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8/10/2019 Pitch Madison Media Ad Outlook 2013
1/16
Pitch|February 20121
PRESENTS POWERED BY
VolumeIX
Issue
5|February2012
VolumeIX
Issue5|
February2012
50
Disappointing 2012Cautious 2013Disappointing 2012Cautious 2013
PRESENTS POWERED BY
Advertisers are expected to remain
frugal on ad spends in 2013 too, unless
the Union Budget springs some surprises
8/10/2019 Pitch Madison Media Ad Outlook 2013
2/16
Pitch|February 2012
PRINTREVIEW 2012
2
INTRODUCTION
18%
YEARLY SPENDS
GROWTH %
18%
18%
18%
18%
18%
Yesterday Once More
The year 2012 was largely tepid
for the media advertising indus-
try, where most verticals saw a
slowdown in growth and fell short of
projected targets. The only sunshine, so
as to speak, was provided by digital and
internet, which continued on its strong
growth trajectory and grew by over 50
per cent with display and search both
growing around 50 per cent.
As far as the industry is concerned,
one cant help but be reminded of The
Carpenters song, Its yesterday once
more, because just like 2011, the glob-
al economy in 2012 too, faced turmoil,
inflation remained high and the Rupee
continued its weak rally against the US
Dollar for most parts of the year. The
media advertising market in 2012 grew
by 5.2 per cent against a projected
growth of 7.5 per cent.
Television, the biggest media platform,
PMMAO 2013 expects the industry to register a cautious growth of 7.4 per cent,
slightly better than the growth achieved in 2012
2008 2009 2010 2011 2012 2013
-9%
19%
0
28%
10%
5.2%7.4%
21,382 Cr ` 19,470 Cr 24,898 Cr 27,282 Cr ` 28,694 Cr ` 30,809 Cr
ProjectedGrowth
Sam Balsara
Chairman & MD, Madison World
BySAM BALSARA
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 20123
PRESENTS POWERED BY
against a projected growth of 10 per
cent, remained flat and did not grow
in 2012. The absence of the ICC World
Cup, which had roped in revenues close
to` 750 crore in 2011 and the IPL failing
to garner in as much revenue as 2011,
were the major reasons why TV took a
hit in 2012. Thus, the figures fail to re-
flect the actual growth achieved by a lot
of channels.
Print, on the other hand, surprised
with a 4 per cent growth, as against a
projected negative growth, riding on the
back of strong growth shown by Hindi
and regional dailies and new editions.
However, English dailies, which contrib-
ute almost 50 per cent revenue of the
total newspaper advertising, registered
a de-growth. Magazine advertising im-
proved its overall contribution from 3.9per cent to 4.2 per cent to the overall ad
pie and maintained its 10 percent share
in the print pie.
The automobile sector continued to
increase its share in print spends with
an 11.4 per cent share compared to 9.8
per cent in 2011. However for TV, its
share declined to 6 per cent from 7.6 per
cent in 2011.
FMCGs share in TV and print went up
from 52.8 per cent to 54.4 per cent and
from 8.9 per cent to 10.3 per cent re-
spectively. FMCG continued to form the
backbone for the TV advertising industry.
For the first time since 2008, print
superseded TV to become the largest
contributor to the ad pie at 41.7 per cent
while TV was at 40 per cent. In 2008,
print had contributed 47 per cent, while
TV lagged behind at 39 per cent.
Cinema also disappointed with an 8
per cent growth against the projected15 per cent. The base for cinema con-
tinued to be low, with a meager contri-
bution of 0.5 per cent to the ad pie.
Conventional outdoor grew by only 2
per cent against a projected growth of
5 per cent. However, advertisers seemto have taken to transit media in a big
way with a 28 per cent growth against a
projected growth of 20 per cent and far
surpassing 2011s growth of 3 per cent.
So what is the road ahead for the me-
dia advertising industry? Will the slow-
down continue? Will the sentiments re-
main tepid? There is a lot that depends
on global economy and union budget
and advertisers would be watching it
closely and then try to de-mystify and
understand the nuances of it, because
it will surely have a telling on how 2013
pans out for them.
Pitch Madison Media Advertising
Outlook 2013is quite conservative and
not at all bullish. It expects the industry
to grow by 7.4 per cent, which actually is
less than the projected growth for 2012.
Some predictions for 2013:
TV is expected to grow well, because
of digitisation that will lead to more
spending on niche channel and TRAIs
regulation (10+2) which is likely to be
enforced informally, but more strictly,
which may have an inflationary effect
on TV rates.
For print, regional press is expected to
continue to grow at a faster rate than
English, as will revenues for special
and niche magazines.
A modest 4 per cent increase in radio
and a 10 per cent increase in cinema
is the forecast. In traditional outdoor,
a marginal 2 per cent growth is fore-
seen, however, transit media will con-
tinue to grow at 10 per cent. Digital will continue to grow strongly
and even on a substantial increased
base, achieved on the back of around
50 per cent year-on-year growth for the
last 9 years. It will still grow at a healthy
32 per cent, on the back of FMCG ad-
vertisers waking up to the interactive
medium and engaging power of digital.
TV
PrintRadio
Cinema
Outdoor
Internet
How the Ad Piesplit in 2012
TV, the biggest share-holder till 2011, lost its
share marginally, tolet Print become the
leader once again
40%
41.7%
3.2%
6.5%
8.0%
0.53%
FMCGs share in TV and print ad pies went up from
52.8% to 54.4% and from 8.9% to 10.3% respectively.
It continued to be the backbone for TV advertising
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 2012
PRINTREVIEW 2012
4
10,050 Cr 10,487 Cr` 8,073 Cr `11,509 Cr `11,970 Cr
18%
18%18%
18%
18%
18%30%
10%4% 4.7%
Elephantine MarchPrint is expected to grow steadily, even though it is seen losing sharein the ad pie, owing to the growth of digital
2008 2009 2010 2011 2012
With a contribution of
41.7 per cent, print has
emerged as the largest
share holder in the entire
ad pie. From 2008 to
2011, TV had been ruling
the roost
In 2013, Print will continue
to grow at 4.7 per cent
and is expected to clock
revenues worth `12,526
crore
18%-20%
2013
12,526 Cr
0 % GROWTH
ProjectedGrowth
YEARLY SPENDS
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Pitch|February 20125
PRESENTS POWERED BY
FMCGs volume growth hasbeen ever increasing
Print 2008 2009 2010 2011 2012
Categories fond of Print
Alcoholic Beverages 0.3 0.3 0.2 0.2 0.1
Auto 6.8 7.8 7.1 9.8 11.4
BFSI 8.3 7.9 8.7 6.7 5.7
Clothing/Fashion/Jewellery 5.1 5.5 5.3 6.5 7.1
Corporate 3.6 3.0 3.0 2.8 2.2
Education 17.1 17.3 14.6 10.6 10.6
FMCG HH 1.9 2.5 2.6 3.1 4.1
FMCG Impulse 0.3 0.6 0.4 0.3 0.4
FMCG Personal Care 3.6 4.1 4.4 5.5 5.8
HH Durables 6.5 5.3 5.3 5.7 4.9
Media 1.9 2.2 2.2 1.5 1.4
Real Estate & Home Improvement 6.4 6.5 8.0 8.4 8.6
Retail 5.5 5.8 5.8 5.6 5.8
Telecom/Internet/DTH 6.2 5.4 6.3 4.7 4.1
Travel & Tourism 4.3 3.5 2.5 2.8 2.3
Others 22.2 22.5 23.6 25.7 25.3
Growth of FMCG FMCG continued to bet its money
on print taking its contribution
share from 8.9 per cent in 2011
to 10.3 per cent in 2012. Its
contribution in 2010 was 7.4 per
cent
Auto continued to be the largest
contributor to print at 11.4 per cent
Some categories that lost share in
the print ad pie, include corporate,
household durables, BFSI andtelecom/internet/DTH
(% Contribution)
DailiesVs
Magazines
in2012
` 1,202 Crore
` 10,768 Crore
Magazines10.2%
Dailies 89.8%
The rise of magazines
Magazines, as against a projected
negative growth, achieved a growth
of 4.5 per cent in 2012
Magazines also retained their share
in the ad pie at 4.2 per cent
Going ahead, magazines are
expected to grow at a rate of 6 per
cent to clock revenues worth
` 1,274 crore in 2013 as against
` 1,202 crore in 2012
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 2012
PRINTREVIEW 2012
6
2013
New Delhi : March 1, 2013
Mumbai : March 6, 2013
For Sponsorship opportunities, contact
:
Rohit Sardana (Delhi) +91 98113 77592 [email protected]
Varnikaa Jain (Mumbai) +91 97691 53087 [email protected]
Sneha Walke (Bengaluru) +91 98455 41143 [email protected]
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 20127
PRESENTS POWERED BY
18%
18%
18%
SmashedWith advertisers tepid response to IPLand the lack of a big sporting event like
the ICC World Cup in 2011, advertising
on TV largely remained stagnant in 2012
2008 2009 2010 2011 2012
Growth for TV in 2012, marginallywent in the negative. It, however, is
likely to cross ad revenues worth
`12,000 crore in 2013
However, growth rate, projected at
6 per cent for 2013, is unllikely to
touch the peak growth of 2010 or
even 2011
TVs share in the ad pie in 2013, is
expected to erode further by 0.5
percentage points from the current
40 per cent
8,319 Cr ` 8,492 Cr 10,530 Cr `11,478 Cr ` 11,478 Cr
18%17%
9%
6%
0%
18%2%
18%24%
2013
12,166 Cr
ProjectedGrowth
TELEVISION
YEARLY SPENDS
GROWTH %
0
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PRINTREVIEW 2012
8
Hin GEC 25 4 -2
Hin News 8 7 4
TN CS 7 27 14
Eng News 6 17 -3
Tel CS 6 20 6
Info 5 45 12
Kids 4 5 20
Hin Mov 4 23 -20 Driven by IPL
Mar CS 4 5 -2Ben CS 4 16 -1
Ker CS 4 5 9
Sports 4 87 -23 Driven by ICC WC
Kan CS 3 14 9
Other Reg 3 35 15
Eng Mov 3 29 5
Others 3 25 23
Music 3 19 13
Eng Ent 2 47 40DD 2 -5 -8
Row Labels 2012
Dispersion % Growth %
(2011/2010) (2012/2011)
Which genres got what?
TELEVISION
Kids grow up; Sports lose
Hindi GECs continued to garner the
maximum share in the TV ad pie;
yet the genre saw a negative growthof 2 per cent
Sports emerged as the biggest
loser with a negative growth of 23
per cent. Ad revenues in 2011 were
driven by the ICC World Cup
Even Hindi Movie Channels took a
hit, as IPL seems to be losing sheen
amongst advertisers
The biggest growth gainers though
seem to be the Kids channels, a
genre which has seen growth rate
rise exponentially from 5 per cent in
2011 to 20 per cent in 2012
Will digitisation emerge as the game changer?
O
ne of the major devel-
opments in the Indian
television space has
been the advent of digitalmodes of broadcast reception
and the conversion of analogue
to digital, which represents a
big change for consumers and
the broadcast business.
The Indian television indus-
try has always followed an
advertising revenue depen-
dent model as opposed to the
subscription based structure
adopted by the western coun-terparts. Digitisation has also
led to a spurt of ad free chan-
nels such as Disney Junior,
HBO Defined, HBO Hits and
Nick Junior, which would be
completely ad free and focus
on subscription for revenues.
Not that ad-free proposition
was missing in India prior to
this. The kick-off of HD (High
Definition) offerings fromvarious channels, more specifi-
cally of sports related events
on channels such as ESPN or a
channel such as Zee Golf from
the Zee Entertainment bouquet
also have ad-free or minimum
advertising versions.
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 20129
PRESENTS POWERED BY
FMCGs contribution to TVhas been ever increasing
TV 2008 2009 2010 2011 2012
Categories fond of TV
Alcoholic Beverages 0.8 0.4 0.6 0.8 0.9
Auto 5.6 6.7 6.7 7.6 6.0
BFSI 7.7 5.7 5.2 5.5 4.3
Clothing/Fashion/Jewellery 3.2 2.8 3.3 3.6 3.7
Corporate 3.6 2.5 2.7 2.5 3.4
Education 1.5 1.5 1.6 1.6 1.8
FMCG HH 26.8 30.7 30.0 28.2 29.2
FMCG Impulse 8.2 9.9 8.9 8.2 8.6
FMCG PersonalCare 13.7 15.0 15.6 16.4 16.6
HH Durables 5.3 4.7 5.4 5.5 6.3
Media 0.2 0.1 0.2 0.1 0.0
Real Estate & Home Improvement 3.3 2.8 3.3 3.3 3.7
Retail 1.1 0.6 0.8 0.8 0.8
Telecom/Internet/DTH 13.9 11.8 11.1 11.5 9.4
Travel & Tourism 0.8 0.9 1.5 1.4 1.4
Others 4.2 3.9 3.2 3.1 3.9
In the fast goods lane With 54.5 per cent contribution
to the TV ad pie, up from 52.8 per
cent in 2011, FMCG continues to
rule the roost in the TV ad space
Corporate advertising, is another
emerging big spender on TV
Auto seems to be moving more
towards Print. Hence, the sectors
contribution to TV ad pie has
dipped from 7.6 per cent in 2011to 6 per cent in 2012
Juhi Ravindranath, Network
Head, Ad Sales, South Asia,
Turner International India says,
In the movies business, digiti-sation has positively impacted
the genre, our channel perfor-
mances and thus we expect
both, HBO and WB, to drive
extremely strong revenue
growths. WB is currently trend-
ing at twice the channel shares
it was a little over a year ago.
According to experts, along
with better quality viewing ex-
perience and providing a levelplaying ground for the chan-
nels, digitisation will also lead
to the increase of niche genre
channels with the focus in-
creasing on channels pertaining
to infotainment, edutainment,
lifestyle and food etc.
(% Contribution)
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 2012
PRINTREVIEW 2012
10
INTERNET
Speeding awayWith attributes like enhanced flexibility, scalability and measurable results in real time as
well as cost-effectiveness and better targeting, the pool of digital immigrants is growing fast
From playing second fiddle to
becoming a part of conventional
marketing methods, internet
marketing has gradually crept in
to assume an important place in
brands marketing blueprint. With
attributes like enhanced flexibility,scalability and measurable results in
real time as well as cost-effective-
ness and better targeting, the pool of
digital immigrants is fast growing.
According to Pitch Madison Media
Advertising Outlook 2013, internet
has seen a growth of 50 per cent in
2012 - in line with projections and a
slight improvement over the growth
in 2011 (49 per cent), taking inter-
nets ad revenues up from
` 1,535 crore in 2011 to` 2,303
crore in 2012 (including Search).
Both Search and display advertisinghave seen a growth of 50 per cent
respectively in 2012.
The mediums share in the overall
ad pie has also substantially in-
creased from 5.6 per cent in 2011 to
8 per cent in 2012. While Searchs
contribution to the overall ad pie has
risen from 2 per cent in 2011 to 2.9
per cent in 2012; display advertisings
contribution too went up from 3.6
per cent in 2011 to 5.2 per cent in
2012.
While Searchs contribution went
up from ` 550 crore in 2011 to` 825crore in 2012, Display advertising
saw revenues grow from `985 crore
to `1,478 crore.
Outlook 2013
According to Pitch Madison Media
Advertising Outlook 2013, digital will
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Pitch|February 201211
PRESENTS POWERED BY
YEARLY SPENDS
2008 2009 2010 2011 2012
18%34%
18%50% 18%49%18%46%
` 703 Cr` 470 Cr `1,030 Cr `1,535 Cr ` 2,303 Cr
Search
vs
Display
825 Crore
35.8%
64.2%
` 1,478 Crore
18%50%
Internet emerged as the third largest share holder (8%) in
the entire ad-pie pipping Outdoor. It will further consolidate its
position taking its share up to 10%
Both search and display
advertising on the web are
growing at a healthy rate of
50%
The growth is likely to
slowdown in 2013 to
32% in 2013
continue to grow strongly and
even on a substantial increased
base, achieved on the back of
around 50 per cent growth year-
on-year for the last 9 years. It willstill grow at a 32 per cent on the
back of FMCG Advertisers waking
up to the interactive and engaging
power of digital.
In 2013, total spends on internet
including Search is projected to
increase from the existing` 2,303
crore to` 3,040 crore a 32 per
cent increase. Meanwhile, spends
on Search are projected to go
from` 825 crore to` 1,089 crore
in 2013.
The contribution of internet tothe total ad-pie is projected to
increase from 8 per cent to almost
10 per cent.
Search
Internet (Excl Search)
GROWTH %
is the projected growth rate
for Internet in 2013. Sitting
at a little above `2,000
crore, digital is expected
to cross the` 3,000 crore
mark in 2013
32%Net worthy
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 2012
PRINTREVIEW 2012
12
In 2012, the outdoor industry had a
bitter-sweet mix of highs and lows;
the first quarter was very challeng-
ing due to volatility of Indian market.
Most of the brands had squeezed
their budget for outdoor advertis-
ing. But, the second half of the year
brought new opportunities thanks to
the new set of media options such
has transit mediums which gave the
industry a new boost.
With businesses going beyond
borders, people spending more time
in travelling, cities are expanding into
distant suburbs and tier II and III cit-
ies are gaining prominence. People
are spending up to nine hours out-
doors, leading to exponential growth
of the transit medium especially
with around 30 modern upcoming
airports and metro rail expansion in
all major metros.
Considering the potential that
transit media has and the fact that it is
significantly contributing to the over-
all growth of outdoor advertising,
starting this year, Pitch Madison
Media Advertising Outlook 2013, has
included transit media in addition to
the traditional outdoor advertising in
its analysis. Conventional Outdoor,
against the projected 5 per cent
growth, grew by only 2 per cent.
However, advertisers seem to have
taken to transit media in a big way.
Expensive airport advertising showed
strong growth and as a result, Transit
Advertising grew by a robust 28 per
cent against a projected 20 per cent.
OUTDOOR
Outdoor is expexcted to retain its growth rate and share in the ad pie, riding on the
back of transit OOH
Bitter-sweetcocktail
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 201213
PRESENTS POWERED BY
More or less, Outdoor achieved the
growth target of 8.7 per cent by
achieving 8.4 per cent in 2012
Fueled by growth in transit OOH,
Outdoor is expected to grow at a
moderate rate of 4.3 per cent in 2013
In transit
mode
` 1,323 Crore
OOH Transit Media
Traditional Outdoor
2008 2009 2010 2011 2012
18%24%
18%30%
18%-7%
18%8.4%
` 1,419 Cr` 1,752 Cr 1,848 Cr 1,717 Cr ` 1,862 Cr
2013
18%4.3%
1,1943 Cr
18%
-19%
Though the year 2012 has not been
the best one for the outdoor medium,
it has definitely proven to be much
better than 2011. 2012 showed an 8.4
per cent increase in the mediumsoverall revenues. The mediums rev-
enue in 2012 stood at` 1,862 against
` 1,717 in 2011. Outdoors share in the
total ad pie also increased to 6.5 per
cent in 2012. In 2011, the share of the
medium was at 6.3 per cent.
As per the Pitch Madison Media
Advertising Outlook 2013, outdoor
is expected to grow by 4.3 per cent
to clock ad revenues worth` 1,943
crore in 2013, of which` 593 crore is
expected to come from transit OOH.
Transit OOH continued
its bullish run in 2012
with a growth rate of 28
per cent as against a
growth rate of 2 per cent
recorded for traditional
outdoor
Transit outdoor is
expected to grow at
10 per cent in 2013
` 539Crore
28.9%
71.1%
ProjectedGrowth
YEARLY SPENDS
GROWTH %
0
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Pitch|February 2012
PRINTREVIEW 2012
14
YEARLY SPENDS
18%
Scaled and FlatEven Phase III of FM radio expansion isnt encouraging the
advertisers to bet their money on the medium
2008 2009 2010 2011 2012 2013
662 Cr ` 681 Cr `885 Cr 903 Cr ` 930 Cr
38%
18%30%
18%3%
` 967 Cr
18%4%
18%3%
18%2%
As against a projected growth of 5 per
cent, Radio grew only at the rate of 3
per cent in 2012, adding only about Rs
27 crore more to its revenue total of
2011
The outlook isnt very encouraging forradio and the Phase III expansion is
also not likely to shake up the industry
much
Expect its share in the ad pie to drop
further from 3.2 per cent in 2012 to
3.1 per cent, as advertisers look for
greener pastures on digital
ProjectedGrowth
RADIO
GROWTH %
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Pitch|February 201215
PRESENTS POWERED BYCINEMA
Despite blockbusters like Dabangg 2, Ek Tha Tiger, Rowdy Rathore and Talaash
besides others, Cinema failed to attract expected quantum of advertising
2008 2009 2010
18%24%
18%-20%
18%15%
` 103 Cr` 129 Cr 118 Cr
18%
Cinema, in 2012, grew only by 8 per cent lagging far behind 2011s
growth of 18% and failing to achieve the projected growth rate of 15%
The dry spell is expected to continue in 2013 too, with advertisers
betting more on measurable media like internet and mobile
2013
166 Cr
18%18%
8%18%10%
The Talaash continues
2012
151 Cr
2011
140 Cr
ProjectedGrowth
YEARLY SPENDS
GROWTH %
0
8/10/2019 Pitch Madison Media Ad Outlook 2013
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Pitch|February 2012
PRINTREVIEW 2012
16
Friday, March 22, 2013 | Leela Kempinski, Gurgaon
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