105
129
103118
140151
167184
201
Source: Pitch Madison Media Advertising Outlook 2015
OUTDOOR
Both Transit Media & Traditional OOH Media has grown by more than 12% boosting Outdoor growth to 13%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
0
500
1000
1500
2000
2500
773860
9461087
1417
1752
1419
18481717
18621977
22332371
727800
8701000
12751419
1135
14411297 1323 1363
15451622
46 60 76 87 142
333 284407 420
539614
688 749
Total OOH Outdoor Transit Media
Source: Pitch Madison Media Advertising Outlook 2015
DIGITAL
Display grows by 48% & Search increases by 36%
Overall Digital continued its strong contribution and grew by over 30%
Source: Pitch Madison Media Advertising Outlook 2015
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj
0
1000
2000
3000
4000
5000
6000
70 100 155 235 350 470703
10301535
2303
3050
3970
5135
Digital Display Search
Source: Pitch Madison Media Advertising Outlook 2015
Our Advise
to
Advertisers
FOCUS ON EFFECTIVENESS
1
Not efficiency !
2
EXPERIMENTFail often, Fail fast! Should be our mantra
MEDIA CAN MOVE MOUNTAINS
3
But don’t under resource your campaigns
4PRIORITIZE MARKETS SHARPLYDon’t Underspend in Any Market
CORNER ROOM ATTENTION REQUIRED
5
Senior Management Must Spend More Time With Media Agency Leaders If They Want More Out Of Media
THANK YOU