| 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: XVI |  |
July, 2008 |
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outdated, we need a source that can keep track of what matters to us.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, 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.
Environment Watch: Advertising & Media
Regulation
14. BARC to guide and supervise the television rating process – July 25
Concerned
about the monopoly of the TAM Media Research agency over the Rs 8,000 crore
television advertising industry, the Information and Broadcasting (I&B)
ministry has sought TRAI’s
intervention on the system and framework of such agencies. The ministry is
keen that the framework should ensure transparency, independence of rating
agencies and increased coverage, reflecting the plurality of regions and
viewership.
TRAI has
recommended the
Broadcast
Audience Research Council
(BARC)
to be recognized as the institutional framework, which would incorporate
BARC’s technical committee to guide and supervise the various processes of
rating, and resort to an open, transparent bidding process for the stages
involved in the rating process. In addition BARC should provide information
and reports, as requested by the ministry from time to time. For this
purpose, BARC needs to sign a Memorandum of Understanding with the ministry
for its organizational structure, functions and methodology (including
eligibility conditions for selection of rating agencies). BARC will also be
required to display the rate card for various reports and discounts offered
on its website.
Source:
The
Times of India,
Indiantelevision
Radio
15. Radio, a bigger hit in regional markets, compared to metros – July 18
According
to the Radio Audience Measurement (RAM) study, on radio penetration and
viewership pattern, FM stations are more popular in regional markets. Their
popularity can be attributed to the regional languages, which play a big
role in retaining listeners. The other reason may be that in metros people
are too busy to tune in to FM stations.
Source:
Indiantelevision
16. Radio adopts a multi-faceted approach to increase its interactive quotient – July 14
With
the listeners becoming more mobile, radio is also keeping pace. For the
industry to expand, FM is keeping abreast with the latest
in
technology. With almost all cars, all music systems and a substantial number
of cell phones coming equipped with an FM receiver, coupled with the
availability of a free-of-cost medium, stations can achieve a penetration
unmatched by other media. Another trend in offing is the mushrooming of
newer modes of distribution for the medium, which will fuel the penetration
of FM in the country. Radio has also shown a transition from mobile to the
internet as a part of its granular approach to reach out to a larger
audience. By having a web presence, stations are able to give their
advertisers a better mileage for their investments. From podcasts to the SMS
short code service to blogs to WAP portals, radio has left no stone unturned
to increase the interactive quotient with its audience.
Source:
India Radio Bulletin
17. Telecom hits it off with radio – July 14
According
to AdEx data, Reliance Communications Ltd, Hindustan Unilever Ltd and Tata
Teleservices clocked 287,000, 206,000 and 164,000 seconds of airtime,
respectively, filling the top three spots in the advertisers’ list in May
2008. Cellular phone service was recorded as the number one category, with
617,000 seconds of airtime. Other categories recorded in the overall AdEx
data were TV channel promotions, independent retailers, properties/real
estate and publications/books, with 482,000 seconds, 453,000 seconds,
399,000 seconds and 263,000 seconds, respectively.
Source:
India Radio Bulletin
18. Radio also gets the movie bug – July 17
The
movie industry in India is now aggressively targeting radio as a medium for
advertising. Though it has been a long association, it has definitely
acquired a new dimension as FM stations
across
the country now have interactive and innovative integration with their
programmes. As a result, movies are being promoted through on-air and
on-ground activities. Moreover, advertisers have been positive about such
associations as they get to ride on the popularity of the movies and stars,
and also associate with them and reach out to the target audience. With
listeners giving a thumbs up to movie associations on radio, popularity of
these shows, through mass participation, has proved the potency of radio as
a medium for advertisers and media planners alike.
Source:
Exchange4media
Others
19. The economic slowdown affects the Indian advertising industry – July 09
The
slowdown in auto, consumer durables, fast moving consumer goods, retail,
banking and insurance sectors has affected the Rs 19,600 crore advertising
industry in India. According to AdEx India, the advertising tracking unit of
TAM India, the total advertising volume in print media dropped by 12% for
April-June 2008, compared to April-June 2007. The ad duration for radio
dipped 3%, while that for television dipped by 12%.
Source:
Indian Business Insight
This tracker has been compiled from external sources and
does not necessarily reflect the views of the company.
Links provided will take you to the full articles appended at the end of
the file.
© 2008 Zenith Optimedia.
Full Articles
14a. Industry-led body should guide TV ratings: TRAI
The Times of India
July 25 2008
Ruling out government intervention in the form of regulation, TRAI on Thursday said that an industry-led body should be responsible for the operational issues of television rating agencies. The regulator has issued draft recommendations on policy guidelines and operational issues for television rating points (TRPs).
TRAI has recommended that the industry initiative – Broadcast Audience Research Council - should be recognized as the institutional framework. Its technical committee can guide and supervise the various processes of rating and while the council should not undertake audience measurement directly, it can resort to an open, transparent bidding process for the various stages involved in the rating process.
Concerned over the alleged monopoly of the TAM Media Research agency over the Rs 8,000 crore television advertising, the information and broadcasting (I&B) ministry had sought TRAI’s intervention on the system and framework of such agencies. The ministry was keen that the framework should ensure transparency, independence of rating agencies and increased coverage reflecting the plurality of regions and viewership.
At present, two private agencies - TAM Media Research and Audience Measurement and Analytics (aMap) - evaluate TV ratings on a commercial basis. But their operations are limited to cities with a population above one lakh. Within big cities too, their sample size is limited to a total of about 7000 (TAM) and 6000 (aMAP) metered homes.
All states except J&K, Bihar, Jharkhand and the northeast states are covered by TAM, while aMap samples cover all states except J&K and northeast but include Jammu and Guwahati. While TAM provides weekly data, aMAP gives daily updates. The regulator has suggested that the council’s board of directors can include two nominees of the I&B ministry besides members from the ministry of statistics and programme implementation, National Council of Applied Economic Research (NCAER) and Indian Statistical Institute (ISI), Kolkata.
It has asked the I&B ministry to draft the key eligibility norms for the selection of rating agencies and their performance obligation norms. The addresses and location of homes where people-meters are installed should be kept confidential and the council should have a complaints redressal mechanism, the regulator said.
14b. TRAI for self-regulation on TV ratings
Indiantelevision
July 24, 2008
The Telecom Regulatory Authority of India gave the green signal to the Broadcast Audience Research Council (BARC), an industry initiative, to conduct studies relating to television rating points.
In its recommendations following a directive to it from the Information and Broadcasting ministry to find a suitable alternative to existing audience measurement mechanisms, TRAI said that two nominees of the ministry must function on the board of directors of BARC which should initiate activities by January 2009.
TRAI feels that for the present, self-regulation may work best and a framework laying specific guidelines including certain reporting requirements would effectively address the shortcomings. As in other countries, the industry-led body can be recognized to perform specified functions. Once BARC starts functioning, the inadequacies of the present system will have to be effectively addressed in close and coordinated manner with the ministry.
TRAI is of the view that any form of governmental intervention in the form of an enactment is not desirable at this stage. Therefore, self regulation through the industry-led not-for-profit body BARC, has been recommended with government guidelines covering BARC’s organizational structure, functioning and methodology.
TRAI also feels that BARC should not undertake audience measurement directly and should resort to an open, transparent bidding process for the various stages involved in the rating process. The ministry should provide the key eligibility norms for the selection of rating agencies and their performance obligation norms.
In addition BARC should provide such information and reports as may be asked for by the ministry from time to time. TRAI said the addresses and location of homes where people meters are installed should be kept totally confidential, and BARC should have a Complaints Redressal Mechanism in place.
For this purpose, BARC should sign a Memorandum of Understanding with the ministry for its organizational structure, functions and methodology (including eligibility conditions for selection of rating agencies).
BARC will display the
rate card for the various reports and discounts offered thereon on its
website. TRAI also said the Request for Proposal inviting bids from the
rating agencies should be finalized by BARC after duly considering the
eligibility conditions and performance obligations as provided by the
Ministry from time to time. At least two bidders should be selected for each
stage of the activity in the rating process.
There should be a Technical Committee within BARC to guide and supervise the various processes of ratings and to include nominees from the Ministry of Statistics and Programme Implementation, National Council of Applied Economic Research (NCAER) and Indian Statistical Institute (ISI), Kolkata.
BARC’s Technical Committee should decide the sample size which should cover different platforms, including terrestrial/Prasar Bharati channels, cable and satellite platforms, rural and urban areas, and all the states.
Referring to the use of technology capable of capturing data over different platforms, TRAI said no single company/legal person, Either directly or through its associates shall have substantial equity (more than 10 per cent) holding in more than one rating agency.
Furthermore, a promoter company/legal person/directors of rating agency cannot have stakes in broadcaster, advertiser and advertising agency either directly or through its associates. Similarly, a broadcaster, advertiser or advertising agency will not be permitted any stake in rating agencies.
Comprehensive mandatory audit of the rating system will be carried out by independent qualified auditing firms having experience of TV ratings audit, conducted at least once in three years.
BARC and the rating agencies should invest in programmes to educate the general public about the work of audience measurement at regular intervals in various parts of the country and through detailed information available on their websites.
TRAI had released a Consultation Paper on 28 March 2008. This was followed by an open house discussion in Delhi on 15 May. The sector regulator deliberated on various issues emanating from the written submissions of the stakeholders, open house discussions, meetings with the industry associations, and international practices.
The draft recommendations are based on the study of all the responses received from the various stakeholders. At present, two private agencies - Tam and aMap - are carrying out TV ratings on a commercial basis. Their operations are limited to a few large cities with a population above 100,000. Within big cities too, their sample size is limited to a total of about 7000 (Tam) and 6000 (aMAP) metered homes. All states except J&K, NorthEast, Bihar and Jharkhand are covered by TAM Media Research, while aMap sample covers all states except J&K and NorthEast but includes Jammu and Guwahati.
The television industry in India is estimated at Rs 226 billion as its annual revenues (2007). Of this 35 per cent, that is about Rs 80 billion comes from television advertising. Television ratings are primarily meant to guide the broadcasters, the media agencies and the advertisers to determine their programme scheduling, ad spend and the placement of the advertisement. They have often also influenced the content as well as pricing of channels.
15. FM consumption is more in regional markets: RAM
Indiantelevision
July 18, 2008
FM stations are consumed more in regional markets. As per Radio Audience Measurement (Ram) study on radio penetration and viewership pattern, Bangalore and Kolkata listeners spend more time on FM stations than in metros like Delhi and Mumbai.
The study is conducted in Delhi, Mumbai, Bangalore and Kolkata. According to the Ram data (12+, 1-28 June), average daily time spent listening on weekdays is 212 minutes in Bangalore and it is 207 minutes on weekends.
The eastern market of Kolkata, which has regional players like Aamar FM and Friends FM, stands next to Bangalore. Here the weekend consumption is higher than a regular weekday. On weekdays average daily time spent is 190 minutes as compared to 197 minutes on weekends.
Says Tam Media CEO LV Krishnan, "Regional language plays a big role in retaining listeners and this is one of the reasons why consumption of FM stations is higher in regional markets. The other reason may be because in metros people are too busy to tune in to FM stations."
Unlike any other place in Bangalore, listeners start tuning in as early as 6:30 am and peak at 7 to 7:30 am. The spike in the morning hour’s listenership may be accredited to the fact that listeners tune in for the early morning show 'Shuvprabhatam', which is offered by almost all stations.
India Radio Bulletin
July 14, 2008
As listeners become more mobile, FM stations in India have kept up with the trends by using the mobile phone technology to bolster listeners’ ties to radio stations. And radio is the best medium to spread its reach to more people. According to Sunil Kumar, managing director at Big River Radio (India), “with almost all cars, all music systems and a substantial number of cell phones coming in equipped with an FM receiver, coupled with the availability of the medium free of cost, stations can achieve a reach no other medium can match.”
For the industry to expand, FM players understand the need for the medium to keep up with technology. Rana Barua, national head – marketing and programming, Radio City, believes that a lot more experimentation needs to be made for the medium to grow.
“The other trend is going to be newer modes of distribution for the medium, whether it is through your mobile phone or the Internet, which will fuel the penetration of FM in the country,” noted Barua at last year’s India Radio Forum.
One year on, it seems
that many stations are moving beyond mobile phones by going online. The
Internet gives radio stations the opportunity to reach a wider audience. By
having a web presence, stations are able to give their advertisers a better
mileage for their investments, said Kamal Mohandas, station head, Big FM
Bangalore when she spoke to
India Radio Bulletin
about her
station’s podcast launch late last year.
As the first radio station to offer podcast back in October 2007, Big FM has been a believer in adapting to the technology. Mohandas shares that one of the benefits of having an online presence is “it doesn’t restrict my station to being local,” as the podcast service gives a wider reach and exposure.
Apart from Big FM, MY FM and Radio City are among some of the stations, which have leveraged the digital technology to bring themselves closer to their listeners.
MY FM has been an avid user of the mobile technology in increasing the station’s accessibility to its listeners. Through its set up of a SMS short code service, it has managed to increase its interactive quotient with its audience.
“Through this service, listeners are not just able to connect with the RJs, but they are also able to participate in improving our station, by sharing their opinions and suggestions with us,” says Harrish M. Bhatia, COO, MY FM.
In January this year, MY FM launched its website at www.myfmindia.com. Bhatia says the unique features on the site have also helped the station to develop a closer relationship with the listeners.
“We have a feature called MY SPACE that lets our listeners blog about a topic or an issue they feel strongly about,” shares the COO. Of course, the station’s podcasts of some of its programmes help to increase the station’s accessibility.
Apurva Purohit, CEO, Radio City, claims her station is constantly evaluating various technologies and platforms, which will be the enabler of convergence for a unified consumer experience in the years to come.”
When it launched its WAP portal last year, in association with Hungama Mobile, Radio City was the first station to use technology in creating a platform for interactivity in the mobile domain.
Through the WAP portal, Radio City listeners are also able to directly connect with the station’s RJs, proving yet that by harnessing technology, the station was able to provide seamless interactivity with the Whatte Fun brand, says Purohit.
The CEO adds that the harnessing of digital technology by FM stations is not without its own set of challenges. “As seen internationally, there is much more that can be done in the web domain by way of streaming content online. However, the quality of this experience depends on the broadband capabilities at the listeners’ end. Since such capabilities vary from place to place, it may limit the intended brand experience, which is undesirable,” she says.
According to Alexi Paspalas, product development head, BBC World Service Future Media, his company has experienced the massive benefits of the Internet age. At the recent India Radio Forum held in Mumbai in May 2008, Paspalas shared with forum delegates that since the introduction of the podcasting service on the BBC website, the company has seen increasing revenues from podcast advertising.
He adds that an online presence is able to create potential revenue generation means. For example, the BBC plans to compile of a library of content, which will be monetized. The company is already exploiting the potential of digitalization by getting on YouTube with news and other programming. BBC radio has also found itself on Second Life, the popular virtual world on the Internet, in which it recreated the popular event. Through these additional exposures, Paspalas stresses that the branding values for BBC has been significantly improved.
Explaining the kinds of backend mechanisms required to enable stations in “going digital”, Gyanranjan Mohapatra, technical in-charge, Radio Choklate, says, “Mobiles commonly tune into a VHF signal, as does FM, which is alike to audio and vice versa. As it is audible to FM, the voice on the mobile can be transmitted on air. That’s why it is one way to harness itself to the digital era.”
At Radio Choklate, Mohapatra reveals that any calls to and from mobile phones are connected to telephone hybrid equipment, and the digital signal (AES/EBU) is connected to a console for on air purposes.
Through the Internet, stations are able to transmit such events as sports commentary, happenings around the Internet and also vice versa can be broadcast as per Radio Choklate requirements and programming needs, he adds.
A station’s ability to harness the power of technology depends on the availability of infrastructures and readiness, costs and talent. “The service providers in this field are not equipped locally,” says Mohapatra. “And for a ‘C’ station like Radio Choklate, the costs will be an enormous burden.”
He adds, “There is also a lack of skilled manpower in the technical background with less experience in FM technology.”
Apart from FM leveraging on the mobile technology, technology has also harnessed the potential of FM. In February 2008, Idea Cellular tied up with Geodesic’s Mundu Radio to launch IDEA Radio. Built on Geodesic’s award-winning Mundu Radio technology, the service enables the provider’s 20 million subscribers to seamlessly tune into a range of entertainment channels without the need to carry a separate device, or to be within the limited range of FM radio stations.
“Mobile devices are the preferred mode of entertainment today, and the Idea Radio implementation is representative of Geodesic’s stated strategy to provide innovative, revenue-enhancing mobile solutions to service providers,” comments Kiran Kulkarni, managing director, Geodesic of the tie-up.
Through these station examples, it appears that Indian FM stations are on the right track when it comes to delivering high quality content through the most advanced digital means possible. The only question is whether or not the infrastructure is readily in place to allow for a high Internet interactivity to happen.
MY FM’s Bhatia has no doubt that the user base of SMS and online will increase with time, given “the Internet penetration increasing and more growth of Internet users recorded in the tier two and three towns.”
17. Radio still high on telco’s ad agenda
India Radio Bulletin
July 14, 2008
Reliance Communications Ltd, Hindustan Unilever Ltd and Tata Teleservices filled up the top three spots of the advertisers list in May 2008, according to the AdEx data. Monitoring 40 radio stations across seven cities, the data showed that the three advertisers clocked up 287,000, 206,000 and 164,000 seconds of airtime, respectively.
Citywise, Reliance Communications Ltd topped the advertiser list in Hyderabad (34,000 seconds), Jaipur (26,000 seconds) and Kolkata (89,000 seconds). While Hindustan Unilever Ltd came first in Delhi (49,000 seconds) and Mumbai (42,000 seconds).
Cellular phone service was recorded as the number one category, having spent 617,000 seconds of airtime. In the monitored cities, the category ranked first in Jaipur and Kolkata, which recorded 89,000 and 138,000 seconds of ad spend, respectively.
Apart from Reliance Communications Ltd, the other advertisers that represented the category in the cities include Tata Teleservices, Bharti Airtel Ltd, Vodafone Essar Ltd, and Idea Cellular Ltd. In fact, the top four advertisers in Jaipur comprised of telecommunication companies, recording a combined airtime value of 88,000 seconds.
Tata Teleservices appeared in the top 10 advertisers list in all of the cities monitored, except for Mumbai. The advertiser recorded the highest ad spend in Kolkata, with 38,000 seconds of airtime, bringing it up to the second spot. In the other cities, the company recorded an average of 23,400 seconds.
Other categories recorded in the overall AdEx data were TV channel promotions, independent retailers, properties/real estate and publications/books, with 482,000 seconds, 453,000 seconds, 399,000 seconds and 263,000 seconds, respectively.
TV channel promotions appeared in all of the cities monitored, with the exceptions of Hyderabad and Chennai. The category spent the most amount of ad spend in Delhi, with 163,000 seconds. However, the category topped the list in Mumbai with 146,000, followed by independent retailers and cellular phone services, with 104,000 and 75,000 seconds, respectively.
Brand-wise, the ones
that appeared in the top five list overall are Reliance Mobile (287,000
seconds), Lifebuoy Toilet Soap (93,000 seconds), American Tourister (84,000
seconds), Vodafone Cellular Phone (84,000 seconds) and Intel Core 2 Quadra
(75,000 seconds).
In the cities, Reliance Mobile topped the brands list in Jaipur, Mumbai, Delhi, Kolkata and Hyderabad with 26,000, 33,000, 39,000, 89,000 and 34,000 seconds, respectively. While in Bangalore, the brand came in
18. Now, movies actively wooing radio
Exchange4media
July 17 2008
Movies seeking brand associations with radio is not a new phenomenon, but what is an encouraging trend is the growth in the number of such associations. Today, radio is not a mere afterthought to promote a new release, but a strong participant in a film’s release and success. Exchange4media asks the industry players to share their views on such associations.
Gone are the days when promotions were limited to jingles or ads. Various FM stations across the country now have interactive and innovative integration with their programmes.
Red FM has associated with Rani-Ssaif starrer ‘Thoda Pyaar Thoda Magic’; SFM has tied up with the latest Batman flick ‘The Dark Knight’ in Tamil Nadu and Andhra Pradesh; Fever FM has tied up with ‘Love Story 2050’, while Radio One is associating with upcoming comedy ‘Ugly Aur Pagli’. Most of these movies are being promoted through on-air and on-ground activities.
On whether movie associations help garner listeners, Anuj Singh, National Marketing Head and Station Head, Red FM Mumbai, said, “Brands are now exploiting synergies with various radio properties and shows. Such activities have garnered a huge response from the listeners as it was relevant as well as entertaining for them. We aim for the same engagement and seamless integration in all our brand associations.”
Gowri Satyamoorthy Kapre, National Marketing and Promotions Head, Fever FM, said, These initiatives have helped in giving our listeners an opportunity to interact with Fever FM. So yes, there has been a spike in listenership in each city post these associations and contests.”
Having a different take on movie associations garnering listeners is Vehrnon Ibrahim, National Programming Director, Radio One. He said, “Movie associations are successful, but not in garnering listeners, instead in retaining them. It’s a simple function, in a world without differentiation in format, brands do the job.”
With FM stations by and large being successful in garnering listeners to their shows, what is also important is how the advertisers have responded to movie associations. Anuj Singh pointed out, “Red FM’s initiatives have been widely appreciated by both listeners and clients and have also won many awards for us.”
According to Kapre,
“Advertisers are very enthusiastic about this medium and all the innovative
solutions available on it. Radio is emerging as a vibrant, lively platform
and advertisers are willing to exploit this vibrancy. Also, advertisers
now-a-days appreciate creative integration of their brand, rather than a
mere placement.”
Raj Gopal Iyer, Station Head West, Radio One, said, “Yes, advertisers have been positive about such initiatives as they get to ride on the popularity of the movies and stars, and also associate with them and reach out to their target audience. The key here is to create exciting integration for the brands to associate with. ‘Dating Fataafat with Ugly Aur Pagli’ is an example.”
With listeners giving a thumbs up to movie associations in radio, popularity of these shows through mass participation prove beyond doubt potency of radio as a medium for advertisers and media planners alike.
19. AD GROWTH FOLLOWS INDUSTRY TRENDS (in auto, consumer durables, fast moving consumer goods, retail, banking and insurance sectors)
Economic Times. Indian Business Insight
July 09, 2008
The general economic slowdown has affected the Rs19,600 crore advertising industry in India. According to AdEx India, the advertising tracking unit of TAM India, the total advertising volume in print media dropped by 12 percent for Apr-Jun 2008, compared to Apr-Jun 2007. The ad duration for radio dipped three percent, while that for television dipped by 12 percent. The slowdown in auto, consumer durables, fast moving consumer goods, retail, banking and insurance sectors affected the ad industry.