MxMIndia

Tag: FICCI-EY Report 2018

  • The TV AdEx data of 2018 by TAM Axis seems to indicate that Indian TV ad revenue is set for a roller coaster ride in 2019, writes Indrani Sen

    Gung-ho TV Advertising Trends

     

    By Indrani Sen

     

    Indrani Sen

    The recent TAM Axis report on TV advertising trends in India in 2018 published in ET Brand Equity (https://brandequity.economictimes.indiatimes.com/slide-shows/tv-advertising-at-a-glance-tam-report/68096082) on February 22, 2019 shows that contrary to the popular belief TV advertising revenue did not suffer in 2017 after introduction of GST. Demonetisation in 2016 was a big blow which crippled the growth rate, but the advertising revenue was back on its growth track in 2017 which accelerated in 2018.

    Indexed growth rate of TV ad revenue 2014-2018: Source TAM Axis (AdEx India)

    N.B. The number of channels covered by AdEx is shown under each year in the green line.

    The above table shows that from 2014 to 2015 the index rose by 16 points and after adding only 1 point in 2016, it jumped by another 16 points in 2017 followed by 20 points in 2018. Over the last five years, from 2014 to 2018 there has been an overall growth of 53% in TV advertising revenue.

    Top 10 sectors in TV advertising in 2018: Source TAM Axis (AdEx India)

    The Top 10 sectors and the Top 5 sectors respectively account for 81% and 61% of total TV advertising revenue in 2018. While the Top 2 sectors retained their positions, household products rose from rank 7 to rank 5 with 43% growth in TV advertising in 2018 over 2017. Hair Care and Auto ranked lower in 2018 as compared to 2017 while Laundry, Personal Accessories and Durables held on to their ranks.

    It is interesting to note that of the Top 10 categories, 3 (Toilet Soap, Tooth Paste & Perfume /Deodorant) belong to Personal Care/ Personal Hygiene sector; 2 (Washing Powder/ Liquids & Toilet/ Floor Cleaner) belong to Household Product sector; 2 (Milk Beverages & Chocolates) belong to Food & Beverage sector; 2 (Two Wheeler and Cars/ Jeeps) belong to Auto sector and 1 (Shampoo) belongs to Hair Care sector. Though Services and Personal Healthcare hold the 3rd and 4th ranks among the top 10 sectors, no category from the two sectors feature in the list of top 10 categories which collectively account for more than 25% of the total TV advertising revenue.

    Top Ten advertisers accounted for 30% while top 50 advertisers accounted for 56% of the total TV advertising revenue in 2918. Hindustan Unilever topped the list with 10% share, followed by Reckitt Benckiser (India) and ITC who rose from 8th rank in 2017 to 3rd rank in 2018. Wipro and Amazon Online were new entrants among top 10 advertisers in 2018.

    The 2017-18 Annual Report of the Telecom Regulatory Authority of India (TRAI), published last week, indicates that the subscription revenues accounted for 59.5% of the overall TV industry revenue as it rose from Rs 38,7007 crore in 2016-17 to Rs 39,3007 crore in 2017-18. The report quoted the FICCI-EY Report 2018 which indicated that TV advertising revenues rose from Rs 20,1007 crore in 2016-17 to Rs 26,7007 crore in 2017-18, at a much higher rate of 32.8 per cent than reflected in the analysis of TAM Adex data for 2018, albeit referring to a different time period.

    Regardless of different reports based on different time periods, it is a reality that with close to 200 million TV households and 836 million TV viewers In India (Source: BARC Establishment Survey 2018), the Indian advertisers will continue to invest in TV medium for reaching out to the masses. The detailed analysis of TV AdEx data of 2018 by TAM Axis seems to indicate that Indian TV advertising revenue is all set for a roller coaster ride in 2019.

  • One can expect online media campaigns gaining at the top end of the consumer pyramid, writes Indrani Sen

    Indian M&E industry at its Digital Tipping Point

     

    By Indrani Sen

     

    “All the segments of the M&E sector are showing growth, consolidation and innovation led by digital, both on consumer side and the content supply chain,”noted Uday Shankar, Chairman, FICCI Media & Entertainment Committee in the introduction of FICCI-EY Report 2018.According to the experts from EY, Farokh Balsara and Ashish Pherwani, the Indian Media & Entertainment Industry has reached its Digital Tipping Point. In other words, thereare significant changes happening all around our M&E industry to cause a larger, more important change which will see the transformation of our country to Digital India.

     

    The FICCI-EY Report 2018 has highlighted quite a few of these changes: distribution of television has become largely digitised increasing its addressability and reach, the OTT platforms for TV and video content are growing rapidly, both print and radio segments are growing continuously with more focus on their digital presence, exponential growth (though from a small base) of digital subscription and online gaming riding on falling data cost, emergence of India as the second largest smartphone market in the world giving easy access of internet to consumers, rapid growth of digital micro-payment ecosystem across urban and rural markets, etc.

     

    The above changes are expected to grow our digital content consumption substantially which in turn would increase the size of the total industry from INR 1.5 trillion (USD 22.7 billion) in 2017 to INR 2 trillion + (USD 31 billion+) by 2020 at a CAGR of 11.6%.

    Source: FICCI-EY Report on M&E industry 2018

     

    As shown in the above chart, while the industry grew by 13% from 2016 to 2017, the growth was led by digital, film, animation & VFX, gaming and events. The same trends are expected to continue over the next three years. Another significant trend, which has been seen for the first time in the M&E sector, is outpacing of advertising growth (under10 %) by subscription growth (almost 15%) in 2017 over 2016. This trend will continue to be a major contributor to the Digital Tipping Point.

     

    Based on this new trend of growth in subscription,the report has made a forecast on new customer segmentation which will be an integral part of Digital India by 2020. This new consumer segmentation will be important for the A&M Industry for targeting their audience.

     

    Source: FICCI-EY Report on M&E industry 2018

     

    We can assume that there will be a process of continuous migration from the bottom tier of mass consumers to the tactical digital consumers to the only digital consumers as we go forward to the next decade. As far as deployment of resources for advertising is concerned, we will see online media campaigns slowly gaining over the combination of online and offline media campaigns at the top end of the consumer pyramid.