introduction · 2018-10-25 · maharashtra, durga puja / navratri / dussehra celebrated across the...
TRANSCRIPT
TV in India remains the most penetrated medium at 66% and with 100 Mn householdsyet to own a television it will only soar further. The year on year growth is seen acrossviewership – content and ads; as well as across the number of advertisers and brandswooing these growing viewers.
While spikes in viewership could be n fuelled by unplanned happenings & topicalevents, there are special events where television plays the role of a commonentertainer for the entire family where collective television viewing by the familymembers becomes a part of the festivities. Broadcasters on their part, make these daysattractive for the viewers through compelling and clever programming and scheduling.Increase in viewers results in increase in advertisers as well.
As we step into the festive season, we aim at decoding the advertising juggernautthrough this edition of THiNK and shed some light on how the viewers and advertisersevolved during festivals especially in the high decibel festival season from September toDecember.
Introduction
Index
1. TV Growth Story
2. Quantum of advertising in the core festive season: Sep- Dec
3. Advertising Categories landscape
4. Year-on-Year viewership on festival days
Summary
Television viewership has been rising over the last 3years. The average weekly viewership of ads in India isgrowing steadily each year as well. From 2016 to 2018,the advertising impressions has increased by aphenomenal 45% from 521 Billion to 755 Billion with2018 yet to witness its festive season. For the Jan to Aug2018 period the average ad duration stands at 31 millionper week, taking the total advertising volume to 1.07 Bnfor the same period.
22 Bn.
27 Bn.
30 Bn.
25 Mn.
27 Mn.
31 Mn.
521
654
755
0
100
200
300
400
500
600
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800
20
22
24
26
28
30
32
2016 2017 2018 (till Aug)
Year-on-Year growth in TV Viewership, Normalised Ad Imp & Ad Duration
Avg Wkly TV Imp. (Bn.) Avg. Wkly Ad Seconds (Mn.) Avg. Wkly Nor. Ad.Imp (Bn.)
TV Impressions are split into 30 mins and aggregated for each weekAd Impressions are Normalised to 10 seconds
Year-on-Year growth in TV Viewership, Normalised Ad Imp & Ad Duration
The peaks in advertising coincides with planned tent pole events – be it related to sports ornational interest topics like budget and elections, or with the festive season.
Here in this newsletter we deep dive into the happenings in the festive season.
This growing viewership has seen endorsement from the advertising fraternity as well, withaverage weekly advertising volume clocking 31 million seconds from January to August 2018.The trend line for the last 36 months plotted against the monthly advertising volume is alsoon a growing trajectory.
80
90
100
110
120
130
140
150Monthly Advertising on the riseMn. Seconds
Impact of GST
Monthly Advertising Duration
Impact of Demonisation
A weekly break up of the quantum of advertisingjuxtaposed with the festivals celebrated in the land offestivals – India, reveals more intricacies.India is a land of diversities and this diversity reflects in theway we Indians celebrate festivals too. Some are longer,bigger, brighter, high on fun quotient while others are a tadsubtle. We observe that distinct trends in terms ofquantum of advertising as well as viewership emergedepending on various factors like the duration of aparticular festival or whether it is celebrated indoors oroutdoors with family and friends. The chart below attemptsto bring alive the impact of individual festivals onadvertising.
Daily Advertising duration in Hours
Impact of festivals on Weekly Advertising Duration
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Ad Duration (Hours)
Republic Day
Sankranti/Pongal
Holi
Ugadi/GudiPadwa
Vishu
Id-ul Fitr
Independence Day
Ganesh Chaturthi
Janmasthtami
Diwali
Onam
Dusshera
Christmas
New Year’s Eve
Sankranti/Pongal
Republic Day
Holi
Vishu
Id-ul Fitr
Independence Day
Ganesh Chaturthi
Janmasthtami
Onam
Dusshera
Diwali
Christmas
New Year’s Eve
Sankranti/Pongal
Republic Day
Ugadi/GudiPadwa
Vishu
Id-ul Fitr
Holi
Independence Day
On further look at the advertising volume during some ofthe important festivals celebrated through the years, we findthat a few festival days always have more ads than the rest.Festivals which are celebrated at home, with family gainmore ad duration than the ones which are celebratedoutside of home.In the previous chart, it is established that festivals form apart of India all through the year, but the September toDecember period is the euphoric period for Indians whenmost festivals are celebrated. There is Ganesh Chaturthi inMaharashtra, Durga Puja / Navratri / Dussehra celebratedacross the country, also Diwali & Christmas which have anadditional bonus of kids’ vacations in most parts of India.There is a culture of buying new things, gifting to family andfriends and communication on latest offerings, deals et alare welcomed by consumers in these festive months. Theadvertisers love this spending period and loosen their pursestrings too.
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1 44
2 51
1
2015 2016 2017
Quantum of Advertising : Sep to Dec
Advertising duration in Mn. Seconds
In the September to December period, the year on yeargrowth is in double digits and stands at 13% and 15% for2016 and 2017 respectively.
The core festival season in India
109 115
111128
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2016 2017
Average Monthly Quantum in Festive season higher vis-à-vis the pre festive season
Pre-festive Period Festive Period
15% growth
6% growth
Pre-festive period : Jan to Aug & Festive period : Sep to Dec
The growth rate of advertising volume in the festive periodmore than double for the earlier part of the calendar year :15% in the festive period as compared to 6% in the prefestive period. So while advertising grows annually, theaccelerated growth is witnessed in the Sep to Dec period.
The difference in the average monthly volume of advertisingbetween these two period is more pronounced in 2017where festive period sees 11% higher average monthlyvolume vis-à-vis the pre festive period clocking 128 Mnseconds & 115 Mn seconds respectively.
Advertising
volume -
Mn. Seconds
While there is overall growth in advertising during the festive season, the growth differs acrossregions. The chart below depicts the growth rate of advertising volume across channelsclassified basis languages.
Bangla channels in the 2017 festive season have grown at 3 times the pace of growth in theprevious year. Leading national broadcasters have upped their investments in the south zonewhere content is driven by language. Also factors like , near total electrification leading tovery high television penetration accompanied by quality content and strong platforms hascontributed to growing viewers in the southern states. This has led to accelerated growth inadvertising volume in these states.
0%
10%
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BANGLA KANNADA TAMIL TELUGU
Year-on-Year Growth in Ad Duration by Channel Languages -Sep to Dec
% Inc. in 2016 % Inc. in 2017
Year-on-Year Growth in Ad Duration by Channel Languages -Sep to Dec
In addition to the quantum there are more categories joining the advertising bandwagon in thefestive season with 26 new categories being added from 2015 to 2017. Both advertisers andbrands have also gone up by 18% from 2015 to 2017 in this period.
5697 6033
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2015 2016 2017
Growth in Categories, Advertisers & Brands Year-on-Year : Sep- Dec
# Advertisers # Brands # Categories
Year-on-Year Growth in Categories, Advertisers & Brands : Sep – Dec
YearTop 10 Categories
(Ad Duration in Mn. Seconds)
% Contribution to Total Ad Duration
% Growth over LY
2015 117 30%
2016 141 32% 21%
2017 150 29% 6%
Period : Sep to Dec
Performance of the Top 10 categories
We have seen the positive impact of festive season on the advertising volume on television,now let’s delve deeper into which categories impact this phenomenon.
The top 10 categories maintain their contribution at ~30% year-on-year over the last 3 years.Social Ads by Government, Online Shopping, Tooth Pastes, Toilet Soaps and Film Trailers haveconsistently featured in the Top 10 categories across the 3 years.
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Social Ads -Govt
Film Trailers Toilet Soaps TelecomService
OnlineShopping
WashingPowders /
Liquids
Tooth Pastes Milk & MilkProducts
Shampoos Chocolates
Top 10 categories in Sep - Dec 2016Ad Duration in Mn.
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1312 11
10 109 9 9
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Social Ads -Govt
OnlineShopping
Toilet Soaps TelecomService
Chocolates Auto - TwoWheelers
Auto -Cars/Jeeps
Tooth Pastes Perfumes /Deos
Film Trailers
Top 10 categories in Sep - Dec 2015Ad Duration in Mn.
Dropped vis-à-vis last year Increased vis-a-vis last year New Entrants vis-à-vis last year
Near 100% growth over 2015
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Social ads-Govt
Toilet Soaps Film Trailers WashingPawders /
liquids
Tooth Pastes Shampoos OnlineShopping
Jewellery Milk & MilkProducts
Auto-Cars /Jeeps
Top 10 categories in Sep- Dec 2017Ad Duration in Mn.
Dropped vis-à-vis last year Increased vis-a-vis last year New Entrants vis-à-vis last year
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OnlineShopping
TelecomService
Chocolates Auto -Cars/Jeeps
Auto - TwoWheelers
InternetServices
Cell Phones Jewellery Paints ConsumerDurables
2015 2016 2017
Performance of Categories consumed in the festive season
Ad Durationin Mn.
Online shopping, auto, telecom and chocolates sector continue to be the mainstays of thefestival season. Contribution of categories like Internet Services, jewellery, paints grow overthe years. Jewellery emerged as the close second category for the 2017 festive season, justbelow online shopping. Online shopping portals now advertise all around the year and hencehave reduced dependency on the festive season alone. Consumer durables maintains statusquo with not much movement in advertising seconds across all years.
Advertising volume in festive season : Sep to Dec
With more and more advertisers jostling for the viewers’ eyeballs, mind space and attention thefestive season witnesses more and more action across years and the contribution from the usualsuspects of festive advertising is reducing over the years.
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Monthly break up of advertising volume in festive season
Online Shopping Telecom Service Chocolates
Auto - Cars/Jeeps Auto - Two Wheelers Internet Services
Cell Phones Jewellery Paints
Consumer Durables Total Advertising
Ad Duration in Mn.
Interplay of advertising and promo time on channel FCT
What’s interesting to note is the play between the volume of advertising seconds and volumeof channel promotions. While the combined volume from advertising and promotions rangefrom 9.5% to 10.1% in the Jan -Aug period and Sep-Dec period across 2016, 2017 and 2018;the share of channel promotions went higher in the post demonetisation period toaccommodate the slight slump in advertising volume.
As we have seen in the earlier charts the advertising volume has risen steadily in the festiveperiod – September to December. The broadcasters use this period for announcing specialprogramming, blockbusters, festival omnibuses in addition to the regular programme line up.
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
Sep to Dec 2015 Pre Sep Sep to Dec 2016 Pre Sep Sep to Dec 2017 Pre Sep
Effect of festive season on ads and promo share
Ads as % to Broadcast time Promos as % to Broadcast time
Where are viewers coming from?
Having looked at the advertiser appetite for the festive season, we now set to explore theviewership on festival days.
The first stop is the region wise contribution to festivals celebrated in the Hindi speakingmarkets across the year.
Maharashtra, UP / Uttarakhand followed by Guj /D&D / DNH and MPCG and are the biggestcontributors to viewership on festival days.Festival viewership is on the rise in 2018 ascompared to 2017. For 2018, Holi andJanmashtami viewership in HSM markets haveincreased by 19% and 29% respectively.
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Regionwise contribution on festival days : HSM
Assam / North East / Sikkim Bihar/Jharkhand Delhi Guj / D&D / DNH
Mah / Goa MP/Chhattisgarh Odisha Pun / Har / Cha / HP / J&K
Rajasthan UP/Uttarakhand West Bengal
HSM Impressions in Mn.
Hindi is the most preferred choice in the Hindi speaking markets on festival days too with over70% viewership coming from Hindi channels. But with the growing advent of regionalchannels, improvement in programming quality and television penetration growing in thebottom of the pyramid, there is an increased focus on regional language channels. The chartbelow gives the language break up of viewers on festival days in the Hindi speaking markets –Hindi has not been included in the chart.
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Languagewise contribution to festivals : HSM
ASSAMESE BANGLA BHOJPURI ENGLISH GUJARATIMALAYALAM MARATHI Multi Language ORIYA PUNJABITAMIL TELUGU URDU KANNADA
Marathi & Bangla channels stack up next in viewership after Hindi channels. The multi feedchannel strategy led by the kids’ genre seems to be working, we have also seen that kidsviewing increases on festivals as most schools are shut and kids are at home on these days.Share of English channels on festivals drops over the years.
• Television Viewership is on the rise for both content as well as ads.
• Advertising volume has grown consistently over the last 3 years andstands at 1.07Bn Seconds for the Jan-Aug 2018 period; up 16% forthe same period last year.
• Both, quantum of television advertising as well as televisionimpressions increase on festivals.
• Potential of the festive period is noticed by heavy weights oftelevision categories like government led social ads and CPGcategories like toothpastes and toilet soaps: and consistently featurein the top 10 categories advertised across three years from 2015 to2017.
• Categories catering to self-consumption like smart phones growingat a faster rate as compared to household led consumptioncategories like consumer durables.
• Kids’ viewership goes up on festivals on the back of schools beingclosed and kids spending time watching television.
• While Hindi channels have lion’s share in HSM viewership –contribution from regional channels is growing, this impact can beseen on festival days too.
Summary
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