Advanced Clickstream Analytics with Retentioneering Framework

MEDIA TRENDS IN INDIA- 2016

Projected Media Spends:

Revenue (In Rs Cr)	2015	% Composition	2016 (Projected)	% Composition	Y-O-Y growth
TV	23022	46%	27074	47%	18%
Newspaper	16125	32%	17099	30%	6%
Radio	1997	4%	2195	4%	10%
Magazine	675	1%	575	1%	-15%
Cinema	408	1%	510	1%	25%
OOH	2582	5%	2732	5%	6%
Digital	4950	10%	7300	13%	47%
Total	49759	100%	57485	100%	16%

Overall Trend of the latest media/advertising environment in India:

Marketing will experience a shift in focus from “big” data to streamlined “intelligent” data, with programmatic buying and geo-targeted advertising not only in Digital and mobile space but also with traditional media vehicles. It is forecasted that the India's advertising investment to reach an estimated Rs. 57486 crores with an annual growth of 15.5 % in 2016. TV will continue to command the largest share of all advertising revenue in 2016; growing at 17.6%, it is expected to account for 47% of total ad revenue earned. Newspapers are expected to grow at a slower clip, at 6% and account for nearly 30% of ad revenues. While Magazines are expected to de-grow @ 15% in 2016. Digital is projected to touch with Rs. 7300 crores in 2016, growing @47.5 % (highest among all media). The Indian OOH industry was estimated to be at Rs 22 billion in 2014, and expected to touch Rs 27.3 billion in 2016 with a YOY growth of 6%. Radio is expected to reach 2195 crores with YOY growth of 10% accounting for nearly 4% of the total advertising revenue.

Newspaper:

There is a stark contrast to that of many newspapers in the West, which have been forced to shut down or scale back because of diminishing advertising income. Since Indians are clued into Western trends because of the English connection, it has naturally been assumed by many that the same fate applies here but it is not true scenario in India. The most influenced by this have been the young adults from the metros, many of whom do indeed get their news online. Unlike the West, in India all media is growing, including print which is, in fact, doing extremely well barring the odd blip. The popularity of local languages is the first reason why print is less affected by online in India, than elsewhere. First, newspapers are priced low in India relative to most other countries. This has been true for English dailies for years but less so for regional and Hindi titles, which were priced higher for fewer pages. As the competition has become fierce, non-English dailies have been keeping their prices down, too. While it is easy to think of online as ‘free’, that’s a misnomer. Content is free but access is not. Certainly when it comes to accessing news and features, a newspaper for `100-150 per month is still the most cost-effective way to consume news through the written word. Also, a newspaper is shared in a way a screen can’t be. The plethora of television news channels in regional languages has surprisingly only increased newspaper readership. It may be the "appetizer effect"- A study found out that the more that people watched television news, the more they were turning to the newspapers to check the facts. In India, the credibility of newspapers and the written word is way beyond that of the television news channels. Though newspapers for now is holding its ground w.r.t digital media platforms, the measure of their reach and influence continues to be mired , largely relying on print circulation and a variety of separate, non-standardized measures of digital reach. The challenge for the industry is to measure reach of newspaper content on all platforms with new metrics. To keep itself competitive many of newspapers have entered into digital media through development of apps and social media as part of their engagement and distribution strategies.

Magazines:

The magazine industry is going through a tough phase in India just like in other countries. Newspapers have added supplements to their main issue and infringed on the content covered by magazines earlier. Television channels have launched in different genres that didn't exist a few years back. And with the increased penetration and adoption of the Internet in the country, more people are now consuming news and stories on different topics on the web and mobile. There is still a demand for high quality print content and magazines need to deliver on that need to avoid losing market share to other mediums. In addition, they also need to explore and distribute their content on the web and mobile platforms to give choice to their subscribers to consume content from anywhere and at any time. With respect to the mitigation strategies, magazines have expanded their distribution channel aggressively in Tier 2 and Tier 3 cities with focus on localizing content wherever required. E-magazines are the generating a lot of interest though in very niche urban segments. Currently, advertising is centred on magazine or its websites, but, as digital circulations increase, electronic editions will become increasingly popular for advertisers.

TV (free to air, CS, Cable, IPTV):

The Indian market is important because of its accessibility for global media distributors and investors and its high levels of pay-tv penetration. Ever changing regulations are destabilizing but the government’s digital addressable systems (DAS) mandate will be an important catalyst while improved supply side factors, including healthy financial markets and investments from international strategies, are also critical. The DTH, or direct-to-home, industry revenues will reach $4.0 billion by 2018, and $5.5 billion by 2023 and its active subscriber base will grow from 37 million in 2013 to 60 million in 2018 and 70 million by 2023. DTH is expected to enjoy a 39% share of the pay-tv market by 2023, and 56% share of the digital market. MPA projects that there will be 55 million digital cable subscribers in India by 2018 and 55 million by 2023. Digitalization of cable networks will pave the way for growth in cable broadband. MPA expects the share of cable in the fixed broadband market to grow from 6% to almost 15% between 2013 and 2023. According to data from TAM AdEx sourced from the industry, the e-commerce and start-up boom has seen 2,000 new advertisers enter the market last year. While the e-commerce bubble has shown some signs of strain recently, estimates are that ad by e-commerce companies will not be significantly impacted due to this in the coming quarters. E-commerce, telecom, mobile phones are expected to have the maximum growth next year, followed by automobiles and FMCG (fast-moving consumer goods).  E-commerce, followed by aggressive ads by telcos to promote 3G and 4G plans and new launches by handset firms drove growth this year. Traditional categories such as auto, FMGC as well as electronics also contributed

Radio:

The key trends that will be witnessed in the industry will distinctly be Expansion, Consolidation and Dominance. The emergence of a number of new stations, dual frequency, new geographies and new cities will come into play. Simultaneously, Phase 3 will also witness increase in the cost-effective options for advertising in small towns. As per the trend of Advertiser’s Funded Programming (AFPs) which picked up during 2015, brands now seek to integrate their brand messaging through innovative content. 2016 will see an upward trend on AFPs as more and more brands now seek integrated solutions where multiple mediums like radio, television and digital are all leveraged simultaneously. the radio industry is expecting a lot in terms of growth this year. It is a medium which delivers great ROI, has a very attractive CPT and is able to deliver not only frequency but a national reach for a brand builder. Leveraging the opportunity in the Live scene with musical award shows and other activities, will also help radio networks involved to gain brand awareness and offer advertisers with a strong advertisement medium.  Effective utilization of the medium will go a long way in attaining the larger share of the advertising pie that the industry had been vying for, since long. While the move from analogue to digital will remain a huge challenge for the industry, there are other things to look forward to.

Cinema:

Keeping innovation at the core, this industry not only brings the best of the technology for the movie-goers but also enhance the overall experience with world class architecture, infrastructure at the best of locations in the city. Movie watching is one of the passions that Indians cultivate together, the industry always keep its promise of catering to every patron's need through our various cinema formats. The entire multiplex industry is experiencing an overhaul through consolidation, expansion and creating brand values. Currently PVR, Inox, Cinepolis and Carnival Cinemas comprise the quartet that has a footprint across the country. There are 15-20 regional players and some local players in various state. Of course, such an outlook would depend on whether there is prospect of growth in the business. And going by figures, it appears that the industry's capacity has not yet been exhausted. Another key driver is the exponential increase in ticket booking channels and other discount coupons.  A KPMG report suggests that while the metros and the national capital region contribute 60% of total box office collections in India, they have reached a point of saturation and the next phase of growth is expected to come from tier II and tier III centers. As of now only a fourth of multiplexes are situated in the smaller centers. With the mall culture settling in these cities, there is a huge scope of growth in these cities and towns. More importantly, they are also a symbol of the fact that the people living in these small towns want the best of everything including quality entertainment.

Internet:

Digital marketing will evolve exponentially over the years and become more and more complex. Digital marketing in India started with basic desktop advertising and now it is all about mobile app advertising and retention. India being the second largest Internet Population already and Internet Industry growing at the rate of over 20% Year Over Year offers a huge opportunity. With a PM that is supporting the digitization of everything with campaigns such as Digital India and e-governance, improving technologies such as 4G penetrating into market and fact that India is the biggest youth population that loves to spend most of their time on internet we can compare this Digital Marketing ERA to be bigger than Computer revolution of Early 90’s and Communication Revolution (Mobiles) in early 2000’s. We are right in the middle of Decade that belongs to Digital Marketing and today we can truly say that market is ripe for those who want to go big in this Industry. With the growing digital culture, brands are focusing on content that can influence them, content that can encourage them and content that can make you stand out and create trust in your brand. Brands can’t ignore the voice & opinions of their customers. Appearance of their favorite movie stars in ads doesn’t impress Prospects today, though a positive story about a brand or a positive product review from their friend online influences their buying behavior directly. Hence, it’s important for brands to make their customers the hero of their social presence and promote the stories around them. Due to the power that the digital medium provides of tracking, more & more brands are moving towards ROI-based campaigns.  Programmatic buying, geo-targeting, content marketing, ORM are the key trends in the digital space. Social is the new distribution, mobile is the new first screen, prime time is anytime & content experience is heavily personalized. Brands are now shifting their focus on achieving their business objectives through digital medium. In fact, a lot of brands are using offline medium to build awareness for the brand & run a parallel digital campaign to acquire customers through engagement driven campaigns.

Mobile:

It is estimated that mobile penetration (unique users vs population) is about 52% with total mobile connection (subscription) of 1012 million. Active mobile Internet users is estimated to be 303 million; 23% penetration versus population. Moreover India is the world's fastest growing smartphone market. This is leading to an increased interest levels of marketers to target the customers on mobile screens and the same can be seen by the growth in mobile advertising industry which is growing at a fastest pace in the country. Mobile advertising also brings in transparency and is much more precise in targeting the right customer and hence becoming favorite amongst the marketers day by day. Industries like e-commerce and travel industries are leading the race in adopting mobile advertising in India and many more are opening up very fast. 

OOH:

2015 year ended on a contented note, the industry is considering the 2016 year to be a beneficial one, capturing all aspects ranging from innovations, investment and authority. The industry pundits see some good trends of 2015 continuing in 2016 as well and whereas some new trends will also be setting-up this year. The year 2016 opens on an optimistic note, the war on the streets between major real estate business houses has given the OOH industry a reason to smile. The stability of the government and the economy showing signs of growth will work in favor of the industry instrumental in achieving the targeted figures.  Though metros continue to garner a larger share of the OOH pie (in excess of 50 per cent), in line with the trend witnessed in the last couple of years, the Tier II and III cities continued to outperform the larger metros. As a format, transit media would be growing this year as there are lot of metro train projects coming up in different metro cities and also cab branding is doing well as a format. Airports, highways, corridors and metro rail projects are typically controlled environments that could encourage OOH adoption and help solve at least one major part of the measurement conundrum: effective circulation or opportunity to see. On 28th August 2015, the Advertising Agencies Association of India (AAAI) and Indian Outdoor Advertising Association (IOAA) signed an agreement to better regulate OOH advertising in India. The agreement will allow the outdoor advertising industry in India to grow 'in an organized and regulated fashion, to ensure that proper systems and processes are followed and timelines adhered to, as well as commitments honored on both sides. The focus of the agreement will be on regulating and disciplining advertiser behavior in matters concerning outdoor trade, agency remuneration, corporate governance and adherence to payment deadlines