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: X

January, 2008

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In these hyper charged times where news comes in as fast as it becomes outdated, we need a source that can keep track of what matters to us.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.

Emerging Trends: Digital

01. Indian television households to adapt digital platforms by 2010 – Dec 20

According to Ernst & Young report - "India Digital Revolution: Impact on Film & Television", 28% of the estimated 100 million pay TV households in India will switch to digital pay TV platforms such as digital cable, DTH (direct-to-home) and IPTV (internet protocol TV) by 2010. Within the Digital platforms, DTH will lead. IPTV is expected to have a low growth because of low penetration of broadband. The report further revealed that the Indian television advertising market will grow by 14% annually from 2008 to 2011.

Source: Agencyfaqs

Emerging Trends: Retail

02. Indian Franchising and Retailing Summit – (Nov 30-Dec 01)

The two day 'Indian Franchising and Retailing Summit 2007-08 highlighted the following points:

· Franchising as a business model grew at a rate of 30-35% from 2003-04; it is at a nascent stage, comprising nearly 50% of retailing in India. It provides employment to thousands of people and business opportunities to budding entrepreneurs.

· Tier II and Tier III cities hold the maximum potential for growth.

· For completion of a franchising model, brand name is important along with ambience and advertising of one's franchise.

Source: Exchange4media

Emerging Trends: Others

03. Future ad spend in social networking to grow – Dec 03

The social networking industry in India is growing and is showing a promising future. National social networking sites such as Fropper.com, Desimartini.com, Yo4ya.com, and others are already striving to grab a larger share of the online user base in India. These websites are focusing on providing user-friendly applications. Fropper.com features ‘easy blogs’ to attract new users and build communities around them. On the advertising front, Microsoft launched ‘Sponsored Spaces’ on Windows Live Spaces as one of its new ad platforms. However, the social network advertising faces few roadblocks such as frequent user shift within the sites, which makes advertising to specific target users difficult for advertisers, and existence of very few professional bloggers, who blog for a living in India.

Source: Exchange4media

04. Online search engine portals tying up with telcos to hit maximum consumers – Nov 28

With mobile phone users outnumbering PC-users in India by a factor of almost seven, the online search engine portals are tying up with mobile operators to reach maximum consumers. For example, Yahoo!, in India has tied up with Idea Cellular, BSNL, BPL Mobile and Aircel, and has a target audience of 60 million subscribers. Google has tied up with Airtel and can reach about 15 million potential customers per month on cost per click basis. With these tie-ups with telcos, the search giants are offering content from a variety of sources, including news, financial information, weather conditions, Flickr photos, Yahoo! Answers, movies, flight status, Wikipedia, currency converters, among others.

Source: Economic Times

Emerging Trends: International

05. Viewers more engaged in ads that run with TV programs they watch online than those watched on TV-set – Dec 24

According to a cross-media study by Simmons, a unit of Experian Research Services, consumers are 47% more engaged in ads that run with television programs they view online than those watched on a TV set. The research also found that viewers are 25% more engaged in the content of TV shows that they watch online than that on a TV. The study found that people are 18% more engaged in ads online, as opposed to print versions, and that they are also 15% more engaged in magazine articles online than in print. In demographic terms, women and younger consumers were shown to have higher levels of engagement online than men and older users.

Source: MediaPost Publication

06. Online reviews proving vital for purchase decisions – Dec 18, Dec 10

· According to an online survey of over 1300 product reviewers, conducted by Bazaarvoice to find out what influenced them to share their opinions, 90% write reviews in order to help others make better buying decisions, while 70% want to help companies improve the products they build and carry.

· A study conducted by comScore and the Kelsey Group revealed that nearly one of every four Internet users read online reviews prior to paying for a service delivered offline by restaurants, hotels, travel agencies, etc.

Source: Centre for media research

07. Ad spend on social networking to double in 2008 – Dec 17

According to an eMarketer study, ad spending on online social networks worldwide will nearly double, to $2.2 billion in 2008 from $1.2 billion in 2007. US is expected to contribute the highest in the ad spend share as US social network advertising is projected to grow to $1.6 billion in 2008 from $920 million in 2007. The US social networking is dominated by MySpace and Facebook with a 70% share of the ad spend. The study further forecasts that global social network ad spend will reach $4.1 billion by 2011.

Source: MediaPost Publication

08. TV to remain major medium for viewing video content – Nov 28

A survey of media executives predicts that the TV will be the major medium of watching video content; however, broadband will continue to make significant inroads into this domain for the next five years. According to the Digital Video Barometer survey, 90% of the survey takers believed that the Internet distribution will account for at least 40% of all video content by 2012, while 23% said that the Internet will account for 60% of content; 9% think that the Internet will have 80% of the video share. Nevertheless, almost two-thirds thought that TV would have at least 60% of all video consumption in the next five years.

Source: The Reporter

09. Advertising expenditure on newspaper websites rising – Nov 27

According to preliminary estimates of The Newspaper Association of America, the advertising expenditures for newspaper websites increased to $773 million in Q3 ’07, a 21.1% over Q3 ’06. This is the fourteenth consecutive quarter of double-digit growth for online newspaper advertising since 2004. Newspaper website advertising accounted for 7.1% of total newspaper ad spending in Q3 ’07, compared to 5.4 % in Q3 ’06.

Source: Centre for media research

10. ‘Family Man’ position in men’s market is eroding – Nov 27

According to a report ‘US Men's Market’, by Packaged Facts, market research firm, companies should focus their future marketing efforts on men who are single rather than married. The study also suggests that even though women control family purchases of a range of products, men, especially single and divorced men, might constitute the primary demographic growth market, especially for discretionary products that include gadgets and feel-good foods. According to the study, men between the ages of 18 and 34 are likely to try new styles, new electronic equipment and health food. In addition, they watch out for special offers and shop for bargains.

Source: MediaPost Publication

BRIC Zone - China

11. Advertising industry to benefit from Beijing Olympics – Dec 20

The Chinese advertising market may post increases of 29% in 2008, boosted by marketing campaigns for the Beijing Olympic Games. According to media agent Group M, growth in 2008 would beat the estimated 19% increase of 2007 because of the international event. The increase would also stem from rate hikes by mainland media firms, as major television stations such as China Central Television, Beijing Television and Shanghai Media Group might lift rates by 15% in 2008. Nielsen Media China said that advertising spending on traditional media such as television, newspapers and magazines grew by 14% in the third quarter to 115.7 billion yuan.

Source: South China Morning Post

12. China’s retail sales reach 810.5 billion yuan – Dec 12-13

According to National Bureau of Statistics, China’s November retail sales rose by 16.4% year-on-year to 810.5 billion yuan in 2007. For the same period, spending in urban areas increased by 19.2% to 542.6 billion yuan while that in rural areas increased by 18% to 267.8 billion yuan. However, the spending rise is attributed to surging prices and not consumer demand.

Source: Xinhua Financial Network (XFN) News; Shanghai Daily0020

13. Chinese show buying preference for cell phones with web browser – Nov 30

In a survey of 31,668 people by CCID Consulting, 37% respondents said that they preferred buying a cell phone that could be used for online surfing; 33% hoped they could get one with the GPS function, which is a helpful tool to China's increasing car owners. More than 20%, primarily comprising the young generation who use cell phones as a music player, opted for a cell phone having a large storage disk. CCID Vice President Lu Guoying stated that the Chinese mobile phone market is expected to witness a boom from 2008 to 2010.

Source: Xinhua News Agency

BRIC Zone - Brazil

14. Brazil’s e-commerce industry expected to grow – Dec 19

According to the latest forecast by the Brazilian e-commerce Chamber, Brazil's e-commerce is expected to post a revenue of R$6.4 billion in 2007 against R$4.4 billion in 2006, and to end the year with 9.5 million clients. Revenues in 2008 are forecasted to increase by almost 50% to R$10 billion. The sector's Christmas sales are expected to grow by 45% over those in 2006 to R$1 billion.

Source: Gazeta Mercantil News (Real Time)

15. Brazil’s retail sales on the rise – Dec 11

Brazilian retail sales grew by 9.6% in Jan-Nov ‘07 compared with those in Jan-Nov ‘06, according to local consumer credit rating service Serasa. The main boost came from a 12.1% growth in specialized retail, which includes electronic goods, vehicles and construction material outlets. Sales from supermarkets, hypermarkets, and food and drink outlets rose by 7%.

Source: AE Brazil

BRIC Zone - Russia

16. Russia’s retail sales grew 15% year-on-year in Jan-Nov 2007 – Dec 21

According to the Federal State Statistics Service, Russia's retail sales rose 15% year-on-year to 9.529 trillion rubles during Jan-Nov 2007. In November, retail sales grew 15.6% year-on-year and 0.6% month-each-month to 1.013 trillion rubles.

Source: Prime-TASS News (Russia)

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Media & Advertising Research Watch

17. Media and entertainment industry evolving – Dec 18, 19

The Indian media and entertainment industry is set to grow at twice the rate of the country's GDP in the coming few years, driven largely by the emergence of regional players, technology and digitisation. A combined study by Ernst & Young and Assocham states that the increasing digital content in the media and entertainment industry will lead to sweeping changes in consumption habits and revenue models. Changes in consumption habits, along with regulatory pressures, have led the country – the third-largest cable and satellite (C&S) market in the world – to start migrating to digital platforms. The study also projects increasing fragmentation of the split between spends on television and print and other conventional and digital media, ultimately resulting in decreased consumer loyalties. To capture the fragmented audience, broadcasters will have to innovate their product lines in terms of niche offerings. The report also predicts a further drop in distribution costs when digital cinema grows into a ‘sizeable mass’ and the transmission process become centralized (as is the case in TV broadcasting).

Source: Indo-Asian News Service, The Economic Times, Financial Express

18. 40% rise in Internet penetration in India – Dec (05 – 20)

According to the I Cube Report by the Internet and Mobile Association of India (IAMAI) and 'Indian Market Research Bureau' (IMRB), the number of people who have used the Internet at least once reached 46 million at the end of Sep '07, which is a 40% growth over the Sep '06 figure of 32.2 million. The number of active Internet users (who log on to the Internet at least once a month) recorded a growth rate of 28% and was up from 25 million in Sep '06 to 32 million in Sep '07. The report further states that online application providers are targeting school kids and exposing them to the latest technologies such as Web 2.0.

Source: Agencyfaqs; Exchange4media

AdEx Findings

19. Chocolate Advertising on TV during January-November 2007

For the Jan-Nov ’07 period, ad volumes of chocolate brands on TV grew by 30% over those in Jan-Nov ‘06.

Source: Indiantelevision.com

20. Advertising on Vernacular Publications in January-October 2007

For the Jan-Sep ’07 period, overall TV ad volumes rose by 33% over those in Jan-Sep ’06. Radio promotions and print publication promotions on television rose by 314% and 66%, respectively, during this period.

Source: Exchange4media

21. TV advertising in cricket programmes in January-October 2007

In Jan-Oct ’07, TV ad volumes of cricket programmes increased by 75% from those in Jan-Oct ’06.

Source: Indiantelevision.com

22. Mobile advertising during January-October 2007

For the period of Jan-Oct ’07, print ad volumes by mobile phone brands grew by 65% compared to those in Jan-Oct '06. During the same period, a 10% year-on-year growth was observed in mobile phones ad volumes on TV.

Source: indiantelevision.com; Exchange4media

23. Advertising in Magazines in January-September 2007

For the period of Jan-Sep ’07, magazine ad volumes increased by 55% over those in Jan-Sep ’06.

Source: Exchange4media

24. Advertising of Film Trailers and Music Albums on TV during January-September 2007

For the period of Jan-Sep ’07, a 185% year-on-year growth was observed in the ad volumes of film trailers and music albums on TV.

Source: indiantelevision.com

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Environment Watch

Regulation

25. TRAI recommendations on providing Internet Television Service – Nov 28

The Telecom Regulatory Authority of India (TRAI) released its draft recommendations for allowing telecom and cable companies to provide TV channels through the Internet without a need for a fresh licence for the new service. It also proposed that Internet Service Providers with a net worth of Rs 100 crore permitted to initiate Internet Protocol Television (IPTV) operations can also be exempted from acquiring a fresh licence. TRAI also recommended amendment to the guidelines for uplinking and downlinking to enable broadcasters to provide signals to all distributors of TV channels, such as cable operators, multi-system operators, Direct-To-Home (DTH) operators and IPTV service providers. TRAI has even invited comments from stakeholders to issue final recommendations to the government.

Source: The Press Trust of India

Environment Watch: Advertising & Media

New Media

26. Launch of a new ad service for PDF publishers – Dec 03

Adobe Systems Inc. and Yahoo! Inc. have announced the launch of an innovative advertising service for US-based commercial online publishers that produce English content. The service enables addition of contextual ads next to Adobe PDF-based content. This pact will help advertisers to tap qualified audiences, open new revenue streams for publishers, and help deliver relevant content to consumers. To join the programme, publishers must register online and upload their Adobe PDF content so that it can be ad-enabled before distributing PDFs. Every time the PDF content is viewed, contextual ads are dynamically matched to the content of the document. The publisher can even monitor performance through detailed reports.

Source: Exchange4media

Print

27. Parenting magazine to be launched in India in March 2008 – Dec 15

NextGen Publishing will launch ‘Mother and Baby’, a UK-based parenting magazine from the EMAP Group, in March 2008 in India. The magazine, with an expected price around Rs. 50, will addresses issues and problems faced by women during pregnancy and childcare in India, and is likely to fill the gap for a publication dedicated to parenting in the country. The launch of the magazine will be promoted via the Internet, outdoor media and other below-the-line activities targeting expectant and new mothers in the SEC A+, A and B segments.

Source: Exchange4media

Radio

28. Independent retailers focusing on radio ad spend – Dec Issue

According to the TAM Media Research’s AdEx data, independent retailers topped the categories list, which included cellular phone services, properties/real estates, TV channel promotions, and social advertisements. The top 3 advertisers were Reliance Communications Ltd, Tata Motors Ltd, and Pepsi Co; the top 3 brands were Reliance Mobile, Tata Indica V2 Petrol, and Reliance Life Insurance.

Source: India Radio Bulletin

29. Radio One launches mobile service in Bangalore – Dec Issue

Radio One launched its premium mobile service in a joint venture with OnMobile Global Limited in Bangalore. The service features comedy programmes and quizzes, among others. According to Vineet Singh Hukmani, CEO, Radio One, the tie-up with OnMobile will help the channel to create more listenership, add revenues, and generate differentiated value for advertisers.

Source: India Radio Bulletin

30. NAB’s Annual European Radio Conference – Dec Issue

Following points emerged from The National Association of Broadcasters (NAB) annual European radio conference held in Barcelona, Spain, from November 4-6, 2007.

· According to Paul Weyland, president, Paul Weyland Training Seminars, every sales proposal should use the Situation Objective Strategy.

· Valerie Geller, president, Geller Media International, said that on-air talent must be constantly developed, enabling presenters to harness the benefits of technology to improve their content and connection with listeners.

· Pollack Media Group’s Senior Vice President of Digital Content, Pat Welsh, recommended radio stations should de-clutter their airtime and shift the small prizes and promotions to their websites. They should use social media to attract more listeners to their stations and should infuse regional news and affairs in their websites for brand creditability.

Source: India Radio Bulletin

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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 Kids Channels for 4 weeks for the period of 2nd December 2007 – 29th December 2007

Top 2 Programs Across Kids Channels

Source: TAM

Change In Channel Share 2007 vs 2006

Source: TAM

Period: 2nd Dec – 29th Dec 2006
2nd Dec – 29th Dec 2007
Market: All India
TG: 4-9 All CS

Top 5 Program Ratings Across Various Target Audiences

Source: TAM

Period: 2nd Dec – 29th Dec
Market: All India
TG: 4-9 CS

Advertising Spend Analysis for the Banking category for the Year 2006 & 2007

Banking

Monthly Media Expenditure

Source: IMRB & AC Nielson
(Reported Figures)

Banking Category – Brandwise spends

Source: IMRB & AC Nielson
(Reported Figures)

Medium Breakup

Source: IMRB & AC Nielson
(Reported Figures)

Genre Breakup

Source: IMRB & AC Nielson
(Reported Figures)

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Fast Forward

Is India ready for the mobile TV revolution?

With mobile TV soon to debut in India, everyone is eager to know what this new service will offer businesses and consumers alike. Not only does this emerging entertainment medium promise a paradigm shift for TV buffs but also for wireless and broadcast industries that are poised to benefit tremendously from it.

Combining the technologies of television and mobile telephony, mobile TV makes high quality television content available on the go and in a format that the viewers understand. The convergence of these two technologies also introduces new forms of interactivity and personalisation, enabling the delivery of compelling content and services for a rich, immersive consumer experience.

Although mobile TV is a recent phenomenon, countries such as Japan and Korea have been quick to embrace the opportunity and deploy new services. South Korea in particular has had a head start in broadcast mobile TV.

However, Japan and the US are expected to overtake it in terms of the number of users, purely based on their large addressable mobile subscriber bases. According to Juniper Research, Japan, the US and South Korea are predicted to eventually comprise 39% of the projected $11.7 billion global broadcast mobile TV subscriber market while Germany, Italy, the UK, India and China will account for 36% by 2011.

What will attract viewers to mobile TV?

Traditional television viewing has been largely ‘place-bound’ -– restricted to the home or occasionally in a restaurant or sports bar. The home television has been shared by members of a family, with everyone fighting over the remote control to see their favourite shows. Mobile TV, by definition and in sharp contrast to traditional TV, will enable ‘place-shifting’ – allowing consumers with the most personal experience of viewing content wherever they go.

According to Trai, India’s mobile subscriber base totals 232.87 million (as of July 2007). It’s expected to grow to over 500 million mobile connections by 2010.

The mobile phone has become a truly ubiquitous device in India today, with users looking to do everything on their mobile phones, from organising their day to playing the latest games. The debut of mobile TV in India seems to be the natural progression in technological innovation. It’s a revolution that will empower business users with the latest stock information, entertain teenagers with their favourite music videos and allow busy soccer moms to catch their favourite soaps, all on the go.

Mobile TV also promises to open up opportunities for governments to enhance services to citizens, ranging from education to healthcare to safety, security and emergency-related initiatives.

The technology behind it all

Mobile TV is still in its early stages and wide adoption hinges on broad consumer choice and investment. FLO (Forward Link Only), DVB-H (Digital Video Broadcasting — Handheld), DMB-T (Digital Video Broadcasting — Terrestrial) and ISDB-T (Integrated Digital Broadcast-Terrestrial) are some of the digital broadcasting technology standards that have been deployed commercially by mobile operators and broadcasters.

Technologies like FLO are purpose-built for the mobile environment, thus enabling consumers to enjoy a high-quality TV viewing experience, comparable in quality to what they would get from their TV sets at home.

Are we ready for Mobile TV?

India is fourth, after China, in global wireless penetration. Today, Indians are increasingly looking at their mobile phones as ‘all-purpose’ devices. This trend, coupled with our huge appetite for entertainment on TV -– especially Bollywood content, soaps, cricket, etc. -– hints at the future success of mobile TV in the country.

However, there is much to be accomplished before mobile TV becomes viable for India. Terrestrial broadcasting for mobile TV services needs to be opened up for private participation. In India, opening the market to private and foreign players has seen several successes in the past.

For example, in the automobile industry allowing new market entrants has resulted in a range of products at different price points. This has vastly increased the choices available to consumers, who can now pick anything between the Benz and the Maruti, to suit their lifestyle and disposable income.

Likewise, making terrestrial broadcast spectrum licenses available to the private sector can have similar benefits to the Indian market. Opening India’s terrestrial video broadcasting sector, currently limited to the state-owned Doordarshan, will enable cable companies, broadcasters, mobile operators and others, to transmit video signals that can be accessed by consumers.

A similar approach was adopted in the case of the FM spectrum in India. Today, radio exists beyond AIR, providing consumers with a wide range of choices to suit all tastes. Another example is DTH that has made so many attractive packages available for the consumer, resulting in greater consumer choice and satisfaction. The government needs to create a technology neutral framework for mobile TV broadcast services and create opportunities that foster competition in the marketplace.

In an emerging market such as India, affordability is a critical factor for any technology to succeed. Mobile TV providers have effectively addressed this issue in markets such as the US, where mobile TV capable devices are being sold at less than $250 today.

Ensuring that Indian consumers benefit from the availability of new entertainment services and applications and that market players have the ability to profit from a commercially viable business model, is paramount to the successful deployment of mobile TV.

This is an ongoing effort that must be undertaken by the government and industry stakeholders. Nonetheless, the future for mobile TV does look bright, with the exponential growth that India is witnessing in the wireless industry. The opportunities are virtually boundless and mobile TV is a wildfire waiting to happen.

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This tracker has been compiled from external sources and does not necessarily reflect the views of the company.
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