MEDIA SCENE IN INDIA AND FUTURE TRENDS

Media buying agenciesAgency of record (AOR)Central Media Buying (CMB)

Media Purchases thru Media Buying Agencies1980 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 tongues16 official languagesApprox. 1000 dialects

Geographical size7th largest area massPopulation/ Area mass India is No.1In comparision even USA is No.4

Media target15 million people are being added every year5 14 age group 26% population< 30 yrs - 70%

Rural Urban Divide20 to 30 % of the population, with the urban % growing every year39% 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 Expenditures1994 Rs. 3500 crores2000 Rs 9000 crores2005 Rs 16000 crores

Time spent on Media

Types of Media used TVPressRadio CinemaC & SInternet

Share of expenditure by media (%)

Top ad spends by category (rank)

Top 10 brands 2004 BEPondsFair and LovelyBrittaniaVicksBata

ColgateLuxRinDettolTata salt

Top 10 Advertisers

Top Trusted Agencies 2004 BE

Media Reach (2000)(%)

Media Reach (2000 2005)

Media Penetration NRS 2003

Share of Adspend by media (%)

% HH owning TVs

TV ownership (million)

Top 5 programmes in C&S channels (2000)Kahani Ghar Ghar KiKabhi Saas Bhi Kabhi Bahu ThiKasautiSon PariKahin Kissi Roz

Top 5 serials (2003)Kyunki Saas Bhi Kabhi Bahu ThiKahani Ghar Ghar KiKasauti Zindagi KiDes Mein Nikla Hoga ChandJassi Jaise Koi Nahin

Top 5 channels preferredStar PlusSonyZeeRegionalDoordarshan

Top 5 Revenue earning channels (2005) Zee Telefilms 1360 crStar India 1300 crSET India 1000 crDoordarshan 665 crSun Network 300 cr

Top 5 revenue earning Channels General Entertainment(2005)DoordarshanStar PlusSun TVGemini TVZee Cinema

Top 5 revenue earners in News channels (2005) DD NewsAaj TakNDTV IndiaStar NewsZee News

Channel categories preferredMoviesNewsSportsMusic

What does the future hold?

TV and C& SFragmentation of viewershipDD will counter this with more private participationSatellite TV will provide further growth impetus through regional /niche channels

Press Readership(%)

Print Penetration (NRS 2003)

PublicationsThere are over 40000 publication being printed.85% of these are language publications

Readership(%)

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 2003TOI 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 futureHad to pull up its socks, Satellite TV was hitting it. Had to resort to better analysis, packaging, layout.Reshaping layout , colour, spl. Issues, local editionsAggressive Marketing invitation pricing, freebies, subscription drives

ContdSegmentation Interest groups eg.men, women Content based business, sports, fashionPampering the reader visual quality, features

VisionCurrent monopolies weakening, niche publicationsFuture further fragmentation, press barons entering radio /TV, innovate beyond space with advertorials, promotion events, sponsorshipsExploit emerging opportunities in cross media ownerships Implication striking cross media deals, leveraging spends

RadioState run among the largest in the world3 tier broadcasting system local, regional, nationalProgramming in 24 languages and 146 dialects

What is the present status?Reaches a very large audience.A very important vehicle for the rural marketImpact however has been going down because of TV.

FutureHuge resurgence because of FM.Mobile audienceLarge media groups and channels entering the fray.Local ethnic stations to spring up70% of non TV HHs do not own radio or have access to radio. Huge potential for growth.

CinemaCurrent 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.

OutdoorIs still relatively unorganisedHeavy usage for liquor and cigarettesLack of monitoring services

Technology is showing the wayHand painting to digital paintingMetal to paper to PVC/vinylIlluminated sites frontlit/backlitVinyls to lenticulars (lustrous)

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

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

Time spent on the Internet

Media access for the average consumerCinema 5 visits/yearPress 22 min/dayTV 64 min/dayRadio 17 min/dayOutdoor 15 panels /day

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

Radio decreasing but now increasing with FMCinema decreasing except in the SouthOverwhelming presence of Balaji Telefilms