Pitch madison media ad outlook 2015

Volume XI | Issue 11 | March 2015

` 75

PITCH MADISON MEDIA ADVERTISING OUTLOOK 2015

FANTASTIC 2014

9.6% GROWTH EXPECTED IN 2015

MARKET WILL GROW BY OVER RS 3,500 CR TO REACH RS 40,658 CR

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Pitch | March 2015 www.pitchonnet.com

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Pitch Volume XI, Issue-11 March 2015

Publisher & Editor-in-Chief Annurag Batra Editor & Director Amit Agnihotri Director Nawal Ahuja

EDITORIAL TEAM

Consulting Editor Deputy Editor

Vinod Behl Rashi Bisaria

Correspondent

Kanika Mehrotra

1

PRINT

DESIGN TEAM

9810134435 9886138249 9845541143

NEW DELHI: Shop No. 32, 33 south Ettn. Part-I, Om vihar, Uttam Nagar, New Delhi 110 059

DIO

RA 5

0FFICES

OOH

NOIDA: B-20, I-Floor, Sector-57, Noida, Uttar Pradesh - 201301 Phone: (0120) 4007700 Mumbai: 301, Kakad Bhavan, 3rd Floor, 11th Street, Bandra (W), Mumbai - 400 050 Phone: (022) 2640 3303/09/14/16 Bengaluru: Flat No. 1,062, 1st Floor, 2nd Cross, 6th Main Road, HAL 2nd Stage, Indira Nagar, Bengaluru - 560 038 CIRCULATION/DISTRIBUTION

T

Rajat Thareja Prashant Kulkarni Sneha Walke

AD OUTLOOK 2015

NE

AD SALES

ER

Vilas Kalgutkar (Mumbai) Suresh Gola (Noida)

2

INT

Photographers

6

A

Joby Mathew

EM

Senior Graphic Designer

CIN

Shivaji Sengupta

TV

Art Director

3

4

FANTASTIC 2014; HIGH GROWTH FORESEEN IN 2015

04

Vinod Sharma (Delhi) - 9999447209 vinod@exchange4media.com

PRINT LEADING THE PACK

Anandan Nair (Mumbai) - 9819445200 anair@exchange4media.com On News-stands ` 75 www.pitchonnet.com Printed and published by Annurag Batra on behalf of Adsert Web Solutions Pvt Ltd B-20, I-Floor, Sector-57, Noida, Uttar Pradesh - 201301 Printed at All Time Offset Printers, E-53, Sector-7 Noida, Uttar Pradesh - 201301 An exchange4media Publication

COLUMNS Arunabh Das Sharma,, President, Times Group

16 2

Pitch | March 2015 www.pitchonnet.com

12 Girish Agarwaal,

Promoter Director, Dainik Bhaskar Group

20

CONTENTS

23

TV

ICC WORLD CUP, DIGITIzATION, NEW CHANNELS & GOING NICHE

COLUMNS

Manu Prasad,

Director, Brand Marketing, Urban Ladder

26

‘TRANSIT’ING SUCCESS

Abraham Alapatt,

Hanneli Slabber,

Chief Innovation Officer & Head - Marketing and Service Quality, Thomas Cook (India) Ltd.

Country Manager, South African Tourism

COLUMNS

58

30

S Raghunandan,

Punit Goenka,

CEO, Jyothy Laboratories Ltd

34

RADIO

Manmeet Ahluwalia,

Managing Director, Woodland

38 Damandeep Singh Soni Business Head - India, LINE

40 Sagnik Ghosh, Vice President & HeadMarketing, Axis Bank

44

Harrish Bhatia, CEO, 94.3 MY FM

Marketing Head, Expedia India

46 Co-Founder & CEO, Vserv

64

WAITING TO CASH IN ON PHASE III

Harkirat Singh,

Dippak Khurana

60

56

HIGH OCTANE GROWTH

COLUMNS

Chairman & Managing Director, Selvel One Group

CEO, Times OOH

32

INTERNET

Noomi Mehta,

Arghya Chakravarty,

MD & CEO, Zee Entertainment Enterprises Limited

28

INTERVIEWS

53

OUTDOOR

Ramesh Kumar,

66

70

Ashit Kukian,

Ranjan Dutt, AVP, Marketing, Bajaj Allianz Life Insurance Enterprises Limited

68

72

President & COO, Radio City 91.1 FM

Head, ESPNcricinfo & ESPN Digital Media India

48

CINEMA

Sandeep Amar,

Chief Operating Officer, India.com

73

SURPASSING ExPECTATIONS

50

Karthi Marshan,

Alok Tandon,

Head Marketing, Kotak Mahindra Group

CEO, INOX Leisure Ltd.

52

Harjeet Chhabra,

Chief Marketing Officer, Adlabs Entertainment

76

78

Enabling Brand Visibility Across India

Fans, Brands and Sunburn come together to create a way of life

The CMO needs to leave his comfort zone

Rajendra Kumar Khare, Chairman and Managing Director, SureWaves

Harindra Singh, Vice Chairman and Managing Director, Percept Ltd

Rajesh Kumar, Head, Marketing, SAP

04

04

04 Pitch | March 2015 www.pitchonnet.com

3

1

T NE ER

AD OUTLOOK 2015 OOH 4

INT

EM

DIO RA

5

2

TV

CIN

6

A

PRINT

3

AD OUTLOOK

FANTASTIC 2014; HIGH GROWTH FORESEEN IN 2015 ELECTIONS AND E-COMMERCE HELPED THE INDIAN ADVERTISING INDUSTRY GROW bY 16.4% IN 2014; RENEWED OPTIMISM, A STAbLE GOVERNMENT, UPbEAT CONSUMER CONFIDENCE, ICC CRICKET WORLD CUP AND PHASE III RADIO ExPANSION WILL DRIVE INDUSTRY GROWTH TO THE TUNE OF 9.6% IN 2015; OVERALL MARKET WILL GROW bY OVER RS 3,500 CRORE TO REACH A TOTAL VOLUME OF RS 40,658 CRORE

bY SAM bALSARA & KARTHIK LAKSHMINARAYAN

SAM bALSARA

KARTHIK LAKSHMINARAYAN

6

Pitch | March 2015 www.pitchonnet.com

L

ast February, when Pitch Madison Outlook 2014 projected an overall growth rate of 16.8 per cent, most felt the projected growth was on the higher side. The good news is that the Indian advertising industry did grow by 16.4 per cent , almost at par with our forecast.

Looking at absolute numbers, the industry increased by over Rs 5,200 crore to touch Rs 37,104 crore. This growth was primarily fuelled by two main categories – advertising spends by political parties on account of Lok Sabha and State assembly elections (which contributed as much as Rs 2,300 crore), and spends by e-commerce players to the tune of Rs 1,150 crore.

It is significant to note that of the 16.4 per cent growth, 7.2 per cent was on account of elections and 3.6 per cent through e-commerce players. Other categories contributed to only 5.6 per cent of the overall growth. All the media – Print, TV, Radio, Outdoor and Digital - benefited from high spends by political parties during

the polls and the aggressive advertising stance adopted by e-commerce players.

Yet again, Print retained the top spot and emerged as the largest contributor to the total advertising pie with a share of 41 per cent . Television grew by 14 per cent and maintained its share of the total advertising pie at 38 per cent . Radio also maintained its share of the advertising pie, at 3.5 per cent and grew by 17 per cent as against the Pitch Madison Media Advertising Outlook 2014 growth projection of 15 per cent . This growth came despite Phase III not being implemented as expected at the start of 2014. On the other hand, OOH grew by 13 per cent on the back of strong growth seen by both conventional outdoor and transit media, which grew by 13 per cent and 12 per cent respectively, as against the PitchMadison report 2014 projected growth of 7 per cent and 10 per cent . Digital media grew at 30 per cent , largely in line with our forecast. With more and more FMCG and Telecom players upping spends in this

Pitch | March 2015 www.pitchonnet.com

7

AD OUTLOOK

TV

38.2% PRESS %

41.2

RADIO %

3.5

CINEMA %

0.50

OUTDOOR %

6.0

TOTAL INTERNET

10.7%

8

Pitch | March 2015 www.pitchonnet.com

with the last set of Indian Readership Survey (IRS) data still in controversy and questioned by most Print players, it needs to be seen how the sector reacts to new data this year.

In 2015, Print is expected to grow by 5.3 per cent on the back of increased government spending and advertising by e-commerce players. Print should continue to be the largest contributor in the overall advertising pie with a share of 40 per cent . As for Television, its share in the overall advertising pie is expected to remain static at 38 per cent.

Television is expected to grow by 9.5 per cent in 2015 to reach a total size of over Rs 15,500 crore.

Radio is seen to be growing by 6 per cent in 2015, taking the total Radio advertising market to Rs 1,362 crore. There is confidence that the government will finally launch the much delayed Phase III expansion no

28%

0 YEARLY SPENDS (Rs Crore)

HOW THE AD PIE SPLIT IN 2014

space, video, social and mobile formats saw larger traction. Also beating the Pitch Madison Report 2014’s estimate was Cinema, which grew at 10 per cent as against the projected growth rate of 7 per cent ; currently it contributes to 0.5 per cent of the advertising pie. The rapid expansion of multiplexes in Tier I and Tier II cities is a big reason for the growth of cinema advertising in India.

Looking ahead, the PitchMadison Media Advertising Outlook 2015 foresees a buoyant year for the Indian advertising space. A stable government at the Centre focused on growth of the Indian economy, positive market sentiment, upbeat consumer confidence will be the leading contributors to growth. The report projects the overall market to grow by over Rs 3,500 crore to reach a total volume of Rs 40,658 crore – a growth of 9.6 per cent over 2014. (Interestingly in 2015, the industry would have nearly doubled in size from where it was in 2008 at Rs 21,382 crore and Rs 19,470 in 2009.) However, this figure of 9.6 per cent should be compared with the like-to-like category growth of 5.6 per cent achieved in 2014 and not the overall growth of 16.4 per cent .

That’s because, though the market grew by 16.4 per cent in 2014, the growth was driven by elections and the money accounted from this will diminish in 2015. The biggest contributor to growth will be organic spends across sectors and the ICC Cricket World Cup. The big change to watch out for in Indian Television will be the new and highly anticipated ratings system which is expected to be implemented by the Broadcast Audience Research Council (BARC) in the first half of 2015. Also,

GROWTH %

`24,898

2010

HOW THE AD PIE WILL LOOK LIKE IN 2015 TOTAL INTERNET

12.6%

TV

38.1%

OUTDOOR %

5.8

CINEMA %

0.5

PRESS

39.6%

later than September 2015. Subsequently, new stations will help Radio stations pull in additional advertising revenue of at least Rs 70 crore. The Pitch-Madison 2015 report projects Outdoor will grow by 6.2 per cent on account of higher OOH spends from e-commerce, Retail, Telecom, Apparel, Jewellery, Mobile Handsets and infrastructure companies. Digital is expected to grow by approximately 30 per cent with revenues jumping from Rs 3,970 crore in 2014 to reach Rs 5,135 crore in 2015. The need for higher efficiency will drive key advertisers to experiment with programmatic buying. Cinema is seen to be growing by 9.2 per cent in 2015, thereby taking the total Cinema advertising revenue to Rs 201 crore on the back of cinema digitization, more multiplex screens and introduction of the cinema monitoring system, CAM. In conclusion, 2015 promises to be yet another exciting year of high growth for the advertising market. But the market will be characterized by some uncertainty in the area of media deliveries, given that BARC ratings are likely to appear in the second quarter, using NCCS to compare with TAM data will be difficult and uncertainty over the next round of IRS will continue.

16.4%

RADIO %

3.5

11.1%

10%

9.6% 5.2%

`27,282

`28,694

`31,877

`37,104

2011

2012

2013

2014

`40,658

2015 Pitch | March 2015 www.pitchonnet.com

9

AD OUTLOOK

KEY INSIGHTS 2014 WAS FANTASTIC

2014/13

AT PAR WITH OUR EARLIER FORECAST

T

he Indian advertising industry in 2014 grew by 16.4 per cent, almost at par with our forecast of 16.8 per cent. When we projected a growth rate of 16.8 per cent last February most Media professionals felt the projected growth was too high .

In terms of absolute numbers, the advertising industry increased by Rs. 5,200 Crs and touched Rs. 37,100 crs in 2014.

+16.4%

2013

T

Elections

2,300 cr

7.2%

E-commerce

1,150 cr

3.6%

Existing categories

1,777 cr

5.6%

TOTAL

5,227 cr

16.4%

hilst the growth in 2014 was Fantastic, mainly because of election spends, we are equally bullish for 2015 too but our forecast has to recognize that 2015 is not an election year.

10

Pitch | March 2015 www.pitchonnet.com

2014

31,877cr

MAIN CONTRIbUTORS TO GROWTH IN 2014

W

37,104 cr

2013

LUCKY 13

he 2 main categories that fuelled the overall growth in 2014 were the Lok Sabha general elections along with the 5 state elections, and E-commerce players contributing as much as Rs 2,300 Crs and Rs 1,150 Crs. respectively. Thus almost half the growth came from Elections alone and the 2 categories account for 2/3rd of the growth.

Of the 16.4 per cent growth rate registered in 2014 it is significant to note that nearly 7.2 percentage points is on account of elections alone, 3.6 percentage points is on account of E-commerce. It is again significant to note that existing categories contributed to only 5.6 percentage points of the overall growth.

2014

FANTASTIC

2015

bULLISH

THE FORECAST FOR 2015

40,658cr

2015/14

2015

+9.6% 37,104cr 2014

COMPARISON WITH THE GLObAL ADVERTISING MARKET

C

ompared to India’s growth of 16.4 per cent, the global advertising market grew by just 5.3 per cent but of course in absolute terms the global advertising market is now estimated at US $ 411 billion where as India is at 6 billion which puts India’s share at a far from respectable 1.50 per cent

INDIA’S POSITION

I

ndia maintained its 12th rank in the global ad market. The US further increased its share which now stands at almost 43 per cent of the global market. China also increased its contribution from 11 per cent to 14 per cent and has overtaken Japan as the second largest advertising market. Japan has dropped significantly in terms of contribution from 13 to 9 per cent.

Italy, 2.30% Russia, 2.50%

Italy, 2.20% Russia, 3.00% Australia, 3.70%

India 1.40%

Canada, 3.70% France, 3.90%

Source: Warc, International Ad Forecast 2013/14 (October 2013)

India, 1.50%

Australia, 3.00% Canada, 3.20% France, 4.00% brazil, 4.50%

Source: Warc, International Ad Forecast 2014/15 (December 2014

Pitch | March 2015 11 www.pitchonnet.com

PITCH MADISON MEDIA ADVERTISING OUTLOOK 2015

| PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | 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PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | 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PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | PRINT | 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PRINT

PRINT

IN TERMS OF AD REVENUES, TIMES OF INDIA WAS THE TOP PUbLICATION IN DELHI, KARNATAKA AND MAHARASHTRA WHILE DAINIK bHASKAR REIGNED IN CHHATTISGARH, HARYANA, MP, RAJASTHAN

LEADING THE PACK

30%

PRINT GARNERS THE LARGEST CHUNK OF THE ADVERTISER’S MONEY FOR THE FOURTH CONSECUTIVE YEAR; INCREASED GOVERNMENT SPENDING AND NEW REGIONAL EDITIONS WILL DRIVE GROWTH IN 2015

14

Pitch | March 2015 www.pitchonnet.com

steadily fallen from 47 per cent in 2008 to 41 per cent in 2014, and this is expected to fall to 39.6 per cent in 2015.

With a share of 41 per cent , Print grew by 16 per cent to reach Rs 15,274 crore last year, on the back of ad spends for the Lok Sabha and Assembly elections and e-commerce. Of the total growth of around Rs 2,100 crore, nearly 85 per cent , approximately Rs 1,800 crore of growth has been contributed by elections and e-commerce players. Increased festive advertising by smaller and retail advertisers has also helped growth.

Looking at categories, Automobile continued to be the largest contributor of total Print spends at 12 per cent , followed by Education (9 per cent ) and FMCG Personnel Care (8%). E-commerce contribution rose from close to 1 per cent to over 2 per cent , a growth of 155 per cent .

Newspapers benefited tremendously from advertising by political parties during elections, showing growth of a whopping 204 per cent . English dailies contributed 35 per cent . In terms of volume CC, Hindi dailies continued to be ahead of English dailies, contributing 35% of the total volume while English dailies contributed 24 per cent.

0

GROWTH %

YEARLY SPENDS (Rs CRORE)

P

itch Madison Media Advertising Outlook (PMMAO) 2015 expects that Print will continue to attract the largest chunk of the advertisers’ money with an estimated share of 40 per cent of the overall advertising pie. The Print advertising market is projected to grow by 5.3 per cent in 2015 taking the total Print market close to Rs 16,100 crore.

In 2014, despite increased competition from other mediums, Print managed to retain the top spot for the fourth consecutive year.

In 2015, growth is likely to come from increased government spending.

With a new dispensation in place, the government’s strong belief in communicating with the electorate about its concepts, thoughts and work, will see increased spends. Political parties are expected to continue using Print for the upcoming State elections. E-commerce players are expected to continue betting big on Print and have a strong presence with large format ads in premium positions. With national publications expanding geographies and launching regional editions, new retail advertisers are expected to use Print. However, while Print continues to be the largest contributor in spends, its share in the overall ad pie has

`10,487

2010

bIG SPENDERS ON PRINT

DAILIES VS MAGAzINES SHARE OF AD SPENDS IN 2014 DAILIES:

`13,936 91.2% MAGAzINES:

`1,338 8.8%

DAILIES VS MAGAzINES: PROJECTED SHARE OF AD SPENDS IN 2015 DAILIES:

`14,731 CR 91.6%

IN 2015, THE CONTRIbUTION OF DAILIES TO THE OVERALL ADVERTISING PIE IS PROJECTED TO FALL MARGINALLY TO 36.2% WHILE THAT OF MAGAzINES IS SEEN TO bE AT 3.3%

MAGAzINES:

`1,355 CR 8.4%

Advertisers

2013

2014

Categories

Contribution

Contribution Total

FMCG_Personal Care FMCG_HH FMCG_Impulse

6.8%

8.2%

40.4%

4.9% 0.6%

4.8% 0.5%

13.7% 5.5%

TOTAL FMCG

12%

14%

28.0%

Auto Education Real Estate &Home Improvement Clothing Fashion Jewellery E-commerce

11.7% 9.7%

11.9% 9.4%

17.7% 12.6%

8.7%

8.0%

7.7%

6.1%

6.1%

15.5%

0.99%

2.17%

155.0%

4.6%

5.9%

48.8%

5.7% 6.0% 0.64%

5.3% 4.8% 1.68%

8.1% -7.6% 204.0%

3.9% 1.9% 1.7% 1.4% 0.1%

4.2% 1.7% 1.4% 1.1% 0.1%

24.2% 4.3% -2.2% -6.7% -39.1%

25.4%

24.9%

18.3%

Telecom Internet DTH (incl e-comm) Retail BFSI Election Political Ads HH Durables Travel&Tourism Corporate Media Alcoholic Beverages Others

Growth %

16% 10%

10%

5.3%

4%

`11,509

2011

`11,970

2012

`13,167

2013

`15,274

2014 ACTUAL

`16,086

2015

PROJECTED GROWTH

Pitch | March 2015 15 www.pitchonnet.com

PRINT

COLUMN

Print is always

under-utilised Arunabh Das Sharma | President, Times Group

P

The first page of The Times of India is probably the most powerful advertising medium in this country 16

Pitch | March 2015 www.pitchonnet.com

Print did well last year. There were some big reasons behind it. One was, of course, the election spends. The other was the huge e-commerce spends. Apart from these, our traditional categories also did fairly well, with the exception of the real estate sector. Real estate has been a big mover of Print, over the last few years and real estate took a breather because of macro-economic issues. But even sectors like automobiles, which haven’t done very well recently did well. Appointments, education, and some other categories performed well in Print last year. Last year was especially promising for us. Going by the competitive data available, we have grown significantly ahead of competition.

Print has always been under-utilised and that is the biggest challenge for the medium. For the first time during the national elections, Print was used very effectively especially by the BJP. The effects were felt during the National elections, the Maharashtra elections.

The power of print media played a dominant role at these crucial events.

However, real estate was a just one sector dampener. The sector took a Print has a broad appeal and beating and not much can be reaches the top 1 per cent of done till interest rates come consumers, which makes it down and people start buying very powerful. The return on houses. money spent in print is high What really changed was which is why advertisers flock the mindset of ecommerce to the medium. If we compare players. When they the entire universe entered the space, of television they spent money advertisers and online and in the universe reaches the television. But of print top we have been advertisers, , able to print is which makes it prove to much larger very powerful them which is why no individual sector can become dominant in print. The largest sectors take up 6-8 per cent of the pie.

The fact that print is not dependent on any one sector or company is the biggest strength of print in this country. that print is effective. Today, ecommerce has realised Ad rates the power of print, going by There is always room for the number of new product growth. Ad rates depend on launches for which print was a variety of factors. A smart used. planner or a smart client will I truly believe that The make it work for them in a first page of Times of India is way that they get to the right probably the most powerful people at the right costs. I advertising medium in this think the rate table looks set country. I truly believe that to firm up. Last year, we were and that’s been borne out by able to get our ad yields up our advertisers as well. quite significantly. I will not Print is not dependent on divulge details but over the

Print 1 % of consumers

Pitch | March 2015 17 www.pitchonnet.com

PRINT

COLUMN

last 3 years we have been able to get our revenues and our rates up.

Print in 2015 I believe 2015 will be an interesting year. There won’t be much spending from the side of the government or political parties. E-commerce will continue to be on an upswing. I am hoping for a revival in real estate.

These are the three big factors which will determine how the year turns out to be as the other categories remain in a steady state. These are the only three categories which might see some dramatic changes.

Timing is critical for all media. Delhi did not have a government for a long time but now it does. Whether the new

Advent of new technology will cause shares to move but as long as the size of the pie is growing, there is no cause for worry government starts spending from April, July or August is important. Rajasthan had a new government last year which tightened its purse strings as far as print media was concerned. That had an impact on print players.

Print advertising is heavily dependent on launches including launches of hand sets, cars, real estate projects, consumer products, and promotions.

Therefore, the performance of the economy and the scale of these launches will have an impact on the future of print. But I am quite optimistic.

18

No Cause for Worry As long as the pie is growing , I am satisfied. The shares of the pie will continue to shift as new technologies and mediums come in. For instance, OOH now has rich media content for display which may have an adverse impact on television. Video on demand through internet will also hit television.

Pitch | March 2015 www.pitchonnet.com

Advent of new technology will cause shares to move but as long as the size of the pie is growing, there is no cause for worry.

Ad rates are too complex to analyse and predict. We have 56 editions of The Times of India and we have the Economic Times. We also have different language editions. We will look at providing value to our advertisers and getting a share of that value.

We are focusing on different languages and can witness a steep growth there but English still holds sway for us. Languages will grow faster but from a smaller base.

2015- A year of consolidation Over the last two years , we have spent a lot of time, effort, energy and money launching newer editions. We launched the English editions in Vizag, Raipur, Bhopal, and Bhubaneswar.

We also launched the Gujarat edition.

We launched additional editions in

Maharashtra, Ei Samay in Kolkata, NavBharat Times in Lucknow, the Kerala editions. In the last two years we have increased the footprint for our advertisers. This year we would focus on consolidating our positions in these cities and also aiming to achieve leadership positions.

In Kolkata, we are slowly acquiring the leadership role. NavGujarat Samay is doing very well, and so is NBT Lucknow. This is a year for consolidation and we need to push for leadership in the markets we have entered.

Different players run their businesses differently. We have a very sophisticated pricing system that does not allow undercutting and that is one of the reasons for our success in the last two years.

Print Industry in 2015

I would like to go back to double digit growth as far as the industry is concerned because if the industry is growing at a double digit rate , then as the largest player in the industry, we will be in an even better position.

I really hope print will be able to get back to double digit growth.

OPEN

O PE NO MICS

L I F E

A N D

T I M E S .

E V E R Y

W E E K

16 MARCH 2015 / RS 40

VOLUME 07 ISSUE 10 16 MARCH 2015

ARUN JAITLEY

Pitch | March 2015 19 www.pitchonnet.com

PRINT

COLUMN

Print and Digital complement each other Girish Agarwaal | Promoter Director, Dainik Bhaskar Group

T

Over the years we have continued to see a growth in our advertiser base as also a progressing traction in volumes and revenue yield 20

Pitch | March 2015 www.pitchonnet.com

he Indian media industry is on a roll – every segment of this industry whether print, television, films, digital, radio – is witnessing dynamic evolution. Driving this dynamism at the core is the ‘rise of the Indian consumer’ especially with the emergence of new economic centres of consumption.

Growing consumerism, the desire to experience superior lifestyles and own brands are creating opportunities for both national and international brands to establish a presence in these centres. As brick and mortar players build a presence, e-commerce players have also gained a first mover advantage by catering to this unmet demand. For DB Corp as the largest Indian language print media conglomerate, our growth is therefore closely interconnected with the continuing momentum of growth in Tier 2 and 3 cities and towns. Over the years we have continued to see a growth in our advertiser base as also a progressing traction in volumes and revenue yield.

Through our continuous interactions with industry associates especially through

our ‘Unmetro – The markets driving India’ initiative which has attracted leading marketing stalwarts to debate the prospects of unexplored and under-explored markets beyond Indian metros, several factors have emerged as defining attributes of current and future trends: 1.Localised is more impactful: Every region has its own discreet demographic attributes and clients have realised the importance of highly localised, high decibel

Clients are now more actively involved in the

media planning/ buying process

campaigns which will break the clutter. Corporates now believe that it is better to create an impactful campaign in print which will get them high recall and better purchase intent scores, rather than pushing the frequency aspect.

2.Direct and engaging communication: Brief by clients to agencies has become clear – direct and more engaging communication aimed at targeted audiences. Print has always had a unique position in communication planning and must remain that way rather than being swayed by cost issues, which seemed to have had an influence in recent years. Given the vast expanse of culturally diverse markets with disparate consumers across different regions, filtering media-mix decisions solely through the prism of cost efficiency at the exclusion of all other yardsticks was never going to be a sound practice for successful brand communication.

3.Active client interest in media planning: Clients are now getting more actively involved in the media planning/buying decision making process, primarily due to greater accountability being sought for ad spends.

Print offers a clear and definite ROI equation

which is measurable and hence justifiable. We have also witnessed an evolution in our relationships with our clients into one of greater partnership rather than that of a vendor

4.Talking to their first customer: Today, retail confidence is critical for sales. On the other hand, print continues to reach over 80-90 per cent of households in the consuming classes who continue to devote exclusive time with their newspapers. Therefore, corporates are looking at print as a key medium to gain trade confidence.

This is possibly a fallout of the advent of e-tailors in the fray who cater to customers directly. With all the noise about TV and new media, and despite the fact that print continues to account for a hefty chunk of the AdEx pie, print had gradually slipped into a position low on client involvement. However, it has been observed that increasing penetration of other media hasn’t really been at the cost of print especially in cities and towns beyond the big metros.

5.‘Crowd and cloud’ are key elements of marketing strategy: We believe ‘crowd and cloud’ are elements that make print and digital natural, complementary partners to each other. While the experience of the print industry in the developed world after the advent of digital media has been well documented, we believe that the Indian experience is going to be very different. For starters, the distribution and pricing models of print to its end consumer is very different from that of the west. Secondly, publication brands such as those from our stable are extremely conscious of natural changes in consumption behaviours and demands made of our products. Despite rapidly

Print

continues to reach over

80-90%

of households

We believe ‘crowd and cloud’ are elements that make print and digital natural, complementary partners to each other

growing into a brand with 19.8 million readers and daily sales of more than 5 million copies, there is no compromise in the diligence and care with which we approach our content strategy. This is evident from the fact that today we stand as the country’s largest selling print product with a steady increase in unit price realisation. This is no mean achievement. Another key aspect of our growth strategy that has evolved

alongside the traditional print medium is our sound focus on the non-print business which continues to harness our strengths in this era of new age media. Communication planners are quick to take note of the natural compatibilities in combining print and digital media in their media mix. Both media offer pronounced skews towards the consuming classes and are geographically suited to thin slicing.

Pitch | March 2015 21 www.pitchonnet.com

22

Pitch | March 2015 www.pitchonnet.com

PITCH MADISON MEDIA ADVERTISING OUTLOOK 2015

TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | 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| TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISIONPowered | TELEVISION by | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISION | TELEVISIO

TELEVISION

TV

Powered by

ICC World cup, Digitization, New channels & going Niche FMCG continues to be the biggest spender on Television, accounting for over 50% of the ad spends. AS higher ad rates, Digitization & geo-targeting will aid growth in 2015, Television’s share in the ad pie is expected to remain at 38%

T

elevision grew by 14% in 2014, on par with our projected growth rate of 15%, and maintained its contribution to the total advertising pie at 38%. In terms of absolute numbers, TV advertising has grown by around Rs 1,700 crore, of which spending by two entities – elections and e-commerce - was in excess of Rs 1,050 crore. In 2015, Television spends are projected to grow to over Rs 15,500 crore, up from Rs 14,158 crore in 2015, i.e, show a growth of 9.5%.

One of the drivers of growth will be the ongoing ICC Cricket World Cup 2015, expected to earn revenue of around Rs 1,000 crore, of which approximately Rs 500

24

Pitch | March 2015 www.pitchonnet.com

crore is likely to be additional revenue. The balance will be part of organic growth across sectors, mainly BFSI, Telecom, Consumer Durables, Automobile & others. The Hindi GEC space saw three launches - Zindagi, Sony Pal and Epic - and the repositioning of BIG Magic as a national channel last year; 2015 is expected to see the trend continue with many more new channel launches from existing networks. The increased inventory supply will, in turn, lead to a hike in advertising revenues. With the government extending the deadline for Phase III of the digitization drive to December 2015, the increased penetration of digitization will lead to increased spending

big spenders on TV Advertisers

2013

2014

Categories

Contribution

Contribution Total

FMCG_HH FMCG_Personal Care FMCG_Impulse

31% 17%

29.5% 16.2%

8.1% 6.3%

8%

7.9%

7.9%

TOTAL FMCG

57%

53.6%

7.5%

E-commerce

1.31%

5.41%

371.1%

13.6%

51.2%

7.5% 5% 4% 3.5%

7.2% 4.1% 3.8% 3.2%

9.9% -6.6% 15.6% 2.6%

4%

3.1%

-2.8%

0.1%

2.3%

1929.2%

1% 1% 1% 0.6%

1.6% 1.5% 1.0% 0.9%

21.0% 14.8% -17.2% 72.9%

1% 0% 4%

0.7% 0.0% 3.3%

23.3% 18.4% 55.1%

Telecom Internet 10% DTH (incl E-comm) Auto HH Durables BFSI Clothing Fashion Jewellery Real Estate & Home Improvement Election Political Ads Corporate Travel & Tourism Education Alcoholic Beverages Retail Media Others

Growth %

Powered by

The pecking order remained the same with a marginal 3% points shift in contribution from FMCG to Telecom/ DTH/Internet.

Hindi GECs contributed nearly 27% of their overall TV revenue and continued to remain the leader. A change in the pecking order saw Tamil Cable & Satellite (TN CS) garnering the second largest chunk of ad revenues, growing from 7.2% in 2013 to 8.5% in 2014 and overtaking Hindi news channels.

GENRE CONTRIbUTION (%) AS PER AD SPENDS

27.0% 8.5% 7.6% 5.8% 5.2% 5.1% 4.6% 4.4% 4.1% 3.9% 3.7% 3.4% 3.3% 3.3% 3.0% 2.7% 2.6% 1.4% 0.6%

24%

THE ONGOING ICC CRICKET WORLD CUP IS ExPECTED TO EARN REVENUE OF AROUND `1,000 CRORE, OF WHICH APPROxIMATELY `500 CRORE IS LIKELY TO bE ADDITIONAL REVENUE

HIN GEC TN CS HIN NEWS ENG NEWS AP CS HIN MOV MAH CS SPORTS INFO OTHER REGIONALS KIDS KAN CS MUSIC bEN CS ENG MOV KER CS ENG ENT DD OTHERS

on niche, SD and HD channels. HD channels are now being sold separately and the facility of geo-targeting ads on TV will attract more premium, local and retail advertisers. As for advertisers, e-commerce players along with marketers of various mobile social apps are expected to continue their intensive push through higher advertising spends.

There has been an organic increase in ad spends across categories like FMCG, Telecom, Automobile and BFSI.

14% 9.5% 0%

`11,478

`11,478

8.2%

GROWTH %

YEARLY SPENDS (Rs CRORE)

0

9%

`10,530

2010

2011

2012

`12,419

2013

`14,158

2014 ACTUAL

`15,503

2015

PROJECTED GROWTH

Pitch | March 2015 25 www.pitchonnet.com

TV

Powered by

COLUMN

Old bottles, new wine!

Manu Prasad Director, Brand Marketing, Urban Ladder

I

Traditional media options offer reach to a different consumer segment in contexts different from that of digital

26

Pitch | March 2015 www.pitchonnet.com

t is arguable whether one really needs two jackets in October, but on the 6th of that month, that’s exactly what the country’s top English daily had on. It had nothing to do with cold, and everything to do with the hottest sector in Indian business today – ecommerce.

When Flipkart’s ‘Big Billion Sale’ jacket competed with a Snapdeal retort on the very next page, the result was the e-commerce version of a Shastri quote - “In the end, TOI was the real winner.”

Over on television, Snapdeal’s Diwali blitzkrieg apparently consisted of fifty commercials, many featuring television personalities.

It is events such as these that have helped Print retain its top slot in 2014 with a 41 per cent share, and Television to retain its 38 per cent share, despite digital’s 30 per cent growth. In fact, it caused the Indian Advertising Industry to

grow by 16.4 per cent in 2014. (all numbers as per the Pitch Madison Media Advertising Outlook 2015) It might seem a little unintuitive that brands

which might not have existed without the internet, and necessarily need their consumers on it, would choose media outside of it to advertise. But from my Urban

Powered by Ladder experience thus far, there are at least three important reasons why traditional media features so hugely in an e-commerce company’s media mix.

Scale: In the early stages of an ecom brand’s life, the obvious medium of choice is ‘digital’, and the conversion of ‘low hanging fruit’ – consumers who are already purchasing on the internet – ensures growth. But such is the growth trajectory (current and projected) of e-commerce companies that after a certain point, this ceases to be enough. Traditional media options offer reach to a different consumer segment in contexts different from that of digital. Combine Call-to-action that with a call-to-action approaches and approach and e-com brand building brands are able to find new don’t see eye to consumers who can meet eye their growth agenda.

Efficiency: Digital media works fantastically in early stages, but as more competitors make their way online, the cost of advertising increases dramatically thanks to bidding wars.

While digital might still be economical on an absolute basis, at larger scale, the costs of offline media start becoming comparable, especially since a large number of ecom brands sell products meant for a mass audience. The reality that attribution in this case is at best based on guesstimates, hasn’t dampened any offline forays.

Brand Building: Callto-action approaches and brand building don’t really see eye to eye. However, it is widely believed that sheer presence on print and television lends credibility to ecom brands and helps build the trust that is essential for consideration. When combined with the reach of traditional media, this has enough firepower to make a brand synonymous with the category, and this is not something any of its competitors would allow. Also, as more and more consumers find their way online, and a skew towards Tier 2 and 3 markets, creating a perception of a familiar, trusted brand becomes imperative.

It is widely believed that sheer presence on print and television lends credibility to ecommerce brands and helps build the trust

Traditional media focusing on awareness and perception, digital focusing on engagement and conversion, and consideration becoming a shared task, together make a potent mix for creating a cohesive brand.

With the ICC World Cup and the Indian <insert your favourite game here> League, Pitch Madison Media Advertising Outlook’s prediction of Rs.40658 crores of advertising spend in 2015, with TV and Print still dominating, looks easily possible.

The irony is difficult to miss – FMCG brands, that are considered the masters of the 30 sec commercial scrambling to make their way into digital, and e-com brands, that have aced digital ensuring that traditional media have no shortage of advertisers. ‘A rising tide lifts all boats’, goes the aphorism, and right now, with a Rs.1150 crore spend, ecommerce is most definitely a tide, and consumers and media are getting quite a lift. Cheers to that!

Pitch | March 2015 27 www.pitchonnet.com

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Why Television still holds sway for FMCG BRANDS S Raghunandan | CEO, Jyothy Laboratories Ltd

W Any television campaign that captures sentiments becomes an ‘instant hit’ with audiences across all geographies and classes

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Pitch | March 2015 www.pitchonnet.com

hile one section of the advertising community advocates targeting the new age consumer through the digital medium and interactive campaigns, there is still a dominant need for television as a medium to reach out to the larger section of Indian consumers.

Before reasoning its importance even in today’s age, we need to understand the demographics of the Indian market. Still a mass market with low brand fragmentation in most categories, media penetration in India has been rapidly growing and covering newer areas. Understandably, we comprise an unrivaled youth population of 65 per cent below the 35-year mark having a short attention span and multi-tasking habits; better known as the ‘Google generation’. We also cannot

take away the fact that Indians are emotional by nature, with deep-rooted attachment to social issues, relationships, religion and their nation.

Any television campaign that captures these sentiments becomes an ‘instant hit’ with audiences across all geographies and classes rural or urban, upper/middle or lower income groups. Even a celebrity endorsement is best expressed and followed on television, where the consumer gets a visual connect with their favourite actor or sports person.

Given the above factors, Television seems the most suitable and cost-effective medium to reach the mass consumer market for a constant reminder of brands. Print media, though constituting the highest share in the advertising pie i.e. 41 per cent, is more ideal as a targeted medium towards

certain niche categories like Luxury items. Also, digital advertising which is considered as an emerging category does not come without its limitations. With penetration of smartphones as a percentage of mobile users in India being pegged at just 10 per cent, one of the lowest among top smartphone markets across the world, it looks like digital is catching up BUT at its own pace.

Moreover, most FMCG brands are everyday use products having a high amount of price laddering in India. It means the same brands are available at multiple price points and the onus lies on marketers to keep the field open to consumers from all strata of income for any scope of upgradation or trials.

The latest and highly anticipated ratings system expected to be implemented

Powered by by the Broadcast Audience Research Council (BARC), new Hindi channels in the GEC space and the next phase of digitization in India will act as supporting factors for Television to

retain its dominant position in FMCG advertising for a while now. Based on these ratings, it can be ascertained as to which channels or shows to target and at what time of the day in order to reach the decision maker on a precise and selective basis.

Undoubtedly, even ‘jingles’ in TVCs work wonders when compared to text or a sustained digital campaign in establishing a top-of-the-mind recall for brands and to influence shopping decisions. In fact, print and digital should not be seen as competing but

The habit of families collectively watching television during prime time intensifies brand viewership at a given time augmenting brands to Television as a reminder medium for its ongoing campaigns.

Given the nature of Indian households, it is unlikely that a single day is missed of watching television, while newspapers and magazine reading can sometimes take a miss.

Also, the habit of families collectively watching television during prime time intensifies brand viewership at a given time and ends up being more effective than the ‘pay-per-view’ or ‘pay-perclick’ method of digital advertising.

This is why it comes as no surprise that the FMCG sector is the biggest spender on TV; with a contribution of 54 per cent to the total advertisement spend across industries.

Ultimately, we are all marketing professionals striving to reach where our consumer is. Unless we implement the desired ‘push campaigning’ via television, we will fail to switch to ‘pull techniques’ to sustain customer loyalties and brand engagement on digital mediums through contests, quizzes and other ideas.

A burgeoning middle class with aspirational sentiments related to their household and personal purchases constitutes the strongest force for the popularity of television among others.

In fact, their selection of TVs itself is indicative of their rising standard of living - with a progression from the idiot box to LCDs, to LEDs and much more.

Pitch | March 2015 29 www.pitchonnet.com

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The Ideal media mix in a year of optimism Abraham Alapatt | Chief Innovation Officer & Head - Marketing and Service Quality, Thomas Cook (India) Ltd.

T

here are 4 major factors that are always at play when one decides on an “ideal” media mix.

If the marketer has a healthy margin, they can afford a higher cost per acquisition vs operating in a high volume/ low margin environment

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Pitch | March 2015 www.pitchonnet.com

1. Nature of Product / service – influencing choice of the best media to highlight product/service offered 2. Budget / Scale of demand – influencing choice of media based on reach/ frequency needed.

3. Volume & Margins – influencing choice of media based on volume targets and cost of acquisition that can be afforded 4. Market and customer profile – influencing choice of media based on demographics, buying behaviour and “Moments of Truth”.

1) Nature of Product / Service: Some products / services lend themselves better to some mediums – in our own instance, travel/holidays,

relies largely on the visual medium, viz. TV, Cinema, Digital and Print.

Even in the same category, offer led communication that seeks measurable/direct response, will bend towards print and digital rather than radio and TV. Established categories like group holiday and air inclusive personalised holidays can work well with radio for example.

But new concepts need some explanation - like our recently launched Holiday Savings Account. It needs to help grow a brand new category – in this instance, of saving for a holiday with a bank for a holiday next year at this year’s prices (inflation proof) on the back of a 12 month RD with our partner bank. This should happen in a way that will help the customer save in smaller, more affordable instalments in the safety of a bank, with attractive returns (up to 9.1 per cent) and topped up with a contribution from

Thomas Cook that along with his accumulated interest will accrue to the price of his dream holiday at any date post the end of the 13th month.

This effectively ensures a saving of approximately 2022 per cent on the customer’s holiday next year: assuming annual holiday inflation is in the region of 12-15 per cent historically and attractive return of more than 9 per cent and finally about 40 per cent of the last instalment (the 13th) being the contribution from Thomas Cook.

Now this is a brand new concept, best advertised in print and digital.

Also obviously B2C Vs B2B affects choice/scale of media.

Finally, there is an economic criteria – premium products and services will try to communicate in as focussed a media as possible - Digital, Hi end cinema, hi-end print etc. to minimise wastage reaching customers who cannot afford the product/service.

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2) Budget / scale of demand: Fairly straightforward logic here – localised, smaller target group – more focused/targetable media.

City specific print, geo targeting for digital, FM for specific cities etc. v/s national TV campaigns for national markets. So if it’s a national launch/product/service or where the marketer expects a larger scale of demand, they will opt for media with a larger geographical reach. Regional marketers, or marketers with regional offers will try to focus their media to minimise wastage.

3) Timeframe / Volume & Margins: Again – time available, volume and margins play a very important role in choice of media. In our industry for example, if we are holding large inventory of flights and hotels in a specific region/country, we will look at the best mix to generate a healthy funnel of leads that will help us consume the inventory that we are holding as quickly as possible.

Again, if the marketer has a healthy margin, they can afford a higher cost per acquisition vs operating in a high volume/low margin environment where their expectation from media will be very different from a marketer of lets a say a hi-end car – for whom a low volume, qualified lead generation is desirable. Time frame is crucial – a short term crisis sale will probably elicit a very different choice of media from a longer term or seasonal campaign.

4) Market and customer profile: Markets across the world are dynamic

and evolving. Even for the same product/service/brand, evolutionary needs are different and need to be recognised in choice of media. India is a classic case of the range of diversity.

Diversity across languages, religions, customs, socio economic factors – education, skill sets, professions, incomes, food, behaviours, technology adoption.....

So in essence, there is no one size fits all that can work like in say the UK or Canada where one can at least assume one common language or a fair degree of internet usage!

As a result of this huge diversity, marketers are posed with unique challenges to focus their target audience well and be clear about positioning. The risks of going wrong are multiplied because of the various market and customer complexities that emerge as a result.

To use our own example at Thomas Cook – if our standard products and services for overseas travellers earlier targeted and served only the

top end of the pyramid, who can afford a large sum of money at one point in time, while with the Holiday savings Account that we launched recently – we have now opened us up to the massive and rapidly growing middle of the pyramid opportunity for customers who can save in small instalments for their holiday next year, This means that we have to perforce look at more mass market media vehicles like national TV vs only premier English print and Digital.

In summary, prudent marketers have to clearly understand the impact and interplay of these 4 factors while planning any specific campaign. It is best to build your campaign plan and then media mix ground up after clarifying clearly the factors identified and then choose the most efficient/effective media mix accordingly to meet your marketing objectives.

A year of optimism notwithstanding there is no alternative to sound and prudent marketing intelligence!

Pitch | March 2015 31 www.pitchonnet.com

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TV woos today’s

‘screen’-sumers Punit Goenka | MD & CEO, Zee Entertainment Enterprises Limited

W We expect the TV landscape to see tectonic shifts in the short term which will further boost TV revenues into an inorganic growth trajectory

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Pitch | March 2015 www.pitchonnet.com

e live in interesting times. Caught in the whirlwind of technology and globalization, whilst audiences have evolved into voracious “screen”-sumers – consuming content on screens of all sizes – the one screen that has consistently increased its engagement quotient with these new age screensumers has been TV. This is primarily on account of its ability to leverage technological advancements – be it through innovations in content creation, embracing new media as distribution channels, creating new ad revenue sources, etc.

As such, we agree with the optimistic outlook for TV, as stated in the Pitch Madison report for 2015, but we also expect the TV landscape to see some tectonic shifts in the near term which will further boost TV revenues into an inorganic growth trajectory. These again are bedrocked on the medium’s ability to maximize revenues by creating “desirable

change” at the cross-section of technology and consumer demand and are as follows:

• Realizing True Value Through New Age Measurement Techniques: With the advent of BARC within the first half of 2015 and the imminent migration of clients and agencies along with Broadcasters to the new measurement system: • The as yet under-measured medium will be re-defined to reflect the true value of the medium as well as that of individual channel on account of increased and improved coverage of viewership.

• As the next step, industry will now be able to leverage the new measurement to further initiate its migration from CPRP to CPT, which is the global practice.

The above, coupled with the Phase III of digitization (which is to be initiated towards the end of the year and will boost niche channels), will be a huge growth driver in 2015 and 2016.

• Content & Marketing Initiatives: • This year has already witnessed the launch of big-ticket GEC channels like

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&TV and the re-branding of the entire ETV bouquet by Colors, we should see these and a host of new launches to further expand the ad revenue pie.

• Sports has undoubtedly evolved as a high-engagement genre across audiences. While ICC Cricket World Cup is expected to earn about Rs. 1000 cr (as stated in the report), let

us not under-estimate the upside to this in case the Indian Cricket Team continues to perform well. Moreover, looking beyond the dominance of cricket and IPL, this year will also establish the ad potential of sports leagues like Kabaddi, Football and Hockey. Success of these leagues will help fade the difference between

FMCG will continue to dominate the TV ad pie with more than 50% share

Looking beyond the dominance of cricket and IPL, this year will also establish the ad potential of sports leagues

sports and entertainment.

• Improvement In Business & Consumption Outlook: With an overall positive outlook from various industry sectors expecting an upward trend in consumption, we expect that whilst FMCG will continue to dominate the TV ad pie with more than 50 per cent share, TV’s dependence on FMCG will reduce on it in favor of more high-yielding categories like: • With nearly 100 launches lined up and increased demand for luxury & SUV segments, auto spends expected to grow by 15 per cent. This year, 4 out of top 5 advertisers are 2-wheeler manufacturers.

• Increasing annual household income, falling communication/internet cost, increasing debit/credit card penetration have a direct impact on growth of Durables which is estimated to grow by 19-20 per cent.

Moreover, this growth will go hand in hand with E-commerce growth of 47per cent where Durables and Clothing/Lifestyle account for less than 65-70 per cent of total online sales.

• Telecom, which will continue to be the second largest advertising category, is expected to grow by 1213 per cent.

• BFSI category – after 2 slow years – will see a revival in ad spends this year with Insurance companies being the key growth driver.

All in all, we expect 2015 to not only be a high growth year but, more importantly, one that will be pivotal in ushering in the focus on “VALUE” for all in the TV industry – audiences, advertisers as well as broadcasters.

Pitch | March 2015 33 www.pitchonnet.com

piTCH mAdisON mEdiA AdvErTisiNg OuTlOOk 2015

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iNTErNET

Pitch | March 2015 35 www.pitchonnet.com

INTERNET

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High OCTANE Growth Internet continues to register the highest percentage of growth and is expected to cross the Rs 5,000 crore mark in 2015

W

ith Internet being the buzzword across the media space and advertisers upping their spends in this space, it’s no surprise that Digital media witnessed the fastest growth rate at 30%, in line with the Pitch Madison Media Advertising Outlook 2014 forecast, and advertising spends on Digital media stood at Rs 3,970 crore. The search wagon, though, seems to have slowed down with Display including video, social and mobile, growing at a faster rate than search.

With more FMCG and Telecom players getting into the fray, Video, Social and Mobile formats saw larger traction. With the explosion in smartphone adoption, this trend is expected to continue in the years ahead.

While e-commerce players bet big on Television and used it extensively to drive intent, they continued their reliance on Digital to drive conversion.

Looking ahead, Pitch Madison Media Advertising Outlook 2015 expects Digital to maintain the momentum and grow in high double-digits, approx 30% with revenues expected to reach Rs 5,135 crore. An idea of the phenomenal growth of the sector can be assessed

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Pitch | March 2015 www.pitchonnet.com

by the fact that the medium which drew revenues of Rs 470 crore in 2008, is expected to cross the Rs 5,000 crore mark in 2015. Digital’s share in the overall advertising pie has also increased from just 2% in 2008 to over 10% in 2014 and in 2015 it is expected to be 12.6%. Internet spends have thus become really significant and the third largest chunk in the overall pie.

Among the drivers of growth will be e-commerce players who will increase their reliance on Digital media. This will be part of the effort to drive frequency of transactions among users who have ‘sampled’ online transactions. With all Telecom players emphasizing on data revenues, Digital media will garner higher allocation of their advertising monies. With FMCG, Telecom and Consumer Durables emphasizing more on video and mobile formats, this will be at the cost of traditional display.

Key advertisers will experiment with programmatic buying, in spite of issues with regard to transparency and nonavailability of premium inventory.

However, progress will be made on both these counts as publishers as well as advertisers see merit in programmatic buying.

Internet AD Spends In 2014 Internet (Excl search)*

60.4% `2,398 cr Internet spends on search

`1,572 cr 39.6%

* Digital Display includes Video, Emails, Mobile & Social Media

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estimated INTERNET AD Spends In 2015

E-commerce players will increase their reliance on digital media

Internet (Excl search)*

62% `3,i84 cr Internet spends on search

`1,951 cr 38%

49%

TOTAL INTERNET INCLUDING SEARCH 2014 ACTUALS

`3,970 cr

TOTAL INTERNET INCLUDING SEARCH 2015 PROJECTED

`5,135 cr

Digitalâ&#x20AC;&#x2122;s share in the overall advertising pie has increased from just 2% in 2008 to over 10% in 2014 and in 2015 it is expected to be 12.6%

50%

46% 32%

30%

29%

YEARLY SPENDS (Rs Crore)

0 GROWTH % `1,030

2010

`1,535

2011

`2,303

2012

`3,050

2013

2014

`5,135 2015

ACTUAL

Projected Growth

`3,970

Pitch | March 2015 37 www.pitchonnet.com

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A Glimpse Into 2015 Dippak Khurana

O

We will continue to see emerging markets outshine developed markets when it comes to growth in smartphone adoption

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Pitch | March 2015 www.pitchonnet.com

ver the years, the mobile internet ecosystem has evolved tremendously. Today consumers are increasingly shopping, consuming news & entertainment content, socializing and networking on their smartphones.

Seeing the consumption habits, e-commerce companies have shifted their focus on mobile as well.

The future of e-commerce is now m-commerce. When m-commerce was in its nascent stage, e-commerce players majorly ran app install mobile advertising campaigns. However, we now expect to see e-commerce spends shift from attracting new app users to SKU-based retargeting. One of the major reasons for this is ease of connectivity. With the easy availability of gadgets such as tablets, smartphones, phablets and more recently wearables, the

Co-Founder & CEO, Vserv

internet reach has expanded exponentially. Even in the rural areas of India, 70% of the active internet population access the web via their mobile phones.

Also, with the government now laying a firm emphasis on digital India, this number can only be expected to increase. For

most people in the country, the first experience of the internet has been via their mobile phones. Hence, we will continue to see emerging markets outshine developed markets when it comes to growth in smartphone adoption and mobile internet penetration.

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One of the major challenges that were observed in 2014, was that marketers clubbed their desktop and mobile marketing strategy together.

However, this was not the right strategy and in 2015 marketers will need to stop viewing mobile as a part of digital, and begin viewing it as an independent channel. There is a huge difference in the way consumers interact with these two mediums. In 2015, marketers will need to adapt to this evolving consumer behaviour with a mobile-only strategy that is separate from their overall digital strategy. The challenge for marketers is that the mobile ecosystem is moving at such a rapid pace that the agency ecosystem is still playing a catch-up role. A point to note is that many agencies still do not have dedicated mobile teams.

Agencies will need to scale up their operations very quickly in order to keep up with the ever-evolving mobile ecosystem.

Today, consumers have an array of options, hence reaching them with relevant content is of utmost importance. Publishers and advertisers are looking to advertise on mobile in a way that is more engaging to consumers. This makes content and format of the ad as extremely important. Brands will eventually move beyond traditional methods of

CRM on mobile such as SMS or email has changed and marketers cannot to meaningfully engage with their target customers based on just customer base. Marketers will see demographics. With mobile becoming mobile display ads as the new CRM. the center of the consumerâ&#x20AC;&#x2122;s universe, This will also offer marketers their interactions on this medium the ability to connect and are generating petabytes of data. This data needs to be communicate with analysed and transformed mobile customers into smart data that can throughout the will soon see purchase process and help marketers deliver across channels. Today, widespread adoption the most relevant ads to market segmentation consumers. by conventional Besides using relevant brands content, having the right ad format also makes a huge difference. Currently, several marketers are opting for video ads as they are more engaging and attractive as compared to static banner ads. Native Ads, which are currently a niche advertising format, will soon see widespread adoption by conventional brands. As marketers are looking at options that will help them engage with their consumers better, native ads are helping them achieve just that. Consumers are looking at engaging experiences that are more personalised and relevant to their needs. In 2014, we saw a near 100% dominance of app install ads. However in 2015, conventional brands will engage with their audience for various marketing objectives like brand affinity, lead generation, purchase intent etc. Marketers will closely emulate and leverage the characteristics of the mobile environment to deliver mobile ads that blend seamlessly with the mobile app and site experience.

Native Ads

Brands will eventually move beyond traditional methods of CRM on mobile such as SMS or email to meaningfully engage with their customer base

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Digital presents marketers with new opportunities Damandeep Singh Soni

D Since digital provides access to so much data in real time across devices, today the variables for a marketer have increased manifold

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igital is not one medium. It is a platform of mediums covering Social, Search, Mobile, Display, Video with each medium interacting with the other in a variety of ways. The perceived fragmentation is what is seen in the consumer internet space however the medium is far more complex and needs to be better understood.

Digital as a medium can be best appreciated and utilized if visualised in three buckets: 1. Enterprise Software: Tools like the Google Analytics Engine and Omniture are in this space and enable companies to understand the user flow and the life cycle 2. Ad- Tech: Is what enables a marketer to utilise the data and target the right user in the right context and digital medium. Companies like

Business Head - India, LINE

Mediamind and inmobi are a part of this space 3. Consumer Internet: This constitutes the Facebook, LinkedIn and Makemytrips of the world Even with these broad definitions, companies like Twitter are not only into the ad tech space and enable marketers to utilise enormous amounts of data to target users not only on their properties but with any website that is willing to integrate. Additionally, a user lives on the digital medium constantly during the daystarting from checking on whatâ&#x20AC;&#x2122;s happening on social media to searching specific content via search engines and keeping updated with latest events online moving on to also shop and consume entertainment content, all this through a different devices ranging from

smartphones and tablets to desktops. Technology and data unifies digital in a seamless manner.

Since digital provides access to so much data in real time across devices, today the variables for a marketer have increased manifold and unlike traditional media, the marketer can also change the communication message in real time. Additionally, the digital medium lends itself to both content and commerce. The challenge that a marketer who is trying to engage an audience on mobile is whether to create an app that engages the user via compelling content or enable him to transact or both. Lastly, we are at a stage where the way that user engages with the medium is also changing as a result a new channel opens up every few month.

Even digital video is evolving

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in comparison to traditional TV model wherein the channels are consolidated on a single device. The second screen phenomena is on the rise and to further add to this TV itself has now become a smart device wherein multiple apps can reside.

With 181 million Monthly Active users, LINE has become the perfect opportunity for brands to attract their target audiences. LINE is one of those platforms that provides these brands the display place to showcase their brands. LINE together with its diverse services sees the keyword of its future as ‘LIFE’ and works towards positioning LINE as the smartphone gateway for users life. With the above offerings and collaborations LINE aspires to be more than just a communication tool, it is transforming itself from a SMS replacement to a life platform that may eventually touch all essential services people can access from their smartphones.

Branded Stickers for example are being used by brands and celebs to engage the consumers. With the explosion in smartphone adoption, going digital for consumer communication is a mega trend across industries. Bollywood cinema makers have partnered with LINE to launch stickers featuring the rollicking star cast of the respective movie.

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Moving, forward, with all its complexity, digital presents a marketer with new opportunities by not only enabling him to target a user in real time across mediums but also managing the funnel and leveraging user data and feedback to enhance the value proposition swiftly. As a result innovation cycles time have been reduced and product/service evolution is rapid.

Additional possibilities have arisen due to the always-on nature of the medium. The consumer is now interacting with brands in new ways via multiple screens. Real-time response thus offers brands far more agility to

respond in the moment than traditional advertising. Brands like Oreo (remember the Superbowl blackout tweet) and KitKat (got on top of iPhone bendgate) had a field day with real time marketing. Programmatic buying has delivered amazing returns to ecommerce players and mobile apps globally.

The challenge that marketers therefore, face today, is how to manage multiple variables in the digital space.

As a result today’s CMO needs to be a multichannel- technical- data driven -analytical – creative – design focussed- nimble- lifecycle marketer.

Fragmentation is least of the problems. The biggest problem to address is how best to utilize this dynamic space that redefines the rules of the game every 6 months.

With the explosion in smartphone adoption, going digital for consumer communication is a mega trend across industries not limited to IT. LINE is one of those platforms that provides these brands the display place to showcase their brands. LINE together with its diverse services sees the keyword of its future as ‘life’ and works towards positioning LINE as the smartphone gateway for users’ life. With its diverse offerings and collaborations LINE aspires to be more than just a communication tool. It is transforming itself from a SMS replacement to a life platform that may eventually touch all of the most essential services people can access from their smartphones.

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Is fragmentation of digital media the biggest challenge for marketers?

Sagnik Ghosh |

F

Vice President & Head-Marketing, Axis Bank

or a marketer, the starting point should always be the consumer.

With more and more Indian consumers moving online, marketers also have had to embrace digital as a medium.

The age-old broadcast medium of ‘push messaging’ is being replaced with microtargeted audience buying.

BFSI is one of the first few industries which realized the potential of digital and shaped its marketing strategy accordingly. But in addition to

Fragmentation in digital allows for serving smartly sequenced advertising, on the basis of interest and behaviour

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the opportunity which digital presents, it also comes with its set of challenges.

Consumers today are bombarded with choice – and to add to that, are empowered with the options to choose and control what communication they receive. In the era of big data, consumers are looking at how marketers are using the information which they have shared on public domains and using it to serve relevant content/advertising to them.

The relevance of content which is being served is now the primary currency by which not just consumers, but even digital media platforms are evaluating brands. If you continue to serve irrelevant content, the consumer can choose not to receive any communication from the brand on a particular platform.

It’s not just the variety of platforms that is a challenge – it is also the changing consumer psyche on these

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platforms which makes serving relevant content an even bigger challenge. The same consumer, is evaluating the ‘relevance of the content’ differently when s/he is surfing the internet looking for deals on travel compared to when the same individual is on a professional networking platform like LinkedIn or when s/he is listening to music on a free music app. The Indian digital consumer, who according to recent studies spends almost 130 minutes of the day online, juggling amongst multiple platforms mindsets, definitely poses a challenge.

But it also poses an opportunity.

It allows you to catch the consumer when s/he is most receptive of your communication. It gives you the opportunity to be seen/perceived as a brand which truly cares about the consumer’s needs, rather than a pushy and intrusive one. The multiplicity of platforms definitely calls for multiple communications – but what is important is to retain the same core message: thus creating the ‘media multiplier effect’, within one medium itself.

The value of a relevant, wellarticulated piece of content, distilled through brand values is what has become most critical. What it needs

to be overlaid with is a deep understanding of the consumer need, and how the brand/product can add value to the consumer.

Fragmentation in digital also allows for serving smartly sequenced advertising, basis interest and behaviour, and even psychographic

The value of a relevant, well-articulated piece of content, distilled through brand values has become most critical

targeting. Yes, there certainly are challenges, but they are clearly outweighed by opportunities. The biggest advantage is real-time correlation of advertising spend with sales/purchase, which allows marketers to tweak their strategy real-time. What is important, is to find a common currency across various platforms, and clearly articulate and identify the purpose of each – reach, frequency, engagement. I believe that would go a long way in simplifying the digital maze (until the next algorithm change, of course)

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The Road Ahead for Retail in 2015 Harkirat Singh | Managing Director, Woodland

We live in the Social Age. “Social” refers to the cultural communication climate –– the way we receive information.

T With the growth in the market and the government policies becoming more favorable, the future of the Indian retail industry looks very promising

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he Indian Retail has emerged as one of the most dynamic and fast paced industries with several players entering the market. It is one of the most vibrant and is in the process of gradually becoming the next boom industry in the country. India is undergoing a retail revolution making a gradual shift from traditional to a more organised sector.

This is owing to various factors such as changing consumer behavior, growing middle class, higher disposable income, and preference for luxury goods, urbanization and change in the demographic mix, etc.

The purchasing power has seen a marked improvement over the past decade in the country.

Retailing is an important prerequisite for modernizing India, which can facilitate rapid economic growth.

With an ever expanding

domestic market and a good forecast growth rate, the Indian retailing scene seems extremely attractive for stakeholders and investors alike. Even today, India continues to be among the most attractive investment propositions for global retailers. With the growth observed in the market and the government policies becoming more favorable, the future of Indian retail industry looks very promising.

Furthermore, the online retail market has been growing by leaps and bounds over the past few years on account of the digital revolution. With the trend of e-commerce picking up, there is a wider choice of channels for purchase and allowing consumers even in the remotest parts of the country to buy goods easily. Online retail market is definitely expected to

grow at a blistering pace.

According to PWC, it is estimated to reach $6 billion in 2015. Considering the acceptance for online retail in the country, there is a tremendous growth opportunity for retail companies, both domestic and international.

Today, there seems to be a lot more confidence among local businesses to invest in brand building than before, which is a positive sign for the industry. Advertising is a growing business in India today and plays an important role in promoting goods and services. It has become a very crucial tool for any industry allowing manufacturers and distributors to get closer to the heart of the people who purchase the products and the goods they are producing.

Even the Indian government has given continuous backing to the advertising and marketing industry.

Powered by As per a recent report on the advertising spends, once again the ad business will be growing. But a new media and marketing order will be taking hold. In measured-media terms, in 2016, TV will still own the biggest piece of the marketing pie (36 %), but just barely. Online advertising, at 31%, is sure to be hot on its heels. Further behind but growing fast will be mobile, whose share will have jumped from about 1 per cent today to 5 per cent as marketers chase a wholly mobile consumer reveling in constantly improving gadgets and services. The rise of mobile, coupled with an evolving, more web-like TV market will present a vastly different communications landscape.

Today, retailers adopt a mix of marketing and promotional strategies to withstand competition. Increasing digitization and higher Internet usage over the last decade has largely driven the industry. The FMCG sector, which has always been a dominant category in advertising, is expected to witness increased expenditure this year. Penetration of smartphones coupled with the popularity of online video is making the segment spend more on digital. Within digital media, video, mobile and social would be the biggest growth drivers apart from traditional media channels including print, television out-of-home, radio and cinema etc. We perceive a change in the retail advertisement scenario in the years to come. With more players entering into the food and beverages segment, e-commerce gaining more popularity and domestic companies testing out the waters, a growth is

also likely in retail advertisement expenditure. More multinational entrants under the single-brand retail category may also add to spending in the retail category.

Outlining the growth prospects of the Indian advertising sector, what is expected to lead the charge in 2015 is the e-commerce segment; with its aggressive advertisements in terms of ad spend growth, although it is from a relatively smaller base than more established categories. With the government focusing on growth of the Indian economy, positive market sentiment, upbeat consumer confidence and India once again attracting global attention, it is sure that these fundamental reasons will double the growth forecast for retail advertising in India. The outlook for the advertising retail sector in India is positive and is expected to enjoy a healthy year in 2015.

The next five years should be a

time of intense experimentation to recalibrate the relationship between marketing and IT. This is a call for more cross-disciplinary teams of marketing and IT pros and this isn’t just a conversation for tech companies. It’s pretty clear that in the future every company will be a tech company, as consumers become more gadget obsessed and marketers of all stripes deal with tech-enabled tools. Cohabitation won’t be easy; both marketing and IT can be obstinate.

But the stakes are high. There’s a tremendous need to keep up with the customer who it’s safe to say doesn’t have time for your silos. And, remember, user experience will be everything in our brave new world.

As we see ad spends increase, remember that the way you communicate and the message you present will always be more important than the platform you’re using or the size of your ad budget.

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Building a brand in the

Multi-Screen Era

Ramesh Kumar | Head, ESPNcricinfo & ESPN Digital Media India

T Since users expect similar content engagement experience across platforms, providing this sort of consistency is one of the challenges

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he evolution of the internet, the virality of social media, the changing (content) consumption habits of the millennial consumers and a plethora of digital channels has necessitated brands to use the digital route to effectively engage their consumers. Until recently, television, radio and print remained preferred, popular and convenient mediums of communication in order to reach a wider consumer base.

Today the explosion of other screen-based devices has turned consumers into multiscreen viewers. These multiscreen experiences are both sequential and simultaneous; users shift from one device to another in pursuit of information and engage with all available screens for the same task - often, starting

a search on a smart phone, moving to the desktop, and eventually winding up with a tablet.

The challenges posed by the multi-screen era The age of multiplicity of screens (whose conduits have been iPads, Tablets, Mobile Phones, PCâ&#x20AC;&#x2122;s and laptops) not only provides advertisers with wider opportunities to engage and influence consumers, but also poses challenges that must be considered. For instance, in the case of something as basic as an application or â&#x20AC;&#x2DC;Appâ&#x20AC;&#x2122; in common nomenclature, the existence of multiple channels has necessitated that there is a consistent experience across devices it is consumed on.

Furthermore, since users expect similar content

Brands must

make sound decisions about the choice of

delivery strategies

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engagement experience across platforms, providing this sort of consistency is one of the challenges.

It has therefore become essential to have ‘responsive sites’ which can adapt to multiple screens and provide users with a consistent user experience.

The challenges to provide a unified brand experience is further

augmented by the confusing landscape of technologies and approaches. To counter this, brands must make sound decisions about the choice of delivery strategies, quality of content, and remember, the mere existence of a

An essential cornerstone of our strategy is consistency in our positioning and overall brand promise. This is especially important platform does not necessitate brand presence.

Measurement is another challenge.

Though there is enormous and expanding ability to measure interaction, what constitutes real engagement, the right ways to quantify are different to different groups, and the ability to track cross-device use is still not something done effectively at scale.

At ESPNcricinfo we continuously monitor our traffic data, audience preferences of content experience and use these analytics as key ammunition to build strategies for our products and content. Across ESPN’s global businesses, the company has also spent enormous effort to research and study the behavior of sports fans – in different places, situations, and across a huge array of demographic groups.

This has led us to a belief in what we call the “best available screen” theory. It centres on the idea that sports is truly unique content. People are extremely passionate about it, and it is uniquely personal to them. It also means that a sports fan will seek that content on whatever the “best available screen” is at any point (indeed, multiple points) throughout the day.

We believe content is key and the screen is the most convenient means by which the fan can connect to that content. That is why we are absolutely devoted to providing the very best content, and then offering an experience with that content across multiple devices, while at the same time customizing offerings based on specific screens. In addition, an essential cornerstone of our strategy is consistency in our positioning and overall brand promise. This is especially important in the current age of instant gratification.

The overall mission at ESPN is “To serve sports fans anytime, anywhere”.

At ESPNcricinfo we ensure we are aligned to this and our offerings have a promise of quality, authority and personality which our consumers can connect with.

The surge in in digital content consumption, especially video, the impact of social media platforms and the continued explosion of mobile, were significant developments in the digital space in 2014. The pace of change is going to only accelerate and organisations in this space need to constantly innovate to ensure the brand stays relevant in this changing landscape.

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The future of Display Advertising Sandeep Amar | Chief Operating Officer, India.com

T The control on campaigns, and the brand impact offered by publishers is still the best way to go for brand promotion and solutions on digital media

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he Display Advertising is evolving fast and it needs to. With the pressure coming from search being the largest pie in digital advertising and growing investments in social, display needs to evolve to offer quality solutions to the advertisers.

For brand promotion and brand solutions, Display Advertising is still the best option, that too on quality publishers. The control on campaigns, and the brand impact offered by publishers is still the best way to go for brand promotion and solutions on digital media.

The future in Display Advertising will be driven in the following ways: 1. Native Advertising and Content Marketing: These are overlapping terms basically indicating

the presence of “branded content” in publisher ecosystem to build trust and authority for the brand among targeted customers.

This has shown great acceptance from advertisers and will be a strong tool for them to build trust among the target audience. This tool is also very helpful in establishing “thought leadership” and for “breaking perceptions” - these brand objectives are really tough to crack via conventional advertising.

2. Data backed targeted solutions: Building a DMP or using a quality DMP solution is allowing publishers to drive targeted(with retargeting solutions) advertising. Advanced data bucketing and dynamic data collection and analysis has provided publishers with

rich attributes of users, which they can target via cookies. Here the attributes are deep, like “movie-lovers in Mumbai”, “auto-lovers in Bangalore” along with more demographic data.

This strong data ecosystem can offer multiple solutions and can be manipulated by desired algorithms - to reach the target audience in a deep manner. With retargeting solutions, this can offer solutions in terms of showing different advertising messages in different exposures.

The data backed solutions automatically yield higher CPMs, in trading ecosystems.

Through an SSP or an Ad exchange, publishers can clearly see an uplift of upto 2x of regular CPMs. In the programmatic buying ecosystem, the data

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solutions can enhance offerings for the programmatic algorithms - and provide much more targeted and richer solutions for the advertisers.

This will obviously result in higher CPMs for the publishers.

It is obvious, but important to note that this has been made possible by advancement in ad-bidding technology - allowing real time bidding(RTB). There are RTB and open-RTB ecosystems, which allow strong and effective trading solutions for publishers and buyers.

Data backed direct sales solutions for agency/ client ecosystem is an important part of the future of Display Advertising. Although some experts feel that programmatic buying will take care of everything, that is not the case. There is a theory that rich media cannot be traded via programmatic, which is right and wrong depending upon the cases.

But the key is that an algorithm can buy effectively on broad objectives, but for brand impact campaigns with specific objectives, expert intervention is required. For India.com properties, we will soon offer strong data based solutions to agencies and clients in the Indian ecosystem. We have strongly invested in data and our Data Management Platform is ready.

3. Changes in advertising creatives: The banner advertisements are still the

There are RTB and open-RTB ecosystems, which allow strong and effective trading solutions for publishers and buyers

We will soon offer strong

data based solutions to agencies and clients

mass method of running the display ads. But this area has seen and will see huge amount of innovation. There are rich-media solutions which have been there. There have been social ads(image and text) and native ads.

Rich media has allowed strong increative interactions for the users

and has offered attractive ways of brand interaction with users. But with increase in mobile traffic, maximum innovation in this area will happen on mobile. As iOS and Andriod ecosystems allow different features, browser and in-app advertising can be rendered in various creatives ways on both platforms. This will be one of the big offerings to advertisers and can manage CTRs up to 7-8 per cent. Inapp advertising will be one of the most effective message delivery methods as there is arrested attention of users on the device.

4. Innovative solutions: There will be lots of innovative advertising solutions. One example of that is what we offer for Zee TV video properties it is called MirriAd. In this solution, by using powerful technology we are able to place a product or a brand message in the TV serials for on-demand video viewing. The brand exposure is totally measurable and brands are charged on per minute exposure basis called â&#x20AC;&#x153;Brand Minutesâ&#x20AC;?. There are multiple other formats which will evolve digitally which will help placement of brands in an effective manner.

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Is Fragmentation of digital media the biggest challenge for marketers?

W

The more digital starts to look like TV, the more mainstream it is likely to become

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Karthi Marshan | Head Marketing, Kotak Mahindra Group

hat a glorious year it promises to be for the digital advertising world. It is projected to breach Rs 5000cr, which means that for every 3 rupees spent on TV or print this year, a full rupee will be spent online. Incredibly, online will consume twice the money that OOH will and three times what radio will. So a medium that was born barely 2 decades ago is trumping one that was born over 100 years ago.

Interestingly, nearly twothirds of this is going to non-search options on the internet. It means this Rs 3000 cr will be split across millions of properties on the internet.

Sure, there will be blockbuster sites that will consume the bulk, much like we have standout TV channels, leading dailies and super premium outdoor sites.

But the long tail on the internet is likely to be really really long.

Is this a good thing or not? I suspect, both.

The corner office decision makers who are chronologically challenged in understanding the medium (I mean people my

age) are more likely to gravitate to the blockbuster end of things.

We saw signs of this last year as well, when many brands started funding long form videos of their TVCs, to run exclusively on the internet, in response to the insight that videos are being delivered in search results almost as often as text is.

Ironically, the more digital starts to look like TV, the more mainstream it is likely to become. TV advertising is easy to understand, easy to explain and the metrics (such as they are) have become the dominant currency of the industry. If Rs 15,000cr of inventory can be bought and sold on the back of data collected from a few thousand households in a few cities in India, why should the internet be subjected to higher standards of scrutiny? This has been the pitch of the digital publishers for over 4 years now, and now it looks like they have been heard.

As far as the long tail is concerned, I am confident it will stay. Not because the long tail is necessarily a great business model, but because the cost of entry is low. So, many

thousands of special interest content sites will be born and will die fast every year. Some of them will grow up and join the establishment, and others will always have some pennies from someoneâ&#x20AC;&#x2122;s budgets thrown at them for a variety of reasons ranging from a media buyer or brand manager being personally passionate about the subject to someone on the account feeling sorry for the publisher, and dozens in between.

Such fragmentation on the internet will actually be a good thing, because it will truly help us target our messaging at micro-segments to the point where we can feel like champion sharpshooter from the movie Wanted (the one with Angeline Jolie, not Salman Khan). This will mean much hard work for all concerned, but when the juicy margins typical of any industryâ&#x20AC;&#x2122;s early days disappear, everyone, including planners, buyers, writers as well as clients will have to buckle down and sweat it out. And the good work will win. It will win business, and as we learn to appreciate its value, it may win accolades as well.

PitCh madison media advertising outlooK 2015

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OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO Pitch | March 2015 | OUTDOO 53 OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR www.pitchonnet.com OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO

OOH

‘transit’ing suCCess 30

%

strong groWth by transit media helPed outdoor groW by 13% beating exPeCtations. e-CommerCe, retail, teleCom & infrastruCture Will lead groWth in 2015.

54

Pitch | March 2015 www.pitchonnet.com

helped to up the momentum in this space. Organic growth was seen in categories like Telecom, Automobile, BFSI and Retail. In comparison to 2013, ad spends in Outdoor increased

by Rs 256 crore in 2014, to maintain its share at 6% of the total advertising pie in 2014.

The Pitch Madison Media Advertising Outlook 2015 expects Outdoor to grow by 6.2%, taking the total Outdoor advertising market to Rs 2,371 crore. In 2015, with Outdoor expected to add Rs 138 crore, the medium’s share in the total advertising pie is expected to dip by 0.2% to 5.8%. While most media have either maintained or increased their share in the overall ad pie, except Print, the share of OOH has steadily fallen from 8.2% in 2008 to our estimate of below 6% in 2015. On a positive note, higher OOH spends are expected from e-commerce companies, Retail, Telecom, Apparel, Jewellery, Handsets etc., and infrastructure companies.

0

groWth %

yearly sPends (rs Crore)

I

n 2014, conventional Outdoor surpassed expectations and grew by 13%, as against the projected 7% growth rate, bringing in ad spends that totalled Rs 2,233 crore.

The growth was boosted by Transit media which continued to grow at a brisk pace of 12%, as against projected growth of 10%. In fact, Transit media has more than doubled its share in ad spends from Rs 333 crore in 2008 to Rs 688 crore last year. Increased spends in Transit media rode on the back of the new T2 terminal in Mumbai which opened in February and the Mumbai Metro which commenced services in June.

In addition, higher organic spends were also seen in Kolkata. Outdoor benefited immensely from heavy spending by political parties for both the Lok Sabha & the five State Assembly elections held in Andhra Pradesh, Arunachal Pradesh, Haryana, Maharashtra, Odisha and Sikkim.

Last year, e-commerce players

`1,848

2010

groWth Was boosted by transit media WhiCh Continued to groW at a brisK PaCe of 12%, as against ProjeCted groWth of 10% ProjeCted outdoor ad sPends in 2015

outdoor ad sPends in 2014 outdoor

outdoor

69.2% `1,545

68.4% `1,622

ooh transit media

ooh transit media

` 688 30.8%

`749 31.6%

13% 8.4%

6.2%

6.2%

-7% `1,717

2011

`1,862

2012

`1,977

2013

`2,233

2014 aCtual

`2,371 2015

ProjeCted groWth

Pitch | March 2015 55 www.pitchonnet.com

OOH

COLUMN

The OOH industry in India must adopt global best practices Arghya Chakravarty | CEO, Times OOH

T

Advertisers, media planners and buyers, media owners, all must keep abreast of global trends and be open to experimenting 56

Pitch | March 2015 www.pitchonnet.com

he financial crisis in 2013 had made advertisers cut back on spending but I expect that the improved investor sentiment and the new government in India are expected to drive growth going forward. I am happy to say that we have been able to surpass the industry growth of 9 per cent (Group M estimate) riding on the back of high performing transit assets like the airports and metros.

Industries like e-commerce, automobile and telecom have shown amplified performance and I expect them to be big spenders in 2015. Sporting events like the ICC World Cup and IPL also add a spike in the graph.

Aside from the financial performance of the sector, I believe that the industry has lagged in adopting leading worldwide trends. Advertisers in India are just warming up to digital media, a medium that has been driving growth for OOH players globally for years. DOOH advertising accounts for 26 per cent (nearly 1/3rd) of total outdoor spending in the UK (Outdoor Media Centre (OMC) 2014, a UK trade body for outdoor media owners).

Also, mobile interaction, social media integration and augmented reality have a long way to go before they are

Industries like e-commerce, automobile and telecom have shown amplified performance and will be big spenders in 2015

accepted as a regular part of OOH media in India. Globally, these technologies have become an integral part of any OOH campaign.

I anticipate that the overall OOH advertising industry would witness a remarkable growth in the next few years. Growing number of malls, rise in infrastructure, innovation and technological progress and increasing number of people who spend time outdoors would drive the growth of OOH advertising.

National highways have been extended and expanded and airports like Chennai, Kolkata, Lucknow, Guwahati, Jaipur and Ahmadabad will soon be up for privatization as well. I am very optimistic of the future for the industry. Though the largest contributing sector would continue to be physical OOH, its contribution would decline as digital OOH will be on a high growth trajectory.

While we have put in a lot of hard work, at the end of the day OOH is still a very small slice of the media and entertainment pie and thatâ&#x20AC;&#x2122;s a clear challenge for the industry. The measurability and ROI issues in OOH must be addressed as the industryâ&#x20AC;&#x2122;s mission. The big, organized players should get together and sort this out first and foremost.

Unethical business practices and non-compliance seem to plague the industry as well.

Enforcement and adherence to policies and laws is a must to foster a fair and competitive environment. I also believe that advertisers, media planners and buyers, media owners, all must keep abreast of global trends and be open to experimenting. It is the only way we will move from static billboards on the road side to a truly global and edgy advertising medium. I would urge all media owners to invest heavily in technology.

Pitch | March 2015 57 www.pitchonnet.com

OOH

COLUMN

Importance of Out-of-Home advertising for the travel sector and expectations from 2015 Hanneli Slabber | Country Manager, South African Tourism

O

Out-of-home is arguably the most visual of all media, its effectiveness deriving from its ability to attract eyeballs 58

Pitch | March 2015 www.pitchonnet.com

utdoor advertising is one of the strongest mediums of gaining widespread access to the nationâ&#x20AC;&#x2122;s audience. Till date the medium retains its credibility for being one of the most cost effective channels to reach out to the potential customers.

Out of home is arguably the most visual of all media, its effectiveness deriving from its ability to attract eyeballs.

For a picturesque creative like travel and tourism, it becomes essential for the media to be able to capture our breath-taking beauty in large format. Outdoor emerges as the most suited media to portray this. South Africa offers scenic beauty, adventure, wildlife and other elements which are highlighted when taking the shape of exciting and innovative outdoor surfaces.

SAT continues to invest and invent in OOH - The sky divers and meerkats on hoarding, giraffe on mobile van, river rafting on mall staircase and lion scratches are fine examples of the same.

We at South African Tourism, consider OOH as an integral part of our media

mix because that is where our audience is. Being a tourism board, it is extremely essential for us to sell our travel stories through our campaigns and OOH is a perfect medium to execute the same. It helps in building a positive imagery and recall for the brand.

Each year, South African

Tourism launches a multi city outdoor advertising campaign to woo Indian tourists to the enchanting and rich experiential offerings of South Africa.

The aim of the campaign is to highlight the diversity of experiences offered by South Africa to Indian travellers.

The innovative creatives of

the outdoor campaign across multiple cities captured the diverse experiences like adventure, wildlife, luxury among others on offer in the Rainbow Nation.

Effective selection and placement of ads is the key, hence we planted our outdoor initiative at relevant touch points at metros and

mini metros across the country. As the mainline media is getting more and more cluttered and fragmented, OOH is gaining importance as a critical medium to connect with the consumer and capture their attention.

Every year we invest comprehensively in our OOH campaign across markets in India and it will continue to be a key part of our media plan in the coming years. Moving forward, out-of-home will continue to enjoy an increased growth as potential customers are on the move for a greater part of their day.

Given the background of the cluttered market space, diverse audiences and varied formats in outdoor advertising, the key to standing out with OOH is to be different and unique. In line with this understanding South African Tourism has released the latest OOH Campaign #MeetSouthAfrica, wherein we introduce the Indian audiences to the spectacular country and the varied experiences on offer in South Africa by way of unique and enticing creatives.

In an endeavour to resonate with the Indian travellers, the creative executions of the #MeetSouthAfrica campaign have been customized with the use of impactful one-liners in regional languages that are engaging and appealing. This idea came from the insight that we gathered during our interactions with Indian travellers, where after their visit to South Africa, they could best express certain emotions of experiences such as pleasure, eternity and beauty only in their mother tongue.

Taking cue from this, we thought of bringing alive emotions

OOH today is becoming a strategic element of every company’s media mix because of its innovation and impact

that resonate with our customers at a regional level to draw a stronger connect with the potential travellers.

OOH today definitely needs to be backed up by creative solutions and an integrated approach. With OOH it is extremely crucial to demographically map out and execute destination based planning that follows the target audience movement. Outdoor advertising needs to come out more

Given the background of the cluttered market space, the key to standing out with OOH is to be different and unique

intelligently to ensure that people understand the message. Smart outdoor that recognizes and reacts to consumer types is the call for the future. OOH today is becoming a strategic element of every company’s media mix because of its innovation and impact. In addition to this, OOH offers few unique benefits which no other media can match. This is the very reason why even other media be it radio stations, ecommerce websites, television, magazines and even print… advertise outdoor.

Creative agencies and brands need to explore innovative ways to communicate the brand and its USP in a meaningful and relevant manner.

Moving forward, there has to be a revolution in outdoor creatives.

The overall OOH advertising industry would witness a growth in the coming years; however, a huge drawback and major concern for OOH is the measurability factor. OOH comes into a pitch with no proper measurement, no research and case studies done over long term. There should be guidelines for analysis and long term investments need to be undertaken in this sector. Trended data will be a must to cement OOH’s place firmly in the industry with the same eminence as the other mediums.

The rural market will continue to remain crucial for OOH and the approach needs to be more interactive and integrated with brand activation for high recall value. Tier 2 and tier 3 towns have definitely grown but we think community engagements are a must in these markets. It will be nice to have a few unique digital / ambient media being introduced in 2015.

The definition of OOH is changing and getting redefined. In the years to come, the support of digital space will be the key to OOH medium.

Conventional OOH coupled with smart use of digital and mobile can really up the engagement level among consumers and take the brand experience to an all new level.

Pitch | March 2015 59 www.pitchonnet.com

OOH

COLUMN

The OOH industry Fraught with challenges Noomi Mehta | Chairman & Managing Director, Selvel One Group

M

arginal Growth in 2014 Last year witnessed a marginal growth in the turnover for this industry.

From Rs 1900 crore, the OOH industry grew to about Rs 21000 crore. The larger formats have remained flat due to inflation. The transit sector, comprising airports has done exceptionally well.

The growth in both large and small formats has been insignificant. Moreover, Digital and LED in the Out-Of-Home industry are yet to take off in a significant way.

We are surprised that the digital offerings of OOH media have not been taken up in any significant manner by advertisers till now 60

Pitch | March 2015 www.pitchonnet.com

Whatâ&#x20AC;&#x2122;s in store for 2015 ?

There are 2 huge problems facing the Out-Of-Home industry which need to be overcome if the sector has to grow. The first important factor is a lack of any guidelines and research backed approach. Even though Print and TV have time and again, debunked IRS an TAM, they still use numbers provided by them and massive proposals are being drawn for these two. As we do not have a measurement system in place, we always get the short end of the stick. But we are trying to come up with a measurement system in a structured and organised manner. We would

like to devise a system jointly with everyone in the industry including agencies, media owners and the clients. It will be a joint study with a small equity base and we will subsequently seek necessary funding to develop it further.

It is what we call the OMARK or, the Council of Outdoor Media Audit and Research Council.

The second problem we face is that of illegal sites.

Unfortunately , politicians have entered this field, using their clout to put up illegal sites which the government

chooses to ignore. This leads to a huge problem for the legal sites. So until we can stop the proliferation of illegal sites, we will continue to face a massive problem.

This is true for all cities of India. The disadvantage of illegal sites is that it leads to a tendency to ban the entire outdoor media. Its ironical that the government takes the stand to ban it and politicians are the root cause of the problem. We need to tackle this menace at a very high level. Two methods can be used to overcome

As we do not have a measurement system in place, we always get the short end of the stick

this issue. One is by using the courts of the land and presenting to the various government authorities what the model code of conduct should be for advertisers. By simply banning something, you cannot make it disappear.

Hoardings in Mumbai have been banned and no new site permissions have been given for several years but everybody has seen more than 1000 sites come up after that. When the government says it wants to ban it, it is an admission of failure on their part to reasonably govern or regulate a right.

It is a legitimate, legal business and it is not reasonable to ban it.

2015 growth rates We have already seen the advent of local advertising especially that of real estate players. Real estate is very strong on Outdoor Media. They have led the way in this medium. Now it is the new phenomenon of e-retail/e-commerce which is taking over. They have offers which change from hour to hour and the digital platform that outdoormedia can provide is one way to communicate such offers instantly to the masses. We are surprised that the digital offerings of OOH have not been taken up in any significant manner by these advertisers till now.

Digital provides great scope to be innovative due to its flexibility and impact

Looking ahead at digital innovations Innovations are pointless unless they are scalable. What we see today are just one or two innovations in the outdoor medium that get talked about on the social media platforms.

These innovations need to take place on an ambitious scale for them to be successful. Digital provides great scope to be innovative due to its flexibility and impact. The media aggregators need to look at this medium afresh and depend on their gut instinct instead of just numbers.

Consolidation is key The Outdoor media needs consolidation at this point but nobody is interested in consolidation. Consolidation will provide it the financial strength to tide over the low periods. New players come in but they only end up fragmenting the pie further. It then becomes a matter

New players come in but they only end up fragmenting the pie further. It then becomes a matter of survival

of survival which leads to cut-throat competition and unhealthy undercutting.

Unfortunately, Media agencies are leading this undercutting of the business.

What should OOH media do to be attractive to advertisers?

OOH is not an attractive proposition to the media owners at the moment but it is an attractive proposition for the client or the advertiser because it is a mass medium. Youth today spends more time outdoors and you have the potential of connecting new age technology with old locations. Locations are the key in outdoor advertising, and if you add to it the appeal of a message which is impactful, current and dynamic and which can actually interact with the customer, then that is a winning combination.

In India we are growing by a dismal 5 per cent while earlier it used to be in the region of 20 per cent or more.

If this problem exists, itâ&#x20AC;&#x2122;s because we are creating the problem. We need to face these challenges by uniting under a single association like IOAA which we have formed.

We are now talking to the consumer, the clients directly through the ISA, to the media owners through AAAI, and talking directly with industry bodies such as CREDAI to become more meaningful to those particular industries.

Anyone who goes in now will face resistance but will benefit in the long run. Anybody who chooses not to go in now, will not be able to take advantage of the steep climb.

Pitch | March 2015 61 www.pitchonnet.com

Presents

5th Edition

& CONFERENCE an

AWARDS 2015 initiative

How do the Experts see the Future of OOH in India?

Find out on 27th March 2015, Friday at the HOTEL LEELA AMBIENCE, GURGAON Follow us on

#ooh2015

Speakers

KEYNOTE SPEAKER Amit Sarkar

David Payne

COO, India Kinetic

CEO- World Markets Kinetic WorldWide

Amit Shah

President & Country Head

Yes Bank

Anita Nayyar

CEO- India & South Asia Havas Media Group

Archana Aggarwal Arghya Chakravarty VP-Media Airtel

CEO Times OOH

Haresh Nayak

Managing Director Posterscope Group India

For clarifications regarding delegate registrations, please contact: Nikita Vig: nikita.vig@exchange4media.com or + 918860302087 Sonia Mehndiratta: sonia@exchange4media.com or +91 9899966264

Nabendu Bhattacharya Founder & MD Milestone Brandcom

Rohit Chopra CEO TIMDAA

Shashi Sinha

Senior VP & National Head Revenue & Media Assests II Airports Laqshay Media Group

For sponsorship opportunities, please contact: Rajat Thareja (New Delhi): rajat.thareja@exchange4media.com or +91 9810134435 Sohini Ghosh (Mumbai): sohini.ghosh@exchange4media.com or +91 9930811744 Sneha Walke (Bengaluru): sneha@exchange4media.com or +91 9845541143

Register Now: www.exchange4media.com/ooh2015/conference.aspx In Association With

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TRADE MEDIA PARTNERS ASSOCIATE PARTNER www.exchange4media.com

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PitCh madison media advertising outlooK 2015

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Waiting to Cash in on Phase III The long-awaited Phase III auctions in 2015 are expected to give the Radio industry a major fillip. However, the Radio industry, which has been aiming to double its share in the ad pie, may see its share falling marginally by 0.2% to 3.3%

A

s the Radio industry waits for the longdelayed Phase III auctions to finally kick off in 2015, Radio is expected to grow by 6 per cent, taking the total Radio advertising market to Rs 1,362 crore. With confidence that the Government will finally launch Phase III expansion by September 2015, a large number of stations are expected to open up and the new stations should pull in at least Rs 70 crore of additional advertising revenue in the last quarter of the year.

The share of Radio in the advertising pie has hovered around 3 per cent over the years. While its share in 2013 was 3.4 per cent , its share in 2014 went up by 0.1 per cent to 3.5 per cent . The Pitch Madison Media Advertising

64

Pitch | March 2015 www.pitchonnet.com

Outlook 2015 projects a slight dip in Radioâ&#x20AC;&#x2122;s share in the advertising pie by 0.2 per cent to 3.3 per cent .

Being a local medium, Radio was used extensively by political parties during elections and this is expected to continue in 2015. E-commerce advertisers have also used the radio medium extensively for all their tactical offer-based campaigns and will continue with heavy spends on Radio this year also.

Radio exceeded expectations and grew by 17 per cent as against the Pitch Madison Media Advertising Outlook 2014 growth projection of 15 per cent . Despite Phase III not coming into force as anticipated at the start of 2014, the growth has come on the back of higher inventory being sold across

The share of Radio in the advertising pie has remained a tad over 3% over the years. While its share in 2013 was 3.4%, its share in 2014 went up by 0.1% to 3.5%

big spenders on Radio Advertisers

2013

2014

Categories

Contribution

Contribution Total

11.8%

12.0%

10.5%

0.95%

3.70%

321.0%

9.4%

33.7%

8.0% 6.7% 6.1% 5.8% 4.2%

4.2% 30.8% 34.2% 2.4% 11.5%

Real Estate & Home Improvement E-commerce

Telecom Internet 7.6% DTH (incl Ecomm)

Growth %

BFSI Media Auto FMCG_HH FMCG_Personal Care FMCG_Impulse

8.3% 5.5% 4.9% 6.1% 4.0% 3.1%

2.0%

-30.3%

TOTAL FMCG

13%

12.0%

-3.0%

Retail Clothing Fashion Jewellery Travel & Tourism HH Durables Education Election Political Ads Corporate Alcoholic Beverages Others

5.6%

5.0%

-2.8%

5.2%

4.8%

-0.8%

5.0%

4.6%

-0.9%

3.5% 3.5% 1.28%

3.4% 3.2% 3.08%

7.7% -1.1% 160.0%

2.0% 0.2%

1.6% 0.4%

-14.4% 78.5%

22.4%

20.0%

5.3%

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stations. Radio share of 3.5 per cent of the total advertising pie saw total revenue at Rs 1,285 crore, an increase of nearly Rs 190 crore over 2013.

Real Estate & Home Improvement sectors continued to lead the pack contributing to 12 per cent of total Radio ad spends followed by Telecom/ Internet/DTH (9 per cent ) & BFSI (8

30%

per cent ). Revenue from e-commerce players saw the highest growth rate in 2015 (321 per cent ) followed by political partiesâ&#x20AC;&#x2122; spending (160%) and alcoholic beverages (78.5%). Losing interest in Radio was FMCG Impulse & Corporate sectors with revenue declining by 30 per cent and 14 per cent respectively.

real estate & home imProvement seCtor Continue to lead the PaCK, Contributing to 12% of total radio ad sPends folloWed by teleCom/internet/ dth (9% ) & bfsi (8%)

revenue from e-CommerCe Players & PolitiCal Partiesâ&#x20AC;&#x2122; ad sPends on aCCount of eleCtions maKe for the highest groWth rate in 2014 While revenue from fmCg, imPulse & CorPorate seCtors shoW deCline in groWth

18%

2%

yearly sPends (rs Crore)

0

17% 6%

3%

groWth %

`885

2010

`903

2011

`930

2012

`1,097

2013

2014

`1,362 2015

aCtual

ProjeCted groWth

`1,285

Pitch | March 2015 65 www.pitchonnet.com

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The Road Ahead for Retail in 2015 Harkirat Singh | Managing Director, Woodland

We live in the Social Age. “Social” refers to the cultural communication climate –– the way we receive information.

T With the growth in the market and the government policies becoming more favorable, the future of the Indian retail industry looks very promising

46

Pitch | March 2015 www.pitchonnet.com

he Indian Retail has emerged as one of the most dynamic and fast paced industries with several players entering the market. It is one of the most vibrant and is in the process of gradually becoming the next boom industry in the country. India is undergoing a retail revolution making a gradual shift from traditional to a more organised sector.

This is owing to various factors such as changing consumer behavior, growing middle class, higher disposable income, and preference for luxury goods, urbanization and change in the demographic mix, etc.

The purchasing power has seen a marked improvement over the past decade in the country.

Retailing is an important prerequisite for modernizing India, which can facilitate rapid economic growth.

With an ever expanding

domestic market and a good forecast growth rate, the Indian retailing scene seems extremely attractive for stakeholders and investors alike. Even today, India continues to be among the most attractive investment propositions for global retailers. With the growth observed in the market and the government policies becoming more favorable, the future of Indian retail industry looks very promising.

Furthermore, the online retail market has been growing by leaps and bounds over the past few years on account of the digital revolution. With the trend of e-commerce picking up, there is a wider choice of channels for purchase and allowing consumers even in the remotest parts of the country to buy goods easily. Online retail market is definitely expected to

grow at a blistering pace.

According to PWC, it is estimated to reach $6 billion in 2015. Considering the acceptance for online retail in the country, there is a tremendous growth opportunity for retail companies, both domestic and international.

Today, there seems to be a lot more confidence among local businesses to invest in brand building than before, which is a positive sign for the industry. Advertising is a growing business in India today and plays an important role in promoting goods and services. It has become a very crucial tool for any industry allowing manufacturers and distributors to get closer to the heart of the people who purchase the products and the goods they are producing.

Even the Indian government has given continuous backing to the advertising and marketing industry.

Powered by As per a recent report on the advertising spends, once again the ad business will be growing. But a new media and marketing order will be taking hold. In measured-media terms, in 2016, TV will still own the biggest piece of the marketing pie (36 %), but just barely. Online advertising, at 31%, is sure to be hot on its heels. Further behind but growing fast will be mobile, whose share will have jumped from about 1 per cent today to 5 per cent as marketers chase a wholly mobile consumer reveling in constantly improving gadgets and services. The rise of mobile, coupled with an evolving, more web-like TV market will present a vastly different communications landscape.

Today, retailers adopt a mix of marketing and promotional strategies to withstand competition. Increasing digitization and higher Internet usage over the last decade has largely driven the industry. The FMCG sector, which has always been a dominant category in advertising, is expected to witness increased expenditure this year. Penetration of smartphones coupled with the popularity of online video is making the segment spend more on digital. Within digital media, video, mobile and social would be the biggest growth drivers apart from traditional media channels including print, television out-of-home, radio and cinema etc. We perceive a change in the retail advertisement scenario in the years to come. With more players entering into the food and beverages segment, e-commerce gaining more popularity and domestic companies testing out the waters, a growth is

also likely in retail advertisement expenditure. More multinational entrants under the single-brand retail category may also add to spending in the retail category.

Outlining the growth prospects of the Indian advertising sector, what is expected to lead the charge in 2015 is the e-commerce segment; with its aggressive advertisements in terms of ad spend growth, although it is from a relatively smaller base than more established categories. With the government focusing on growth of the Indian economy, positive market sentiment, upbeat consumer confidence and India once again attracting global attention, it is sure that these fundamental reasons will double the growth forecast for retail advertising in India. The outlook for the advertising retail sector in India is positive and is expected to enjoy a healthy year in 2015.

The next five years should be a

time of intense experimentation to recalibrate the relationship between marketing and IT. This is a call for more cross-disciplinary teams of marketing and IT pros and this isn’t just a conversation for tech companies. It’s pretty clear that in the future every company will be a tech company, as consumers become more gadget obsessed and marketers of all stripes deal with tech-enabled tools. Cohabitation won’t be easy; both marketing and IT can be obstinate.

But the stakes are high. There’s a tremendous need to keep up with the customer who it’s safe to say doesn’t have time for your silos. And, remember, user experience will be everything in our brave new world.

As we see ad spends increase, remember that the way you communicate and the message you present will always be more important than the platform you’re using or the size of your ad budget.

Pitch | March 2015 47 www.pitchonnet.com

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Building a brand in the

Multi-Screen Era

Ramesh Kumar | Head, ESPNcricinfo & ESPN Digital Media India

T Since users expect similar content engagement experience across platforms, providing this sort of consistency is one of the challenges

48

Pitch | March 2015 www.pitchonnet.com

he evolution of the internet, the virality of social media, the changing (content) consumption habits of the millennial consumers and a plethora of digital channels has necessitated brands to use the digital route to effectively engage their consumers. Until recently, television, radio and print remained preferred, popular and convenient mediums of communication in order to reach a wider consumer base.

Today the explosion of other screen-based devices has turned consumers into multiscreen viewers. These multiscreen experiences are both sequential and simultaneous; users shift from one device to another in pursuit of information and engage with all available screens for the same task - often, starting

a search on a smart phone, moving to the desktop, and eventually winding up with a tablet.

The challenges posed by the multi-screen era The age of multiplicity of screens (whose conduits have been iPads, Tablets, Mobile Phones, PCâ&#x20AC;&#x2122;s and laptops) not only provides advertisers with wider opportunities to engage and influence consumers, but also poses challenges that must be considered. For instance, in the case of something as basic as an application or â&#x20AC;&#x2DC;Appâ&#x20AC;&#x2122; in common nomenclature, the existence of multiple channels has necessitated that there is a consistent experience across devices it is consumed on.

Furthermore, since users expect similar content

Brands must

make sound decisions about the choice of

delivery strategies

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engagement experience across platforms, providing this sort of consistency is one of the challenges.

It has therefore become essential to have ‘responsive sites’ which can adapt to multiple screens and provide users with a consistent user experience.

The challenges to provide a unified brand experience is further

augmented by the confusing landscape of technologies and approaches. To counter this, brands must make sound decisions about the choice of delivery strategies, quality of content, and remember, the mere existence of a

An essential cornerstone of our strategy is consistency in our positioning and overall brand promise. This is especially important platform does not necessitate brand presence.

Measurement is another challenge.

Though there is enormous and expanding ability to measure interaction, what constitutes real engagement, the right ways to quantify are different to different groups, and the ability to track cross-device use is still not something done effectively at scale.

At ESPNcricinfo we continuously monitor our traffic data, audience preferences of content experience and use these analytics as key ammunition to build strategies for our products and content. Across ESPN’s global businesses, the company has also spent enormous effort to research and study the behavior of sports fans – in different places, situations, and across a huge array of demographic groups.

This has led us to a belief in what we call the “best available screen” theory. It centres on the idea that sports is truly unique content. People are extremely passionate about it, and it is uniquely personal to them. It also means that a sports fan will seek that content on whatever the “best available screen” is at any point (indeed, multiple points) throughout the day.

We believe content is key and the screen is the most convenient means by which the fan can connect to that content. That is why we are absolutely devoted to providing the very best content, and then offering an experience with that content across multiple devices, while at the same time customizing offerings based on specific screens. In addition, an essential cornerstone of our strategy is consistency in our positioning and overall brand promise. This is especially important in the current age of instant gratification.

The overall mission at ESPN is “To serve sports fans anytime, anywhere”.

At ESPNcricinfo we ensure we are aligned to this and our offerings have a promise of quality, authority and personality which our consumers can connect with.

The surge in in digital content consumption, especially video, the impact of social media platforms and the continued explosion of mobile, were significant developments in the digital space in 2014. The pace of change is going to only accelerate and organisations in this space need to constantly innovate to ensure the brand stays relevant in this changing landscape.

Pitch | March 2015 49 www.pitchonnet.com

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The future of Display Advertising Sandeep Amar | Chief Operating Officer, India.com

T The control on campaigns, and the brand impact offered by publishers is still the best way to go for brand promotion and solutions on digital media

50

Pitch | March 2015 www.pitchonnet.com

he Display Advertising is evolving fast and it needs to. With the pressure coming from search being the largest pie in digital advertising and growing investments in social, display needs to evolve to offer quality solutions to the advertisers.

For brand promotion and brand solutions, Display Advertising is still the best option, that too on quality publishers. The control on campaigns, and the brand impact offered by publishers is still the best way to go for brand promotion and solutions on digital media.

The future in Display Advertising will be driven in the following ways: 1. Native Advertising and Content Marketing: These are overlapping terms basically indicating

the presence of “branded content” in publisher ecosystem to build trust and authority for the brand among targeted customers.

This has shown great acceptance from advertisers and will be a strong tool for them to build trust among the target audience. This tool is also very helpful in establishing “thought leadership” and for “breaking perceptions” - these brand objectives are really tough to crack via conventional advertising.

2. Data backed targeted solutions: Building a DMP or using a quality DMP solution is allowing publishers to drive targeted(with retargeting solutions) advertising. Advanced data bucketing and dynamic data collection and analysis has provided publishers with

rich attributes of users, which they can target via cookies. Here the attributes are deep, like “movie-lovers in Mumbai”, “auto-lovers in Bangalore” along with more demographic data.

This strong data ecosystem can offer multiple solutions and can be manipulated by desired algorithms - to reach the target audience in a deep manner. With retargeting solutions, this can offer solutions in terms of showing different advertising messages in different exposures.

The data backed solutions automatically yield higher CPMs, in trading ecosystems.

Through an SSP or an Ad exchange, publishers can clearly see an uplift of upto 2x of regular CPMs. In the programmatic buying ecosystem, the data

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solutions can enhance offerings for the programmatic algorithms - and provide much more targeted and richer solutions for the advertisers.

This will obviously result in higher CPMs for the publishers.

It is obvious, but important to note that this has been made possible by advancement in ad-bidding technology - allowing real time bidding(RTB). There are RTB and open-RTB ecosystems, which allow strong and effective trading solutions for publishers and buyers.

Data backed direct sales solutions for agency/ client ecosystem is an important part of the future of Display Advertising. Although some experts feel that programmatic buying will take care of everything, that is not the case. There is a theory that rich media cannot be traded via programmatic, which is right and wrong depending upon the cases.

But the key is that an algorithm can buy effectively on broad objectives, but for brand impact campaigns with specific objectives, expert intervention is required. For India.com properties, we will soon offer strong data based solutions to agencies and clients in the Indian ecosystem. We have strongly invested in data and our Data Management Platform is ready.

3. Changes in advertising creatives: The banner advertisements are still the

There are RTB and open-RTB ecosystems, which allow strong and effective trading solutions for publishers and buyers

We will soon offer strong

data based solutions to agencies and clients

mass method of running the display ads. But this area has seen and will see huge amount of innovation. There are rich-media solutions which have been there. There have been social ads(image and text) and native ads.

Rich media has allowed strong increative interactions for the users

and has offered attractive ways of brand interaction with users. But with increase in mobile traffic, maximum innovation in this area will happen on mobile. As iOS and Andriod ecosystems allow different features, browser and in-app advertising can be rendered in various creatives ways on both platforms. This will be one of the big offerings to advertisers and can manage CTRs up to 7-8 per cent. Inapp advertising will be one of the most effective message delivery methods as there is arrested attention of users on the device.

4. Innovative solutions: There will be lots of innovative advertising solutions. One example of that is what we offer for Zee TV video properties it is called MirriAd. In this solution, by using powerful technology we are able to place a product or a brand message in the TV serials for on-demand video viewing. The brand exposure is totally measurable and brands are charged on per minute exposure basis called â&#x20AC;&#x153;Brand Minutesâ&#x20AC;?. There are multiple other formats which will evolve digitally which will help placement of brands in an effective manner.

Pitch | March 2015 51 www.pitchonnet.com

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Is Fragmentation of digital media the biggest challenge for marketers?

W

The more digital starts to look like TV, the more mainstream it is likely to become

52

Pitch | March 2015 www.pitchonnet.com

Karthi Marshan | Head Marketing, Kotak Mahindra Group

hat a glorious year it promises to be for the digital advertising world. It is projected to breach Rs 5000cr, which means that for every 3 rupees spent on TV or print this year, a full rupee will be spent online. Incredibly, online will consume twice the money that OOH will and three times what radio will. So a medium that was born barely 2 decades ago is trumping one that was born over 100 years ago.

Interestingly, nearly twothirds of this is going to non-search options on the internet. It means this Rs 3000 cr will be split across millions of properties on the internet.

Sure, there will be blockbuster sites that will consume the bulk, much like we have standout TV channels, leading dailies and super premium outdoor sites.

But the long tail on the internet is likely to be really really long.

Is this a good thing or not? I suspect, both.

The corner office decision makers who are chronologically challenged in understanding the medium (I mean people my

age) are more likely to gravitate to the blockbuster end of things.

We saw signs of this last year as well, when many brands started funding long form videos of their TVCs, to run exclusively on the internet, in response to the insight that videos are being delivered in search results almost as often as text is.

Ironically, the more digital starts to look like TV, the more mainstream it is likely to become. TV advertising is easy to understand, easy to explain and the metrics (such as they are) have become the dominant currency of the industry. If Rs 15,000cr of inventory can be bought and sold on the back of data collected from a few thousand households in a few cities in India, why should the internet be subjected to higher standards of scrutiny? This has been the pitch of the digital publishers for over 4 years now, and now it looks like they have been heard.

As far as the long tail is concerned, I am confident it will stay. Not because the long tail is necessarily a great business model, but because the cost of entry is low. So, many

thousands of special interest content sites will be born and will die fast every year. Some of them will grow up and join the establishment, and others will always have some pennies from someoneâ&#x20AC;&#x2122;s budgets thrown at them for a variety of reasons ranging from a media buyer or brand manager being personally passionate about the subject to someone on the account feeling sorry for the publisher, and dozens in between.

Such fragmentation on the internet will actually be a good thing, because it will truly help us target our messaging at micro-segments to the point where we can feel like champion sharpshooter from the movie Wanted (the one with Angeline Jolie, not Salman Khan). This will mean much hard work for all concerned, but when the juicy margins typical of any industryâ&#x20AC;&#x2122;s early days disappear, everyone, including planners, buyers, writers as well as clients will have to buckle down and sweat it out. And the good work will win. It will win business, and as we learn to appreciate its value, it may win accolades as well.

PitCh madison media advertising outlooK 2015

OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | 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OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO Pitch | March 2015 | OUTDOO 53 OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR www.pitchonnet.com OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOOR | OUTDOO

OOH

‘transit’ing suCCess 30

%

strong groWth by transit media helPed outdoor groW by 13% beating exPeCtations. e-CommerCe, retail, teleCom & infrastruCture Will lead groWth in 2015.

54

Pitch | March 2015 www.pitchonnet.com

helped to up the momentum in this space. Organic growth was seen in categories like Telecom, Automobile, BFSI and Retail. In comparison to 2013, ad spends in Outdoor increased

by Rs 256 crore in 2014, to maintain its share at 6% of the total advertising pie in 2014.

The Pitch Madison Media Advertising Outlook 2015 expects Outdoor to grow by 6.2%, taking the total Outdoor advertising market to Rs 2,371 crore. In 2015, with Outdoor expected to add Rs 138 crore, the medium’s share in the total advertising pie is expected to dip by 0.2% to 5.8%. While most media have either maintained or increased their share in the overall ad pie, except Print, the share of OOH has steadily fallen from 8.2% in 2008 to our estimate of below 6% in 2015. On a positive note, higher OOH spends are expected from e-commerce companies, Retail, Telecom, Apparel, Jewellery, Handsets etc., and infrastructure companies.

0

groWth %

yearly sPends (rs Crore)

I

n 2014, conventional Outdoor surpassed expectations and grew by 13%, as against the projected 7% growth rate, bringing in ad spends that totalled Rs 2,233 crore.

The growth was boosted by Transit media which continued to grow at a brisk pace of 12%, as against projected growth of 10%. In fact, Transit media has more than doubled its share in ad spends from Rs 333 crore in 2008 to Rs 688 crore last year. Increased spends in Transit media rode on the back of the new T2 terminal in Mumbai which opened in February and the Mumbai Metro which commenced services in June.

In addition, higher organic spends were also seen in Kolkata. Outdoor benefited immensely from heavy spending by political parties for both the Lok Sabha & the five State Assembly elections held in Andhra Pradesh, Arunachal Pradesh, Haryana, Maharashtra, Odisha and Sikkim.

Last year, e-commerce players

`1,848

2010

groWth Was boosted by transit media WhiCh Continued to groW at a brisK PaCe of 12%, as against ProjeCted groWth of 10% ProjeCted outdoor ad sPends in 2015

outdoor ad sPends in 2014 outdoor

outdoor

69.2% `1,545

68.4% `1,622

ooh transit media

ooh transit media

` 688 30.8%

`749 31.6%

13% 8.4%

6.2%

6.2%

-7% `1,717

2011

`1,862

2012

`1,977

2013

`2,233

2014 aCtual

`2,371 2015

ProjeCted groWth

Pitch | March 2015 55 www.pitchonnet.com

OOH

COLUMN

The OOH industry in India must adopt global best practices Arghya Chakravarty | CEO, Times OOH

T

Advertisers, media planners and buyers, media owners, all must keep abreast of global trends and be open to experimenting 56

Pitch | March 2015 www.pitchonnet.com

he financial crisis in 2013 had made advertisers cut back on spending but I expect that the improved investor sentiment and the new government in India are expected to drive growth going forward. I am happy to say that we have been able to surpass the industry growth of 9 per cent (Group M estimate) riding on the back of high performing transit assets like the airports and metros.

Industries like e-commerce, automobile and telecom have shown amplified performance and I expect them to be big spenders in 2015. Sporting events like the ICC World Cup and IPL also add a spike in the graph.

Aside from the financial performance of the sector, I believe that the industry has lagged in adopting leading worldwide trends. Advertisers in India are just warming up to digital media, a medium that has been driving growth for OOH players globally for years. DOOH advertising accounts for 26 per cent (nearly 1/3rd) of total outdoor spending in the UK (Outdoor Media Centre (OMC) 2014, a UK trade body for outdoor media owners).

Also, mobile interaction, social media integration and augmented reality have a long way to go before they are

Industries like e-commerce, automobile and telecom have shown amplified performance and will be big spenders in 2015

accepted as a regular part of OOH media in India. Globally, these technologies have become an integral part of any OOH campaign.

I anticipate that the overall OOH advertising industry would witness a remarkable growth in the next few years. Growing number of malls, rise in infrastructure, innovation and technological progress and increasing number of people who spend time outdoors would drive the growth of OOH advertising.

National highways have been extended and expanded and airports like Chennai, Kolkata, Lucknow, Guwahati, Jaipur and Ahmadabad will soon be up for privatization as well. I am very optimistic of the future for the industry. Though the largest contributing sector would continue to be physical OOH, its contribution would decline as digital OOH will be on a high growth trajectory.

While we have put in a lot of hard work, at the end of the day OOH is still a very small slice of the media and entertainment pie and thatâ&#x20AC;&#x2122;s a clear challenge for the industry. The measurability and ROI issues in OOH must be addressed as the industryâ&#x20AC;&#x2122;s mission. The big, organized players should get together and sort this out first and foremost.

Unethical business practices and non-compliance seem to plague the industry as well.

Enforcement and adherence to policies and laws is a must to foster a fair and competitive environment. I also believe that advertisers, media planners and buyers, media owners, all must keep abreast of global trends and be open to experimenting. It is the only way we will move from static billboards on the road side to a truly global and edgy advertising medium. I would urge all media owners to invest heavily in technology.

Pitch | March 2015 57 www.pitchonnet.com

OOH

COLUMN

Importance of Out-of-Home advertising for the travel sector and expectations from 2015 Hanneli Slabber | Country Manager, South African Tourism

O

Out-of-home is arguably the most visual of all media, its effectiveness deriving from its ability to attract eyeballs 58

Pitch | March 2015 www.pitchonnet.com

utdoor advertising is one of the strongest mediums of gaining widespread access to the nationâ&#x20AC;&#x2122;s audience. Till date the medium retains its credibility for being one of the most cost effective channels to reach out to the potential customers.

Out of home is arguably the most visual of all media, its effectiveness deriving from its ability to attract eyeballs.

For a picturesque creative like travel and tourism, it becomes essential for the media to be able to capture our breath-taking beauty in large format. Outdoor emerges as the most suited media to portray this. South Africa offers scenic beauty, adventure, wildlife and other elements which are highlighted when taking the shape of exciting and innovative outdoor surfaces.

SAT continues to invest and invent in OOH - The sky divers and meerkats on hoarding, giraffe on mobile van, river rafting on mall staircase and lion scratches are fine examples of the same.

We at South African Tourism, consider OOH as an integral part of our media

mix because that is where our audience is. Being a tourism board, it is extremely essential for us to sell our travel stories through our campaigns and OOH is a perfect medium to execute the same. It helps in building a positive imagery and recall for the brand.

Each year, South African

Tourism launches a multi city outdoor advertising campaign to woo Indian tourists to the enchanting and rich experiential offerings of South Africa.

The aim of the campaign is to highlight the diversity of experiences offered by South Africa to Indian travellers.

The innovative creatives of

the outdoor campaign across multiple cities captured the diverse experiences like adventure, wildlife, luxury among others on offer in the Rainbow Nation.

Effective selection and placement of ads is the key, hence we planted our outdoor initiative at relevant touch points at metros and

mini metros across the country. As the mainline media is getting more and more cluttered and fragmented, OOH is gaining importance as a critical medium to connect with the consumer and capture their attention.

Every year we invest comprehensively in our OOH campaign across markets in India and it will continue to be a key part of our media plan in the coming years. Moving forward, out-of-home will continue to enjoy an increased growth as potential customers are on the move for a greater part of their day.

Given the background of the cluttered market space, diverse audiences and varied formats in outdoor advertising, the key to standing out with OOH is to be different and unique. In line with this understanding South African Tourism has released the latest OOH Campaign #MeetSouthAfrica, wherein we introduce the Indian audiences to the spectacular country and the varied experiences on offer in South Africa by way of unique and enticing creatives.

In an endeavour to resonate with the Indian travellers, the creative executions of the #MeetSouthAfrica campaign have been customized with the use of impactful one-liners in regional languages that are engaging and appealing. This idea came from the insight that we gathered during our interactions with Indian travellers, where after their visit to South Africa, they could best express certain emotions of experiences such as pleasure, eternity and beauty only in their mother tongue.

Taking cue from this, we thought of bringing alive emotions

OOH today is becoming a strategic element of every company’s media mix because of its innovation and impact

that resonate with our customers at a regional level to draw a stronger connect with the potential travellers.

OOH today definitely needs to be backed up by creative solutions and an integrated approach. With OOH it is extremely crucial to demographically map out and execute destination based planning that follows the target audience movement. Outdoor advertising needs to come out more

Given the background of the cluttered market space, the key to standing out with OOH is to be different and unique

intelligently to ensure that people understand the message. Smart outdoor that recognizes and reacts to consumer types is the call for the future. OOH today is becoming a strategic element of every company’s media mix because of its innovation and impact. In addition to this, OOH offers few unique benefits which no other media can match. This is the very reason why even other media be it radio stations, ecommerce websites, television, magazines and even print… advertise outdoor.

Creative agencies and brands need to explore innovative ways to communicate the brand and its USP in a meaningful and relevant manner.

Moving forward, there has to be a revolution in outdoor creatives.

The overall OOH advertising industry would witness a growth in the coming years; however, a huge drawback and major concern for OOH is the measurability factor. OOH comes into a pitch with no proper measurement, no research and case studies done over long term. There should be guidelines for analysis and long term investments need to be undertaken in this sector. Trended data will be a must to cement OOH’s place firmly in the industry with the same eminence as the other mediums.

The rural market will continue to remain crucial for OOH and the approach needs to be more interactive and integrated with brand activation for high recall value. Tier 2 and tier 3 towns have definitely grown but we think community engagements are a must in these markets. It will be nice to have a few unique digital / ambient media being introduced in 2015.

The definition of OOH is changing and getting redefined. In the years to come, the support of digital space will be the key to OOH medium.

Conventional OOH coupled with smart use of digital and mobile can really up the engagement level among consumers and take the brand experience to an all new level.

Pitch | March 2015 59 www.pitchonnet.com

OOH

COLUMN

The OOH industry Fraught with challenges Noomi Mehta | Chairman & Managing Director, Selvel One Group

M

arginal Growth in 2014 Last year witnessed a marginal growth in the turnover for this industry.

From Rs 1900 crore, the OOH industry grew to about Rs 21000 crore. The larger formats have remained flat due to inflation. The transit sector, comprising airports has done exceptionally well.

The growth in both large and small formats has been insignificant. Moreover, Digital and LED in the Out-Of-Home industry are yet to take off in a significant way.

We are surprised that the digital offerings of OOH media have not been taken up in any significant manner by advertisers till now 60

Pitch | March 2015 www.pitchonnet.com

Whatâ&#x20AC;&#x2122;s in store for 2015 ?

There are 2 huge problems facing the Out-Of-Home industry which need to be overcome if the sector has to grow. The first important factor is a lack of any guidelines and research backed approach. Even though Print and TV have time and again, debunked IRS an TAM, they still use numbers provided by them and massive proposals are being drawn for these two. As we do not have a measurement system in place, we always get the short end of the stick. But we are trying to come up with a measurement system in a structured and organised manner. We would

like to devise a system jointly with everyone in the industry including agencies, media owners and the clients. It will be a joint study with a small equity base and we will subsequently seek necessary funding to develop it further.

It is what we call the OMARK or, the Council of Outdoor Media Audit and Research Council.

The second problem we face is that of illegal sites.

Unfortunately , politicians have entered this field, using their clout to put up illegal sites which the government

chooses to ignore. This leads to a huge problem for the legal sites. So until we can stop the proliferation of illegal sites, we will continue to face a massive problem.

This is true for all cities of India. The disadvantage of illegal sites is that it leads to a tendency to ban the entire outdoor media. Its ironical that the government takes the stand to ban it and politicians are the root cause of the problem. We need to tackle this menace at a very high level. Two methods can be used to overcome

As we do not have a measurement system in place, we always get the short end of the stick

this issue. One is by using the courts of the land and presenting to the various government authorities what the model code of conduct should be for advertisers. By simply banning something, you cannot make it disappear.

Hoardings in Mumbai have been banned and no new site permissions have been given for several years but everybody has seen more than 1000 sites come up after that. When the government says it wants to ban it, it is an admission of failure on their part to reasonably govern or regulate a right.

It is a legitimate, legal business and it is not reasonable to ban it.

2015 growth rates We have already seen the advent of local advertising especially that of real estate players. Real estate is very strong on Outdoor Media. They have led the way in this medium. Now it is the new phenomenon of e-retail/e-commerce which is taking over. They have offers which change from hour to hour and the digital platform that outdoormedia can provide is one way to communicate such offers instantly to the masses. We are surprised that the digital offerings of OOH have not been taken up in any significant manner by these advertisers till now.

Digital provides great scope to be innovative due to its flexibility and impact

Looking ahead at digital innovations Innovations are pointless unless they are scalable. What we see today are just one or two innovations in the outdoor medium that get talked about on the social media platforms.

These innovations need to take place on an ambitious scale for them to be successful. Digital provides great scope to be innovative due to its flexibility and impact. The media aggregators need to look at this medium afresh and depend on their gut instinct instead of just numbers.

Consolidation is key The Outdoor media needs consolidation at this point but nobody is interested in consolidation. Consolidation will provide it the financial strength to tide over the low periods. New players come in but they only end up fragmenting the pie further. It then becomes a matter

New players come in but they only end up fragmenting the pie further. It then becomes a matter of survival

of survival which leads to cut-throat competition and unhealthy undercutting.

Unfortunately, Media agencies are leading this undercutting of the business.

What should OOH media do to be attractive to advertisers?

OOH is not an attractive proposition to the media owners at the moment but it is an attractive proposition for the client or the advertiser because it is a mass medium. Youth today spends more time outdoors and you have the potential of connecting new age technology with old locations. Locations are the key in outdoor advertising, and if you add to it the appeal of a message which is impactful, current and dynamic and which can actually interact with the customer, then that is a winning combination.

In India we are growing by a dismal 5 per cent while earlier it used to be in the region of 20 per cent or more.

If this problem exists, itâ&#x20AC;&#x2122;s because we are creating the problem. We need to face these challenges by uniting under a single association like IOAA which we have formed.

We are now talking to the consumer, the clients directly through the ISA, to the media owners through AAAI, and talking directly with industry bodies such as CREDAI to become more meaningful to those particular industries.

Anyone who goes in now will face resistance but will benefit in the long run. Anybody who chooses not to go in now, will not be able to take advantage of the steep climb.

Pitch | March 2015 61 www.pitchonnet.com

Presents

5th Edition

& CONFERENCE an

AWARDS 2015 initiative

How do the Experts see the Future of OOH in India?

Find out on 27th March 2015, Friday at the HOTEL LEELA AMBIENCE, GURGAON Follow us on

#ooh2015

Speakers

KEYNOTE SPEAKER Amit Sarkar

David Payne

COO, India Kinetic

CEO- World Markets Kinetic WorldWide

Amit Shah

President & Country Head

Yes Bank

Anita Nayyar

CEO- India & South Asia Havas Media Group

Archana Aggarwal Arghya Chakravarty VP-Media Airtel

CEO Times OOH

Haresh Nayak

Managing Director Posterscope Group India

For clarifications regarding delegate registrations, please contact: Nikita Vig: nikita.vig@exchange4media.com or + 918860302087 Sonia Mehndiratta: sonia@exchange4media.com or +91 9899966264

Nabendu Bhattacharya Founder & MD Milestone Brandcom

Rohit Chopra CEO TIMDAA

Shashi Sinha

Senior VP & National Head Revenue & Media Assests II Airports Laqshay Media Group

For sponsorship opportunities, please contact: Rajat Thareja (New Delhi): rajat.thareja@exchange4media.com or +91 9810134435 Sohini Ghosh (Mumbai): sohini.ghosh@exchange4media.com or +91 9930811744 Sneha Walke (Bengaluru): sneha@exchange4media.com or +91 9845541143

Register Now: www.exchange4media.com/ooh2015/conference.aspx In Association With

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Waiting to Cash in on Phase III The long-awaited Phase III auctions in 2015 are expected to give the Radio industry a major fillip. However, the Radio industry, which has been aiming to double its share in the ad pie, may see its share falling marginally by 0.2% to 3.3%

A

s the Radio industry waits for the longdelayed Phase III auctions to finally kick off in 2015, Radio is expected to grow by 6 per cent, taking the total Radio advertising market to Rs 1,362 crore. With confidence that the Government will finally launch Phase III expansion by September 2015, a large number of stations are expected to open up and the new stations should pull in at least Rs 70 crore of additional advertising revenue in the last quarter of the year.

The share of Radio in the advertising pie has hovered around 3 per cent over the years. While its share in 2013 was 3.4 per cent , its share in 2014 went up by 0.1 per cent to 3.5 per cent . The Pitch Madison Media Advertising

64

Pitch | March 2015 www.pitchonnet.com

Outlook 2015 projects a slight dip in Radioâ&#x20AC;&#x2122;s share in the advertising pie by 0.2 per cent to 3.3 per cent .

Being a local medium, Radio was used extensively by political parties during elections and this is expected to continue in 2015. E-commerce advertisers have also used the radio medium extensively for all their tactical offer-based campaigns and will continue with heavy spends on Radio this year also.

Radio exceeded expectations and grew by 17 per cent as against the Pitch Madison Media Advertising Outlook 2014 growth projection of 15 per cent . Despite Phase III not coming into force as anticipated at the start of 2014, the growth has come on the back of higher inventory being sold across

The share of Radio in the advertising pie has remained a tad over 3% over the years. While its share in 2013 was 3.4%, its share in 2014 went up by 0.1% to 3.5%

big spenders on Radio Advertisers

2013

2014

Categories

Contribution

Contribution Total

11.8%

12.0%

10.5%

0.95%

3.70%

321.0%

9.4%

33.7%

8.0% 6.7% 6.1% 5.8% 4.2%

4.2% 30.8% 34.2% 2.4% 11.5%

Real Estate & Home Improvement E-commerce

Telecom Internet 7.6% DTH (incl Ecomm)

Growth %

BFSI Media Auto FMCG_HH FMCG_Personal Care FMCG_Impulse

8.3% 5.5% 4.9% 6.1% 4.0% 3.1%

2.0%

-30.3%

TOTAL FMCG

13%

12.0%

-3.0%

Retail Clothing Fashion Jewellery Travel & Tourism HH Durables Education Election Political Ads Corporate Alcoholic Beverages Others

5.6%

5.0%

-2.8%

5.2%

4.8%

-0.8%

5.0%

4.6%

-0.9%

3.5% 3.5% 1.28%

3.4% 3.2% 3.08%

7.7% -1.1% 160.0%

2.0% 0.2%

1.6% 0.4%

-14.4% 78.5%

22.4%

20.0%

5.3%

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stations. Radio share of 3.5 per cent of the total advertising pie saw total revenue at Rs 1,285 crore, an increase of nearly Rs 190 crore over 2013.

Real Estate & Home Improvement sectors continued to lead the pack contributing to 12 per cent of total Radio ad spends followed by Telecom/ Internet/DTH (9 per cent ) & BFSI (8

30%

per cent ). Revenue from e-commerce players saw the highest growth rate in 2015 (321 per cent ) followed by political partiesâ&#x20AC;&#x2122; spending (160%) and alcoholic beverages (78.5%). Losing interest in Radio was FMCG Impulse & Corporate sectors with revenue declining by 30 per cent and 14 per cent respectively.

real estate & home imProvement seCtor Continue to lead the PaCK, Contributing to 12% of total radio ad sPends folloWed by teleCom/internet/ dth (9% ) & bfsi (8%)

revenue from e-CommerCe Players & PolitiCal Partiesâ&#x20AC;&#x2122; ad sPends on aCCount of eleCtions maKe for the highest groWth rate in 2014 While revenue from fmCg, imPulse & CorPorate seCtors shoW deCline in groWth

18%

2%

yearly sPends (rs Crore)

0

17% 6%

3%

groWth %

`885

2010

`903

2011

`930

2012

`1,097

2013

2014

`1,362 2015

aCtual

ProjeCted groWth

`1,285

Pitch | March 2015 65 www.pitchonnet.com

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The evolving need and approach for advertising in a dynamic market scenario Manmeet Ahluwalia | Marketing Head, Expedia India

C

The e-commerce boom has been driven by the travel segment that contributes more than 70% of the total online transactions

66

Pitch | March 2015 www.pitchonnet.com

reative without strategy is called ‘art.’ Creative with strategy is called ‘advertising.’ These were the words of a world renowned professor of Advertising and PR- Jef I Richards.

Advertising has progressed rapidly as a business tool over the last decade with ‘Globalisation’ becoming a household phenomenon. This has also led to an unexpected increase in the exchange of knowledge, trade and capital around the globe, majorly propelled by technological innovation and internet.

In fact technology has had a two-fold impact on the advertising industry, enabling more creative visuals as well as targeting the right audience with customized content.

In today’s hyper connected world, consumers are conscious and moving online, be it for recommendations, purchases or grievances.

The shift to online is being catalyzed by various factors like- ease & speed of shopping, better deals,

Creative

with strategy is called

‘advertising’

convenience of delivery and finding everything sitting in the comfort of home or office. Shoppers are looking at fishing the best deals and products through a close

tab on online discounts and new launches. The booming middle class with increasing disposable incomes and enhanced internet connectivity in Tier II cities

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through affordable smartphones is contributing over 40 per cent online transactions every year. This e-commerce boom has been majorly driven by the travel segment that contributes more than 70 per cent of the total online transactions.

Given the projection of over 33 per cent growth in online travel, with new consumers moving online in 2015 and all travel companies jostling for mind share and pocket share in this space, ad spends become critical for creating brand awareness and salience to acquire new sets of consumers while ensuring the existing ones remain loyal and exhibit brand affinity.

While TV shall continue to build

The

symbiotic evolution of

technology and consumer expectations has made marketing

challenging

Radio is a passive medium but allows the opportunity to create salience as long as the scripts are fresh and engaging awareness, digital platforms will emerge as the major beneficiary of the media mix this year with more spends being allocated to display, virals, blogs and social media channels. One of the prime reasons is that this medium allows engagement and a two-way dialogue with consumers as opposed to traditional media. Additionally, consumers have different aspirations and needs when buying travel vs any other category. Hence, sponsoring of online properties, mix & match of online with offline components become equally important. In fact, online advertising enables content customization for the customer basis the individual shopping behavior as well as geo targeting like in HD / SD channels. All this in sync with consistent SEM & SEO is the key to create the right visibility amongst the TG. Then we could add innovative OOH as a media that helps break clutter of logos and messages and larger formats have the capability of creating larger than life demeanor for the brands. Especially relevant locations such as airports are crucial to travel brands. Technology comes handy to create workable models in OOH displays.

Radio is a passive medium but allows the opportunity to create salience as long as the scripts are

fresh and engaging in terms of humor, content and entertainment quotient.

Again selective programming and sponsorships is helpful.

Cinema will develop as another format for creating engagement with the relevant audience. Internationally, brands have experimented with technology and ad formats to create some very interesting campaigns specifically for cinema viewers.

Mobile and tablet devices are emerging as a new medium of reaching out to the relevant consumers. Mobile is expected to be the game changer for the Indian e-commerce space. The ability to research and shop on the go is increasing routing customers to mobile devices, making it imperative for marketers to build relevant nonintrusive content for these channels and engage with customers through specific applications.

Technology today is helping brands deliver innovative and relevant solutions. The symbiotic evolution of technology and consumer expectations has made marketing a more challenging territory where every brand needs to create unique experiences for the consumer to remain relevant and responsive to their desire for marketing that cuts through the clutter with pin pointed delivery.

Pitch | March 2015 67 www.pitchonnet.com

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A promising time for Radio- Better Late than never Ashit Kukian

A

It is my gut feeling that the industry will surge at a growth rate of around 10-12%

68

Pitch | March 2015 www.pitchonnet.com

n upswing growth for the Radio Industry.

The Media and Entertainment sector enjoyed a very promising 2014. With advertisers going the distance to spend and make use of the available mediums, the industry saw good revenue being generated. The FM Radio industry grew faster than the other traditional forms of media and I am extremely satisfied that we clocked a growth that far exceeded our expectations.

The growth achieved has to be attributed to campaigns that were planned and executed on radio. Events such as the elections, social causes and many others that were carried out on radio helped propel the growth and also underlined the importance of the medium.

Advertisers are more than

President & COO, Radio City 91.1 FM

willing to invest the extra bit of money and that itself proves that the Radio industry is witnessing a steady growth.

The green signal �inally!

The FM industry is on the cusp of expansion and finally there seems to be a silver lining amidst the clouds!

After much delay and verbal communication, the entire radio industry was all smiles, as the final hurdle was taken care of with the Government giving a go-ahead for the Phase III auctions. 2015 couldnâ&#x20AC;&#x2122;t have started off in a better manner for us and many others. It definitely was better late than never!

Radio City- Placing the listeners FIRST As a leader of my organization, I am very pleased with the growth we have witnessed over the course of the year. The

listeners and the advertisers instilled their faith in us and through a team-effort we are glad we lived up to the expectations. With so many exciting prospects on their way, we are sure to raise the bar going forward.

2015- The year expansion gets realized I would definitely say the FM radio industry is gearing up to see some really exciting times ahead. Without a shadow of doubt, we will see more opportunities for revenue generation this year.As per the Pitch Madison Advertising Outlook, the radio industry is poised to grow by 6-8%.

However, it is my gut feeling that the industry will surge at a growth rate of around 10-12 per cent. At Radio City, we are gearing up to expand our avenues and reach out to a larger number of people as Phase III descends upon us!

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Pitch | March 2015 69 www.pitchonnet.com

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Radio’s real growth in Phase III will come from Tier II & III towns

A

The sheer number of frequencies available in smaller towns and cities will mark a shift in focus from the metros to the non metros

70

Pitch | March 2015 www.pitchonnet.com

Harrish Bhatia | CEO, 94.3 MY FM

ll communication mediums have a tendency to reinvent themselves to retain their relevance and further grow to new heights. Classic examples have been television reinventing itself after the advent of cable TV. Growth of internet happened through broadband penetration. Sale of mobile phones surged after smartphones came onto the scene. Similarly, radio in India is at the threshold of reinvention, expansion and has become an even more powerful and effective medium of communication and infotainment.

Today, radio is at the dawn of the new era with Phase 3 of radio auctions kicking in soon and taking its reach to 294 cities across 839 channels.

The first batch of Phase 3 auctions will be completed by 31st March 2015 in which 135 frequencies across 69 cities will be auctioned out of which 131 frequencies are spread across 66 Tier 2 and Tier 3 cities. The real potential of radio will be realised post the second phase of the auctions which should be followed soon

after the first batch as radio as a medium will be able to reach a larger audience and become a pan India medium. The sheer number of frequencies available in smaller towns and cities will mark a shift in focus from the metros to the non metros.

The biggest endorser of the medium in the country has been Prime Minister Narendra Modi as he has reached out to his countrymen through his talk show Mann Ki Baat. Even the PM realises that the best way people can be connected is through radio. It is the best way to get closer to people, faster, surer and cheaper as radio reaches out to 99 per cent of the country’s population.

He has truly underlined the importance of the medium as it reaches the lowest common denominator in the society. In a country where education levels are still low, powercuts are rampant, radio acts as the most effective medium to get your message across.

Radio has helped leverage many brands, political parties and other social enterprises to their audiences. This is true especially in the case of Tier

2 and Tier 3 cities where the access to various mediums and infrastructure to support these mediums is still lacking.

This is where the Phase 3 auction of radio frequencies will revolutionise the medium and the way media is consumed in these Tier 2 and Tier 3 towns that have been left untouched by the power of the medium.

Increase of smartphone/ mobile penetration has led to growth of consumption of radio on the move. Radio has thus become an important and effective medium to reach consumers and address a brand’s local challenge in their own local language in the fastest possible time. Increase in roll out of Phase 3 on radio will create an ecosystem for regional advertisers to leverage the medium. Currently, in India the average regional advertising share is around 40-45 per cent while globally it’s around 70 per cent. It will give the last mile advertising option to national advertisers and customized solutions to local advertisers in their local language. The growth will also create job opportunities within the sector and new talent will

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Consider the following key trends in the Tier 2 and Tier 3 markets • Organized retail is estimated to grow 50-60 per cent per year Organized retail is estimated to grow at 50-60 per cent per year in Tier II and III cities as compared to 35 per cent growth in Tier 1 cities • E-Commerce industry has maximum growth from Tier II and III cities -Snapdeal, one of India’s major e-commerce portals is expecting at least 35 per cent growth in sale in Tier II/III towns. Currently, nearly, one-fourth of the company’s revenue is from these towns • New destination for BPO industry BPOs in Tier II, III and rural areas are the new hot spots of potential delivery centers. With the telented workforce, Tier II and Tier III cities will be the

new growth centers for the industry.

• Employment-More than 61 per cent of employment generation in India registered in these cities • Car Finance - Car loan demand in these markets is expected to grow 20 per cent in next couple of years vs India average of 13 per cent • FMCG -H&R Johnson, Godrej interio and Sony India are among those investing in enhancing their networks in tier II cities like Jalandhar, Hubli, Bharuch, Rourkela, Rajkot, Kolhapur, Bellary, Warangal etc.

• Automobile sector-Audi has dealerships in Nagpur, Ludhiana and Surat with Lucknow & Coimbatore in the pipeline. BMW was the first 200

160 150 TIME SPENT IN Mts.

be attracted to the industry.

Today India is driven by Tier II & III cities, these markets witnessing growth beyond the expectations of the brands which have performed better than they have in the metros. These markets are still in the nascent stages of development but have high urbanisation. There are limited options for advertisers to reach out to their target consumers. However with Phase 3 of radio auctions kicking in, radio will enable a focussed way of reaching out to the target audience.

These markets have the highest number of hours spent by the listeners and therefore the impact radio can have in these markets is very high, this in turn will lead to overall growth of marketers and their brands and the whole ecosystem will evolve simultaneously.

106 100

50

0

82 30 PRINT INTERNET TV

FM RADIO

Source: IRS for print, TV and internet, RAM for radio 2011

to open a dealership in Raipur four years ago. It has also set up mobile showrooms to visit smaller towns such as Agra & Nashik • Consumer durables- Sony India gets a higher contribution of 56.50 per cent from tier II and tier III cities

compared to 40.80% from tier I cities and the company expects to maintain it at the same level in the near future as well Media spends are moving towards non metros with KUTs (key urban towns) and ROUI (rest of urban India) increasing their share of ad spends and volume. The average time spent on radio is much more in Tier 2 and Tier 3 cities as compared to other mediums.

Consider growing markets like Ahmedabad, Indore, Nagpur and Jaipur in the chart below: People are spending maximum time listening to Radio compared to other medium as (a) Radio is consumed across day-parts & (b) There has been an increase in out-ofhome listenership.

The effectiveness of radio in these cities would be much greater than metros as the challenges here are different from metros. Radio becomes highly effective because these regions still suffer from power shortages, lower literacy levels and low internet penetration while radio is a mobile medium and can be consumed any place-any time. Lately, with increased number of FM enabled mobile handsets, the consumption of radio has also increased in this market.

The media industry is recognizing this potential and increasingly focusing on these centers of economic activity.

The Indian radio industry generates revenues close to INR 1400 Cr and with radio market in metros getting saturated and advertiser wanting more and new consumers to be reached, growth will emerge from Tier II and Tier III cities.

Pitch | March 2015 71 www.pitchonnet.com

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Radio: Enhanced frequency to boost localized ads Ranjan Dutt | AVP, Marketing, Bajaj Allianz Life Insurance

W

Advertisement through this medium prompts the listeners or target audience to take action, faster than other mediums

72

Pitch | March 2015 www.pitchonnet.com

ith the continuous focus on the expanding reach of Radio, companies are mulling to cash in on its wide reach.

Emergence of localized radio channels and inclusion of newer content through this medium in phases is also attracting more and more advertisers. Needless to say, the medium has evolved itself from being only a news broadcaster to a source of infotainment in a customized manner. Now, the industry is quite hopeful of the transformation from Phase II of Radio to Phase III of Radio with enhanced audio quality, multiple services and more targeted advertising.

As Radio offers a repetitive frequency, advertisement through this medium prompts the listeners (read as target audience) to take action, faster than other mediums. Beyond its cost-effectiveness, Radio is a vibrant medium among young and urban Indians and presents its content in a customized manner,

according to the city or town.

This apart, advertisements through radio usually come bundled with a unique type of entertainment i.e. songs – wherein the audience can indulge in it without hampering their busy work schedule in particular time slots. This has lured a huge number of advertisers in the past few years and changed the notion that radio will not help companies reach closer to the target audience. The number of advertisers is poised to go up in the coming days, as the medium will offer richer content with wider connectivity.

Also, with the Radio wave, auction is targeted to substantially increase the reach of Radio as a medium, it will obviously help brands to connect with a larger gamut of people. When it comes to Bajaj Allianz Life Insurance, a majority of our business comes from small towns and cities (tier-II and tier-III), hence, a wider reach beyond metros is desired and we believe Radio as a medium

Enterprises Limited

should be effective for us.

Recently, Bajaj Allianz Life Insurance’s Tax Monster campaign – in which a ‘filmy’ character in the garb of a Tax Monster sensitizes people about how tax eats into their hard-earned money and people are advised to defeat the tax monster by buying life insurance products – is aired in three cities and on three to four different radio channels in those cities.

Post implementation of Phase III, the number of FM channels is expected to increase substantially from the current 242 channels spread across 86 cities.

Besides, the opportunity for these improved radio channels to air news and updates on sporting events is likely to create a win-win situation for the advertisers as they will be able to reach out to the target audience from different segments. The crux of the story here is the unmatched costs radio is expected to offer in addition to the enriched services like other mediums used currently.

pitch madiSon mEdia advErtiSing outlook 2015

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CINEMA | CINEMA | CINEMA | CINEMA | C CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | C CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | C CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | C Pitch | March 2015 73 | C CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA www.pitchonnet.com CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | C CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | C CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | CINEMA | C

radio cinEma

CINEMA

One of the main factors for the growth of cinema advertising in India is the rapid expansion of cinema chains/ multiplexes to Tier I and Tier II cities.

Surpassing Expectations Cinema advertising grew by 10% and looking ahead, cinema digitization is expected to fuel growth in 2015

15%

74

Pitch | March 2015 www.pitchonnet.com

remained constant, its revenue is expected to be nearly double when compared to the Rs 103 crore earned in 2009. Fuelling the growth of Cinema advertising will be Cinema digitization. Multiplex screens are expanding across India and big movie releases playing on the screens are expected to attract a lot of national and local advertisers.

With introduction of CAM, the only third party cinema monitoring system available in India, it is anticipated that Cinema advertising in India will become more credible.

0

GROWTH %

YEARLY SPENDS (Rs Crore)

I

n 2014, Cinema exceeded all estimates and grew by 10% as against the projected growth rate of 7%. With total revenue of Rs 184 crore in 2014, the medium currently contributes 0.5% to the advertising pie. One of the main factors for the growth of Cinema advertising in India is the rapid expansion of cinema chains/ multiplexes to Tier I and Tier II cities.

Pitch Madison Media Advertising Outlook 2015 expects Cinema to grow by 9.2%, taking the total Cinema advertising revenue to over Rs 200 crore. While Cinemaâ&#x20AC;&#x2122;s share in the advertising pie has

`118

2010

18% 8%

`140

2011

`151

2012

10.4%

`167

2013

10%

`184

2014 actual

9.2%

`201 2015

proJEctEd growth

Pitch | March 2015 75 www.pitchonnet.com

CINEMA COLUMN

The Evolution of In

Cinema Advertising Alok Tandon CEO, INOX Leisure Ltd.

O

From flexi-pricing to flexi- timings, it has been a complete paradigm shift for the Indian audience enjoying the experience in a completely hygienic and safe environment 76

Pitch | March 2015 www.pitchonnet.com

ver the years, with the advent of multiplexes, the movie viewing experience has been completely redefined with the consumer getting a very comfortable and luxurious experience. From flexipricing to flexi-timings, it has been a complete paradigm shift for the Indian audience, enjoying the experience in a completely hygienic and safe environment.

Today, the experience of watching a movie at INOX with immersive sound, DCI Compliant High Frame Rate (HFR) ready projection system, sitting on a recliner and munching on lipsmacking cinema food, is something that was difficult to fathom about a decade and a half back. The domestic theatrical performance of the Indian film industry with its growth of CAGR 11.4%* validates the fact that India is now watching movies differently.

Along with these multiple changes and steady growth, multiplexes over a period of time also became the new playground for advertisers.

The in-cinema exhibition industry has witnessed tremendous growth with

Growth at a CAGR of

25%

huge spread of screens across the length and breadth of the nation. The influx of brands was just waiting to happen, considering the fact that there are millions of assured eyeballs.

The in-cinema advertising industry is currently growing at a CAGR of 25%.

For INOX too, the revenue through advertisements has increased substantially and has nearly doubled in Q3

FY15#compared to the corresponding period last year. This growth can be attributed to our new go-to market approach with a dedicated sales force, sitting with brand managers to device innovative plans together, customizing campaigns as per the need of the brand, a real-time change in campaign creative owing to digitization of screens, amongst many other solutions.

The possibilities are endless within the ambit of experiential

marketing

At INOX, we take pride in having a mix of National, Regional and Local brands across the country -for both on-screen & off-screen advertising Advertisers have always been experimenting and are innovating with displaying and promoting their products. Today at INOX, we take pride to have a mix of National, Regional and local brands across the country – for both on-screen & off-screen

advertising. At the national level, telecom majors, banks, FMCG, occupy the top slot. This is followed by national brands doing region specific promotions. Hospitality, restaurants and retail stores occupy most of the local brands who advertise with us.

Today, multiplexes are offering marketers the most customized marketing avenues, segmentation within the audience groups across SECs, film specific targeted focus, creation of dedicated brand zones, extension of the brand, product, service, and film experience: the possibilities are endless within the ambit of experiential marketing.

This has also led advertisers and media planners to consider cinema advertising as crucial part of their annual media plans. Year on year, the pie in this category is increasing in an impressive manner.

One will also observe that the incinema advertising industry has been very transparent. INOX has once again been a pioneer in setting up a Network Operating Centre (NOC) which centrally gives access to all statistics that an advertiser requires to ensure that a campaign is effectively carried out.

Gone are the days when prints had to be sent to each location. Today, within just a matter of minutes and literally at the push of a button, a fresh advertisement can be inserted across hundreds of screens in the country. That is what state-of-the-art technology does to you.

But one should not forget, content is still King. The advent of the Rs. 300 crore club of films, the ‘multiplex’ genre of films, increase in the number of 3D films, interesting mix of regional cinema, all help us garner more footfalls which also results in more advertisement revenues.

2015 is going to be another great year for the industry and there is a lot in store. We see an interesting lineup of movies across all genres and categories and we are positive that we will be able to provide a lot more variety to our guests and a lot more eyeballs to our advertisers.

*FICCI-KPMG Indian media and Entertainment Industry Report 2014 #Ad revenue of INOX Leisure Ltd. grew from Rs. 14.58 Crores (Q3 FY’14) to Rs. 28.92 Crores (Q3FY 15) Y-on-Y basis.

Pitch | March 2015 77 www.pitchonnet.com

CINEMA COLUMN

Capturing viewers

when they are Most Relaxed Harjeet Chhabra | Chief Marketing Officer, Adlabs Entertainment

W

Cinema advertising allows marketers the freedom to choose the locality and genre of a movie for effective communication with the target audience 78

Pitch | March 2015 www.pitchonnet.com

e live in a country where Cinema is no less than a religion that is followed by one and all.

As marketers we believe anything that presents an opportunity to engage with people, is a media option.

Cinema has, for years been an experience enjoyed with family and friends. For us marketers it definitely presents itself as an exciting option as this captive base can be engaged with in a relaxed frame of mind.

The medium of cinema advertising allows brands, marketers and advertisers to showcase the brand and product experience in a larger than life manner. It

in terms of communication.

One can choose to target multiplexes in metros, some other brands might target single screens and regional markets to reach out to their target audience. With the help of cinema advertising, marketers can also enhance customer outreach by laying emphasis on various features such as opting for a vernacular dialect in the ad film for higher impact. Cinema advertising also allows marketers the freedom to choose the locality and genre of a movie for an effective communication with the target audience.

Moreover, multiplexes these days have a committed

large number of footfalls to theatres are assets that all advertisers and brands are waiting to tap into.

With the ‘Kahaaniyan Banti Hain’ TVCs playing in cinemas, Adlabs Imagica conveys the stories of people from all walks of life who visit this magical world of Imagica. Cinema is being used actively in the entire catchment belt to stay connected with the audience on a regular basis beyond the conventional media.

Cinema advertising also helps brands like ours get added reach beyond the conventional media.

However, unlike television or print advertising, where you can track and evaluate

works perfectly well for our brands ‘Adlabs Imagica’ and ‘Adlabs Aquamagica’ where the enticing visuals depicting the theme park and water park create an aspiration among audiences to visit the destination.

Cinema advertising also allows us to go HYPER LOCAL

set of audiences visiting the same theatre at least twice a month, thereby increasing the recall value for any brand among the desired set of consumers. Bollywood is unarguably the world’s largest film industry and with the predicted growth of the industry in 2015,

basis TAM and IRS, in-cinema has no transparency or measurement tools. The sector definitely requires to put a more organized structure in place to measure and track the deliveries if they wish to continue to be in the consideration set of more and more brands.

Pitch | March 2015 79 www.pitchonnet.com

INTERVIEW

raJendra KuMar Khare

Enabling Brand Visibility Across India Forever on the lookout for innovative ways to reach target audiences, advertisers have turned to technology led media platforms. SureWaves is one such platform that has changed the game in television advertising. It is helping brands reach out to vast and diverse audience in a cost efficient manner. With the use of its award winning, patented technology SureWaves Spot TV Network has aggregated more than 450 channels on its digital platform. Sectors such as FMCG, Cellular phone services, online retail, personal healthcare, BFSI are already flocking to the platform to reach out to the untapped consumer in the tier 2 and 3 cities of the country. In order to strengthen its position in a cluttered market, the network has decided to go in for Third Party Audit and Validation by Hansa Research. Rashi Bisaria caught up with Rajendra Kumar Khare, Chairman and Managing Director of SureWaves to quiz him about the association with Hansa, the importance of geo targeting and the role of SureWaves in media buying on television.

Edited excerpts:

80

Pitch | March 2015 www.pitchonnet.com

rashi Bisaria: How will the audit by Hansa research bene�it marketers and in turn SureWaves? rajendra Kumar Khare: The association of Hansa Research with SureWaves Spot TV Network, which delivers the largest audience on television in the country today, brings an additional seal of accountability to a revolutionary, new age media platform, fulfilling a long felt industry need and is likely to cause a major shift in media buying on television. The Third Party Audit and Validation of the SureWaves Spot TV Network by Hansa Research will cover Field Visits for Physical Verification of Technology Deployment at Channel Studios and Online Audit and Validation of SureWaves ADEX Logs with LIVE monitoring of channels.

For SureWaves, this initiative will help fast forward the adoption of SureWaves

Spot TV Network as a true reach builder in the media plans of leading advertisers in the country. This in turn will help us develop the local television ecosystem in the country which

How has Television advertising evolved over time and what kind of innovations are being used by brands?

Television advertising has come a long way since the early days of DoorDarshan when the viewing choices were less and audiences were less fragmented. It was possible to reach the whole country through a show like

increasingly adopting the innovative advertising platform like the SureWaves Spot TV Network which helps them communicate with the aggregated audiences of a large number of television channels on the platform in one go.

While the audiences consume the content of their choice on their preferred channels the brand is still able to reach them all through a technology enabled innovation.

Brands are also beginning to use the power of the SureWaves platform to do better geo targeting for their audiences, an option which did not exist on television till recently.

There is also a big shift happening towards branded content whereby brands are creating their own content to offer entertainment and engagement with smart and subtle brand messaging embedded within the content to make

Ramayana or Mahabharat. With more than 800 national and regional satellite TV channels and equally large number of local cable TV channels, the audiences are now highly fragmented and reaching them in a cost effective manner is getting to be extremely difficult.

In the context of this large scale fragmentation, brands are now

a deeper connect. Social Media is also becoming a great accessory to create interactivity around television advertising.

In the days to come, Connected TVs and Synchronised Second Screen solutions on the smart phones will offer TV advertisers more access to consumer profiles and invaluable

we think is very critical for meeting the media consumption needs of viewers in all parts of the country.

By when can we see the results of the audit?

The audit has already commenced since February 2015 and the audit reports from Hansa Research are being made available for all advertisers on the SureWaves Spot TV Network.

Pitch | March 2015 81 www.pitchonnet.com

INTERVIEW

raJendra KuMar Khare viewing activity insights in real-time, which will enable advertisers to use the power of programmatic engines to select ad content that is relevant, suitable and targeted to the user watching that particular TV at that exact moment.

With the blurring of linear TV boundaries, and rise of multitasking second-screen viewers, advertisers will move towards integrated campaigns where they will have to meet changing consumer behaviour and enable better targeting.

There is still a long way to go before cable networks provide the kind of content people want to watch. How will that affect Surewaves?

Cable TV Networks are unique in their ability to serve locally relevant content together with other content of general entertainment genre and hence they truly fulfill the need for the kind of localised content people want to watch. Coverage of local events, news, sports, localised reality TV shows, talk shows, health, cooking shows, festival celebrations and religious events are some of the genre of content that gets aired on local televison in addition to popular music and movies.

Viewership ratings of Cable Regional category are testimony to its high popularity which ranks amongst the top five channels in most parts of the country. SureWaves Spot TV Network is helping local cable television ecosystem with better flow of advertising and revenue from national advertisers. This will help the ecosystem players to invest more in sourcing and creation of high quality content.

SureWaves has also launched an initiative to organise regional music and culture shows in association with our channel partners in different regions to offer high impact regional properties for brands to associate with.

82

With the technology for centralised scheduling, delivery and monitoring of ads and content we are establishing Pitch | March 2015 www.pitchonnet.com

Brands are increasingly adopting the innovative advertising platform like SureWaves Spot TV Network which helps them communicate with the aggregated audiences

SureWaves Spot TV Network as a unique platfiorm for airing branded content on our network. Branded content will only grow over timeand we see this as a great opportunity for our partner network.

How many channels are you catering to right now and what are your targets for the year?

SureWaves enables brand visibility across India in 29 states and more than 7000 towns with over 450 cable and regional satellite channels that reach more than 90 million households and upwards of 470 million viewers. In the coming years, we are also looking topartner with a large number of niche regional satellite channels for further growing the network.

Micro-targeting of consumers seems to be the way forward. How much ground has been covered so far

by Surewaves?

We offer advertisers the ability to target consumers at a socio cultural region level to help communicate in the right language and in a locally relevant context. Today, SureWaves covers the entire length and the breadth of the country and offers uniquely configured market clusters to clients to better suit their needs. Few examples of such unique clusters would be the ‘8-Metro Cluster’ or the ‘Nifty Fifty Cluster’ comprising of the more than 50 Tier-2 cities having a population of 1M to 5M which are of special interest to many brands.

The metros are not very keen viewers of Cable channels. Do you think that can change? How? Over time, with the impact of digitization in the country, we will have more bandwidth which will provide the ability to the Cable TV operators to offer more niche genres and high definition content over cable network. In the future, more video-on-demand will be offered on local cable network. This will attract more viewers amongst the metro cities.

With everyone talking about digital media and the internet, how important is TV going to be in the coming years?

Television is more like the main stream media where the high quality premium content is created and aired for the audiences at large. Digital media acts as a complimentary media to television. Long format content and high quality viewing experience will continue to be television’s forte while short, snacky content will be drawn from the television to be consumed over the internet.It is interesting to see how Television uses digital media successfully to create the buzz for its premium programming much in the manner cinema uses television to draw the audiences to the theaters. Bonhomie between Television and Digital Media is only expected to increase to strengthen their co-existence and growth.

INTERVIEW

Sundeep Malhotra

Holistic product information is appreciated by customers This brand has built credibility for homeshopping over a span of six years. Homeshop 18 launched at a time when ecommerce had not changed the game for marketers and customers and has not missed a step while keeping up with changing shopping trends.

Rashi Bisaria of Pitch spoke to Sundeep Malhotra, Founder and CEO, Homeshop 18 about its sustained growth, the challenges of customer experience management and the brand’s successful business model.

rashi Bisaria: How has Homeshop18 evolved from the time it launched?

Sundeep Malhotra: HomeShop18 started the business of virtual shopping and pioneered the concept of home shopping in India over six years ago.

Since it was a new business model for India, consumer knowledge did not exist and we had to start everything from scratch. In the beginning, there weren’t too many people who believed this was possible but today we have grown exponentially and are a strong team. We are India’s first 24-hour shopping channel that offers customers a wide range of products across multiple categories such as

books, mobile phones, electronics, apparel, jewelry, home & kitchen etc. HomeShop18 set a benchmark in the e-commerce industry by offering innovative, differentiated and demonstrative retail experiences on the internet in 2011 with the launch of its website HomeShop18.com. It later redefined the way consumers shop with the introduction of mobile shopping in 2013.

The philosophy behind our business is building credibility for the domain called ‘Home Shopping’. All HomeShop18 products are genuine branded products. Our business model is a direct-to-home or an inventory model. Typically, a retailed

Pitch | March 2015 83 www.pitchonnet.com

INTERVIEW

Sundeep Malhotra product involves a manufacturer, distributor, wholesaler, C&F agent and retailer. We bring the products straight from the manufacturer to the customerâ&#x20AC;&#x2122;s door wherein, the inventory is held by the manufacturer.

We bring the ability to demonstrate the widest range of products and an alternative distribution model that provides value to both the brand and the customer. We provide the easiest way for an international brand to enter the country or for a city-based brand to go national.

What were your sales like in 2014? How much have you grown year-on-year?

HomeShop18 witnessed a growth of 55% as compared to the last fiscal year. HomeShop18 has comfortably captured 2/3rd of the market with nearly 70-75% of the market share in television shopping. Our customer base has increased to 10mn customers and we have a current reach of 50 million households. Mobile is a very large and important category for us and we are seeing a dynamic growth of nearly 100% Q-o-Q on our mobile platform.

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How many products do you sell per day on TV, Web and mobile respectively? Which media gets you the maximum sales and why?

TV being the oldest business contributes the maximum sales of 70% and web and mobile cumulatively contribute 30% to our total revenues.

Reach of TV in India continues to be 8-10 times that of Internet, hence TV Home Shopping will play the role of mass reach-high volume sales, while the web and mobile business will continue to attract the digital consumer.

Pitch | March 2015 www.pitchonnet.com

One of the biggest focus areas for us is to provide a unified and synchronized Web, TV and Mobile experience

What kinds of trends are you noticing in consumer behaviour?

Indians in the past have relied heavily on the touch and feel of the product and were not very comfortable with online shopping. But in recent years the trend has drastically changed.

The Indian eCommerce market is expected to reach $6 billion in 2015, a 70 percent increase over 2014 revenue of $3.5 billion according to Gartner, Inc. This clearly showcases a change in trend of people being comfortable with shopping online. Customers today trust virtual shopping platforms and see them as a credible platform for buying.

The Indian online business environment is now at a stage where players are aggressively looking at a

suitable model to attract maximum customers and brands. Today, consumers are driving the change where website, television and mobile come together to provide a better and convenient shopping experience. Also, the increasing use of smartphones, laptops/PCs and growing Internet penetration in Tier II and III cities have led to greater adoption of online retail by the masses, supplanting the absence of physical retail for a lot of global brands. Today, emerging markets account for 40% of our consumer base, coming from cities like Guwahati,Patna, Lucknow, Ahmedabad, Jaipur and Dhanbad.

HomeShop18 strives towards encouraging buyers to purchase big ticket items and making the shopping experience memorable through various offers, easy EMIs, free delivery to the doorstep, hassle free return and cash-on-delivery on every purchase made.

How do you maintain a consistent customer experience across all channels?

One of the biggest focus areas for us is to provide a unified and synchronized Web, TV and Mobile experience. This entails some dedicated customer-engagement methods which include live streaming of HomeShop18 TV on the website using their laptops, tablets or mobile phones. Also our uniqueness is offering customers rich demo video of various products. Our research into consumer behaviour has revealed that in the absence of touch and feel of physical retail, holistic product information that pre-empts any query that customers may have is very well appreciated. The focus across the three channels is to bring ease of shopping and consistent product and delivery experience.

How important is customer experience management for you and how do you ensure it?

A happy and satisfied customer is our priority so we are focused towards garnering greater customer engagement by enabling ease of shopping. At HomeShop18, we cater to over 2,00,000 calls per day and there has been an increase of 50 per cent since August last year. Our customer relationship management team is consistently working with our operations wing to improve service by handling product placement calls, queries and redress complaints, if any, at the earliest. To ease payment options, we have all alternatives from EMIs, COD and card transactions. We have a stong mechanisms and deliver to more than 3000 cities and to over 25,000 PIN Codes in India.

The back-end driver of our business strategy is a dedicated investment in Data Analytics for insight into consumer behaviour. This has enabled us to experiment with portfolio expansion across products and categories, helping us leverage those that cater to higher customer demand.

We offer specific products and share promotions basis information gathered. During the Diwali festive season, we sent out approximately 10 million SMSs to inform our customers about the interesting offers and product promotions.

Any innovations you have come up with in the last couple of years?

During the launch of HomeShop18’s marketing campaign, ‘Shopping Makes Me Happy’ the company innovated with its campaign spread by being the first Indian brand to use WhatsApp to reach out to its customers through viral posts and videos, entertaining memes, exciting offers and new launches. With strong penetration of 70 million activeusers in India, WhatsApp is successfully used to reach its customers across the length and breadth of the country.

We recently marketed the Micromax Canvas phone, Shilpa Shetty Kundra

(SSK) range of sarees through this medium.

What 2 lessons have you learnt from your journey in the Indian market?

Indians take time to change but once they do they adapt very quickly to change. The growth of the ecommerce industry is a witnesss to this behaviour.

Which medium will you be investing the most in and why?

HomeShop18 is strengthening business across all its channels – TV, Web and Mobile.

HomeShop18 has a fairly large television shopping business, catering

mobile phones per month. This is a clear indicator of mobile increasingly becoming an important screen of information for Indian customers. Low cost 3G/4G devices will certainly help tap into Homeshop18’s large customer base that will in turn use these services to shop online without facing any connectivity issues.

At HomeShop18, we feel that mobile is a unique platform and hence the consumer-experience needs to be differentiated for this medium. We believe that with increasing internet penetration, our mobile app that allows a convenient interface to shop will see sizable traffic, especially from emerging markets. Our Scan & Shop dynamic display wall is another m-commerce

The back-end driver of our business strategy is a dedicated investment in Data Analytics for insight into consumer behaviour to a diverse audience. A sizable population of our audiences live in Tier II and Tier III cities and form 40-45% of our total customer base. To cater to this wide range of customers, HomeShop18 advertises across a range of mediums-TV, radio, print and digital.

Apart from English, the company has also advertised in many regional laungauges like Hindi, Gujarati, Marathi etc. and also, the mobile platform.

How important has mobile become as a medium for you?

With over 900 million mobile users in India, mobile shopping is fast gaining popularity due to increased customer convenience. Thus, mobile is a very large and important category for us. We are seeing a dynamic growth of nearly 100% Q-o-Q on our mobile platform.

HomeShop18 records a sale of 3-4 lakh

initiative that has helped us increase transactions via our app. Also we see mobile as a complimentary shopping medium for our consumers. The same consumer shops on their laptop and when on the go, they shop on mobile from our app.

What does the future of ecommerce look like to you? How will it evolve in the coming years?

With hundreds of websites currently operating in the sphere and many more to join the space, it is obvious that virtual shopping is becoming a game changer in India. The industry is now poised for consolidation between e-commerce brands and even online and brick and mortar retailers as we see. As a leading virtual shopping retailer in India, we are excited to be a part of this digital shopping evolution.

Pitch | March 2015 85 www.pitchonnet.com

INTERVIEW

harindra Singh

Fans, Brands and Sunburn come together to create a way of life For the last eight years, the Sunburn festival has established itself as a favoured destination for all electronic dance music afficianados in Asia. For brands that target the youth, it serves as the perfect experiential platform to get in touch with potential consumers in an ambience enjoyed by them.

Different and experimental brand associations have provided immense scope for engagement with the target group. As Harindra Singh, Vice Chairman and Managing Director , Percept Ltd says, â&#x20AC;&#x2DC;Sunburn is of the fans, by the fans and for the fansâ&#x20AC;&#x2122;. Rashi Bisaria spoke to Singh about how the music scene has evolved in the country and the kinds of brand associations that the Sunburn has spawned. Edited excerpts

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rashi Bisaria: The live music scene in the country has evolved over time. What kind of growth has it seen, especially with respect to EDM? harindra Singh : Live Entertainment has been growing at the rate of 20 per cent CAGR in the country and with youth population of India standing at 600 M, India is the 4th largest domestic consumption market in the world. The interest in Electronic Dance Music has been at a steady rise and we expect it to intensify in tier II towns across the country. As per the latest International Music Summit report, Google’s music timeline shows EDM is at an all time high today; Avici’s ‘Wake me up track’ is the most streamed track of any genre on Spotify at over 200 million streams.

In one year Hardwell has quadrupled the fans he adds per day, peaking at 70k on 31st March 2014 and on social media out of every 3 posts, 1 post is about EDM ..these are just a few indicators of times to come.

Such festivals build communities of like-minded people. Is this the reason why brands want to associate with these live events?

What are the reasons for them to associate with such events?Sunburn provides a platform for youth to get out and socialise, for them to be a part of the community that wishes to live, love, dance and enjoy freedom and life. The brands that associate with us, associate with the intent of engaging with the huge numbers of audience that we provide across such events. However the engagement with the audience is in its pre, during and post event, via our multimedia strategy. We engage with our fans across the year continuously via ATL mediums like radio, television as well as digital. Interesting part of digital is that we can have a conversation with our fans on various topics..cultural, music led, lifestyle led..after all Sunburn is not just a music brand, its a way of life!! This gets reinstated via our digital statistics that are there for discussion; 7 million plus views on YouTube, 1.3 million fans on facebook, 1,78,000 followers on twitter,900,000 followers on google plus and over half a million attendance across Season 8.

If you look at the growth rate we have been mapping a growth plan of 100 per cent year on year organically.

Infact, Sunburn is ranked amongst the top music festivals globally and Sunburn Goa festival is considered as big as Tomorrowland and Ultra Miami festival as per the latest International Music Summit report.

What are the different kind of brand associations possible in such a live entertainment environment?

Our partners have been actively associating and doing multiple activities with us across platforms, whether its Hero doing zipline during the event or creating a cobranded Television Commercial or Quikr which recently ran a Quikr Sunburn exchange program with us on the

digital platform to provide the fans with a VIP Sunburn experience or Kingfisher creating a campaign with us “Divided by beats, United by Kingfisher”. Interestingly, to support the statement of Sunburn being a lifestyle brand we have two live examples – Sunburn Jabong partnership where the Sunburn range of merchandise has been launched on Jabong website as Sunburn Shoppe and hosts a range of apparel; music and fashion afterall go hand in hand.

The other example is the range of Sunburn Provogue power deos that we have created with Provogue which also have received a tremendous response in the market. Its a win win situation for everyone..fans, brands and Sunburn. To quote from the latest Group M NEXT Study 2015, the propensity of consumers to be favorably disposed towards the brands that associate with music events is quite high – 44 per cent as well as 40 per cent would consider buying those brands at a decision point of time. This data point as per the study is ahead of association with either a television show or sports event.

How many brands have associated with Sunburn this time?

Please name them.

The past season has been quite good for us. Well known brands like Hero, Micromax, Kingfisher, Jabong, Quikr, Gionee, redbull, smirnoff, ibibo, ITC, Provogue etc have associated with us. Our ideology is to associate with likeminded brands that can benefit with what we have to offer them in terms of engagement and these brands to also create value for our fans and audience.

Why does Sunburn have such a pull both for the crowd and the brands?

As a lifestyle brand we have a huge responsibility towards the youth of the nation, to encourage them to make correct lifestyle choices, to be socially

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INTERVIEW

harindra Singh aware and to create an ideology that endorses progressive free thinking.

Also on the on ground front Sunburn has always delivered the best in SFX and production values at par with global level along with the top headlining artists across the season year on year. The ground experience at the festivals is beyond just music.

City Festivals are amped up epic celebration of music, entertainment and lifestyle. The fans get access to hot air balloon rides, flea markets,

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food courts etc. Sunburn Goa 2014 created 500,000sq/m of exotic festival area in Vagator with seven massive stages each with its own creative concept and technological innovations. It was just not an EDM festival but the biggest party of the year with larger than life experiences.

Sunburn Goa Season 8 had the largest artist village in Asia for people to get a peek of their favorite headliners, elaborate food courts with multiple cuisines, Sumptuous Sunburn Cruises.

These parameters build faith in the brand and encourage youth to interact and engage with us. All the afore mentioned we believe are what create Pitch | March 2015 www.pitchonnet.com

The idea of experiential marketing is to cut through the clutter and reach out to the audience to speak in their language and adapt to their personalities

a traction for brands to associate and converse with us. We encourage our partners to think of unique ways and ideas to engage with the fans all through the season.

Why is the festival market in India still under-penetrated?

The festival market in India is on an active growth trajectory but if we were to compare it with mature markets like US we are still significantly under penetrated. In fact to quote from the IMS report 2014 – “If penetration in India reached just half that of the USA, it would be equivalent to 18 new festivals the size

of Tomorrowland (3m capacity)’’ and we believe that sums up the potential this country has. We have also seen this reflected in the actual growth we have witnessed across our national footprint. We have today grown to 56 cities across the country with our various formats – Festival, arenas, reloads and campus. We also believe Sunburn is a global phenomenon, “made proudly in India” and have already taken the festival to Dubai and Colombo where it received tremendous response not only from the fans but from the brands as well.

This has only encouraged us to explore further international territories across South Africa and Russia in year 2015 as well as go back to Srilanka and Dubai.

The captive audience for such festivals is between 15-24 year olds. Do you think experiential marketing of this kind works for them? Why? Experiential marketing definitely is the way forward with this segment.

Today’s market is cluttered and overhyped. The idea of experiential marketing is to cut through the clutter and reach out to the audience to speak in their language and adapt to their personalities as well as likes.

The Group M Next study 2015 indicates that listening to music is the most important thing in their life, ahead of watching television, reading or watching sports etc. Our latest inhouse research indicated that fans are emotional about Sunburn, they love Sunburn and believe its their own music festival which we completely endorse as a philosophy across the company. We believe Sunburn is of the fans, by the fans and for the fans and keeping the same in mind we recently ran a campaign – ‘Show us your love and we will show you ours!!’ The biggest Sunburn fan was rewarded by us with once in a lifetime experience at Sunburn Goa via travel, stay and VVIP treatment in true Sunburn style.

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INTERVIEW

Harindra Singh

The CMO needs to leave his comfort zone

Rashi Bisaria: Studies have shown that not many CMOs have well developed systems for meeting the needs of the customers. Do you feel there is a lack of usage of right technology by them ?

Rajesh Kumar: A CMO’s role is broadening today as companies are confronted with changing consumer behaviour, increasingly important third-party scrutiny, and more diverse target markets and segments. The role of the CMO has changed significantly over the past few years as we have seen transformative advancements in how to acquire, nurture and retain customers.

The line between B2B and B2C is blurring and is creating a global, volatile marketplace where the only moment of truth lies with the customer.

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Pitch | March 2015 www.pitchonnet.com

In light of changing consumer behavior and business transformation, a CMO’s role has expanded to include many functions. New priorities have emerged, one of them being the usage of technology and data insights.

Rashi Bisaria spoke to Rajesh Kumar, Head of Marketing, SAP to understand how technology is changing the way businesses function and why it’s important for the CMO to embrace technology.

In the competitive market environment of today, the CMO needs to leave his comfort zone and embrace technology, marry the art and science of marketing and move from an activity focused approach to an outcome focused one.

Embracing technology is a new terrain for most marketers. A recent study conducted by SAP in conjunction with CMO Club and Human 1.0 showed that while six out of 10 organizations have access to data they need, only 22 per cent of CMOs were leveraging data insights for spending decisions.

CMOs need to realize that adopting technology is no longer a luxury but a matter of survival – the business transformation is constantly in motion

and it will change the very way we look at this profession. The accelerating pace of change is creating a wide range of potential new priorities for chief marketers—leading change efforts across the whole corporation, playing a more active role in shaping the company’s public profile,

What are the Technology solutions you are providing to marketers?

Tables have turned today- we are not managing the customer, the customer is

managing us. The customer now has the power to decide when to communicate with the brand or business. In order to support this fundamental shift , we provide marketers with the ability to first analyze their businesses. Our new platform HANA allows businesses to analyze information real-time thus empowering them to be predictive. For example, Pirelli, the tyre manufacturer has distinguished itself through tyre innovation. The Pirelli Cyber Tyre is an intelligent tyre with sensors that sends continuous data streams on performance and road conditions.

Diagnostic information and predictive analytics based upon SAP HANA are subsequently used to optimize the life of tyres, and alert drivers when maintenance is needed. This information enables Pirelli to provide new services to its fleet customers, helping them to control costs and keep drivers safe.

Our new omni-channel solution – the Hybris marketing platform, leverages the changing buying behavior of consumers who are increasingly blending multiple channels. The Hybris marketing platform provides a business complete visibility to communicate, engage and do commerce with customers wherever they are. All large retail companies are currently talking to us for this solution. Recently, the country’s retail giant, Future Group announced their association with Hybris to converge their digital and physical channels.

Which are the brands or industries that are coming to you for such solutions?

The business environment has changed across industries. Customer facing industries including durables and non-durables, service industries with large user-bases like telecom, media, cable TV channels, financial services are all interested in our offerings.

What kind of growth are you seeing in your cloud based business in India?

The cloud has profoundly changed the way people interact. In enterprises today, IT is required to scale up, provide real-time insights into business and help companies decide, respond boldly and quickly.

India is recognized as one of the valuable and strategic markets for SAP. SAP in India has infused the cloud DNA, into its business and has seen a surge in the demand from customers of all sizes giving companies the flexibility and choice they need to innovate for growth across their entire business on cloud.

With Ariba, Fieldglass and Concur, SAP is the undisputed business network

Our new omni-channel solution – the Hybris marketing platform, leverages the changing buying behavior of consumers company.

The Cloud is seen as the next evolutionary step in IT services delivery, with an increasing number of enterprises worldwide integrating cloud budgets into overall IT spends.

In the last two years we have seen triple-digit growth in Cloud and we have a range of customers across multiple industries and from small to large enterprises that have seriously adopted Cloud. With our rich ecosystem of partners, we deliver results that demonstrate SAP is the Cloud Company powered by SAP HANA

Can you elaborate on Design Thinking? Have organisations adopted it?

Design Thinking is a suite of tools, methods and processes which is used to present new solutions to any kind of challenge. It complements SAP’s existing approaches by focusing on understanding the human side of things

— what our technology is and what that technology means to our customers and in turn, to their customers.

At SAP today, Design Thinking is a key focus for which classes and coaches are provided. Over the last year, SAP Labs India has developed a range of applications applicable to a variety of sectors including sports that empower the consumer by inculcating the principles of Design Thinking in conjunction with a Co-Innovation Partner.

Design Thinking urges one to think how designers think when they design products. Design thinking is a process for Innovation that uses the product designer’s sensibility and methods to match people’s needs with technologically feasible and marketable solutions. In essence, it refers to a way of building products or solving problems with a holistic and multi-dimensional approach. We are trying to bring the same thinking to business problems. We are big champions of the concept and have used the concept in internal product development. Currently, we are conducting workshops and facilitating this approach, helping marketers in delighting their customers.

How are you connecting with your customers and how is SAP marketing itself?

At SAP, we segment our market and follow a one-to-one account based approach. We build dialogues and communicate with our audience from different communities using events and social media. We distinctly approach enterprises that are technologically equipped but aim to change their game from a Marketing or HR perspective. The last aspect to this is the volume market where we follow a scalable approach – Our large marketing team reaches out to this market with robust targeted strategies. In addition to all this, we cannot underestimate the potential of word-of-mouth marketing- our success stories are the best tools for marketing ourselves.

Pitch | March 2015 91 www.pitchonnet.com

COLUMN

Symbols, symbolic and symbolism.

Brand India, Indian and Indian-ness!

Avik Chattopadhyay | Independent brand and Strategy Consultant avikchatto@hotmail.com

A

I am intensely proud of the republic that we are, but we need to celebrate that ethos, instead of continuing to make a ceremony of it 92

Pitch | March 2015 www.pitchonnet.com

country is made proud by her people. And all that her people create.

For that defines what the country stands for and what her values are. The creations are her symbols. The manifestations of the values are symbolic of her thoughts.

And the behaviour that accompanies the creations and manifestations embody the symbolism that is her essence.

We are one of the world’s oldest civilisations. The cradle of some of the world’s most tolerant faiths. We have contributed to the fundamentals and foundation of science, arts, music, spirituality, literature, philosophy, dialectics and statecraft. We have absorbed much more than we have repelled. We have given ourselves freedom through non-violence.

We are on our path of resurgence for we had lost our way over the last 5 odd decades “in the dreary desert sand of dead habit”. Therefore the need to create symbols that will define “India” again, in the way it should have always been. These symbols will find manifestation in what will proclaim that we are young, ambitious, Indian and

proud of it. These symbols and their manifestation will determine the unique Indianness that we strive for, as a country.

Let me share 4 issues or incidents, over the last 6 months, that impact the brand that is India, internally, and to the world.

The Make in India symbol This is the one unifying mission that the nation has today. Every initiative and thought is linked to it. And therefore its logo keeps appearing at the most unexpected of places, and I am waiting for more such surprises. The idea is to get the logo etched in the minds of all Indians, as if it is

symbolic of the nation on the move. And what is the logo? A lion full of cogs. A lion, mind you. Not the tiger, our national animal. And it is full of cogs… complex, ungainly and definitely not dynamic. This is not what the young and ambitious India is all about.

Again, our BRICS partner South Africa have created a simply brilliant symbol in “Proudly South African”.

Tejas – the Light Combat Aircraft We invested 32 years and over Rs.25,000 crores in developing a fighter aircraft, that was ceremoniously handed over to the IAF on January 18 this year. And if the entire LCA programme

Just like an organisation is defined by its products, services, communication and behaviour, a country too is defined by the symbols it creates is to be carried out, the entire spend would reach Rs.65,000 crores…that is a whopping 10 billion USD! What a colossal waste for a nation that claims to stand for non-violence!! Paradoxical, is it not? Why did we not put out a Light Commercial Aircraft programme in 1983 instead of a Light Combat Aircraft one? Look at our BRICS partner Brazil that produced an Embraer, that carries millions of people across the world rather than drop bombs.

The Republic Day parade Every year it is the same. There is simply no change in it, except for the number of states that send out their tableaus! I am intensely and immensely proud of the republic that we are, but we need to celebrate that ethos, instead of continuing to make a ceremony of it. Why do we continue with the parades, the display of arms and ammunition, the rolling out of inane and uninspiring tableaus and dances

by school children in extremely cold and gloomy conditions? It is a colonial hangover and definitely not worthy a nation that is ours. Over 66 years, could we not think of changing the format and sharing achievements and concepts that are symbolic of the India that we want to create?

www.india.gov.in Any country’s official government portal is the first representative of the values that the country stands for.

Also it is one of the first platforms that the government should painstakingly and passionately create. It should be unique, informative, involving and dynamic. It must be easy to navigate and the one definitive source of anything and everything about India.

Any of us who have navigated the portal realise there is a lot left to be desired.

It is cluttered, confusing, inconsistent, callous and definitely not worthy of the nation that “controls the world’s mouse

with her fingers”! As a benchmark, take a look at what our BRICS partner South Africa has done with www. gov.za. The government needs to completely refurbish the very portal that represents the country before the world.

Just like an organisation is defined by its products, services, communication and behaviour, a country too is defined by the symbols it creates, the initiatives it takes and the way it communicates, to all its stakeholders, within and across the world. There needs to be consistency, confidence and credibility in all of these to bring forth a unique identity of the country. That both drives her people to collectively work towards common goals, and sends out a clear message to the world about her purpose and position on geo-political issues. For India to regain her pride of place on the global canvas this clarity of thought and action is paramount, and definitely about time!

Pitch | March 2015 93 www.pitchonnet.com

INTERVIEW

MaheSh iSrani

Parag Milk Foods shifts focus to health and nutrition Parag Milk Foods is on an expansion drive in the country, steering the preferential shift from Buffalo to cow ghee, consolidating their presence across all major markets with a growing portfolio of brands.

Rashi Bisaria spoke to Mahesh Israni, Chief Marketing Officer, Parag Milk Foods about the marketing and investment plans of the private dairy, and its inclination to innovate.

Edited excerpts

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rashi Bisaria: This seems to be an exciting time for Parag Milk Foods as you are entering into new categories and expanding presence in northern India. What has spurred this growth?

Mahesh israni: Since time immemorial, importance of Cow milk and its products have assumed significance in our eating habits and especially for Uttar Pradesh, with its long tradition of being the land of milk & honey since Lord Krishna, Cow Milk and its products need no introduction. However, this significance was lost in between due to influx of mixed milk concept and no proper Pitch | March 2015 www.pitchonnet.com

choice available with consumers. We are now trying to bring back that tradition of pure Cow Milk back to the consumers of Uttar Pradesh. Uttar Pradesh also has strategic significance for Parag Milk Foodâ&#x20AC;&#x2122;s ambitions of establishing itself as the largest player in this space. Since Uttar Pradesh with its vast geography and population is the largest consumer of Milk & Milk products, it is natural for Parag Milk Foods, which is the largest private dairy and largest Cow Ghee player, to establish its leadership in this region. The market leadership of Gowardhan Ghee in Uttar Pradesh will

help us strengthen our market reach and in increasing our brand portfolio across the dairy products.

What was the motivation behind the new corporate identity?

It has been a fantastic journey so far which has spanned over the last two decades. We have matured and evolved as a company and have always stayed at pace with the changing dynamics of the market and understood the pulse of our consumers. This journey started with launch of Gowardhan brand, which was targeted towards traditional

value-seeking house-wives, followed by the introduction of Go brand, targeted towards youth & kids for direct consumption products. A niche brand, Pride of Cows was introduced with a unique proposition of Farm to Home concept targeted towards taste connoisseur. Finally we forayed into dairy based beverages with the launch of ToppUp, a brand targeted towards consumers on the move seeking quick nourishment and fulfilment. As a marketing organisation, we have realised the need of connecting this brand portfolio with the parent organisation. This builds a sense of confidence in the consumer’s mind and that is what we endeavour with this new corporate identity. It speaks of who we are as a company: multidimensional, inventive, dynamic, modern, and bold.

With an amazing portfolio of dairy brands, we have a steadfast commitment to delivering exciting, quality products to the Indian consumer, and our new identity is reflective of this promise and there are many exciting new developments to come.

What is the marketing plan looking like in this new phase of growth?

We are drawing up our investment plans for next 2 years and shall have it ready by next month. In terms of Marketing, we have spent around Rs. 70 crores in the current year and would cross spends of Rs. 100 crores during next year. As the country and world is becoming digital. This year along with the traditional marketing we are also focusing more on digital marketing.

Currently, our marketing mix is 70 to 80 per cent skewed towards TV and around 15 per cent accounts for press.

The balance is on social media and point of purchase. We plan to invest a lot in point of sales as well. There is a lot of innovation happening at point of sales in terms of visibility, the manner in which you talk to the consumers and so on. Moving forward, we will have

an equal split between addressing the consumer at home and the shopper located at the point of purchase. And overriding this is the digital world - one cannot ignore digital today. Parag also does a lot of consumer sampling. Being in the food industry, if your consumer tastes your product once, he is yours for life. We do this at modern trade and places of congregation in key towns.

Which new categories are you planning to come up with in this year?

We Parag milk foods Pvt Ltd is known for constant innovation and quality. This year we are focussing on health and nutrition beverage category.

For that we are trying to step-up the value-chain ladder and convert itself from a dairy & foods Company to a Health & Nutrition focused Company.

We are trying to bring this focus into all our product offerings and obviously, beverages are the first in line. We have launched Topp-up milk in the market, with higher protein content to provide much-needed energy to the target consumers i.e. commuters & youth / kids as also provide satiety and fullness to the stomach. Similarly, we recently launched Buttermilk in the Market, with no Fats, no sugar and low salt but with all the goodness of proteins & minerals.

We have many more such exciting products like whey-based beverages & exciting milk based beverages , in pipeline and would be launching it over next 12-18 months in a phased manner.

Over the years, what kind of change have you perceived in the tastes of consumers?

In current times, families are becoming nuclear. The food decision maker – woman of the family is working so she has less time for cooking. Also, consumer is educated and becoming more health conscious. So the trend is more into ready to cook, easy to carry packaged food which provide instant energy like yogurt, topp up , cheese slice, cheese wedges etc.

Also there is a trend of OOH consumption which is on the rise and this trend of OOH food being replicated in home is also important and hence it becomes far more important to make your presence felt at POC points

What is the edge you have over the others in the same space?

Also we are 100% cow’s milk and we have our state of art dairy farm which is used as a hub for transferring best practices to our farmers which will help better the quality of overall milk We have been the trend setters in many categories in the dairy business.

Also the technological knowhow and a modern plant with a strong R&D centre.

Although we know about the brand and it’s a trusted name, there is no single brand proposition that it offers.

Are you planning to change that?

No. We have 4 strong brands which have their individual brand personality and identity and each caters to a specific target audience

Which is your largest selling product and which states are the biggest markets for you?

Parag Milk Foods started as a milk company. Ghee was the first product that we went into the consumer segment with. Our real transition into consumer goods started in 2009 and we have evolved greatly. The portfolio today is broadly divided into liquid milk which contributes around 20 per cent to our top line. We supply milk in key cities of Maharashtra and South India.

The next big category is cheese that contributes 25 to 30 per cent to revenues. The third segment is SMP ( skimmed milk powders) that accounts for 20 per cent. The fourth category is the new product lines (UHT and tetrapak), which account for seven to eight per cent of revenue. Lastly, we have a ‘Fresh’ division comprising of dahi (curd), yogurt, paneer (cottage cheese), which accounts for 15 to 18 per cent.

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COLUMN

Another promising year of high growth

A Annurag Batra

Chairman & Editor-in-Chief, Pitch Magazine

abatra@exchange4media.com @anuragbatrayo www.facebook.com/anuragbatrayo

s always, this year too, key industry players were waiting for the Pitch Madison Media Advertising Report for 2015, our annual study conducted in partnership with Madison World. Last year the projections were accurate and the industry grew by the projected rate. This makes for a strong case for the projections for 2015. Will we be accurate this time too?

Going by the previous predictions and their accuracy, there is little room for doubt this time around. That is the credibility of this report which has been analysed in the issue, with industry stalwarts having shared their views on it. Over the years, the report has served as a beacon for marketers and media planners and the projections have become a reliable source of information.

The report foresees a buoyant year ahead due to optimism all around. Several factors will be contributing to the growth, and it would be interesting to watch how the advertising pie shapes up in the months to come.

Marketing as an industry is seeing very exciting times both in India and globally. Some emerging trends like native advertising, programmatic buying, the rush of technology players to capture the digital medium should be closely tracked as they will shape the eco-system in times to come. The marketer today has to be a master strategist, analyst and technologist apart from being a smart marketer. His role has expanded and changed dramatically.

The most important asset of any company today is the consumer and he too has

Holding engaging conversations with the consumer will hold the key to successful marketing initiatives.

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changed in more ways than one. The marketer needs to know how to woo this always-on consumer, his vocabulary, his way of life, his aspirations, his propensities in order to target him more accurately and in context of his life. Push marketing will not work anymore, instead, holding engaging conversations with the consumer will hold the key to successful marketing initiatives. The choice of media will matter for the marketer as he goes about engaging consumers.

Digital media has shown the highest percentage of growth, but marketers need to know how to use all media in an integrated manner. Digital is expected to cross the Rs 5000 crore mark in 2015. It is the buzzword across media and its share in the advertising pie has increased to over 10 per cent in 2014. Marketers need to harness predictive analytics for personalisation and this would be a trend to watch out for in this medium.

The report has thrown up some eyeopening insights. Print has attracted the largest chunk of the advertiserâ&#x20AC;&#x2122;s money for the fourth consecutive year. New regional editions will drive growth in 2015 along with increased government spending.

Newspapers benefited from advertising by political parties during elections, which says a lot about the potential of the medium.

Television is still a great medium for brand building and creating awareness. The year saw ecommerce brands take to the small screen in a big way. The medium is expected to show a growth of 9.5 per cent in 2015. The OOH media has thrown up a few surprises. It grew by 13 per cent as against the projected 7 per cent growth rate. Transit media boosted this growth and the year ahead seems to be promising with higher spends expected from various sectors.

The year ahead should ride on a wave of optimism.

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