From the desk of Strategic Resources
For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address: 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: V

August, 2007

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In these hyper charged times where news comes in as fast as it becomes outdated, we need a source that can keep track of what matters to us. At ZenithOptimedia we have created Wavelength to apprise all of us of the happenings in three areas i.e. 1. Trends in Digital, Retail, OOH, BRIC, Consumers and the International Advertising 2. Media & Advertising Research 3. Environment

Also included here are innovations and news that ZenithOptimedia is making across its network globally, under three sections 1. ZO Zone 2. Fast Forward 3. Touchpoints.

Simply click on any of the sections on our snazzy control panel and you will have the latest updates at your fingertips. Wavelength will reach you in the first week of every month so that you have information that leads to insights.

Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions and comments.

Consumer Trends

01. ‘Youth Spending On Apparel, Accessories On Par With Elders’ – July 03

Youth spend liberally on apparel and accessories: IMAGES-AC Neilson study

According to the IMAGES-AC Neilson Study on The Indian Wallet & Brand Share, Indian youth spend almost the same amount annually on apparel and accessories as the elders in their household. The study further reveals that the youth spend double of what other family members spend on Internet usage, and prefer mobile phones to land lines. The zonal analysis shows that the disposable incomes of the working youth in the southern parts of the country are more than those of their northern counterparts. The report also reveals that while average annual credit card payments are approximately Rs 62,220, for young adults the average is nearly Rs 1.21 lakh.

Source: The Hindu Business Line

Emerging Trends: Digital

02. Indians Prefer To Surf Net On The Go – July 07

Internet surfing through mobile phones on the rise

The cellphone is becoming the primary medium for Indians to access the Internet; the number of people accessing the Internet through mobile phones is thrice that of those who use computers for the same purpose. According to TRAI, India has 9.27 million Internet subscribers as against 31.30 million users who access the Internet through their mobile handsets, GSM or CDMA, to read and reply to mails, download content and transact online. Another reason that has accelerated mobile use for Internet surfing is the removal of the monthly rental for GPRS services. Users are now charged only for surfing and downloading.

Source: Economic Times

03. Advertisers Prepare To Go Mobile To Catch Eyeballs – July 07

Mobile marketing: an emerging medium for advertisers

The mobile phone has emerged as a bigger medium than the television, print or the Web. India has approximately 180 million mobile users at present, a figure that will cross 200 million (current newspaper readership) by November 2007. With growing mobile usage, advertisers are experimenting with this medium because it scores over others due to some of the following factors – an average mobile user checks the screen of his mobile phone quite frequently, the ad message can be personalised and remains with the consumer for up to 24 hours, and ads reach consumers while they are on the move. However, the share of mobile ad spend is relatively lower than that for other media because of the intrusive nature of mobile marketing and the lack of technology for making it consumer friendly.

Source: Economic Times

04. World's Largest Shopping Mall Is Now On Your PC – June 26

Internet shopping catching up with Indian consumers

With the Internet playing a key role in the shopping pattern of consumers, online shopping malls such as eBay are providing companies with an option to establish their online stores. The buyers and sellers on eBay India are from cities across the country, with 40% online shoppers from the non-metros. Deepa Thomas, corporate communications manager, eBay India, said, "Over late-2006 and 2007, many brands have set up shop or started listing on eBay India in a bid to attract buyers from small towns in India as well as time starved metro buyers."

Source: Economic Times

Emerging Trends: Retail

05. Women, Kids Preferred Target Customers For Retailers – July 10

Retailers target women and children

Retailers across domains such as lifestyle products, apparel and FMCG products are targeting women and children because they now play a major role in deciding and influencing purchases made in the household. This is attributed to the mindset change and the financial independence of women, and children’s increasing awareness of the latest trends in fashion, lifestyle and technology gadgets. Consequently, retailers have dedicated sections for the two segments, with promotional offers to maintain customer loyalty.

Source: The Hindu Business Line

06. Retail Giants Spot Big Scope In Small-Town Mall Projects – June 27

Retail giants exploring small cities for business expansion

Real estate majors Unitech, Parsvnath and Omaxe are exploring smaller towns and cities for a faster roll-out of their nationwide retail presence. According to industry analysts, the major metros are almost saturated in terms of the number of retail projects, and are driving developers towards smaller cities and towns. In addition, low land costs and untapped retail markets in smaller cities make them an attractive option. A study by real estate consultancy firm Jones Lang La Salle Meghraj points out that over 50 cities (with populations in excess of 1 million) offer such benefits.

Source: Economic Times

07. Retail Majors Cashing In On Sub-Letting To Other Brands – June 26

‘Shops-in-shop’ offer new source of revenue to retailers

Retailers such as the RPG Group’s Spencer’s Retail, Kishore Biyani’s Pantaloon Retail and the Rahejas’ Shopper’s Stop have opened a new revenue stream by selling space within their shops to other brands. The brand’s prominence, and its positioning and location within the shop are some of the important determinants of rent. According to retail consultancy Technopak, retailers are confronted with rising mall rentals and falling prices, factors that are pushing them to opt for such a business model.

Source: Agencyfaqs

08. Study To Identify Potential Shoppers In Smaller Towns – June 26

Study identifies potential shoppers in small towns

Lodestar Universal Labcenter, a research firm, conducted a study to determine the potential shoppers in 72 towns across the country. The identified segment comprised those who regularly watched cinema, spoke English, consistently visited coffee shops and used washing machines and colour cosmetics. The study also revealed that smaller towns are emerging as engines of growth; Visakhapatnam’s shopping potential was 224% higher than that of Jalandar, while Lucknow’s potential was 36% higher than that of Ludhiana.

Source: The Hindu Business Line

Emerging Trends: Others

09. Infotainment Takes Over Entertainment In English TV Viewership – July 22

English TV viewers prefer infotainment to entertainment

English television channel viewership in India is witnessing a shift, with people, especially in urban areas, preferring infotainment channels such as Discovery to entertainment and news channels such as MTV, Star Movies and NDTV 24x7. According to TAM ratings, music channel MTV has slipped two places in H1'07 from its first position in H1'06, whereas infotainment channel Discovery has moved up four places to capture the top slot.

Source: Zeenews.com

10. The New-Age Marketing – July 16

Experiential marketing gathers momentum

According to a study conducted by HPI Research Group, 68% of the marketing executives surveyed spent more on experiential marketing in 2006 than in 2005; half of these executives expect a further increase in spending in 2007. Experiential marketing is emerging as a major marketing methodology for brand building and positioning. It helps marketers gain valuable insights through direct interaction with consumers outside the mass-media landscape. An example of its use is the launch of Mahindra Tractors’ Hy Tec brand, a strong hydraulic tractor for helping farmers saw their fields.To display this technology to farmers, sensors were fixed to the hydraulic tractors and a large LCD monitor captured the movement of the cultivator on an ECG graph.

Source: Hindustan Times

11. Listen, Or Pay Up... – July 03

Blogs becoming a powerful tool for WOM

Blogs have emerged as an important medium of communication and are being relied upon by companies to assess consumers’ perceptions and interact with them. Blogs have also become a powerful tool to spread word of mouth (WOM) and companies are taking special care to prevent the spreading of negative publicity on the Internet. For example, blogs and websites such as commplaintsboard.com contain thousands of complaints by bank customers. The large numbers of these complaints have prompted some banks to insert letters asking consumers to write in or call their helplines. Companies have also set up their own blog sites. For instance, travel portal Cleartrip.com launched a blog in 2006 and set up the Cleartrip Forum for customer interaction in July 2007.

Source: Agencyfaqs

12. Why Pizza Topping Is Must In Emerging Media Planning– July 03

Content to play a dominant role in media planning

According to consumer studies involving over 250,000 interviews across different product categories and services, consumers’ appetite for media has always been influenced by touchpoints such as friends and family, expert/specialist recommendation, consumer opinion websites, print articles, and awards and recognition by independent associations. The interaction between consumers and various touchpoints always has a frame of reference, which is provided by the content. The opportunity thus lies in leveraging this content; therefore, word of mouth, blogging, Internet search, and customised and integrated messaging are considered opportunities to maximise return on investment.

Source: Economic Times

13. Citizen Journalism: A Journey Unfinished – July 02

News channels emphasising on viewer interaction

Most news channels are airing viewer-generated content and involving viewers in the news process, which increases viewership and provides news channels with an opportunity to cover first-hand events. A few examples include Public Demand, a program by The India Today Group and Aaj Tak that integrates interactivity by allowing viewers to send their views via SMS and e-mail, and Citizen Journalist by CNN-IBN. According to industry experts, interactive platforms such as text messaging, e-mail, telephone, shared videos and blogs offer greater flexibility to viewers to connect with the news channels.

Source: Exchange4media

14. Ad(D) To Revenues – July 02

Advertising share in online gaming industry to increase

The Internet & Mobile Association of India (IAMAI) estimates that the present business generated by the Indian online gaming industry stands at Rs 21.01 crore. Revenue from advertising constitutes Rs 2.24 crore or 11% of the total share. IAMAI expects the share of advertising to increase in the next two to three years.

Source: Indian Business Insight

15. Head Honchos Go On Endorsing Spree – June 30

Indian CEOs – upcoming brand endorsers

Indian corporate leaders are increasingly opting for the self-endorsement route to build brands. Pawan Goenka, president, Automotive, Mahindra & Mahindra, endorsed his brand (M&M) in mass media advertising campaigns after Mukesh Ambani featured in the television commercial of Reliance Communication and Vijay Mallya, chairman, Kingfisher Airlines, featured in Kingfisher’s ads. The experts say that CEOs lend credibility and accountability to their respective brands. According to industry analysts, the exit of cricket star endorsements after the World Cup 2007 and the surfeit of film star endorsements have led to an increase in CEO endorsements.

Source: Financial Express

Emerging Trends: International

16. Online Population Expected To Reach 1.5B In '11 – July 22

Online population to reach 1.5 billion in 2011 with BRIC as growth centres

According to the study ‘Worldwide Online Population Forecast, 2006 to 2011: Emerging Economies Catalyze Future Growth’ by Internet consultancy Jupiter Research, the worldwide online population will increase from 1.1 billion users in 2006 to 1.5 billion in 2011. The study also said that Brazil, Russia, India and China (BRIC) will be the centres of this growth, while online population growth in North America will slow down.

Source: Mediapost

17. Online Video's Environmental Impact – July 19

US online video viewers to increase

Online videos have become one of the fastest-growing means for marketers to connect with consumers. According to eMarketer, from 2006 to 2010, the number of US online video viewers will grow by nearly 50% to 157 million; this will result in tremendous advertising opportunities. However, according to the Online Publishers Association’s ‘Frames of Reference’ report, the effectiveness of online video advertising will vary from site to site. The study found that consumers on media sites are more likely than those on portals or user-generated content sites to act on video ads.

Source: Mediapost

18. E-Commerce Tech Spending By Retailers On The Rise – July 19

E-commerce technology spending to rise

According to the results of Internet Retailer's latest monthly survey on e-commerce technology spending, 78.2% of the retailers (comprising chain retailers, catalogue companies, virtual merchants and consumer brand manufacturers) surveyed plan to increase their spending on e-commerce applications and services in 2007. With broadband Internet expected to reach 115 million households by 2011, shoppers will be able to compare merchandise in greater detail, view three-dimensional images of products and perform other interactive functions.

Source: Centre For Media Research

19. 77% Of The World's Online Youth Would Rather Live Without TV Than Live Without The Internet – July 11

Worldwide, tech-savvy youth prefer Internet to TV

According to a survey conducted by New Paradigm, a Toronto-based research and consulting firm, 77% of 7,600 young people in the 16-29 age group in 12 countries would choose to live without the television than live without the Internet. In China, 87% prefer the Internet, while this figure stands at 77% for those in the US. The survey is part of a $4-million study of today's tech-savvy youth, titled the Net Generation. The ‘net generation’ considers the Internet more interactive and informative than the television, which does not allow for any interaction from the user's side.

Source: PR Newswire

20. Consumers Spend More On Electronics If Studied First On Web – July 10

Online product searches increase electronics goods sales

According to new research from Yahoo! and ChannelForce, consumers who search online for televisions and digital cameras spend 10% more during in-store purchases than those who did not rely on online searches. The survey also found that 75% of the people who procure product information before visiting a retail location used the Internet as their primary source. The leading online resources were retail websites, manufacturer websites and search engines. More than 80% of the consumers who research before making a purchase buy a brand from their original consideration set. The remaining 20% said that the in-store sales personnel were highly influential in their decision.

Source: Centre For Media And Research

21. As TV Shows Go Online, Networks Try To Adapt Ads – July 05

Online ads made innovative to attract viewers

With TV shows going online and consumers avoiding ads with a click of a mouse, advertisers are introducing innovative ways to ensure that ads are viewed, including interactive videos and online competitions. For example, in a campaign for Florida Citrus, the Dallas-based agency Richards Group created a ‘flu or false’ health quiz and a game set. The games had several levels, the idea being that once viewers started playing they would be hooked and would spend much more than the usual 30 seconds, going back to the TV show later. Agency research showed that this method proved to be a success.

Source: Los Angeles Times

22. Mobile Video Popularity Suggests Significant Advertising Potential – July 02

Popularity of mobile videos suggests advertising potential

According to the Mobile Video Report by Teliphia in Q1’07, mobile TV/video subscription revenues grew 198% year-over-year to $146 million. There were 8.4 million mobile video subscribers in Q1’07, with penetration doubling to nearly 4% since Q1’06. Nearly 29 million mobile video consumers logged on to the mobile Web in March 2007, a penetration rate of approximately 12%. In addition, Telephia data showed that video consumers had the highest recall rate as compared to all data service consumers, with 55% stating that they recalled viewing a mobile ad in the last 30 days.

Source: Centre For Media Research

23. Young Surfers Spurn Banner Ads, Embrace 'Widgets' – July 02

Advertisers to sponsor widget-based content to attract young surfers

According to an online survey by Alloy Media & Marketing of more than 1,200 children ages 9 to 17 and nearly 1,000 parents across the US, children do not want ads posted on their social-network profiles without their permission. However, children will allow logos or promotions to be posted on their personal pages if marketers give them an incentive, whether it is coupons and giveaways or entertaining tools such as games, video and animated characters. The study also found that to woo children, advertisers can make use of ‘widgets’, which are small, easily downloaded computer programs that allow web pages to be more sophisticated and interactive. Therefore, advertisers are starting to sponsor widget-based content to attract people to their websites.

Source: The Wall Street Journal

24. Online Video Ad Sales Soar, Compared To Themselves – June 28

Online video ad sales and social media ad spend set to rise

According to forecasts by Brian Wieser, senior vice president and director, Industry Analysis, Magna Global, online video ad sales will grow by 55.5% to $365.5 million during 2007 and another 53.2% to $560 million in 2008. However, despite this rapid growth rate, online videos account for less than 1% of the total TV advertising marketplace. He also estimated that social media ad spending will reach $1 billion in 2008, an increase of 48.9% over 2007. The page views of social networks would rise nearly 99% in 2007 versus only 2.6% for total Internet page views. These and other emerging platforms, such as mobile marketing, video games, advanced television and digital out-of-home networks, will grow at double the official online advertising growth rate, rising 31.7% in 2007. Universal McCann’s Director of Forecasting, Bob Coen, who tracks traditional advertising spending, predicted that Internet spending will rise by 15% to $10.715 billion in 2007 (This estimate does not include search, social networks or online video.).

Source: Mediapost Publications

25. Sponsorship Can Take Online Advertising To The Next Level – June 27

Program Sponsorship – the new online advertising tool

To increase online ad viewership, a new way of advertising has been developed. Known as 'program sponsorship', it involves collaboration between a company and a popular website or a social network, where the former sponsors a particular section or a brand. Sponsorship works because it allows firms to launch a product on the back of an already popular brand. For example, Cadbury, in its deal with ITV’s Coronation Street, effectively styled its product as the ‘chocolate of the nation’ by linking it with one of Britain’s most popular TV shows. One of the advantages of this kind of sponsorship is that it directly informs the customer that the company is paying for a particular service, casting the firm and its products in favourable light. It also allows firms to target smaller websites and capture a niche market.

Source: thebusinessonline.com

BRIC Zone - China

26. China's 162m Netizens Boost New Media Growth – July 19

China’s netizens boost Internet growth

According to China Internet Network Information Center (CNNIC), netizens in China spend more time online searching for music, videos and games compared to Internet-based job-seeking, education, shopping, travel ticketing and bank services. According to industry sources, the huge base of netizens brings considerable income to dotcom firms in China. On average, Chinese Internet companies recorded a 28% operating margin in 2006, compared with 21% for traditional media. The survey further revealed that the number of netizens in China increased 31.7% year-on-year to 162 million by the end of June 2007, ranking second in the world behind the US with 211 million.

Source: Shanghaidaily

27. China 2007 Ad Market Involving Mobile Devices Seen 92 Mln USD - Industry Expert – July 12

China’s mobile advertising to grow

According to Mark Natkin, managing director of Marbridge Consulting, mobile-devices-based advertising in China is expected to increase by more than 40% to reach $92 million in 2007 and by 55% to reach $142 million in 2008. The growth drivers for the industry include advertisers' increasing familiarity with mobile advertising media, increased advertising efforts for the 2008 Beijing Olympic Games, an improvement in overall mobile infrastructure, including the advent of wireless access protocol (WAP), mobile search engines and two-dimensional barcode advertising.

Source: Xinhua Financial News

28. Burgeoning Economy To Unleash Huge Wave Of Consumer Spending In Urban China – June 27

Affluent Chinese are avid consumers of luxury goods

According to a McKinsey study, titled ‘Serving the new Chinese Consumer’, those in China's urban-affluent segment (earn more than 100,000 renminbi a year and command 500 billion renminbi annually, nearly 10% of urban disposable income, despite accounting for only 1% of the total population) are avid consumers of globally branded luxury goods. This segment is currently concentrated in the biggest cities and is the present target for companies entering the Chinese market and those seeking a steady revenue stream.

Source: Centre For Media Research

29. Total Retail Sales Grows 15.2 Pct In First Five Months – June 26

China’s total retail sales grew by 15.2% during Jan–May 2007

According to the latest statistics published by the National Bureau of Statistics, China’s total retail sales of consumer goods reached 3.50178 trillion Yuan in the first five months of 2007, up 15.2% year on year. The consumption of accommodation and catering industry totalled 486.37 billion Yuan in this period, up 17.8% year on year.

Source: Xinhua's China Economic Information Service

BRIC Zone - Brazil

30. Sales Increase Influenced By Hypermarkets – July 16

Hypermarket-supermarket sales growth increase retail sales

The sales volume in the hypermarkets, supermarkets, food, beverage and tobacco segments rose by 8.2% in May 2007, compared to those in May 2006. This rise resulted in a 38% growth rate in the retail sector.

Source: Gazeta Mercantil News (Real Time)

31. Brazil May 2007 Home Internet Users Up 13.1 Pct M/M – July 02

Home internet users in Brazil up by 13.1% in May 2007

According to a study by Ibope Monitor (Ibope) and NetRatings, the number of residential Internet users in Brazil rose by 13.1% month-on-month to 17.9 million in May 2007. The survey also showed that the number of Brazilian users of home style Internet portals grew by 24%, the number of users of tourism and travel portals increased by 20.5% and the number of those using e-commerce portals rose by 17.2%.

Source: Latin America News Digest

BRIC Zone - Russia

32. Russian Entertainment & Media Industry Worth $27,9 bn by 2011 – July 05

Russia’s E&M industry to grow

According to PricewaterhouseCoopers’ study ‘Global Entertainment and Media Outlook: 2007-2011,’ Russia’s entertainment & media (E&M) industry had the highest growth rate among E&M markets in Europe in 2006. The industry grew by 7.1%, with a cumulative annual growth rate (CAGR) forecast of 6.9% during 2007-2011. The Russian E&M market was valued at $19.9 billion in 2006,and is expected to reach $21.1 billion in 2007. Internet advertising and access market accounted for the highest spending in Russia (and globally), amounting to $3.7 billion. This will continue to be the fastest-growing segment for the next five years, expanding at an average of 20% a year. The television distribution market will be second, growing at 18.3% a year. Book publishing will witness the slowest growth rates (3.1%), and the casino and recording segments will slow on average by 22.7% and 7.7%, respectively.

Source: RIA Oreanda

33. Russia: Use Of Blogs As Advertising Medium In Russia Examined – June 29

Use of blogs as advertising medium

According to a Web Index Moskva study, in April 2007, the LiveJournal (a virtual community where internet users can keep blogs, journals or diaries) audience in Moscow in the 12-54 age group totalled 1.749 million people, and the number of visitors to the most popular blogs were 2,000 a day. However, according to LiveJournal's information, the number of registered Russian users (those who create their own journals) is approximately 500,000. This means that more than 80% of the blog audience reads blogs in the manner that it reads newspapers or magazines. Therefore, from a marketing viewpoint, blogs are of great interest to advertisers.

Source: BBC Monitoring Media

34. PwC Analysts Predict Russian Ad Market Development Through 2011 – June 29

Russian television advertising market to double by 2011

According to a PricewaterhouseCoopers report, ‘Global Entertainment and Media Outlook: 2007-2011’, the Russian television advertising market would more than double from $3.0 billion currently to $6.4 billion in 2011. However, the report however does not cover the outdoor advertising market. It also states that the television industry will dominate the market with the introduction of new Russian TV channels and increased broadcasting time on existing channels. Nevertheless, TV advertising will grow at a lower rate from the beginning of 2007 because of the restriction (imposed by Russian law in 2007) on advertising time in a broadcasting hour. The radio advertising market will increase at an annual average of 13.6% to reach $662 million by 2011. Advertising in daily publications will grow at an annual average rate of 6.0%.

Source: Novecon

35. PwC: Broadband Internet Access Services To Be Seven Times More Popular By 2011 – June 26

Broadband Internet users to reach 17.5 million by 2011

According to PwC’s findings, the number of Russian families who enjoy high-speed Internet access services will increase at an annual rate of 50% by 2011. The number of households that use dial-up Internet connections will reduce slightly, while broadband Internet users will increase by nearly 50% annually to reach 17.5 million by 2011. PwC experts forecast Russia to account for two-thirds of the growth of general Internet access expenditures in Central and Eastern Europe.

Source: NOVECON: Russia/CIS Telecommunications Press Digest

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Media & Advertising Research Watch

36. A Snapshot On Advertising By Film Trailers & Music Albums On TV In The First Half Of 2007 – July 24

AdEx India Analysis on TV advertising by Film Trailers and Music Albums during H1’07

According to AdEx India Analysis on TV advertising by film trailers and music albums during H1’07, film trailers contributed to 64% of the ad volumes in the trailers/albums segment on TV. Music albums accounted for significant ad volumes in Q1’07, whereas film trailers witnessed ad volume peaks in Q2’07. The number of film trailer ads during programmes and those during commercial breaks each day in H1’07 were equal whereas music albums advertised more in commercial breaks.

Source: Indiantelevision.com

37. Snapshot On Print Advertising In First Half Of 2007 - Part 1 – July 13

AdEx India Analysis on print advertising trends during H1’07 (part 1)

According to the AdEx India Analysis on print advertising grew by 4% in H1’07 over that in H1’06. The Education sector topped with a 15% share of print ad volumes, whereas the Telecom Products sector doubled its print ad volumes during this period. The ratio of national and local advertisers was 70:30.

Source: Exchange4media

38. Snapshot On Print Advertising In First Half Of 2007 - Part 2 – July 20

AdEx India Analysis on print advertising trends during H1’07 (part 2)

According to AdEx India Analysis during H1’07, radio channels’ contribution to print advertising in H1 '07 was up by 15% over that in H1’06, whereas TV channel promotions in print decreased by 17% during the same period. Ad volumes by the telecom products sector doubled in H1'07. The ratio of advertising in main issues to that in supplements was 81:19.

Source: Exchange4media

39. Snapshot On TV Advertising In First Half Of 2007 - Part 1 – July 10

AdEx India Analysis on TV advertising trends on during H1’07 (part 1) According to the AdEx India Analysis, TV advertising grew by 31% in H1’07 over that in H1’06. The Food and Beverages sector contributed 15% of TV ad volumes. The top three categories in TV advertising were social advertisements, toilet soaps and aerated soft drinks. There was a growth of 30% in the average frequency of ads per day in H1'07 over that in H1’06.

Source: Indiantelevision.com

40. Snapshot On TV Advertising In First Half Of 2007 - Part 2 – July 17

AdEx India Analysis on TV advertising trends during H1’07 (part 2)

According to AdEx India Analysis on TV advertising trends for first half of 2007 (part 2), GEC, News and Music channels accounted for three-fourths of the ad volumes in H1’07. The number of Radio Station brands advertised on TV in H1’07 were twice that in H1’06. Advertising by print publications on TV was up by 70% in H1’07 over that in H1’06.

Source: Indiantelevision.com

41. A Snapshot Of Advertising By Retail Sector On Print – July 06

Print advertising by the retail sector

According to AdEx India Analysis, the retail sector contributed to 7% of total print advertising volumes during January-May 2007, a growth of 5% over the volumes in January-May 2006. The festive season recorded a peak in the volumes of retail sector ads in print for 2006. The south and west zone publications accounted for the major portion of the ads. The leading advertiser was Pantaloons Retail India.

Source: Exchange4media

42. A Snapshot Of Advertising By Retail Outlets On TV – July 03

TV advertising by the retail sector

According to AdEx India Analysis, TV advertising by the retail industry increased by 12% during January-May 2007 compared to that in the corresponding period in 2006. Nearly half of the advertising share was contributed by GECs. 'Subhiksha' and 'Saravana Stores' were the top two retailers, accounting for 13% and 7% of the total ad volumes, respectively. Overall, January-May 2007 saw nearly 700 ads each day by retail outlets.

Source: Indiantelevision.com

43. An Overview Of Advertising By Education Sector On Print – June 29

Print advertising by the education sector

According to AdEx India Analysis, print advertising by the education sector during January-May 2007 increased by 17% over that in the corresponding period in 2006. Educational Institutions topped advertising volumes with a 68% share in January-May 2007, followed by Coaching Centres with a 15% share. Publications from the south zone contributed to the maximum ad volumes. Non-metro city newspapers accounted for approximately 61% of the advertising by the education sector.

Source: Exchange4media

44. An Overview Of Advertising By Education Sector – June 26

TV advertising by education sector

According to the AdEx India Analysis, TV advertising by the education sector soared by 82% during January-May 2007. Educational Institutions grabbed more than 60% of the advertising share, followed by Vocational Training Institutes and Coaching Centres with 14% and 12% shares, respectively. South zone channels accounted for the maximum ad volumes, with news channels airing nearly half the ads.

Source: Indiantelevision.com

45. Snapshot On Advertising By Tourism Industry On Print – June 26

Print advertising by the tourism industry

According to AdEx India Analysis, volumes of print advertising by the tourism industry decreased by 5% during Jan-May 2007 compared to those during Jan-May’06. The ratio of ad volumes by private (including both Indian and international players) players to those by Indian State Tourism players is 74:26. Among the latter, the Ministry of Tourism was the top player; Cox & Kings India leads in the private players’ segment. Metro city newspapers accounted for 56% of the ads by the tourism Industry.

Source: Exchange4media

46. 81 Per Cent Indian Users Log On For Travel: Microsoft – July 02

The Internet is a major source of travel information for most MSN and Windows Live users in India

According to a study by Microsoft Digital Advertising Solutions, 81% users of MSN and Windows Live in India prefer the Internet for procuring information on leisure and business travel. The study also reveals that MSN and Windows Live users in India have taken an average of 84% air trips over the past 12 months, and 86% have stayed in hotels over this period at an average of 4.1 nights for leisure trips and 5.7 nights for business trips. It also revealed that 7 out of 10 Asians consider the Internet a key source of information for travel products and services, and find it convenient to make travel reservations online.

Source: Agencyfaqs

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Environment Watch: Regulation

47. Broadcasters Reject I&B's Content Code – July 21

Broadcasters oppose content code for news channels

Television broadcasters feel there is no need for the regulation of news and current affairs, and are strongly opposing the government's proposal to introduce guidelines for editorial content. They also feel that these ‘self-regulation guidelines’ by the government constitute a contradiction because it is the latter that is imposing these guidelines. They argued the code would place unnecessary restrictions on TV, which was capable of regulating itself.

Source: Times Of India

48. Govt Releases Content Code For News Channels – July 20

New content code for news channels

The government has issued a content code, including ‘self-regulation guidelines for broadcasting sector’, which mandates news channels to follow certain 'dos and donts' while carrying out sting operations to avoid 'unwarranted' infringement of privacy. According to these guidelines, channels must to ensure 'senior editorial control' for selecting material in issues relating to privacy and intrusion into public affairs. The appointment of one or more Content Auditors by the channels has also been considered an essential part of this internal regulatory mechanism. It has also proposed the categorisation of programmes into three segments – 'U' and 'S', 'U/A', and 'A'.

Source: PTI

49. Outdoor Media Body Seeks Uniform Norms – July 14

Outdoor media companies set up a regulatory body

Outdoor media companies have joined hands to set up the Indian Outdoor Advertising Association (IOAA), a not-for-profit body, to garner recognition and strive for uniform rules for the industry. In the absence of governmental rules, the field is subjected to many lawsuits; therefore, the association will also set up a legal cell to help its members with their cases. The founding members of this association are Entertainment Network India Limited (ENIL), the Times Group Company (which looks after outdoor advertising), Jagran Engage of the Dainik Jagran Group, Lakshya Media, Clear Channel, Selvel Advertising and Prakash Advertising. Other outdoor companies are expected to join the association, which is setting up a secretariat in Delhi that will be run by a professional CEO.

Source: Business Standard

50. TV Ratings To Be Reviewed – July 06

I&B ministry to review TV ratings

The I&B ministry is planning to end the monopolistic structure that is characteristic of TRP measurement. I&B minister Priya Ranjan Dasmunsi said, "The current scenario of measuring TRPs does not reflect real growth of channels and is not a true representative of what audiences are watching. We want to end the monopoly of one company." He further said that existing standards would have to be reviewed, including sample size, and a more transparent system of functioning will be put in place. At present, broadcasters, advertisers and media planners subscribe to TRPs generated on a weekly basis by TAM Media Research. Another agency, aMap, provides ratings on an overnight basis.

Source: Times Of India

Environment Watch: Advertising & Media

New Media

51. TOI, ET Go The Mobile Way, To Launch mPapers Soon – July 23

Times Internet Ltd launches mPapers

Times Internet Ltd., the Internet venture of Bennett Coleman and Company Ltd., has launched mobile versions (mPapers) of their dailies Times of India and Economic Times, named TOIMOBILE and ETMOBILE, respectively. To access these mPapers, readers will have to enter the respective addresses of the publication on their GPRS-enabled mobile phone browsers. These editions will be updated constantly with the latest news and reports akin to the web editions.

Source: Exchange4media

52. Essel, BSNL Join Hands To Bring Television On Mobile – July 23

Essel Group and BSNL launch mobile television

Essel Group’s Digital Media Convergence Ltd (DMCL), in collaboration with BSNL, has launched ISEE, a mobile TV application. With an extensive video portal, ISEE brings television to the screens of BSNL mobile users and will offer streamed content from Zee Group channels. The technology used in the portal is provided by the UTurn Media Group of the Czech Republic and will be available to BSNL customers in North India in the first phase of the service roll-out. The service is being offered free of cost for the first 30 days, after which a monthly rental of Rs 150 would be levied.

Source: Exchange4media

53. Voice SMS, The Next Generation Of Mobile Advertising? – July 18

Kirusa to launch Voice SMS

Kirusa, a mobile VAS provider, has announced the launch of Voice SMS in India. The service, already available on BPL mobiles in Mumbai, was preceded by a high-decibel campaign and has received a tremendous response from its subscribers. Tata Teleservices, Idea Cellular and MTNL have tied up with Kirusa for this service. Kirusa is also planning to introduce the next level of this service, which includes short humorous audio clippings. According to Dr Inderpal Singh Mumick, chairman and CEO of Kirusa, Voice SMS is the next big thing on the radar and the service is all set to become an important communication tool. With mobile advertising set to grow in the coming years, advertisers are sure to use such innovative methods to get their communications across to consumers.

Source: Exchange4media

54. MTNL, Aksh Optifibre Commercially Launch India’s First IPTV Service – July 10

IPTV service by MTNL and Aksh Optifibre

MTNL and Aksh Optifibre have commercially launched the IPTV service, which has been hailed as the next-generation television broadcast system. This entails that all MTNL broadband subscribers will be able to register for the service, which includes monthly tariffs of Rs 90 onwards, with the option to select pay channels of one’s choice. Advertisers can benefit from a feature called A-Tube, which allows them to upload full-length campaigns, product AVs and detailed trailers without having to prescribe to 10-20-30-second formats.

Source: Exchange4media

55. Nokia Ties Up With Malayala Manorama To Launch News Portal On Mobile – July 07

Nokia launches vernacular news portal with Malayala Manorama

Nokia and Malayala Manorama have launched a vernacular news portal. Through this, users in Kerala can access national and international news in Malayalam on their GPRS-enabled Nokia handsets. Categories of information made available include sports, travel, music, astrology and movies, among others. Further, with the launch of this mobile newspaper, Nokia offers the benefits of value-added services in 10 vernacular languages –Hindi, Punjabi, Bengali, Oriya, Assamese, Marathi, Gujarati, Tamil, Telugu and Kannada – in association with leading media houses across India. This application also supports ‘search’ and ‘mobile advertising’, while making the Internet and the ‘search’ facility available to non-English-speaking literates.

Source: Exchange4media

56. Radio City Launches WAP Portal With Hungama Mobile – June 28

Radio City launches WAP portal in partnership with Hungama Mobile

Radio City, in partnership with Hungama Mobile, has launched a WAP portal. Commenting on the initiative, Apurva Purohit, CEO, Radio City, said, “Cellular phones have rapidly become an emerging platform for listeners to access radio. The Radio City WAP portal will provide our listeners a direct and engaging Radio City experience, allowing them seamless interactivity with the brand”. With this launch, Radio City and Hungama Mobile expect to provide listeners with innovative and interactive radio programming. The featured content is based on popular on-air programmes and would have downloads of radio content, including RJ ring tones, wallpapers and audio greeting downloads.

Source: Exchange4media

Television

57. Future Media Announces The Launch Of Future TV – July 12

Future Media launches Future TV

Future Media, the media company of Future Group, has announced the launch of Future TV, a television channel to be aired in Mumbai, Delhi and Bangalore across Future Group stores such as Big Bazaar, Food Bazaar, Pantaloon and Home Town. The channel will cater to consumer needs and is designed to be pointcast to the audience, that is, each store can have various channels appropriate to the ambience of the area. The channel is also looking at increasing interactivity with consumers and has launched a live news ticker to update consumers.

Source: Exchange4media

58. Idiot Box To Get HITS – July 02

Revolutionising TV viewing through HITS

After Conditional Access System (CAS) and Direct-to Home (DTH), TV viewers have another option, Headed In The Sky (HITS), an interactive system where the existing infrastructure (a set-top box) can be used to watch programmes of choice and access facilities such as running searches, pay per view and blocking programming by title, channel or rating. It gives the viewer the flexibility to subscribe to a single programme on a channel, rather than the channel itself, thereby reducing the bill. According to sources, the I&B ministry has asked TRAI to initiate a consultation process to explore the possibilities of permitting cable operators to launch HITS in the country.

Source: Economic Times

Print

59. Dainik Bhaskar Launches Fortnightly Magazine ‘Young Bhaskar’ For Children – July 21

Dainik Bhaskar launches Young Bhaskar

The Bhaskar Group has launched its fortnightly children’s magazine Young Bhaskar in English, following incessant demand for it from its young readers. The magazine is targeted at children in the 8-16 age groups and will cover current issues, stories, contests and jokes. The launch was followed by a series of print, radio and SMS campaigns.

Source: Exchange4media

60. Haymarket To Launch Campaign In India – July 05

Haymarket Media Group set to launch Campaign in September

A UK-based publishing company, Haymarket Media Group, is set to launch Campaign, a magazine focusing on advertising, marketing and media sectors in India. According to industry sources, the launch will be in September. The magazine will be edited by Anant Rangaswami (former editor, Impact magazine, and former vice-president, TBWA India). Haymarket is also expected to launch other magazines, including Media and Brand Republic, over the next one year in India.

Source: Financial Express

61. Living Media To Partner With Condé Nast To Distribute ‘Vogue’ – June 26

Living Media India to distribute Vogue in India

Living Media India has collaborated with Condé Nast Publications Inc., New York, to distribute its flagship brand magazine, Vogue, in India. The Indian edition of the magazine will showcase a discerning mix of the best local and international fashion, beauty and cultural trends.

Source: Agencyfaqs

Radio

62. Malayala Manorama Christens FM Venture As ‘Radio Mango’ – July 21

Malayala Manorama Group set to launch ‘Radio Mango’

The Malayala Manorama Group is set to launch its FM radio venture, Radio Mango, which will currently operate in Kochi, Thrissur, Kannur and Kozhikode. The station will predominantly play Malayalam music, except in Kochi, where the channel would also play some Hindi and English music. The frequency for the station in the four cities is 91.9 FM. The programming mix will include stories, songs, as well as knowledge-based programs.

Source: Exchange4media

63. Zapak Is Game For Radio – July 9

Top advertisers on radio for the month of May 2007

Among the top 10 brands that advertised on radio in May 2007, Reliance Mobile, www.zapak.com and Maruti Suzuki Sx4 were the top three. In the top 10 advertisers category, Reliance Communications Ltd, Coca Cola India Ltd, and Hindustan Lever Ltd, were the top three. The categories which advertised the most were TV Channel Promotions, Cellular Phone Service and Properties/Real Estates.

Source: India Radio Bulletin

64. Bachhe Ki Jaan Loge Kya? – June 27

Indian radio industry set for healthy growth

With the radio industry in India growing significantly, the industry ad spend is expected to rise from approximately 2% to 5% in the next three to five years. The industry is maturing with the launch of women-centric channels and brand-improvement exercises being conducted by older channels to stay competitive. In addition, new channels are using innovative ways of advertising and marketing to reach the top. Several service providers have launched mobile radio while others are in the process of doing so.

Source: Exchange4media

Others

65. Now, Railways Embark On Ad Journey To Fill Coffers – July 20

The Railways present significant opportunities for advertisers

With the Railway ministry allowing advertisers to advertise on rail tickets charts, platform and stations, a vast array of opportunities have emerged for Indian corporate advertisers. The ministry now plans to extend the scheme to unreserved railway tickets. According to a Railway ministry official, significant revenues are expected through this scheme and the ministry is targeting Rs 200 crore from commercial publicity earnings in this fiscal, compared to Rs 120 crore in 2006-07.

Source: Financial Express

66. SMSes To Become More User-Friendly – July 16

SMS services to become a major VAS tool

Corporate India is relying on SMS power with every second corporate introducing value-added services (VAS) to make its customer care model more friendly, digital and mobile based. Jet Airways has launched an SMS check-in facility for its frequent fliers, which permit a passenger to send a text message to check-in for a flight. SMS marketing is perceived as the next revenue earning source. According to according Cellular Operators Association of India (COAI) study, the Indian VAS market was around Rs 3,000 crore in 2006 and is expected to grow to Rs 4,500 crore in 2007. Even though other services such as content download, ringtones and GPRS would bring in revenues, the majority would come in from SMS services.

Source: Agencyfaqs

67. Rediff Launches Content-Sharing Website, Ties Up With Zee – July 11

Rediff.com launches content sharing portal – iShare

Rediff.com has launched a user generated content sharing portal called iShare, in which users can share, upload and store their videos, images and music. Zee is Rediff’s first partner, and they have jointly introduced ‘Voice of Rediff on Zee Saregamapa’ for aspiring singers (who have missed out on participating in the current season of the show,) to create their videos or record their voice and upload it on iShare; it will be evaluated by the judges of ‘Saregamapa’.. Manish Agarwal, vice-president, Marketing, Rediff.com said, “Rediff’s iShare is a catalyst for young Indian fulfilling their urge to share, connect and meet people having common passions about audio, video and picture content.”

Source: Agencyfaqs

68. Widgets Still Off-Radar For Most Indian Marketers- July 02

Slow acceptance of widgets in India

Web widgets are the latest content syndication tools to catch the attention of the online world. They offer a number of opportunities for advertisers and content developers for brand building, advertising, viral marketing and content syndication. While Indians are getting active on social media and widgets, marketers have still not accepted the concept of widgets. According to Amit Ranjan, COO, Slideshare.net “marketing of widgets is happening through blogs, and as the number of blogs in India increase, there will be rise in the use of widgets too”.

Source: Agencyfaqs

69. Reliance ADAG launches BIG Music and Home Entertainment – June 27

Reliance ADAG Group enters music and home entertainment market

Reliance Anil Dhirubhai Ambani Group (ADAG) has ventured into the music and home entertainment market with the launch of its initiative BIG Music and Home Entertainment. The company would set up offices in Mumbai, Delhi, Kolkata and Chennai and plans to expand in more regions launches to create, acquire and distribute regionally or locally relevant content.

Source: Exchange4media

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Touch Points

Touchpoints is a unique tool for ZenithOptimedia clients that provide clear actionable metrics for all contact points used in marketing products and services.

For a detailed presentation on Touchpoints contact Mr. Pavan Chandra at pchandra@zenithoptimediaindia.com or call at +91-9899-3767-68

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ZO Zone

Viewership Analysis of Hindi Movie Channels for 4 weeks for the period of 10th June2007 – 7th July 2007

Top 2 Programs Across Hindi Movie Channels

Source: TAM

Period : 10th June – 7th July
Market : North,East And West
TG : 25-44, Sec – ABC, MF, CS

Change In Channel Share 2007 vs 2006

Source: TAM

Period : 10 June – 7 July 2007
10 June – 7July 2006
Markets : North, East, West
TG: 25-44 SEC AB Female CS

Top 5 Program Ratings Across Various Target Audiences

Source: TAM

Period : 10th June – 7th July
Market : North, East And West
TG : 25-44, Sec – ABC, MF, CS

Advertising Spend Analysis for Cellular Phone category for the Year 2005 & 2006

Cellular Phone

Monthly Media Expenditure

Source: TAM

Cellular Phone Category – Brandwise spends

Source: TAM

Medium Breakup

Source: TAM

Channel Genrewise Breakup

Source: TAM

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Fast Forward

70. In-game Advertising

Introduction

Computer and video gaming is a big business. The industry is often said to be bigger than Hollywood, but that's not quite true. (In the United States, game sales totalled US$7.4 billion in 2006, while box office takings totalled US$9.5 billion, and both increased by 6%). Still, gaming is an activity to which many people devote serious amounts of time, effort and money. These people are often light consumers of media, and so are hard to reach with traditional advertising. Games, then, are a great way to communicate with an engaged, passionate and hard-to-reach audience. However, because gamers can be so passionate about their gaming experience, unwary brands can damage themselves by inserting messages too intrusively in a game, in an inappropriate manner. Advertising to gamers is an activity that should be approached with care.

US market research group eMarketer estimates that US$0.7 billion was spent globally on in-game advertising in 2006, and thinks this will grow by 140% to US$1.7 million in 2009. This represents 0.2% of total worldwide ad expenditure by our measure (in our Advertising Expenditure Forecasts) in 2006 and 0.3% in 2009. In-game advertising is small compared to most of the traditional media (except cinema advertising, which totalled US$1.8 billion in 2006), but it is growing very rapidly across the world. For this fourth edition of Fast Forward we decided to take a look at how in-game advertising is developing in Asia Pacific, with the help of our local offices. We looked at China, already one of the largest advertising markets in the world and one that has huge potential for further growth. We looked at fast-moving Japan and South Korea, so often at the leading edge of technological change. And we looked at Vietnam, a representative developing market with a young population, where gaming is becoming part of mainstream culture. We have concentrated on how advertisers can use existing games to reach gamers; we have not touched on the related topic of ‘advergaming’ – designing new games specifically to promote a particular product or brand Thanks to Meg Wu from China, Ching Ian from Japan, Kim Yong Sung and Chris Shin from South Korea and Venkat Kotamaraju from Vietnam for their contributions, Joshua Kim and the SCOOP team from Hong Kong for their translation work, and a big thanks to Matt Semple from Hong Kong for organising all the contributions.

Introduction to in-game advertising

It has been possible to buy ads in video games for a few years now. However, until fairly recently these generally appeared only in a few games that simulated environments where ads would be expected to appear, such as racing games with race track posters. These ads would be put in position when the game was being produced - often some time before the game was available in shops - and then stay there over the game's lifetime.

Now that many people play games online it is possible to insert ads into games at short notice, and even create campaigns that integrate brands into the game-play. There are many ways of using online games to advertise to their players. We asked our local offices to describe the most common forms.

China: In-game ads can be simple text links or banners, like those that appear on websites. These can be placed on loading pages (which game players are presented with for a few minutes as they download the game), or as part of the playing area within the game itself. It is also possible to place video ads that play in the background of a game. But it can be better to use product placement: to integrate the product in the context of the game. The product can be made into a tool that is used in the game, or it can appear in a dramatic scene. This avoids the hard sell and players are more likely to react to it favourably.

South Korea: In-game displays and in-game items are the two most common types of ads. In-game displays give exposure to an advertiser's products, and associate them with the game. In-game items are rewards that are given out as incentives to loyal gamers who have participated in promotions. The promotions themselves are good ways of engaging with gamers, and this engagement is reinforced every time a gamer uses an item they have won.

Vietnam: Some marketers have been known to extend their sponsorship of an online game by holding special events and promotions for players.

How gamers react to advertising

In-game advertising works best when it is relevant to the game, when it becomes part of the game, and when it encourages the active participation of the gamer.

China: In-game advertising is a form of marketing to fans. Like sport marketing, it is a good way to forge a relationship with a group of consumers by creating an association with one of their favourite activities. The gaming environment is not as cluttered as websites, so ads are more likely to grab players' attention, and because players devote a lot of time and attention to games these ads are good at building awareness.

The best way to use games is not just to advertise, but to integrate the product into the context of the game in a clever way. If this is done well and it is fun, game players are likely to accept the product and interact with it, by 'eating' a branded hamburger in a virtual fast-food restaurant, for example. This works even better if the product placement is combined with a real-world campaign. For example, players can collect promotional points from soft drink cans, and then use these points to get special items in the game. Or players who complete certain tasks in the game have the chance to win a new laptop.

Even basic ads can do well in games, particularly since there are not many brands present in games at the moment and so there is little clutter. However, if the ad is not relevant to the game and gets in the way, it risks annoying the players.

Japan: If the ad is simply a banner within the game, players may ignore it or resent it as an obstruction. Players are more likely to respond to an ad - such as by visiting the relevant website or requesting brochures - if the ad is related to the story of the game.

Creating incentives helps maintain the relationship between the ad and the game, such as offering discount coupons that give players bigger discounts for higher scores.

South Korea: Giving away in-game items or other rewards can be a very effective way to attract the attention of players and to strengthen the association between the brand and the game.

A great example of effective in-game advertising was a partnership between a soft drink brand and Kartrider, a very popular racing game. As well as in-game displays and in-game items, the campaign introduced a whole new race track designed to display the advertiser's brand.

How is the Return On Investment measured?

China: Text links or banners can be tracked in the same way as similar ads on websites: by measuring the number of times gamers see an ad (the number of impressions) or the number of times they click on it. The cost per impression or cost per click can then be compared with other forms of digital advertising.

Product placement is more difficult to evaluate. If it involves an in-game item, then the number of times that item is used is one measure of its effectiveness. If it involves a promotion, then the number of people who participate is another.

Japan: If the game is the downloaded type, then its value can be measured by tracking the number of downloads, the duration and frequency of play, and by monitoring the actions players take after they have finished playing.

Types of online games

MMORPGs: Massively Multiplayer Online Role-Playing Games. These are games in which These are games in which players (potentially many thousands of them) players (potentially many thousands of them) assume the roles of fictional characters and control their assume the roles of fictional characters and control their actions, and interact with each other actions, and interact with each other, in virtual worlds. Players normally devote a lot of time to developing their characters. Players normally devote a lot of time to developing their characters. Examples include World of Warcraft, Fantasy Journey to the West and Legend of Mir 3.

Casual/lobby games: Games that players can play quickly and casually against one or more other players, often after logging into a 'lobby' website that matches opponent together for a short game. Examples include Kartrider, Audition and BnB Adventure.

Battle games: In these games, players take control of virtual armies and fight battles against each other, for example Starcraft and Warcraft3.

Chess and card games: These are simply online versions of traditional games.

Who plays games online?

The most developed gaming market is South Korea, where more than a third of the population plays online games. China has the most gamers, however and the most potential for growth, since these gamers represent only 4% of the population. As you might imagine, teenage boys and young men are the keenest players of games, but plenty of women and older people play too.

China: According to the latest survey by I-research, there were 46 million online gamers at the end of 2006. This was 34% of internet users but only 4% of the total Chinese population, so there is plenty of potential for growth. The number of gamers is growing at 20%-33% a year.

83% of gamers are male, and young men - particularly students - are heavily represented. 33% of gamers are aged between 19 and 22, and 32% are students.

On average gamers spend about RMB40 (about US$5) a month on their hobby - on subscriptions, customised items and so on - and devote about six hours a day to playing. This is more time than they spend on any other form of media, such as watching television.

Japan: About 30 million people play games online in Japan. That's about 35% of internet users and 13% of the total population. Those who play games include not just young men, but also women, the middle aged, and families. Men spend the longest playing (more than an hour a day on average), while teenagers and women in their forties spend the shortest time (less than 15 minutes a day).

On average, players perhaps spend about ¥400 (US$4) a month playing games on their mobile phones, and about ¥2,300 (US$21) a month playing games on their PCs.

South Korea: According to Koreanclick, 17 million people played games online in March 2007. That's fully 50% of internet users in South Korea, and 35% of the total population. The popularity of gaming seems to have peaked, however. In March 2005, when the craze for Kartrider - an online racing game - was at its height, there were 18 million players. At the moment the number of players is stable, if not in slight decline.

The average male player is aged between 25 and 34, while the female players are aged between either 9 and 14 or 25 and 29. Gamers play for an hour a day on average, and spend Won 7,000 (US$7) a month on their hobby.

Vietnam: The industry leader Vinagames estimates that 6 million people (mostly young people) buy pre-paid cards to play games online (40% of internet users and 7% of the population). This number has grown by about 140% over the last year, and is expected to continue to grow at this sort of rate for the next couple of years.

Gamer players are typically teenagers and young adults, who attend school or college.

What type of advertisers use games?

So far, the advertisers that have made the best use of in-game advertising have tended to be those that specifically target the sort of young people who are most likely to play games, or those that are associated with gaming. However, it has the potential to be of wider use for advertisers in general.

China: In-game advertising has mainly been used by some FMCG brands (such as soft drinks and contact lenses) and IT brands, which use it to reach the young gaming audience.

South Korea: So far the most successful in-game campaigns have been the soft drink partnership with Kartrider mentioned earlier, and advertising in a dance game by an instant noodle company. Its noodles were popular in the PC rooms where games are commonly played, so it had an obvious association with gaming.

Vietnam: Currently mobile and fixedline telecoms companies are at the forefront of using online gaming.

On the face of it, in-game advertising seems most suited to brands that target the sort of people who spend the most time playing games: young people, who spend most of their time out of their house. However, these people should not just be targeted because they are the main users of particular specialist products; they are also very influential in forming others' opinions of brands, and they make up a large proportion of the adult population in Vietnam.

So in-game advertising does not have to remain the exclusive preserve of youth brands – mainstream brands can make use of it too.

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