| 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: VI |  |
September, 2007 |
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outdated, we need a source that can keep track of what matters to us.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. Tweens Are The New Teens – Jul 29
Tweenagers are the Most Preferred Consumers of the Retailers
Tweenagers (Age Group 9 – 13 Years) have become the most preferred consumers of the retailers across the world. Being more advanced from their past counterparts, today’s tweens dress up the way they want, work out, are tech-savvy and have in-depth knowledge of relationships. According to Sociologist Mala Kapur Shankardass, children are exposed to the net, newspapers, movies and magazines and hence, have more awareness, and want to act like the elders. With children reportedly either spending or influencing Rs 25 lakh crore worth of purchases, they are now the centre of intense advertising pressure seeking to influence family spending.
Source: The Times of
India
02. Lifestyle Lords Over Livelihood In Rural India's Spends – Jul 27
Lifestyle expenses of village youth are increasing
According to a survey conducted by MART Rural, a rural marketing consulting agency, rural expenditure is shifting to increasingly include lifestyle expenses over livelihood expenses. The demand for lifestyle-related products has increased among rural consumers and sales are being driven by women and youth. The driving factors behind this trend include growing awareness, the impact of affluent towns on nearby villages, and increased liquidity in the rural market.
Source: Financial Express
Emerging Trends: Digital
03. Consolidation Bug Bites Digital Media – Aug 08
Digital communications units consolidate
The global advertising industry is facing a consolidation wave. International marketing communications holding companies such as the Omnicom Group and Publicis Groupe are pooling their digital communications units under single banner, after consolidating their ad agency and media-buying networks across markets. These digital units create and buy ads for the Internet, mobile and gaming space, social networks, etc.. According to industry experts, consolidation will help media agencies obtain behavioural insights on how consumers use digital media and create new ways to interact with each other.
Source: Mint
04. Digital Advertising Has Tremendous Potential’ – Aug 04
Digital cinemas offer advertising opportunities
Digital cinema is being considered as a potential medium by advertisers for reaching the masses. According to Rajesh Mishra, CEO (Indian Operations), UFO Moviez, the medium is more effective than television and cheaper than Internet advertising, and has the potential to grow to account for 10% of the advertising revenue by 2010. According to Mishra, “Television is more intrusive, and people tend to switch channels, but the audience in a theatre is a captive one, they are more receptive”.
Source: The Hindu Business
Line
Emerging Trends: Retail
05. Supermarkets Not Just Well-Off Shoppers` Stop - Jul 31
Moderate-income consumers also visit supermarkets
According to a research conducted on modern retail customers by a Delhi-based market research consultancy Market Pulse, it is not only the affluent who shop at supermarkets, but also those with moderate incomes. Market Pulse spoke to nearly 350 consumers in Delhi, Mumbai and Chennai, and found that half the respondents had monthly household incomes below Rs 20,000, while 26% earn less than Rs 10,000 a month. The most frequent purchases from modern format stores included commodities and personal care products, followed by fruits and vegetables, and home care products.
Source:
Business Standard
06. Merchandising Retail Is Set For A Big Boom - Jul 28
Character merchandising is expanding rapidly
The Indian merchandising business is witnessing a boom; presently, the sector is worth Rs 300 crore and is expected to triple in the next two years. According to Paresh Chawla, president, Toys Association of India, “Character merchandising as a business is now booming and with about 1,500 standalone toy stores to be added in the retail sector over the next two years, this business will soon have a critical mass. It could drive the entire toy business on a high-growth path”. The growth in the retail sector is driving the sales of merchandise related to fictional characters such as Harry Potter and Superman, and trade sources estimate that Potter merchandising sales amount to a massive Rs 1 crore, the biggest of their kind in the country till date.
Source: Financial Express
07. Content Customisation Is The Key To Successful In-Store Branding, Say Industry Players – Jul 26
In-store advertising content being customised
With the advent of the retail boom, in-store advertising has evolved as a new medium for Indian advertisers. Realising the potential impact of content, advertisers are trying to target their audiences at the last ‘point of contact’. According to Deepak Jayaram, national director, Dialect/D mART (Micro-marketing Solutions), it is important for content to be customised, keeping in mind the varying needs of consumers. Ads need to be modified or customised to use the new digital media more effectively, so that they seamlessly integrate to reach the masses at large.
Source: Exchange4media
08. What`s In Store – Jul 31
Modern retail formats are popular
Market Pulse, a Delhi-based market research consultancy, conducted a study in Delhi, Mumbai and Chennai to understand consumers’ spending behaviour and attitude to modern retail. The study revealed that consumers prefer shopping in supermarkets or modern retail shop as these provide a wide range of products (cited as the biggest benefit by 25% of the respondents), and that strategically placed displays, packaging and smaller SKUs (stock keeping units) encourage trials. However, the study also states that the kirana stores, with a 94% share of the $320-billion organised retail trade in India, will not go out of vogue because they are usually in close proximity to consumers, and house cheaper, unbranded versions of most consumer products.
Source: Business-Standard
Emerging Trends: Others
09. Websites Search For The Future In Maps – Aug 22
Maps useful for procuring local information
With the increasing access to the Internet, online maps are moving into the consumer realm by becoming a useful tool for local information. Previously, they were primarily used by companies for tracking their distribution network or customer demographics. Portals are now looking for ways to integrate maps into their services and also as a means of attracting revenue through local advertising. In developed markets, maps are morphing into a Web 2.0 phenomenon, providing ‘layers’ of information to which users can contribute. An example is Wikimapia, combining Google Maps with a community that can edit landmarks and locations on a world map.
Source: Agencyfaqs
10. China Spends More On Ads, But Indians Trust Ads More: Forrester – Aug 20
Indians are more responsive to ads than Chinese
According to Forrester’s Asia Pacific Consumer Technology Adoption Study (APCTAS) Q3 2006 Survey on purchasing and consumption behaviour, Indian consumers’ attitudes toward advertising were significantly more positive than those of their Chinese counterparts. Approximately 61% of the surveyed Indians agree with the statement “Ads are a good way to learn about new products”. However, the survey indicated that the ad-saturated Chinese consumers are similar to US consumers in requiring more sophisticated forms of advertising for persuasion.
Source: Agencyfaqs
11. Ad Spends Rise on Proliferating Media (By 30 To 40 Percent When Compared To The Media Costs In 2005) – Aug 20
Media proliferation leads to 30-40% increase in ad spend
The increase in the usage of media channels such as television, print, the Internet, radio, and mobile phones for advertising has led to a 30-40% increase in ad spend, compared to that in 2005. Media fragmentation has resulted in advertisers investing towards increasing the frequency and number of ads aired.
Source: Tmcnet.com
12. What’s Eating Indian Advertising? – Jul 29
Advertising industry’s low contribution to GDP
The Indian advertising industry, which grew by 20% in 2006, is expected to continue growing at a double-digit rate in 2007. However, India is considered a highly under-advertised economy as advertising contributes to only 0.34% of GDP, whereas this figure stands at 1% globally. High attrition rates (30%), degeneration of client-agency relationships, non-agreement of standard practices, and lack of a unified body are some of the factors that have resulted in the low contribution to GDP by the advertising industry.
Source: Business Today
Emerging Trends: International
13. IBM: Opt-In Message Model Less Intrusive, More Relevant – Aug 23
Advertisers to become more creative while communicating messages
With consumers splitting their time among the Internet, TV, mobile phones and the print medium, ad and marketing gurus are looking for an alternative model; it is considered that an opt-in method will be less invasive and more relevant. According to Saul Berman, IBM Media & Entertainment Strategy and Change practice leader, the opt-in model would rely on dynamically inserting messages into the media content based on programming and consumer profile. IBM's survey also found that consumers were more reluctant to accept advertising in video on mobile devices, with 46% admitting they would watch ads before or after free content, followed by 25% who would not watch mobile advertisements or pay for mobile videos. In addition, 18% agreed to pay a few dollars per month for quality ad-free content.
Source: Media Post
Publications
14. Seven Different Types Of News Readers Makes Niche Offerings Viable – Aug 15
Preference of news sources ranked
McKinsey, a management consulting firm, conducted an online survey that shows that respondents rely on a large number of brands – 12 to 16 a week across five different platforms. The reasons given for visiting a number of sources included "every news event has at least two sides", to "get all the facts", to "form my own opinion", or to “find specific types of content”, such as local news. The respondents also ranked these platforms according to the usefulness of the news. Television (45%) ranked first, followed by the Internet (26%), newspaper (18%), radio (10%), and magazines (1%). The preferences were based on convenience, comprehensiveness, or timeliness, rather than quality.
Source: Mediapost
15. JupiterResearch: Social Media Not Best For Brand Advocates – Aug 14
Behavioural and content targeting to attract brand advocates
According to a JupiterResearch report, ‘Brand Advocates: Creating Rewarding Relationships’, marketers can attract influential brand advocates better through online tactics such as product microsites or product previews than through social media such as user-generated content or blogs. "Behavioural and content targeting are likely to attract brand advocates, as more than half of the brand advocate segment is likely to pay attention to online ads that fit their interests or current activity”, said JupiterResearch President David Schatsky. Despite high online activity, the brand advocate segment is more traditional in its manner of research. The group is more likely to read a blog for information rather than create its own. Value for money and reliability are the most important factors for brand advocates while making a purchase.
Source: Media Post
16. Friends And Brands – Aug 13
Kids and young adults favour digital media communication
MTV and Nickelodeon, along with Microsoft Digital Advertising Solutions, conducted a global study named ‘The Circuits of Cool/Digital Playground’ to determine the ways in which kids and young adults interact with digital technology. The study surveyed 18,000 kids and young adults (ages 16-24) across 16 countries – UK, Germany, Holland, Italy, Sweden, Denmark, Poland, the US, Canada, Brazil, Mexico, China, India, Japan, Australia, and New Zealand. It revealed that friends and peers influence this category of consumers as much as marketers. The key findings state that kids and young people love the manner in which digital media enables them to communicate with each other and access entertainment. In addition, digital communication through mediums such as IM, e-mail, social networking sites, and mobile/sms are seen as complementary to, and not in competition with TV.
Source: Media Post
17. Media Usage Per Person Drops For First Time In A Decade – Aug 07
Media usage per person drops in 2006
According to a report by Veronis Suhler Stevenson (VSS), media usage per person in 2006 has declined 0.5% to 3,530 hours, though media usage on the institutional front, which includes conferences, trade shows and business-to-business publications, rose 3.2% to 260 hours per user. The decline is mainly attributed to changing consumer behaviour and advancements in digital technology. The report also projects that Internet advertising will replace newspaper as the largest ad medium in 2011 and will reach a figure of $62 billion in 2011. Total communication spending, which rose 6.8% to $885.2 billion, will continue to grow in the next five years, with spending in 2007 expected to reach $900 billion with a 6.4% growth rate. This figure is likely to reach $1.2 trillion in 2011.
Source:
Adage
18. Online Trends: Rapid Growth For Video, Consumers In Asia Joining By The Millions – Aug 03
Online usage to grow globally
According to a comScore Network study, purchasing products online as well as streaming online videos have emerged as leading activities across the US and Europe in Q2’07. The top 10 websites (globally) are those of Google, Microsoft, Yahoo!, Time Warner (AOL), eBay, Wikipedia, Fox Interactive, Amazon (and subsidiaries), CNET, and Apple Inc. The research firm estimates that the number of global online visitors for the Q2’07 stood at approximately three-quarters of a billion. In this period, total online e-commerce in the US grew 19% to $47.5 billion; retail e-commerce experienced a slightly stronger gain of 23% to reach $27.2 billion. According to a June 2007 report by PricewaterhouseCoopers (PwC), within five years in the UK, virtually everyone under the age of 55 would have used the Internet to buy goods, accounting for a retail share of approximately $78 billion; however, online retail will only represent nearly 10% of the total market value.
Source: Media post
19. Peer Reviews Significant To Shoppers In Consumer Brand Trust – Jul 31
Review and ratings considered vital for making a product purchase
According to a current survey by Bazaarvoice and Vizu Corporation, three out of four shoppers say that it is important to read customer reviews before making a purchase, and the ratio of those preferring peer reviews to expert reviews is 6:1. The survey further reveals that 44% of US shoppers consider ratings and reviews to be the most useful feature of e-commerce sites, followed by product comparison (15%), product navigation (12%), and privacy information (11%). In the UK, over 50% of online shoppers considered ratings and reviews by UK consumers important. Also, when making a purchase, over one-third of UK shoppers consider the 'privacy and security information’ feature of a site important for rating. According to Sam Decker, chief marketing officer at Bazaarvoice, research shows that UK consumers actively seek reviews, and the dependence on customer-created content will increase as UK retailers adopt this strategy.
Source: Media
post
BRIC Zone - China
20. China's Retail Sales Up 16.4 Pct In Jul – Aug 20
China retail sales grew by 16.4% in July
According to National Bureau of Statistics (NBS), Chinese retail sales in July 2007 rose 16.4% year-on-year to reach 699.8 billion yuan ($92 billion). While the volume of retail sales by the housing and catering sectors increased by 18% to 92.3 billion yuan ($12 billion), those of the wholesale and retail sectors were up 16.5% to 592.4 billion yuan ($77.9 billion).
Source: Xinhua News
Agency
21. Mobile Advertising Market Grows – Aug 13
China’s mobile advertising to grow
According to China-based research house Marbridge Consulting, the mobile advertising market in China reached $65 million in 2006 and is expected to grow by 55% to $142 million in 2008. Factors such as the maturing of the market and rapid growth of technology are driving companies to spend their marketing budgets on mobile phone advertising, and mobile advertising is no longer considered only a supplement to traditional marketing campaigns. However, according to Mark Natkin, managing director, Marbridge, China's mobile advertising market is in the early stage of development. In addition, cell phones are also not likely to become a major channel for companies' marketing campaigns until China sets up its 3G network, which will reduce the downloading time for a WAP page from five seconds to four-tenths of a second. Del
Source: Industry Updates
22. Rise Projected For E-Payments – Jul 27
Internet payment expected to grow
According to a report by Euromonitor, Internet payments in China are increasing. The country had approximately 40 Internet payment portals by the end of 2006, and the transaction value of online payment is forecasted to rise to 107.2 billion Yuan in 2007 from 64.9 billion Yuan in 2006. Credit cards are the preferred means of online payment, while pre-paid cards are expected to emerge as another possible payment tool. Mobile payment, though currently low, is poised to grow.
Source:
Chinadaily.com.cn
23. How Mobile Phone Retailers Can Beef Up Their Sales – Jul 26
Strategies for China’s mobile phone retailers
With increased number of mobile retail chains, retailers are finding it difficult to generate significant profit margins and clear stocks. To solve these problems, Chinese retailers have been advised to follow marketing strategies that include conducting branding exercises for their products, communicating with consumers, offering specialised services, following a detailed advertising plan, and extending special promotional offers.
Source:
Chinadaily.com.cn
BRIC Zone - Brazil
24. Sales Up 9.8% In January-July – Aug 20
Brazilian retail commerce sales rise 9.8%
The sales volume of the retail commerce sector during the first seven months of 2007 increased by 9.8% compared to those in the same period in 2006. This increase was a result of a 12.5% rise in the sales of specialized products (electric-electronic home appliances, vehicles and construction materials) during the January-July 2007 period over those in January-July 2006.
Source: Gazeta Mercantil News (Real
Time)
25. Cinemas Advertising On The Up – Aug 08
Cinema advertising contributed 0.6% to total advertising expenditure
According to a market survey report by Ibope, cinema advertising contributed to 0.6% of the total advertising investment over January-June 2007. The survey sampled 565 cinemas in the main capital cities, attended by 14% of Brazilians.
Source: Valor
Economico
26. Brazil Pay-TV Sector 2007 Growth Seen At 10 Pct Y/Y – Aug 03
Brazil's pay-TV users increased by 12% in H1’07
According to the projections of local pay-TV association ABTA, Brazil's pay-TV sector is expected to grow by 10% year-on-year to reach six million subscribers in 2007. In H1’07, Brazil's pay-TV users increased by 12% year-on-year, ABTA added. This is attributed to the fact that pay-TV services in Brazil are no longer exclusive to the wealthy class but are becoming increasingly popular with investments by companies and the reduction of taxes. The leaders in Brazil's pay-TV market, such as Net and Sky, are employing different strategies to grow both in terms of client base and revenue in 2007.
Source: Latin America
News Digest
BRIC Zone - Russia
27. Russia Boosts Retail Sales – Aug 02
Retail sales in Russia on the upswing
According to the Russian Federal State Statistic Service (Rosstat), retail sales in Russia reached RUR855.9 billion in July 2007, with the mass of commodities 14.7% higher than those in the same period in 2006.
Source: RosBusinessConsultings
Media & Advertising Research Watch
28. Advertising By Telecom Industry On TV In H1 2007 – Aug 21
Telecom sector registers 61% increase in ad volumes in H1 2007
According to ADEx India, the telecom sector registered a 61% increase in ad volumes in H1’07 compared to those in H1’06. Telecom service providers held the maximum share of 62% of total ad volumes. Under telecom equipment, 42 new brands were introduced on TV in H1 2007, whereas telecom service providers accounted for 23 new service additions. Tata Teleservices had the maximum share of celebrity endorsements.
Source: Indiantelevision.com
29. Advertising By Food & Beverages Industry In Print In H1 2007 – Aug 20
Print advertising by F&B industry declines by 8% in H1’07
According to AdEx India, print advertising by the F&B industry witnessed a decline of 8% in H1’07 over that in H1’06, with beverages garnering a maximum share of 33%. General Interest newspapers witnesses significant advertising, whereas women’s magazines accounted for 50% of the advertising share among all magazines. Contests were the primary mode of sales promotions by players in the F&B sector.
Source: Exchange4media
30. Advertising By Food And Beverages Industry On TV In H1 2007 – Aug 14
AdEx India analysis on TV advertising by food and beverage industry during H1’07
According to AdEx India analysis, the food and beverage industry contributed to 15% of the overall TV advertising in H1'07. Within the food and beverage segment, beverages accounted for 37% of the advertising share, followed by ready-to-market products with 20% of the advertising share. The food and beverage industry saw a 42% growth in ad volumes in H1'07 over those in H1'06. The maximum ads were shown on regional General Entertainment Channels (GEC).
Source:
Indiantelevision.com
31. Social Advertisements Show A 17 Pc Dip In Ad Volumes In Print During H1’07 – Aug 10
AdEx India analysis on social advertisements in print during H1’07
According to AdEx analysis, there was a 17% dip in ad volumes of social advertisements in print in H1’07 over those in H1’06. The ratio of advertising by government and non-government agencies is 92:8. Central and state governments contributed 40% to social advertisements.
Source: Exchange4media
32. Snapshot On Social Advertisements On TV In H1 2007 – Aug 07
Volume growth in social advertisements on television
According to AdEx India analysis, the volumes of social advertisements on TV grew by 10% in H1’07 over those in H1’06. In H1’07, the ratio of advertising by government and non-government organisations was 83:17. GECs were preferred to other channels for social advertising by both government and non-government organisations. 'Health Awareness' advertisements were prominent among social advertisements and the maximum social advertisements were endorsed by actor Amitabh Bachchan.
Source: Indiantelevision.com
33. Advertising By Real Estate Firms On Print In H1 2007 – Aug 03
Reduction in print advertising by real estate firms
According to AdEx India analysis, print advertising by real estate firms fell by 5% in H1'07 compared to that in H1'06. Among supplements, 61% of advertising was accounted for by real estate-based supplements. During H1’07, the ratio of advertising by national players to that by local players was 70:30.
Source: Exchange4media
34. Advertising By Real Estate Firms On TV In H1 2007– Jul 31
Growth in television advertising by real estate firms
According to AdEx India analysis, TV advertising by real estate firms grew by 43% in H1’07 compared to that in H1’06. Regional news channels accounted for the maximum advertising by real estate players. The ratio of advertising by national to that by local players was 34:36 during H1’07.
Source:
Indiantelevision.com
35. Aural Beauty – Aug 13
Top advertisers on radio during June 2007
According to the AdEx data for June 2007, , Cellular Phone Services (357,000 seconds) ranked first in the top 10 categories list, followed by Properties/Real Estates (316,000 seconds), and Internet/SMS services (30,000 seconds). In the top 10 advertisers list, Reliance Communications Ltd. (216,000 seconds) made it to the top with Coca Cola India Ltd. (134,000 seconds) and Zapak Digital Entertainment Ltd (130,000seconds) at the second and third positions, respectively. In the top 10 brands list, the top position was acquired by Reliance Mobile (216,000 seconds), followed by www.zapak.com (130,000 seconds) and Ponds White Beauty Skin Light (95,000 seconds).
Source: India Radio Bulletin
Environment Watch: Regulation
36. Surrogate Liquor Ads Under Lens – Aug 23
Action against surrogate advertising
Between April and June 2007, three liquor ads that were termed as 'surrogate' by the consumer complaints council (CCC) of Advertising Standards Council of India (ASCI), were withdrawn. According to ASCI, United Breweries' Kingfisher Premium ad ‘the night rocks’ visual and the corresponding headline did not bear any relevance to the product advertised – packaged drinking water. In the absence of specific information, ASCI felt the advertisement appeared to be a surrogate advertisement for a liquor brand. Complaints against Seagram India's Royal Stag ‘Make it large’ and Chivas Regal’s ‘Ice fishing in Alaska’ ads have been upheld by ASCI and these ads have subsequently been withdrawn.
Source: Times of
India
37. Centre Plans To Regulate Fizzy-Drink Ads – Aug 17
Health ministry and I&B ministry to regulate carbonated drinks ads
To ensure that carbonated drink ads do not convey the wrong message to consumers, particularly children, the Union health ministry, in consensus with the I&B ministry, plans to regulate such ads. According to RK Srivastava, director general, Health Services, “We are trying to find ways to regulate advertisements which advocate unhealthy trends. We wanted to know the provisions under which these advertisements are shown”.
Source: Economic
Times
38. Government Forms Panel To Formulate Policy On IPTV – Aug 04
Government to formulate policy on IPTV
In an attempt to formulate a policy and a regulatory framework on Internet protocol TV (IPTV), the government has formed an inter-ministerial group (IMG) comprising telecom, IT and I&B secretaries. In India, IPTV is at a nascent stage and is expected to grow alongside DTH and CAS.
Source: Exchange4media
39. News Broadcasters Association Constituted; G Krishnan Named President – Jul 31
News Broadcasters Association formed
News broadcasters in India have formed the News Broadcasters Association (NBA), which is headquartered in New Delhi and has been registered as a Section 25 company under the Companies Act. According to a press statement, the NBA’s vision is to create an environment that would enable broadcasters to best serve audiences and engage with policy makers on behalf of its members. The NBA will facilitate news broadcasters in responding to the rapid socio-economic changes in the country and taking advantage of the opportunities arising from economic growth and technology advancements.
Source: Exchange4media
40. Sleep Less To Watch Uncensored Basic Instinct – Jul 28
Adult content to be aired from 11.30 pm to 4 am
According to the I&B ministry’s proposed Content Code for broadcasters, the adult content can be aired on television between 11.30 pm to 4 am. This is in line with the concept of a ‘watershed’ – a practice followed worldwide for specifying a time at night after which adult content can be shown. The proposed code also takes a tough line on advertisers. Advertisers must be able to support and defend any claim they make about the product with necessary evidence. Besides, broadcasters must ask for such evidence before they broadcast an ad as they would be equally responsible for airing misleading advertisements, the code adds.
Source: Economics Times
41. I&B Bans Two Underwear Commercials – Jul 27
I&B bans vulgar and indecent ads
The I&B ministry has banned the transmission or re-transmission of the Lux Cozy and Amul Macho underwear advertisements, finding them indecent, vulgar and suggestive, and violating Rule 7 (8) of the Advertising Code prescribed under the Cable Television Act.
Source: Business Standard
42. I&B Min Fresh Consultation On Broadcast Bill– Jul 28
I&B ministry to reconsider some clauses in the Broadcast Bill
With the industry raising several objections to issues in the draft of the Broadcast Bill, including restrictions on cross-media holding and mandatory sharing of sports signals (with no advertisements) with Prasar Bharati, the I&B ministry plans to initiate a consultation process to change some clauses in the Broadcast Bill. Cable and DTH operators are also opposing a clause in the Bill that limits the number of subscribers in a city to which operators can provide services.
Source: Economic
Times
Environment Watch: Advertising & Media
New Media
43. New Integrated Media Platform For Overseas Indians – Aug 23
Launch of a new media platform for overseas Indians
A new media platform, www.pioTV.com, launched on August 23, 2007, by Minister for Overseas Indian Affairs Vayalar Ravi, enables persons of Indian origin (PIOs) to stay connected with India. The new website is designed to supply a diverse range of India-related content besides acting as an interactive platform for its users. According to PIO TV Chairman and Chief Executive Munish Gupta, “The purpose is to provide connectivity by providing content in many forms and ensure the platform is readily available to browse, watch and connect on any device, anywhere and anytime”.
Source: Webinida123.com
44. Is Behavioural Advertising Of Online Ads The Way Forward? – Aug 01
Online advertisers utilise behavioural targeting
Online advertisers are increasingly adopting behavioural targeting to make their campaigns more effective. This involves observing a user’s online behaviour anonymously and serving the most relevant advertisement based on the observations made. In India, Komli is one such ad network that follows this system. However, factors such as the massive popularity of cyber cafés, and the lack of major advertisers and paying customers might deter the growth of behavioural targeting in India.
Source: Exchange4media
Television
45. CAS To Be Delayed In Delhi, Mumbai, Kolkata – Aug 13
CAS delayed in Delhi, Mumbai and Kolkata
The extension of the Conditional Access System (CAS) in the three metros – Delhi, Mumbai and Kolkata, has been delayed by at least six to eight weeks. According to sources, CAS will not come into effect in the three metros before the first week of April 2008. Currently, CAS is operational in South Delhi, South Mumbai and South Kolkata since 1 January 2007.
Source: Agencyfaqs
46. Cable TV Distributors To Cash In On Channel – Aug 10
High carriage fee for channels
India's cable television distribution industry, comprising multi-system operators (MSOs) and local cable operators, is set to generate over Rs 1,000 crore annually as carriage fee from the channels slated for launch in the coming months. It is expected that the carriage fee will involve new channels shelling out close to Rs 15 crore per channel each year. This carriage fee is presumed to be high for channels eyeing the prime colour band.
Source: Business Standard
47. Broadcasters Come Together To Form Association – Jul 30
Broadcasters come together to form ‘News Broadcasters Association’
TV Today Network, NDTV Ltd Group, Times Global Broadcasting Company, ZEE News, and other leading broadcasters of India have formed the News Broadcasters Association to promote broadcasters’ role in the country's economic, social and cultural development. The association would also engage with policy makers to promote the entertainment and media industry on the principles of democracy and freedom of expression.
Source: The Press Trust of
India
48. Dish TV All Set To Wheel Out DTH Services In Cars, Trains – Jul 30
Direct to Home (DTH) service now in cars
Dish TV, Zee group’s DTH arm, is in the final stages of implementing its DTH services in cars. Aimed at consumers travelling in chauffeur-driven cars, the DTH service will work with the help of a special auto-tracking antenna that will be mounted on the roof of the car and will provide over 125 satellite channels.
Source: Agencyfaqs
Radio
49. Tuning Into Money – Aug 13
FM players expanding advertising share
During the last three years, the radio industry in India has been earning significant revenues (Rs 320 crore out of the total ad spend of Rs 18,000 crore) and with all market players focused on increasing their advertising shares, it is expected that the radio industry will acquire a 5.1% share in the advertising pie by 2010. Product endorsing shows work well because they increase brand recall manifold by relating the brand’s bottom line to a common thread, for example, Red FM’s ‘Hutch Dil Ka Connection’ show simultaneously refers to phone services as well as the bond that exists between people. Red 93.5 FM’s Kolkata station head Jimmy Tangree has tried to acquire new clients and build on existing ones by offering them innovation and on-air customisation, whereas 98.3 FM Radio Mirchi builds revenues through strong brand focus.
Source: India Radio
Bulletin
50. FM Stations Request Demerger Permission From Government – Jul 23
FM companies seek permission for demerger
A group of FM companies (including Adlabs, Century Communications and Pudhary Publications), along with the Association of Radio Operators in India (AROI), have requested the government to remove the 20% foreign direct investment (FDI) cap on private radio operators. They seek the demerger of their radio businesses into separate subsidiary companies for improved operational measures. The permission letter to the government also includes the revenue-sharing regulation, which states that radio operators have to share 4% of their revenue with the government.
Source: India Radio
bulletin
Others
51. Google Launches Multiple Local Language Search In India – Aug 18
Google introduces local language search in India
Google Inc. aims to expand its reach by tapping further into the advertising business in India. To achieve this, it has introduced local language search in India, which allows users to search for information online in local languages such as Hindi and Tamil. The local language search industry in India is dominated by two players – Raftaar.com, a Hindi search engine owned by Delhi-based Indicus NetLabs Pvt. Ltd, and guruji.com, an India-specific search engine that allows users to search in five languages, including Kannada, Hindi and Malayalam, besides English. Both the companies claim they do not perceive Google’s entry as a threat.
Source: Livemint.com
52. Indian Media And Entertainment Market Fastest Growing In World; But CEOs Lacking To Head This Growth – Aug 17
Media and entertainment industry lacks appropriate CEOs to head growth
According to industry observers, in the next five years, India will emerge as the world’s fastest-growing entertainment and media market with annual revenues doubling from the current level to more than Rs 1,00,000 crore. On the other hand, the report also states that players in the industry, particularly in the television and radio segments, are struggling to find CEOs who are adequately equipped to lead this expected boom. Over a dozen ventures – including those from well-established brands such as Rupert Murdoch’s News Corporation, Walt Disney, Viacom, and Richard Branson’s Virgin Radio – are looking for appropriate business heads.
Source: Press Trust of
India
53. Media Experts See Lead Channels Losing As Gen Next Of Hindi GEC Arrives – Aug 13
New entrants intensify competition among Hindi GECs
With the advent of several Hindi GECs, the competition in this category is rising. Problems arising as a result of this advent include fund sourcing for investments in this domain, availability of skilled talent and, more importantly, how to attract viewers. These issues become more pressing with constraints such an advertising revenue-driven television industry, and the digital addressability systems, which are yet to make their mark in the industry.
Source: Exchange4media
54. MSN, WorldSpace Join Hands To Launch Internet Radio – Aug 10
MSN India & WorldSpace Satellite Radio launch Internet radio
WorldSpace Satellite Radio and MSN India have launched Internet radio services in the country. These firms have targetted NRIs with a subscription rate of $9.9/month. Five stations, Farishta (Hindi film classics), Sparsha (Kannada), Spandana (Telugu), Gandharv (Hindustani classical) and Shruti (Carnatic music) are already available online, while more stations are slated for launch. Jaspreet Bindra, India Country Manager, Online Service Group, Microsoft, said that MSN may consider advertising options on the portal if the volumes increase over time.
Source: Exchange4media
55. The long ad of the law – Aug 08
Brands look to constables for advertising
Several brands have adopted a unique route to catch customers’ attention – they are focusing on the local constabulary. Kaushik Ghosh, national marketing head, Radio Mirchi, says, “We have always tried to blend our image with police messages on check posts, signages, police stations, electronic message indicators, etc., where the primary message is theirs and the secondary ours.” He further adds that Radio Mirchi has also sponsored raincoats for policemen. Airtel recently supplied 30 branded seating kiosks for the bomb squad at key railway stations in Mumbai. According to Manu Talwar, CEO, Bharti Airtel, the key benefit offered to brands through this strategy is high visibility, as consumers are continuously exposed to ads while on the move. This helps to increase recall at a relatively low cost for the brands.
Source: Economic
Times
56. Trade Portal For Ad Industry – Aug 02
Yahoo! India launches trade portal
Yahoo! India has launched a trade portal – advertising.yahoo.co.in. The portal, designed to benefit the advertising, marketing and trade community, offers editorial content that includes Webcasts and Podcasts from advertising gurus, guest articles, and aggregate news feeds from popular portals such as exchange4media and agencyfaqs. Campaign statistics, analysis and information on Yahoo! India as well as the advertising industry news are also included.
Source: The Hindu Business Line
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
ZO Zone
Viewership Analysis of Hindi News Channels for 8 weeks for the period of 10th June 2007 – 4th August 2007
Top 2 Programs Across Hindi News Channels
Source: TAM
Period: 10th June – 4th Aug
Market: North, East And West
TG
:25-44, Sec – AB, M, CS
Change in Channel Share 2007 Vs 2006
Source: TAM Hindi News
Period: 10th June – 4th Aug, 2006
10th June – 4th Aug,
2007
Market: North, East And West
TG: 25-44, Sec – AB, M, CS
Top 5 Programs Ratings Across Various Target Audiences
Source: TAM Hindi News
Period: 10th June – 4th Aug
Market: North, East And
West
TG: 25-44, Sec – AB, M, CS
Advertising Spend Analysis for Cellular Services Category for the Year 2005 & 2006
Cellular
Services
Cellular Services - Monthly Media Expenditure
Source: TAM
Cellular Services – Brandwise spends
Source: TAM
Cellular Services – Mediumwise Spends
Source: TAM
Cellular Services – Genrewise Spends
Source: TAM
Fast Forward
57. Switching On To Interaction – Nick McConnell
Broadsystem
Television is probably the world's most popular medium – currently only 1% of UK households do not have a television (National Office of Statistics) and viewing figures in Europe on average reach a staggering three hours and 33 minutes per person every day (Eurodata TV).
TV is compelling because of its richness of content. However, the media landscape is changing. TV is coming under increasing pressure from alternative activities – for example, BT (British Telecom) reached three million broadband connections by August 2004, and by 2007 the UK Government hopes all households will have broadband access. Further, it is estimated that one in three UK households owns a games console (National Office of Statistics) – and increased time spent on these activities is likely to be at the expense of television, either in terms of viewing time or concentration.
TV is increasingly becoming a 'wallpaper' medium, which viewers consume at the same time as other media, such as reading a magazine or surfing the net. As a result, over recent years we have experienced rapid growth of participation, or interactive, TV, which offers broadcasters an opportunity to engage with viewers more closely, providing a mechanism to lure viewers, drive growth and generate additional revenue.
History Of Interactive TV (ITV)
iTV was, surprisingly, established in the UK way back in 1950 with the introduction of children's programme Winky Dink, which encouraged children to draw on a special transparent sheet placed over the TV screen using ordinary crayons. In the 1980s the BBC launched What's your Story? a programme that viewers could direct via telephone. However, apart from these brief dabbles, interactivity really took off in the 1990s with the introduction of red button technology (where the pressing of a red button on your remote takes you to an interactive platform, with additional footage and information). Currently, the UK is leading the European digital revolution. Sky Digital launched its services in October 1998, followed in 1999–2000 by ntl, Cable & Wireless and ONdigital.
In 2000 the first SMS–TV technology was introduced in Finland and proved an instant hit. Now hardly an hour goes by on European TV without a channel encouraging viewer interaction by SMS, including SMS chat and voting, with the UK being one of the most voracious text-messaging nations.
These technological advances mean that since the early days of TV the role of the viewer has changed considerably, from passive onlooker to active participant.
Switching On To ITV
According to the Digital Video Broadcasting Project in 2004, nearly 44 million out of 144 million households in the EU (15 countries at the time) have iTV via satellite (30.3 million), cable (7.7) or terrestrial (6.0) channels. This equates to 31% of total TV households. By 2007, Strategy Analytics believes the numbers of iTV households in Western Europe will more than double, growing to over 100 million. While over half of UK households currently have access to digital TV and as we approach analogue switch-off, scheduled for 2012, the number of households with digital capability is growing rapidly.
As a result the growth in iTV has been a heavily discussed topic in the media. However, very little has actually been published about the current market. Consequently, customer communication and audience participation specialists Broadsystem commissioned MORI to survey 1,007 UK adults during July 2004 to provide real insight into the consumer behaviour driving participation television.
In this article, I investigate the key drivers for iTV, revealing when an iTV format is most effective. I also identify the main audience groups and opportunities for growth. Moreover, I compare the UK's current market situation with those of other iTV- leading European countries.
The MORI research revealed five clear findings, discussed in more detail below:
1. Certain audience groups are responding more than ever before
2. Offering a prize is a key response driver
3. Broadcasters can maximise response revenue by higher pricing
4. Several audience groups stand out as offering lucrative opportunities for participation TV
5. There is an increasing opportunity for response advertising.
The ITV Audience
TV is already the leading medium in terms of generating response and our research reinforced this, revealing that 40% of the UK population had responded to a TV programme or promotion in some manner (phone, SMS and so on) over a three-month period, compared to 10% responding to newspapers. However, the frequency of response to TV was broadly static: on balance, viewers who respond to TV are doing so at approximately the same level as last year – 18% claimed to be interacting more than they were a year ago, and 16% less. Yet underlying the overall trend there is a divide between groups that are responding more and those interacting less. High-level interactors are the group that are interacting more than last year, indicating that the more iTV forms part of the programme format, the more likely they are to increase their frequency of interaction.
The survey also identified young people (16–34 year olds) and small families as those most likely to increase participation. Further, viewers with Freeview were less likely than average to increase their frequency of response. By contrast, Sky homes were more likely to respond more than a year ago. This reflects the capabilities and history of both platforms, particularly the increased iTV response mechanism for Sky viewers. Moreover, the demographics of each customer base provide an interesting insight. Just under a half of Sky homes in the sample include children, in comparison to under a third of Freeview homes.
Reasons For Interaction
The survey shows that there is enormous scope to increase the number of participants and the frequency with which they interact by targeting the right mix of motivating factors for a programme's potential audience.
TV viewers are motivated to interact by a variety of incentives, ranging from winning a prize to supporting a charity. However, aspiration appears to be the dominant reason for response. Figure 1 shows that 41% claimed to interact because they wanted to win a prize, 38% 'just for fun' and 28% to vote for a reality show contestant'. This indicates an opportunity to develop more formats such as Who Wants to be a Millionaire? that trade on big-prize incentives. Currently viewers can play Millionaire from the sofa and send their results to the broadcaster via red-button technology, enabling them to compare results with other viewers and giving them the chance to win prizes.
The research also found that while charity donation is likely to boost a format's response rate, it is not essential for interaction. Charity is currently the most widespread response activity and is an important motivator for specific groups, but the majority of people appear ambivalent to it. Only 18% of those that had responded to TV claimed that charity had encouraged them to do so. Those with one child at home and the AB socio-economic group (23% and 21% respectively) were the most likely to be motivated to respond by charity. Least charitably encouraged were the C1 socio-economic group, of whom only 13% identified it as a reason to respond.
Motivators vary significantly according to socio-economic group, giving broadcasters the opportunity to tailor their programmes' response mechanisms to match viewers' motivations: for example, the over-55s do not to respond to charity, while the 16–34 age group does. In addition, young people are motivated by the chance to win a prize, while ABs were most likely to respond to have their viewpoints heard.
Several formats already closely match participation motivators with their audience – for example, the 'You Say, We Pay' competition on the chat programme Richard & Judy motivates its viewers by using prizes and fun because the teatime audience respond mainly 'just for fun'.
Pricing
The survey shows that UK broadcasters' pricing strategies are not always aligned with the market. Interestingly, it found that returns could be significantly improved by higher pricing (See Figure 2). The research reveals that interacting viewers would be prepared to pay more to respond, particularly the C1 social grade, Sky subscribers and competition entrants. Generally, response prices have remained low, usually between £0.25 and £0.50. Yet 40% of respondents claimed they would be happy to pay £1 per interaction. There would, however, be the risk that frequency of interaction would fall as a result of a price rise.
ITV Audience Groups
The survey found a wide difference between audience groups in terms of their relative value to broadcasters. Matching response elements to programmes with the appropriate audience gives broadcasters the opportunity to raise incremental revenue significantly.
The most lucrative audiences are those with one child at home, 16–34 year olds, C1 socio-economic groups and females. Women were found to be much more likely than men to vote (15% to men's 8%) and, to a lesser extent, enter competitions (13% and 11% respectively). But, interestingly, one and half times more men than women have ever used the red button to vote.
Families appear to be one of the most lucrative audiences, as they are much more likely than average to respond to TV programming. Participation TV seems to be a family or group activity, especially for competition formats. This implies that formats aimed at this audience, such as Saturday-night programmes like Pop Idol, are likely to be the most successful in generating response. The research revealed that on average 31% of those responding to a TV programme will discuss their response before 'interacting'. This is particularly true of those who do not work and those with one child at home.
Further, compared to other groups, families are more than three times as likely to request or subscribe to information, and more than twice as likely to purchase a product or service. However, families are no more likely to vote or comment or contribute to a programme.
Response Advertising
The survey findings support the view that advertisers have an opportunity to engage closely with viewers by building a response mechanism into advertisements. Broadcasters potentially have a role in this development by providing audiences primed for response activity.
A total of 18% of people claim to have responded to an advertisement in some way – 13% using interactive TV, 3% via telephone and 3% using SMS. Response rates are particularly high among younger people. as Figure 3 shows, and those in the C2 socio-economic group, 22% of whom have responded to an advertisement, 19% by iTV. In comparison, response rates in the AB socio-economic group were 16% overall, indicating that response advertising has been less successful in reaching the most affluent customer segments.
People who respond to TV programmes are far more likely to respond to advertising; 30% had responded toads, compared to 18% on average. This indicates that interactors among participation TV audiences are potentially valuable to advertisers. However, in general, those who request or subscribe to information are most likely to respond to advertising: 41% were found to have responded in some way, 30% through iTV, 15% via telephone and 11% by SMS. Factual programmes provide a good platform for this audience, because these are well suited to stimulating viewers to request information, and therefore potentially provide advertisers with a well-primed audience.
Those who regularly comment or contribute to a programme are also a fertile ground for advertising response. Debateor discussion-oriented formats, such as BBC's Question Time, would be well suited to stimulating response from this group.
Interactive Trends Across Europe
The research supports the view that the UK has the most advanced market in Europe. But how does it compare to other European countries?
After the UK, Finland probably has the next most developed market in Europe. It developed the first SMS-based games for TV and was among the first countries to launch iTV services, with the national launch date of August 2001. Since then penetration of iTV has reached approximately 400,000, equating to 19% of Finnish households. Penetration growth is strong and an optimistic estimate for selling iTV set-top boxes is 50,000 units per month. Further, the Finnish Government has set analogue switch-off for 31 August 2007, suggesting that growth should remain firm.
In contrast, Italy is a fairly new entrant to the iTV market, launching terrestrial iTV services only in January 2004. However, initial response has been very encouraging. Currently set-top boxes are selling at a rate of 2,000 a day and analogue switch-off has been set at 2007, five years before the UK. Consequently, to maximise digital penetration the Italian Government has significantly subsidised set-top boxes and coverage is predicted to reach 70% by the end of this year.
Evidently, the development of iTV is highly country-dependent: countries such as Turkey and Greece have barely scratched the surface. The story in the UK is very different. The research clearly demonstrates that digital technology has been embraced by many and has become part of our everyday lives. We are living in a multi-channel society, whereby consumers expect to be able to interact at the touch of a button.
The Future?
The possibilities, as they say, are endless. With the advent of 3G technology, allowing music and video downloads via mobile phone, there are opportunities for consumers to access exclusive content from their favourite TV programmes, films and music. This offers greater access and opportunity for more people to interact with their chosen media on a more personal level.
The challenge for the media is to deliver on their promise to consumers by providing relevant and useful information to encourage them to continue interacting. If not, consumers will become tired of the medium and it will become an irritating distraction, like junk mail. Our research suggests this will not be the case, but this is the beginning of a revolution in TV broadcasting and one that could determine its future.
This tracker has been compiled from external sources and does
not necessarily reflect the views of the company.
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