MxMIndia

Tag: MxM Mondays

  • We asked a cross-section of industrypersons on what they expect from the new minister for the media

    A wishlist for I&B Minister Venkaiah Naidu…

     

    By Anuka Roy

     

    A highlight of last week’s ministerial reshuffle was the appointment of senior BJP leader M Venkaiah Naidu as the new Minister for Information and Broadcasting. He succeeds Arun Jaitley, who had held the portfolio since November 2014. In MxM Mondays this week, we asked a cross-section of the industry to offer their expectations from the new I and B minister.

     

    Sudhanshu Vats, Group CEO, Viacom 18 Media Private Limited

    First of all, let me take this opportunity to congratulate Shri Venkaiah Naiduji for his appointment as the Information and Broadcasting minister. I am absolutely delighted that he has come on board. He is a very experienced and very seasoned minster and because media is such a dynamic sector and is seeing so many changes, the I&B Ministry will benefit from his experience and his acumen. Therefore, we will be able to drive this together. Along with the minister of state, who has been there for quite some time, will make a wonderful team. We would like to work with them, both as my role as CEO of Viacom 18 but more importantly as the CII (Confederation of Indian Industry) media and entertainment chair, for the industry and for the company.

     

    Monica Nayyar Patnaik, Managing Director, Eastern Media Limited, Sambad

    The expectations are still the same for us because we have been following it up for different kinds of activities for print as well as radio. For radio, we are expecting Phase 3 to happen very soon. When Prakash Javadekar was there, we put up our point and now everybody keep on changing, so I do not know how far it is going to go. I hope the Phase 3 is implemented well on time, we have already submitted a letter from the AROI (Association of Radio Operators for India) also. Secondly, we also want for the print industry, I feel the DAVP (Directorate of Advertising and Visual Publicity) markings that they are doing of the paper and for giving these ads to all the paper they have come with the marking system, I hope that gets implemented as well. Number One dailies like us will benefit from that marking. Since, we are also in the electronic sector, we have Kanak News, the number of channels that are coming up, I do not know how they can try to control and what would be the check points because it is very difficult with the mushrooming of channels, I do not know what would be there plan to combat. So, the wish list remains the same.

     

    Dr M G Parameswaran, AAAI President and founder of Brand-Building.com

    I hope the new minister will have sufficient bandwidth to help in the growth and development of this sector.

     

     

     

     

    Tarun Katial, CEO, Reliance Broadcast Network Limited

    We welcome Mr Venkaiah Naidu as the Information & Broadcasting Minister. As a broadcast network, we have a few recommendations that we would like to put forth.

     

    While the government has kept its promise and showed determination in announcing the Batch 2 of Phase 3, we are disappointed that they have ignored key recommendations made by the industry with reference to the shortcomings in the Phase 3 policy. With Mr Naidu coming on board, we would like to see renewed amendments that will contribute to the growth of the radio broadcast sector

    :: It is further recommended that the three year lock-in period should be waived for new allotments done in Phase 3 to the existing radio broadcasters. The lock-in period should be imposed only once

    :: Presently, the government has not reconsidered the reserve price formula that the Telecom Regulatory Authority of India had suggested for new towns, thus making the frequencies completely unviable for radio broadcasting companies to bid for

    :: As Cable TV Digitisation is in its last phase, we would like to see it run the course of its final stage. Given the complexity of the exercise across the country and the rate at which television penetration is growing, the scale of undertaking of digitization will be a big challenge.  With all eyes on the upcoming phase, we look forward to see promising results.”

     

    Mahesh Murthy, Founder, Pinstorm and Venture Capitalist

    So, here is my list of expectations from Venkaiah Naidu:

    :: Stop censoring films. Certify, don’t censor.
    :: Remove Pahlaj Nihalani.
    :: Remove Gajendra Chauhan.
    :: Open up more free-to-air channels on DD (Doordarshan).
    :: Make DD commercially competitive.
    :: De-license and poularise Community Radio.
    :: Remove news restrictions on FM radio.
    :: Make a big move to citizen digital broadcasting.
    :: Embrace mobile broadcasting.
    :: Make us first world standard in media.

     

     

  • Do long format ads make a connect with consumers? We ask a cross-section of industry captains in our new series of our popular weekly feature

    MxM Mondays: Do those loooong ads make a connect?

     

    By Anuka Roy

     

    Google is trying to enhance consumer experience through their products and their effort to make internet more accessible to a larger pool of people in India. And, in order to do so, it has released its digital film titled ‘The Hero- A Bollywood story’. The film has been conceptualised by Lowe Lintas, Delhi. The length of the film is five minutes and 58 seconds.

     

    Now, it is not the first time that Google has done a long format ad. And there have been very many extra-long ads in the last few years. With YouTube launching its new six second bumper ads recently and the trend among the masses is somewhat to skip ads, we ask a cross section of people  do long format ads work with people nowadays? Let’s hear it from a cross-section of industry leaders:

     

    Charulata Ravi Kumar, CEO, Razorfish India

    I think in some cases, a long format can work. But the purpose has to be different. A long format communication will not be watched over and over again, nobody has so much time. If there are long format ads, I will watch it once. One must understand that if there is a really big message that you want to put out there, one time for the consumer to understand the big change that you are making in a big way, then I think a long format ad can help. For example, when Airtel went in to this open network, there can be one long format ad to explain it to people. But do not expect me to see it over and over again. Short format ones can be viewed several times, more like a television ad kind of thing. Short format films can be much easier to share.

     

    Arun Iyer, Chief Creative Officer, Lowe Lintas

    I think at the end of the day if it is interesting then it will connect with the audience and if it is not, it will not connect. So, it is matter of whether it is interesting and it will hold attention or not. I think the fact that so many people have shared it (the Google ad) is the testimony of the fact that it has made connection. It does not matter whether it is five minutes or six minutes, by that logic people would not watch movies. It all boils down to whether it holds your attention or not.

     

    Sanjay Tripathy, Senior Executive Vice President – Head Marketing, Analytics, Digital and E-Commerce

    Firstly, I think it is not about short format or long format, or how many seconds you consume in the ad. I think today it is essentially about how compelling is you storytelling, and how much time you need to tell that good story. Take for instance, the Surf Excel Ramadan Ad that is doing the rounds now – it’s a story well told and hence is finding so many people watching and sharing it. Would it have been the same in 30 seconds? Probably not. About a decade ago, when we had fewer channels and internet had not spread as far and wide as it has now, one was compelled to tell the story in the shortest possible time as advertising time was expensive. Every second added an additional cost and hence, the ad had to be kept short. But today that is not the case anymore. In fact today the opposite is true, with the explosion of media the scenario has changed immensely. Today, they are 300-plus channels… how many will you air on, let alone dominate? Today, to get your brand noticed you have to break clutter and one good way to achieve that is to tell a good story. Also with the advent of Internet, Digital and Mobile Marketers can exploit these platforms for their longer ads.

     

    Titus Upputuru, National Creative Director, Dentsu Marcom

    Long format ads work if the content is good and engaging. We ourselves have made a long format ad about a blood pressure monitor. The film is called ‘Tumhaari Amma’, first there is a product demo and then there is a story about how a young woman is getting her mother married again. We thought six minutes and 49 seconds with demonstration right at the beginning of the film may not really go viral but we were proved wrong as people shared it and loved it. If the content is engaging length does not matter. It has to be engaging and interesting to hold my attention for whatever period of time.

     

  • Creative captains Prathap Suthan, Bobby Pawar and Abhijit Avasthi on whether the dismal performance by India at Cannes Lions is a need for worry

    Are we making too much of our dismal showing at Cannes?

     

    India’s performance at the Cannes Lions this year left much to be desired. Being dubbed the worst ever – with just 13 metals in our kitty – the dismal showing has sparked debates about whether the advertising industry really has quality talent, or should we not make too much of deal of events like the Lions? Three creative gurus weigh in what might have gone wrong and whether we should care at all.

     

    Bobby Pawar

    Director and Chief Creative Officer – South Asia, Publicis Worldwide

     

    Frankly Cannes doesn’t matter. Not to our creativity. Certainly not to our business. Why? Our clients don’t care much about it. Our consumers, not at all. So the question is why we should we give a rat’s derriere? Why are we acting like our momma died and beating our chests in loud mourning? Cannes is a pissing contest and we pissed shorter. Today’s India doesn’t like that. And we shouldn’t. Many have argued that our limp performance was because our work isn’t creative enough. Maybe. But I venture we stepped onto the field pads, gloves and carrying a bat, when the world was playing soccer. The game has changed. If you take a look at our entries, I’ll smack my face with a cold pomfret if most of them weren’t in print, outdoor, design and craft. Old world categories, where the old world still plays a stronger game. (Don’t think so? How many Grand Prix’s has India won in them? There.)

     

    Now, should we change because we want to win awards? That’d be stupid. But the reality is we must, before clients and consumers force us to. If that means we win big at Cannes, great. If not, so be it.

     

    Prathap Suthan

    Managing Partner and Chief Creative Officer at Bang In The Middle

     

    There are a couple of reasons why I think we fell short. And I don’t think it an upsetting issue. There are things that we need to consider. The winning countries and the entries operate in spaces that are perhaps very difficult for us to match. The markets require a whole new wedge to drive noticeability, and at least for regular mainstream work, we operate below par. Those are media media-saturated markets, and more importantly creative saturated audiences. It’s a norm for them to do work and expect work that breaks a whole lot of glass ceilings. Our markets and audiences are still tottering around the mofussil of average communication. We don’t need to be creative for the sake of creative. No one has the extra moolah to ply and try to see if completely lateral ideas deliver market efficiency. We are still dealing with entertaining narratives and well crafted advertising pieces. Besides, the tech quotient at play is very far ahead in those competitive markets. There are specialised shops that drive tech ideas and integrate them backwards into communication and creative ideas. It’s a whole new dynamic and our industry infrastructure is not equipped to think or even deliver those solutions or ideas. This gulch is only going to widen. I would rather we focus on what we know best, and work in areas that we can hone to surpass existing levels. And thankfully, there are a lot of categories where we can truly dominate. We need to look our strengths and desist from getting into waters that we can’t cross. It is also important to calibrate the calibre of creative buyers. Truly how of our clients at the senior senior-most levels will push agencies to break every mould. And honestly how many them really know how to evaluate ideas and open up budgets for the greater glory of creative at global festivals?

     

    Abhijit Avasthi

    Founder, Sideways (ex-NCD, Ogilvy)

     

    I believe India’s showing at Cannes this year is a temporary blip in a long good run. It is also a reflection and a consequence of a few issues, which can be debated. In certain categories like print/design/promo/digital etc our work is not as cutting edge as the rest of the world. On the one hand, we can try and push that, but then it cannot be at the expense of compromising on its relevance to our markets. That’s a double-edged sword. When it comes to categories like film and radio, where I believe our best work is done, we do have an unfortunate handicap – a lack of awareness and appreciation of our culture, language, social structures and such. No matter how well somebody translates these, the magic of the nuances is lost on the international jurors. As a parallel example, imagine somebody trying to explain the impact of ‘Kitney aadmi they?’ to a film jury? On paper it sounds like the most pedestrian dialogue ever written. There is no way on earth any jury will consider that dialogue a masterpiece. C’est la vie. Our celebrities are not known, our relationships are different…just too many such gaps.

     

    So the way I look at it…if a piece of work wins at Cannes it is surely world class but if it doesn’t…that does not mean it is not. So we should not get overly dejected by this year’s show.

     

    Let’s all just focus on doing exceptional, original work for the man on the street in India.

     

  • The mood at the recently held Praxis 2013 was clear: PR agencies need to relook at the way they do their business

    Do Indian Public Relations agencies need to reinvent to thrive?

     

    The writing may have been on the wall for a while, but with the strains of the slowdown, almost everyone the mood at the recently held PR and corporate communications conference Praxis 2013 was clear that Public Relations agencies need to reinvent to thrive. Some – though not necessarily on record – even said that in the form that it is practised in India, Public Relations needs to reinvent. Perhaps.

     

    MxMIndia asked a group of final year MBA (PR) students from Symbiosis Institute of Media and Communication (SIMC), Pune  – Deboshree Bhattacharjee, Nairita Ghosh, Karishma Khanna and Aditi Khare  to speak to a cross-section of industry professionals (in alphabetical order of their last names).

     

    Anne Costello – Regional Director – Asia Pacific, Text 100

    PR agencies need to look at an integrated picture, without segregating traditional and digital. It’s all about telling the story differently. We do this by creating personas for the buyer. We try to understand the buyer, the problem we are solving for him, the relevance of our story and finally, decide how we will reach him. In the coming times as well, storytelling will be key. Digital is but a medium.

     

    Ajay Kakar, CMO – Financial Services, Aditya Birla Group

    In recent years, the world has moved a distance. And the role that PR can play in the life of corporate India has changed dramatically. It is no longer only about media relations. The potential for PR agencies to influence CEOs, boardrooms and business has only heightened. But there is need for PR agencies to introspect: what is it that they can actually deliver – measurable and tangible deliveries. And are they staffed to deliver to this new world. They then need to educate the client world, hold their hand – and then deliver. More than ever before, there is an urgent need for PR agencies in India to do their own PR.

     

    Sconaid McGeachin, President & CEO (India, Middle East, Africa & Turkey) – Hill+Knowlton Strategies

    Digital certainly needs to be embraced. But as consultants in a changing industry, integration is important. PR agencies need to work on developing expertise based on sectors focus and engage in meaningful dialogue with their clients.”

     

    Sujit Patil, Vice President – Corporate Communications – Godrej

    It is absolutely essential for PR agencies to understand their client’s business better. This includes the context, the environment and the macro-economic picture. They need to stop being tactical and start being strategic. This also means that strategic measurement of PR is a must.

     

    David Rockland, Partner/CEO – Ketchum Change & Global Research and Chairman – AMEC

    There has to be marked movement towards research, analytics and insights. PR agencies often rush to the tactic, without engaging in the quest for insight creation. Big global companies work in an integrated manner, with a connection between the fun tactic and the reason behind. This can come through a clear understanding of the client, the business and the context.

     

    Radhika Shapoorjee – ‎President, South Asia, IPAN Hill+Knowlton Strategies

    Geography is now history. In this interconnected world, the terms local and global are dissolving – we live in an emotional economy. The role of public relations, ultimately, is to tap into emotions and bring confidence, thus ensuring that people have trust in your client’s business. While several things change, there are a few that don’t. The strings of the heart, for instance. PR agencies need to remember that and maintain clarity of thought to thrive.

     

    Jaideep Shergill, CEO, MSLgroup

    Yes, agencies must reinvent and fast if we need to thrive. In fact in some cases, we must change right away before it’s too late. The business is changing and we aren’t keeping up.

     

  • The big advertisers and media agencies are on a warpath against broadcasters who’ve opted for monthly release of TAM numbers

    Why monthly TV measurement data is a no-go

     

    By Johnson Napier

     

    The move by a host of television networks who have subscribed to the arbitrary move of consuming data from TAM on a monthly basis is not boding well with those who put in the monies to fuel the broadcast business – the advertisers. Those that stand most affected by this move include the advertisers and a few media agency houses who have labelled this move as being confusing in nature. Where the world is shifting to sourcing data on real-time basis, moving to a monthly option seems to be redundant move, is the argument.

     

    See alsoSam Balsara, Srinivasan K Swamy & Ashish Bhasin

     

    As broadcasters brace themselves for the offensive from advertisers, MxMIndia quizzes a few top bosses to gather their POV. Many of those who we spoke to refused to go on record. Since most of them have similar views, we aren’t publishing them, except one leading FMCG marketer.

     

    Mayank Shah, Group Product Manager, Parle Products

    It’s surprising to see TAM imparting to data delivery on a monthly basis to certain broadcast networks. It isn’t the ideal way to be doing that because as marketers when we look at releasing campaigns there is a periodic assessment that we have to carry out whether it is for a period of one week or four weeks or more. Also, recency of data is another factor that is crucial to us marketers. We cannot rely on data that is almost a month old; the data will become almost outdated for us if were to sit to analyse the impact that our campaigns managed to create in the marketplace. In fact the advertisers have indeed reacted to this news and have expressed their disappointment on the same. Worldwide where most countries are turning to real-time data that is revealed largely on a daily basis, it is strange to be thinking of delivering data on a monthly basis. Even the weekly data that is being released is kind of late in a sense for us. If we do not see any consensus evolving from the industry and the various stakeholders on the issue soon, we would be forced to relook our spends on the medium of television, especially for players who have opted for data being revealed to them on a monthly basis. We will wait and assess the situation accordingly.

     

    Shashi Sinha, CEO, IPG Mediabrands (also Chairman of the BARC Technical Committee)

    If you see the outcome of the decision, around 100-odd channels have opted for data to be released on a monthly basis. And the rest are still with the weekly set-up. Now we cannot be operating in an environment like this; there needs to be a unilateral measurement outcome that should be followed by all. Also, as is being observed the world over most countries are increasingly moving to collating data on a daily basis while we are moving the other way round. The solution can be found if all interested parties sit down and discuss. Till now there have been no concrete discussions as yet. So it’s a bit of an arbitrary situation to be in right now and one cannot say what will happen next.

     

    In fact the way the decision was taken was very abrupt. Instead of just coming to a decision on their own they should have discussed the matter with all. As an industry body we tried to reach out to them to try and sort the matter. We even proposed a few solutions but they were not accepted. So there is a counter-action taking place right now as advertisers are not happy with this decision. What the clients are looking at right now is clarity and openness on the matter. It is up to the advertisers and broadcasters to sort the matter amicably.

     

    CVL Srinivas, CEO, Group M South Asia

    We see this as an extremely regressive development. India is one of the few markets where TV ratings are reported with a one week lag. Most other markets have daily ratings. In our view that is the direction we need to take. By moving to monthly rating, in one stroke we are making television as a medium less accountable to advertisers.

     

    FMCG marketer, New Delhi

    It’s not that we do not understand that there are some flaws with the current television measurement but we’ve survived it for over a decade, and none of the advertisers complain of having made wrong decisions due to incorrect ratings. I agree that broadcasters have been driven up the wall due to a bad market, digitization, LC1 and the 10+2 ad cap, but that doesn’t mean that they change the rules of the game when all of us have jointly decided to set up BARC and deliberate over a new measurement regime that will be effective in 2014. Broadcasters need to understand that just as they are facing hard times, we too don’t have excess money. Marketing heads are answerable to their CEOs/country heads who in turn have to answer to their boards in India or abroad. Monthly data is a no-go, even as we understand the importance of stable data.

     

  • While cricket in Hindi is a boon in HSMs, does it work for advertisers? And what about other languages?

    Is Cricket a big hit in Hindi? Time for Tamil, Telugu, Bangla…?

    By Johnson Napier

     

    After a brilliant display of form in the just-concluded Champions Trophy, the men in blue have made it clear where they intend to be at the moment. And that’s at the top. Having won the confidence of their fans in a big way, their success is now being consumed in a language with an even wider scope – Hindi.

    After sampling preferences over the past few seasons, broadcasters have now taken the plunge by relaying cricket feed in Hindi, which has matched up to its English counterpart and attracted its set of fans too. MxMIndia speaks to a cross-section of experts to analyze how Hindi cricket commentary has fared in the recent past in India (in alphabetical order of their last names).

     

    P Balakrishna, COO - Allied Media

    I am sure that there has been a positive impact that has been created by broadcasting commentary in Hindi. Let’s not forget that Hindi is the language which has the biggest and largest penetration as far as the pan-India market is concerned. All it has done is brought the game closer to the viewer. At the end of the day, while English commentary has its own charm but in terms or reach and understanding of the language, Hindi is of course the language that can connect with all HSM markets. While I am not sure on the numbers, I am sure that it has resulted in an incremental viewership numbers. What is critical with a game of cricket which has a huge mass connect is that the language of Hindi definitely has its charm of creating a strong impact with the audiences.

     

    As for it being relayed in multiple languages, I do not see any scope for commentary to be expanded to other markets as largely between Hindi and English most of the markets are covered in India. If you see the non-Hindi markets, English has a very good penetration including in the South and the East. Doing commentary in other regional languages won’t really result in any rise in viewership or even monetary-wise.

     

    Mona Jain, CEO, Vivaki Exchange

    India has been performing very well so from that point of view there are audiences right now on that medium. In terms of brands who want to reach out to the audience through medium of Hindi, it could be a little low-key as of now as it is not a peak season and only those with deep pockets could be taking the plunge on the Hindi medium.

    Also, cricket is very popular in the northern region so having a feed in that language makes sense; it also is the primary language at the moment. But it’s too early to discuss whether we need commentary in Tamil or Telugu or Bengali. There have to be enough numbers (audiences) out there for broadcasters to take that decision.

     

    Hemant Kenkre, PR Professional and cricket columnist

    I think it is great to have commentary in Hindi on major sports channels. In the past, All India Radio always combined English with Hindi with noted Hindi commentators like Jasdev Singh. During the Champions Trophy Indian cricket legends like Kapil Dev and Sunil Gavaskar (for the first time in Hindi) reached out to many viewers who are comfortable in Hindi.

    The reach for Hindi channels is much more than that of any other language – which may have prompted Star to hire former Indian cricketers (including non-Hindi speaking commentators) to attract eyeballs. It is too early say how other languages will work but going by the success of Hindi, it is a matter of time before sports broadcasters look at other languages too.

     

    Ayaz Memon, editor, veteran cricket writer & commentator

    I think Hindi commentary has managed to create a huge impact in the recent past. You can see it happening in the recent India-West Indies-Sri Lanka Series and also the just-concluded Champions Trophy where it was well-received. In the earlier days, and as research would prove while a lot of people used to watch cricket on television in English they used to mute it and hear the commentary in Hindi on radio. So Hindi enables one to reach out to a far bigger and wider audience base which, I am sure, has seen an incremental hike in the numbers in recent past.

    At the end of the day, when you pay the price for buying rights then your objective is to reach out to as large a number of audiences as possible. And if you can do that by broadcasting content in different languages then why not. It would be a sensible thing to do by broadcasters as India is a very diverse country that boasts multiple languages. Unlike countries like England that can air only in English or Pakistan in Urdu, we have an advantage of airing content in multiple languages and we should take advantage of that.

     

  • The New York Times set up a team to track – practically in real-time – whether editorial is going in the right direction. Does India need data analytics in editorial decisions? MxMIndia finds out

    Does editorial content need an eye in the sky?

     

    By Ananya Saha

     

    Recently, The New York Times set up a news analytics team with the aim of establishing a better understanding of how editorial content is consumed – to know if the content being created is actually working, and if they’re publishing the news the right way, and where and how can they fix the gaps.

     

    With more and more people consuming and sharing news in real time, do media houses in India too need analytics team to make data-driven decisions? Would it help the editorial decisions? Do Indian media houses need it yet? While Sriram Kilambi of Bloomberg preferred to not comment since Bloomberg is considering it, the industry thinks it is the right time to employ data analytics for editorial decisions.

     

    Mitrajit Bhattacharya, President-Publisher, Chitralekha Group

    Different media houses have their own methods of assessing the efficacy/ response to their content. We religiously go through the traditional letters and emails from our readers. The feedback is very sharp on new media like Facebook. Based on continuous feedback from our readers we decide to make changes in our edit mix. It’s a continuous process though. Use of analytics is always welcome. It just makes the feedback process bias-free and scientific.

     

     

    Niteen Bhagwat, Executive Director & CEO – Asterii Analytics

    The data analytics and its role in news and journalism was the tipping point in US market after the Obama election campaign. Nate Silver, an analyst had predicted that Obama would win even when expert commentators had predicted that Romney might win. However, Silver’s prediction was right since he based his theory on data available. He made an editorial comment based on marketplace. Now, that was the tipping point. There is a lot of data around that can be used. Even the US papers moved to data-based journalism from opinion-based journalism.

     

    There are three kinds of journalists in a news room: traditional, social media or digital-friendly journalists, and quant or quantitative-oriented journalists. Quant journalists are the ones who can make sense of huge amount of data. Now, whether it is journalism, corporate communication or PR, we will need people in all three buckets or people who have all three qualities.

     

    The second point is, NYT is one of the 100 publications that have a metered payment gateway. And it has registered more subscription revenue than advertising revenue. This makes the publications enjoy more freedom when it comes to content. With data analytics in place, one can understand the online reading habit – can know the demography, or which part of the publication is being consumed more, which will allow more tailor-made content.

     

    Shantanu Bhanja, VP (Marketing), HT Media Ltd

    Yes, for sure. While the editorial judgment is paramount, analytics are valued inputs to that judgment. Our analytics team helps us give the editors a pulse of the consumer, as well as feedback on our news offerings in real time as well as over periods of time. The final editorial decisions are taken solely by the editorial team. However, an analytics team provides the reader interface. We carry out various studies, both online and offline some continuous (with different periodicity) and some as and when the need arises.

     

     

    Projit Chakrabarti, Head – Marketing Services, NDTV Limited

    Well certainly for genres of news that fall into the category of ‘information’ or ‘news you can use’; with more and more 360-degree targeting to the consumer  becoming increasingly relevant, data and analytics will drive the dissemination of certain kinds of news and information. It will most certainly help from a contextual and utilitarian point of view but may be not so much from an editorial point of view. Indian media houses definitely need it.

     

    Ashish Pherwani, Partner, Advisory Services, Ernst & Young

    At the end of the day, a media house (whether TV, print, radio, website, whatever) provides audiences to advertisers.  With the growth of digital distribution channels and the proliferation of lower-cost hardware options, audiences are changing the manner in which they consume content.  Hence, media houses now not only need to provide their content to their audiences in the manner and format of their choice, but also keep using analytics to understand changing audience preferences, to better cater to them.

     

    Analytics will also enable better sales efficiency – enabling ad sales teams to sell in a more targeted manner. And of course, editorial teams, to understand what type of content do their audiences prefer, at what time and how it must be packaged. Hence, analytics leads to (1) better serving the audience and (2) better monetization of the audience.

     

  • Stakeholders and consultants on their expectations from the Union Budget, set to to be presented by Finance Minister P Chidambaram

    What M&E wants from this year’s Budget

     

    By Ananya Saha and Meghna Sharma

     

    Girish Agarwal, Promoter Director, DB Corp Ltd

    Fundamental need of the hour is to boost the economy, which is essential for growth of M&E. The following steps are expected for sustained economic growth:

    • The budget should send a clear message of “Stability, credibility and long-term vision for reforms”.
    • Government revenues should increase without hurting growth while strict control on expenditure (especially non-plan) is expected from the budget.
    • Clear roadmap for reforms/key bills viz.: Companies Bill, Mining, GST, DTC, Insurance, land acquisition etc. is expected.
    • With rise in inflation and reduced earnings, savings have substantially gone down over the past 2-3 years. Appropriate tax breaks would boost savings.

     

    The above basic steps should result in fresh and long term investments from domestic as well as international markets. Old policies for governing M&E sector must be revisited and reworked considering current business scenario. Policies should be framed in such a fashion that decisions at Govt. level are smooth and fast.

     

    For Radio industry, we expect Govt. to roll out old pending 3rd phase of auction, immediately with clear transparent bidding process. We expect the 3rd phase license with larger period validity and also extension of time period to 15 years, for players related to 2nd phase of bidding. Prior to the same, we expect Govt. to address music royalty issue along with long pending demand of radio players of relay of news bulletins in FM radio. Further, renewal of 2nd phase of license, after expiry of its period, needs to be worked out in an acceptable and reasonable valuation, in order to ensure adequate return on investment for all radio players.

     

    T Gangadhar, Managing Director, India, MEC

    It is important for the government to create policies that stimulate taxes and widen the tax base, not necessarily by lowering the taxes. It is important that in current economic situation, to raise consumer sentiment. We have been hearing of uniform GST, which has not been undertaken yet. Also, it is important to lower interest rates.

     

     

     

    Rakesh Jariwala, Partner, Tax and Regulatory Advisory Services, Ernst & Young

    In the Direct tax category:

    • Reintroduce erstwhile benefit available under Section 80-IB of the Income-tax Act, 1961 – profit linked deduction for multiplexes to boost their growth for tier 2 and tier 3 cities
    • Introduce alternate mechanism or a monetary threshold for obtaining income-tax clearance for foreign performers, entertainers, etc before departing from India as the procedure is time consuming and onerous
    • Introduce incentives for content creation and infrastructure to encourage the Indian film industry
    • Currently, there is uncertainty with respect to income attributable to India in case of Foreign Telecasting Companies (‘FTCs’). Guidance should be provided by way of specific provisions for determining taxable income of FTCs.

     

    Indirect tax:

    • Provide exemption from service tax on costs of film making in line with the exemption provided on temporary transfer of copyright in cinematograph films
    • Reinstate the exemption on service tax on services provided by digital cinema service distributors in a digitized encrypted format transmitted directly to a cinema theatre for exhibition – this exemption was withdrawn with the introduction of the negative list based service tax legislation
    • Clarify that service tax is not attracted in case of post production services provided in respect of content temporarily imported into India for the purpose of re-export
    • Exempt from service tax, services rendered by players and coaches to private sports leagues / bodies in line with the exemption provided for services to recognised sports leagues / bodies
    • Subsume entertainment tax in the proposed Goods and Services Tax legislation without creating a window for its levy at the local or state level to ensure simplicity in the tax structure

     

    M&E industry is expected to outgrow the Indian economy with an expected cumulative annual growth rate of around 15% over the next four years. To keep up the momentum, the industry deserves tax incentives in the upcoming Finance Bill, 2013 thereby providing an impetus to the industry and bolstering growth.

     

    Budget 2012 was a bag of mixed beans and a budget wherein the M&E industry was not given its share of adequate encouragement. Key highlights are cited below:

    Incentives:

    Indirect tax

    • Exemption of service tax on temporary transfer of copyrights in cinematograph films
    • Inclusion of admission to entertainment events and amusement parks in negative list of taxable services
    • In addition to the print sector, advertisements in media (except radio and television) including the internet or in outdoor media shall not be liable to service tax
    • Services provided in capacity of referee, umpire, coach or manager to recognised sports body for participating in tournaments shall not be liable to service tax

     

    Dampeners for M&E industry:

    Direct tax

    • Retrospective amendment to the definition of royalty thereby characterising payments for use of computer software, transponder, information databases, uplinking facilities, leased lines, etc as royalty under domestic tax laws. Hence, impacting the use of digital media
    • Tax rate of non-resident sports persons and sports associations increased from 10% to 20%

     

    Indirect tax

    • Levy of service tax on costs on film-making
    • Withdrawal of exemption of service tax on digital distribution of films tantamounting to the levy of service tax on such services
    • Levy of service tax on services provided by players and coaches to private sports leagues / bodies

     

     

    Tarun Katial, CEO, Reliance Broadcast Network

    For the broadcasting industries of radio and television we look forward to clarity, uniformity and relief from taxes. Advertisement in free to air mediums like radio should be treated differently and lower or nil service tax should apply for the same, aligning with the print and out of home industries. Also, FDI in non-news radio operations needs to be brought at par with television broadcasting. Customs duty on radio and television broadcast equipment should also be relaxed.

     

    The TV Broadcast and Distribution industry is already reaping benefits from the success of the digitization initiated by the Government. We look forward to necessary fiscal incentives in the form removal/ reduction of multiple taxes and levies and regulations which ensure transparency and power of choice to the end customer.

     

    Sandeep Ladda, Executive Director/Partner and National Leader – Entertainment & Media – Tax and Regulatory, PwC

    On the direct tax front, we could look at the following key areas:

    • Clarification on the applicability of withholding tax provisions on discount offered by DTH operators for selling recharge coupons through subscribers to third parties and on payments made by TV channel companies to uplinking companies
    • Providing a clarification stating that benefits of carry forward and set off of unabsorbed losses in amalgamation or demerger etc. also available to service sector companies
    • Proposal to sign more Co-production treaties, to get the tax credits and subsidy benefits
    • To provide a 10-year tax holiday to exports in the gaming, animation and the VFX (visual effects) industry for Indian content development, as they are emerging sectors (whether or not these are set up in an SEZ)

     

    Key expectations on the indirect tax front include:

    • To promote the domestic gaming industry, excise duty on local manufacture of gaming content could be brought down to 0%
    • Service tax applicability to the DTH industry could be eased for a limited period till the phased implementation of digitization is complete
    • Copyright services could be excluded from service tax net to avoid dual levy of service tax and VAT
    • Multiplex operators could be exempted from levy of service tax on property rentals and to distributors for exploitation of cinematographic rights, till GST is introduced to result in a seamless pass through of these indirect taxes

     

    The industry has been growing at a pace of around 17 percent YoY and is expected to maintain the momentum. The recent liberalization of foreign investment norms for a majority of broadcasting carriage segments and the radio phase III roll out will surely provide a fillip to the entertainment and media sector. Similar liberalization measures could be extended to the remaining broadcasting carriage segments like local cable operators. Also, the Phase III rollout could be implemented early for the industry to reap in the allied benefits flowing from the same.

     

    There were a few positive steps seen in the 2012 budget such as eligibility of investment linked deduction to hotel owners even if operations are carried out by third parties and service tax exemption on temporary transfer of copyright in cinematographic films. However, on the whole, budget of 2012 left a lot to be desired:

    • Retrospective amendments to widen the scope of royalty by including payments for transmission by satellite cable, optic fibre etc. as royalty were not expected. The relative standing of some of these retrospective amendments vis a vis India’s tax treaties has also been questioned by recent tax tribunal decisions. This has only added to existing confusion surrounding such royalty payments.
    • The budget also introduced provisions casting obligations on a non resident having no presence in India to withhold tax on any payments being made to a non resident of income accruing in India. This measure has impacted some of the India content broadcasting transactions happening between non resident parties.
    • Tax rates in case of non-resident, non-citizen sportspersons, non resident sports associations were increased from 10 percent to 20 percent on gross basis. Similarly, non resident entertainers were also brought under the tax net @ 20 percent on gross basis. Both these measures were burdensome.

     

    Sunil Lulla, Managing Director and CEO, Times Television Network

    The burden on the growing service sector needs to be reduced, so it may accelerate India’s growth. In prior years, in recent times, we have not seen anything progressive as such via the budget. Investment norms in some parts of the sector have already changed, for encouraging investment. The industry has been asking for lower duties on STBs so that digitization can progress and benefit millions of consumers. This is vital. As for the last year, the economy has been slow, sluggish and behind expectations – 2012 has been a disaster!

     

     

    Responses are in alphabetical order by surname.

     

  • MxM Mondays speaks to a cross-section of industrypersons on the issue…

    MxM Mondays: Can regional dailies withstand the pressure from national biggies?

     

    By Ananya Saha

     

     

    It’s not unusual that national dailies (or dailies which have a large footprint in the country) have tried to make a mark in markets where there have been strong, well-entrenched regional players. The Times of India, for instance, set up successfully in Bengaluru many years back, but found the story different with Deccan Chronicle in Hyderabad. In Chennai and Kolkata earlier, it did not outwit competition entirely, but was successful in shaking up the market.

    Earlier this month, the TOI group enterted the Bengali newspaper market, taking on the Ananda Bazar Patrika group in possibly the country’s most culturally aware market.

    But it is not about one newspaper group spreading its tentacles and the issue we are looking in MxM Mondays today is: Do regional newspapers have it in them to face the competition and clout of national newspapers. We spoke to a cross-section of industrypersons on the issue:

    (in alphabetical order of their last names)

     

    ?

     

    Anwesh Bose, Senior Vice President, DDB MudraMax Media

    Anwesh Bose

    The Times of India’s success in Bangalore has a lot to do with Bangalore evolving from a sleepy and quiet retirement paradise to a bulging at the seams metropolis. With Bangalore becoming a metropolis, the swell of urban to urban migration came prominently from Delhi and Mumbai wherein Times of India was already an established brand. The resident Bangalorean is still not satisfied without his Deccan Herald and coffee. Barring this example Times of India has not been able to create a significant dent among any other regional market. The trend of emergence of regional parties (Didi, Amma, Behenji, Nitish ji, Karuna ji, Mulayam ji, Patnaik ji, Abdulla ji, etc) who are calling the shots in the country also mirror the fact that not only are regional entities more relevant than they ever were but are here to stay & dominate. India as a country was, is & will remain to be culturally diverse and local will always be more prevalent than national. To conclude, Vijay Vani is already on its way to unseat the position of Vijay Karnataka… keep watching!

    Mitrajit Bhattacharya, President-Publisher, Chitralekha Group

    Mitrajit Bhattacharya

    I think we should not look at it from the individual brand point of view.

    It is actually more from the portfolio point of view from the groups, for example, the English traditional groups like the TOI are expanding into regional markets. Similarly, regional biggies are launching in English. ABP group has launched magazines and got licences for magazines like Fortune. The larger groups are getting larger, and are consolidating by having as many products to cover all the gaps in their portfolio. It is not as simple as saying that the regional biggies are outdoing the English biggies or the English biggies are outdoing the regional biggies.

     

    If you really look at the percentage of advertising which the English media garners vis-à-vis their readership, it’s totally lopsided compared to the regional media players. Now the thing is that even if the regional player has much larger readership, they still get much lesser advertising. This was the traditional format. It also happened in television. This format is changing and regional players with their smart marketing moves in the last five years have started garnering a lot more advertising than they used to get probably 5-10 years ago. That shift is happening and that shift will sharpen.

     

    Now there is another point. It is also happening because the tier 2 and tier 3 towns are becoming more and more critical in the marketing mix of most organisations. So when tier 2 and 3 cities become more important the regional players’ share of advertising is bound to go up.

     

    Manajit Ghoshal, MD & CEO, Midday Infomedia Ltd.

    Manajit Ghoshal

    I am a firm believer in the saying ‘Change is the only constant’. As much as some of our predecessors in the media would like us to believe that brand loyalty is sacrosanct (especially in newsprint reading habits), I beg to differ. Yes, newspaper reading is a habit-forming phenomenon, but like all other things, this is changing and it’s changing at an accelerating pace.

     

    The English print readers are migrating to digital. The newly educated in vernacular languages are adding to the regional language print readership, but these readers are going to be increasingly brand neutral. The regional newspapers have an increasingly older readership profile and these newspapers need to reinvent themselves if they are to appeal to the regional youth as they once appealed to their forefathers.

     

    Having said that, the national newspapers will have to spend huge sums of capital to break the iron grip that some of the regional newspapers have over their markets. The financial resources and the timelines required to do this is naturally an entry barrier and will give some breathing space to the regional newspapers to catch up, but not for long.

     

    The national newspapers have clearly realized that they cannot have ‘one size fits all’ type of content and are playing this round smartly by having increasingly localized content and are challenging the hyper-local content strategy of regional newspapers by playing their own game and beating the regional newspapers through bigger and better resources.

     

    It is up to the regional newspapers to invest in their brands and protect their turf, but the consolidation game has already started in right earnest and it might already be too late for them.

     

    Bharat Kapadia, Chairman, Whatuwant Solutions, and Founder at ideas@bharatkapadia.com

    Bharat Kapadia

    We do not have any real national newspaper in India. One shouldn’t confuse regional languages with regional papers. Among English language papers, TOI has done very well but it is 5-6 editions that are significant, and it just barely features in the top 10 read newspapers. TOI had started a Gujarati newspaper which they closed down. Their Maharashtra edition is growing well now. In Western countries, for example in the USA , Wall Street Journal will have a national presence but everywhere else it will be NY Times, LA Times Chicago Tribune and so on. There was no national newspaper till the time USA Today was launched!

     

    Speaking of the advertising trend, about 10 years ago, 70-80 percent of advertising went to English newspapers even when English newspapers had limited editions and readership. Today, this percentage stands has come down at less than 60 percent for English newspapers. Surprisingly DAVP also gives importance to English newspapers which as per their policy have to get 30 percent ads and at a premium. Hindi gets 35 percent and all the regional newspapers put together get 35 percent of their advertisements, which is ridiculous.

     

    However, the growth of tier II and III cities, and lower penetration of English (less than 5 percent) will result in advertising buck to follow the regional newspapers. Literacy levels are also rising. When the person gets literate, the chances are it will be in his/her own regional language. Hence, you see, unlike anywhere else in the world, regional newspapers are growing in India when it comes to readership and circulation.

     

    For me, it is definitely in favour of regional media for some time at least.

     

    Basant Rathore, Vice President-Strategy, Brand and BD, Jagran Prakashan Ltd

    Basant Rathore

    To my mind, there is no one national newspaper in India. There are papers that are available in various languages addressing individual markets and audience segments within each individual market.

     

    If we were to structure the print market, there are there are the South states, Gujarat, Maharashtra, Punjab, West Bengal, Orissa, Assam and North East. Then we have the Hindi belt comprising UP, UT, Bihar, Jharkhand, MP, Chhattisgarh, Punjab, Haryana, J&K, HP, Delhi, Rajasthan – this is by far the largest geographical belt, and the Hindi papers have the highest readership in India. Five of the Top 10 papers of India are in Hindi. The reach of any Hindi daily is 3.4 X of the next language – and this No 2 language is not English. Marathi and Malayalam dailies have a higher reach than English. So therefore, this entire segmentation of newspapers into National and Regional dailies has no basis.

     

    Over the last few years, there has been a significant amount of marketing attention shifting to the tier 2 and tier 3 markets. As benefits of development percolate down the tiers, interest in different geographies is increasing. Marketers want to reach out to a wider market and media that reach these markets are the natural choices. Therefore, these markets will have competition across sectors.

     

    Having said that, each newspaper has its own strengths, on the basis of which it competes. Today there are brand leaders in different languages and different geographies – all of them have a connect with their readers and their marketing strategies are something that are customized based on the individual market conditions. So when a brand which operates in a particular geography launches the brand in another market, to my mind, there is a level competitive playing field for all. Each brand would leverage its existing strength, and the reader chooses to buy the brand or brands he/she wants. So when a so-called “national newspaper” launches in a “regional stronghold” of another daily, it’s competition as usual. Eventually, the brand that strikes a better local cultural connect will win and just credentials alone aren’t enough to guarantee success.

     

     

     

    Anita Nayyar, CEO, Havas Media, India & South Asia

    Anita Nayyar

    The answer is: Yes and No, It depends (on the approach and method). Newspapers as a medium form a relationship and habit patterns with readers. Also here you don’t have a new one dropping in every day as it does in your inbox, so you open it once in a way.

     

    Culturally, India is diverse and its languages without the dialects are vast; 438 as per the Economist. IRS has consistently shown how the top five publications and dailies are not English. Tier 2 and 3 cities are new ports even for luxury brands with their old wealth and new-age entrepreneurs.

     

    Today marketing is getting more footprint-mandated and more segmented as brands are launching many sub-brands catering to these segments to increase revenue and market share. Print traditionally is sustained by this advertising. This is a climate all publications are very aware of. Growth is coming from regional markets, making the national biggies focus on these and in the process expand their footprint. Smaller towns are becoming welcome targets for brands and their consumption is leading to market expansions which are a welcoming sign for publications to reach and target.

     

    Hindustan Times (HT) when only in Delhi did not have the geographical reach and lost in advertising economies of scale to Times of India (TOI). Even the south-based Hindu has focused on increasing its Delhi readership as essential to command ad-rates and advertiser perception. So many major publications will use the strategy to go across and cross region; but readership will belong to those who are able forge either a relevant position or sufficient connect with the customer.

     

    TOI in Bangalore focused on the incoming new audience at the time of the IT boom, its inherent position of youthful and buzzing rendering a profitable mix with the upcoming economic and cultural mindset. The south, however, becomes complicated with its languages and dialects. In Hyderabad, TOI has not been able to penetrate the landscape to reach number 1 while local publications, even new ones launched like Sakshi, are doing well. Even the regional biggies have multiple editions to penetrate the cities, not such an easy infrastructure to follow.

     

    Anand Business Patrika’s Kolkata-based Telegraph has used a regional strategy in its expansion focusing on the east so it has established many roots to be severed before it is de-throned. Ei Samay in Kolkota has definitely made an impact with the shift of some of the editorial team, launch at 79 pages and TOI bundled add on packaging of Rs.150-Rs.200 making it most lucrative. But ABP too has responded in a way it has not done before, by dropping rates and being open to deals even in an approaching festive season when ad sales, down this year are expected to pick up.

     

    Yes, Hindu is the Mount Road Maha Vishnu, but TOI is the old lady of Bori Bunder and she did ‘awaken’ the Lord to an aggressive ‘Good Morning Chennai’; but also, she learnt, has muscle and a flexible attitude. The recent Kerala TOI launch with elephants was theatrical but then TOI does know how to get heard. It also knows how to get inventive, readers can save Rs 50 per month by subscribing to TOI and Mathrubhumi, packaging English and Malyalam, a good idea for a family speaking both. Also the old lady attracts innovation – the aromatic coffee newspaper with ‘Bru’ and ‘Hide & Seek’ or the newspapers with a voice by Volkswagen.

     

    Hence my answer, ‘Yes and No, It depends’. Either way neither national dailies nor regional biggies can afford to get complacent but will have to be aggressive, proactive and inventive to protect their territories or make the break-through, and it will be over time.

     

    Relevance is a very important factor here. Talk to me in my language and you become more relevant. Be present in my environment and you have more retention, customise to my needs and you find a place in my life and get a share of my wallet. This is what brands need to do irrespective of whether it is a publication or any other product category.

     

    PN Vasanti, Director, CMS India

    PN Vasanti

    I do not see the difference between regional and national biggies. There is no difference when it comes to tactics, strategies, and manoeuvring. It is only that regional newspapers have local advantage, which national newspapers miss. We are in competition era and in media space for next generation everybody will try to establish themselves. And survival of the fittest is going to matter. Everybody, hence, will try to launch as many products to see where they can survive and fit, and where they cannot.

     

    There will be competition. But where there is enough market potential, one will have to enter otherwise one would not be able to survive.

     

  • Are GECss showing a sensitive side by highlighting social issues in fiction and non-fiction shows?

    MxM Mondays: Are general entertainment channels turning social activists?

     

    Television reflects society and social trends, and hence, a look at TV programmes over the years shows that channels have, from time to time, taken up social issues and woven stories around serious themes. From the era of Doordarshan to today, soaps like Hum Log, Rajni to Balika Vadhu, and reality shows like Satyamev Jayate, to name some, have tackled issues which need people’s attention. And recently, the trend has increased as many issues like female foeticide, surrogacy etc are being shown on primetime.

    So, does this mean that the general entertainment channels (GECs) have taken up the role of social activists or is it just another bid to garner more eyeballs? What role does a channel/broadcaster play while showing such issues? MxMIndia spoke to a few experts and industry people…

     

    Dr B Manjula, associate professor, School of Media and Cultural Studies, Tata InsISS:

    Intially when television was launched in the country, its main role was to educated and enlighten people. Doordarshan showcased not only documentaries but also shows dealing with social issues. With a high rate of illteracy in the country, television was seen as a great option to bring about a change. However, with privatisation and coming in of cable TV, things changed. Media became more of a business than a medium to bring about that change. Broadcasters now are more worried about ratings and gaining popularity among its audience. However, in the past few years, GECs are showcasing serials which have taken a bend towards social issues. But there are two things one needs to keep in mind:

     

    1. How aware are they of the issue itself? Many a times, shows /channels are not aware of issue but only touch it on a peripheral level. Proper and thorough research needs to be done so that not only can shows get an in-depth meaning into their storyline but also help in bringing about a change in people’s mindsets and important points aren’t lost in translation.

     

    2. What is channel more interested in – TRPs or change? Not only channels but many companies too aren’t clear about the two. Corporate social responsibility isn’t about just doing something once in a while but to bring about a change at grass-root level. There is a gap between an idea and what is practiced. An idea might be good but unless and until, it is shown properly, it will be lost. The bridge between the two needs to be filled.

     

    I feel that broadcasters shouldn’t forget that there is still a high rate of illiteracy (around 40%) in the country; hence, for them television is the ‘world’. Therefore, they need to be credible and responsible too instead of just focusing on money making.

     

    Ajay Bhalwankar, Content Head (Hindi GECs), Zee Entertainment:

    That’s been the trend even from the days of Doordarshan. Social issues like discrimination against skin colour, education of the girl child, female foeticide, remarriage, child abuse and surrogacy, etc., are common on primetime shows. They highlight a reality prevalent in society and it gets an instant connect with lakhs of viewers…

     

    We have always handled any social issue very sensitively and showcased the ‘Umeed’ aspect to edutain viewers on how to get rigid customs and views out of their minds and work towards a happier and progressive society. However, GECs do not want to be social activists but are definitely instrumental in spreading the message or creating awareness about a pertinent social cause. The primary purpose of any GEC is to entertain people. I would like to add that Zee TV has a multi-genre offering and is living up to its image of being a socially conscious channel. With path breaking shows like Hasne aur Hasane Ka Tonic Ladies Special, Agle Janam Mohe Bitiya Hi Kijo, Aapki Antara, Pavitra Rishta, Shree, Maayka, Punarvivaah, Phir Subah Hogi, Sa Re Ga Ma Pa and Dance India Dance, the channel has established icons such as Laali, Archana, Antara, Lakshmi, Aarti and Sugni who have entertained audiences at the same time addressed socially relevant issues like autism, child trafficking and remarriage to name a few. So, it won’t be wrong to say that, it has helped in educating the audience. It has also helped in changing perceptions. For instance, parents encouraged their kids to take up dance as a serious career option in India after watching ‘Dance India Dance.’ Punarvivaah, our primetime show on remarriage, has received tremendous positive feedback. Lakhs of people across the world have written into us sharing their stories and how they’ve changed their mindsets to allow their family and friends find happiness a second time around.

     

    Yes, we would all like our shows to have maximum eyeballs but there has to be honesty in showcasing any concept. And not all shows with social causes are successful… that the industry attempts such stories to entertain and edutain viewers in India is good! Change is slow and a constant around us…Our primary objective is to entertain and if in the process, awareness, positivity, happier families and relations are built, we are doubly pleased.

     

    Prashaant Bhatt, Weekday Programming Head – Colors:

    GECs are not taking up the role of social activitss, but just presenting shows that have a context and relevance. If by bringing socially relevant content, we are successful in initiating a social change, we consider our message delivered. Television, today, is more than a medium of entertainment; it’s a mouthpiece for the common man to put his views across. By introducing content that has a social impact, we are doing our bit in raising not only awareness but also extending a platform for discussion.

     

    As a channel, we believe in variety entertainment and offering an experience that is educative and enriching. With this added in our bouquet of programming, we are catering to the different entertainment options of the audiences. It does have an impact on the common man who watches these shows regularly. One case example being a Rajasthani girl named Lakshmi Sangara, who was married off to a much elderly man at a young age. She, aided by her lawyer, succeeded in getting a divorce from her husband after watching Balika Vadhu and realizing that child marriage is an offence. This is our success, if this is the result and the power of a show then we are not looking at chasing numbers but rather making a real difference. It is a challenge for the channel to portray such strong situations in a socially acceptable manner. For us, it is not just about portraying the issue, but being a General Entertainment Channel, we need to craft storylines that are appealing and accepted by the audiences. By using content to set the context for prevalent issues, we are making an attempt to bring about a change in society and the prevailing mindset. And living in a democratic country, it is highly essential to euphemize these issues and present them to the viewers to make their choices.

     

    Samir Khanna, EVP and Head, DDB MudraMax Media:

    We need to make the differentiation when we say that GECs are taking up the role of social activists; that is, break up GECs into two verticals: fictional and non-fictional shows. When we talk of fictional shows, there are issues in these serials that agitate the mind of the audience today with the everyday issues such as dowry, corruption, rape etc which are seamed into the storyline. Now because it agitates the mind of the audience, the viewer gets absorbed into the episode or the episodes of the fictional show. I don’t think, in the fictional shows, they are trying to be the activists. At the end of it all, the aim of fictional show is essentially to sell it to the advertising and marketing fraternity, and to grab eyeballs. Being an activist in a fictional show is difficult since the show follows the storyline with the characters into it. Usually, what they do is plug a sub-story into the show and then they carry it forward. The moment you try to talk too much about it, the show becomes preachy, which people wouldn’t like. It is all about eyeballs.

     

    But the moment you talk of non-fiction shows, like Satyamev Jayate, on the GECs, they not only talk but debate about societal issues and also try to come up with advice. There is this non-fictional weekend show, ‘Zindagi ki Haqeekat se Aamna Saamna’, wherein you have a courtroom set up and the show tries to come up solutions for the fighting family members. There are non-fictional shows that do come up with solutions and advice.

     

  • Has the role of the public relations firm diminished and can media do without it? MxMIndia asked industry captains for their take

    MxM Monday: Has the role of PR diminished?

     

    By Ananya Saha

    It’s a trend that’s not going unnoticed. Increasingly, companies prefer to be socially more active than depend on good PR. Journalists prefer to reach out directly to the spokesperson, bypassing the PR altogether. And given that every company, well almost, has a corporate communication department, the PR agency role appears to have  diminished. But has it really? Has the PR role limited itself to preparing documents and slot meetings? Or is it that the PR role has now evolved and moved beyond just that of a ‘postman’, thanks to the way media itself is changing? The issue that we are discussing on MxM Mondays today is:  has the role of PR diminished?

    We spoke to a cross-section of industrypersons for their (in alphabetical order of their last names) and added our own:

     

    Hemant Kenkre

    Hemant Kenkre, VP, LinOpinion

    PR has evolved tremendously social media. Both the sectors are increasingly cross-pollinating, which has grown beyond the traditional media relationship. The brand uses both the mediums: PR and media, to amplify the message. Media is the biggest tool that PR uses since the messaging has to go out. And hence, PR and media share a symbiotic relationship. PR needs to work with the media, and media need to work with PR to get across to the information they need.

     

    The most well-known brands rely solely on PR to get their message across. PR played the biggest role if you look at the brands that have been built over time. PR is not only the biggest tool, it is the most critical tool too.

     

    Prema Sagar

    Prema Sagar, Principal and Founder, Genesis Burson-Marsteller

    Society, Government, Corporations, Consultants, Media – all, need and depend on each other. So therefore, in this case too, Media, Corporations and other Stakeholders have to necessarily work together.

     

    Companies have small teams to manage external communications as a function. They need national reach – including new markets that go beyond metros. The mediascape is complex with different languages, sensitivities and expectations. Therefore the Public Relations industry is thriving.

     

    Genesis Burson-Marsteller and some other firms are known for developing the Message and the Campaign Plans that they create for the client. This is critical to building the Reputation of a client. The experience of working with several organisations, gives the public relations professionals the width and depth to develop a strategy that has insights and expertise. Public Relations firms today have domain expertise and multiple services that go beyond public relations – public affairs, advocacy, corporate responsibility, financial communication, digital and content creation – while others are a pure play media relations.

     

    Journalists reach out to us and a great relationship develops while managing communications during issues and crisis for our clients. In fact, most often, one develops a great working relationship between the journalist and ourselves during such a time.

     

    We have no issues about relevant journalists and CXOs from client organisations engaging directly. For us, the larger role of discussing and developing Thought Leadership platforms with publications, co-creating story ideas and participating in significant events – is the value we bring to clients. Innumerable journalists reach out to us for interviews, story ideas and industry issue-led discussions with clients. This is our role.

     

    If your question was the reverse – ‘Can PR function without Media?’ – No! Even though online and social media is taking over. So we have to stay focused on providing value to our clients and the media.

     

    Deeptie Sethi

    Deeptie Sethi, Head of Corporate Communications at Ford India

    No. Media cannot function without well informed PR. To build brands more and more companies are relaying increasingly on public relations and the function is critical to contribute and be part of the success of the business. The PR industry has significantly evolved and people who are serious about the business of PR understand the value this can bring to a brand. PR companies are no longer considered a ‘post-office’ service to disseminate company information. They have to be engaged deeply with the brand and its philosophy to define how, when and where to communicate with consumers with the power of relationships, understanding of media platform that are measurable. In today’s evolved environment, PR has a more conclusive role to perform.

     

    At Ford India, the Communications plans are integrated with the marketing plans to create a holistic approach to deliver a more compelling and consistent story telling. We truly understand the power of one plan and a good example of that is Ford Figo’s exemplary launch in India. Much before the car was launched, our PR strategies kicked in to create brand awareness and essentially single-handedly drove the buzz for close to two years in the pre launch phase and marketing complemented when the product was available for retail – our booking were in tune of 10,000 units in the first month of launch itself.

     

    When it comes to social media, it’s a platform for engagement and listening – and more importantly to get feedback real time! The conversations are already happening and it’s up to a company if they want to participate in them or not. Both social and PR mediums have their own identities and have a role to play in shaping communication strategies. One has to define what each of them will achieve for the company and tread carefully to keep the distinction.

     

     

    Jaideep Shergill

    Jaideep Shergill, CEO, Hanmer MSL

    The media and public relations (PR) enjoy a strange relationship – deeply symbiotic, yet edgy. Depending on which side you stand, you would think that PR is an invaluable source of information and access or that it’s little more than a mouthpiece for brands.

     

    The digital age is changing the way consumers interact with the media and brands. Round-the-clock news, the internet and social media have created an aware and empowered consumer. This has, in turn, changed the relationship between the media and PR professionals.

     

    When you analyse the relationship, it’s important to remember that media relations is only a subset, not PR as a whole. Hence, while connecting with the media is important, establishing a solid relationship with the consumer is vital. In so many cases, traditional media do not figure in a PR plan at all.

     

    PR is about understanding and shaping your stakeholders’ perception of the brand. These stakeholders include consumers, employees, vendors, government and the community, not just the media.

     

    In the past, a well-thought-out media relations campaign was considered the best way to achieve the PR objective. However, the internet has changed the rules. We can now reach out across borders to spark the connections a brand needs, bypassing traditional media altogether. Now, when we think of media, we include social media influencers, bloggers, YouTube, podcasters, etc.

     

    All this means that PR is getting less dependent on the media, but it also means that the media doesn’t always need PR to get information or for access to the relevant people for their stories.

     

    However, it would be a mistake to think that the relationship is dying or is being scaled down. PR firms are managing the information flow from businesses to the outside world, which in turn is being tapped by the media. Also, strong big-picture PR campaigns are often the first level of engagement for the media. Websites, blogs, electronic newsletters, etc, are becoming important media touchpoints, and they’re being managed by PR professionals. All this is vital to the media looking for news, resources and data.

     

    So, can the media do without PR? In my opinion, no!

     

     

    Pradyuman Maheshwari

    Pradyuman Maheshwari, Editor-in-Chief, MxMIndia

    Can PR function without the media? And can the media function without PR? The answer to this question could’ve been in the negative, but for the various things technology has facilitated in the last decade, and especially in the last 18-odd months.

     

    By PR, my reference is to an organized public relations activity in an organization or outside of it, via a specialized consulting firm. There are several individuals and organizations continuing to reach out to the media without a designated PR manager or agency. Some of these have been doing fantastically well, but my sense is that it’s the scale of operations which eventually decides whether there is a need of a specialized resource, or if it can be managed without one.

     

    Mind you ,there are enough on people on both sides of the fence who would rather not do with each other. For, the fact is that there is enough disdain for the PR-persons from journalists and vice versa. So while the relationship ought to be that of an ally, it’s often of an adversary. Sad.

     

    I must confess that there are enough rotten apples out there. Journalists who just don’t take calls or play too hard to get.  And PR honchos and executives who don’t really do their homework well (on the journalist or the client/industry s/he is dealing with) or, like journalists, are just not available when they are needed the most. Adding to these issues are assorted forms of corruption, dishonesty and inefficiency.

     

    Thankfully, technology has been an equalizer. PR newswires aren’t as ‘hot’ in India as they are elsewhere in the world, but it’s possible to bypass a PR official to get information. And, yes, journalists are not necessarily the only people who are sought after PR professionals. Bloggers, regular tweeters and even regular Facebookers are aggressively sought after by corporates, celebrities and PR agencies.

     

    In fact, there are many organizations – especially in the technology and lifestyle space – who reach out to bloggers (and now even ‘tweeters’) ahead of traditional media in the PR exercise. So while the process has gotten more complex in the sense there are more people to reach out to in multiple media, the mainstream print, electronic and digital media entities aren’t the only vehicles available for publicity. In fact I have often heard murmurs of discontent amongst some journalists on how the social media and blogs were being given preferential treatment by tech biggies for sneak peeks to products and access to top management.

     

    However, even though there is simmering between the two sides of the fence, I don’t see either side doing without the other.  Not in the near future in India at least. The human interface of a specialist will not fade away in a hurry.

     

  • Why is it that despite being around for a while, radio doesn't get its due. We spoke to a few stakeholders

    MxM Mondays: Is Radio perceived as a poor cousin to Print & TV?

     

    By Ananya Saha and Robin Thomas

     

    The onslaught of FM radio came as a breath of fresh air for listeners in India by the late nineties, and the success of FM Phase II launch further fuelled the FM growth story. According to industry estimates, radio’s overall advertising pie is around 4.5 per cent, and this is expected to growth even further with the FM Phase III launch. The medium promises reach, greater recall and marketing solutions that are cost-effective. With FM Phase III also expected to roll out soon, the radio industry gears up for another phase of growth which may see newer genres coming into play, differentiation in content, news, sports broadcasting and so on. However, despite these developments, why is radio perceived as a poor cousin to its traditional counterparts, particularly print and television? How do FM players, media planners and the advertisers view the medium?

    Comments in alphabetical order of last names

    What the radio industry has to say:

     

    Harrish M Bhatia

    Harrish M Bhatia, CEO, 94.3 MY FM:

    It is highly unfair to compare radio to print or television considering the policies associated with each medium and the length of time that the media have existed in the private sector. Restrictive governing policies have not allowed radio to diversify its product offering and showcase its true potential as a people’s medium. The private radio industry is still nascent and hasn’t been given the autonomy that television, or even for that matter online media, has enjoyed. Internationally, where markets are more evolved, radio enjoys about 8-10 percent of the advertising pie. Secondly, there is a lack of credible measurement systems to back the potential of radio. While dealing with the issues like long delays in Phase III implementation, music royalties and insufficient measurement tools, the radio industry has barely managed to consolidate resources and sustain itself. What is needed now is a strong mutual focus on solving these issues, hard-selling the medium and moving head-on into the third phase.

     

    Although it still does not address certain issues, Phase III should help open up the market for players to expand to newer markets and increase their radio footprint. What will be interesting to see is the change in dynamics that will come into play on account of the large number of non-metro stations that come up in the third phase, bringing radio on par with media like television. Advertisers will be able to benefit from this growth, leading to increased revenue potentials for radio. Moreover, with growth expected from smaller markets, the spends by national advertisers in these markets will also grow as no other medium offers reach like radio, in the fastest possible time, addressing challenges in a particular market and in their local language.

     

    Media spends by advertisers are not proportionately allocated to radio even though it has outgrown other media in time spent. As per the recent RAM research conducted in the four markets of Jaipur, Ahmedabad, Nagpur and Indore, average time spent listening to radio is 160 minutes as compared to IRS figures of 107 minutes watching TV, 85 minutes reading the newspaper and 30 minutes on the internet. If properly planned and used innovatively, the radio can do wonders for a particular brand. Hence, there is a need for enhancing the medium further to highlight its mammoth reach and effectiveness, which is what the radio industry as a whole should strive to do. Furthermore, radio needs to be bought on the strength or merit in particular target geography instead of as a network. Having said this, creative selling of radio has allowed greater inroads for some brands, especially in Tier II and Tier III markets, which are rapidly expanding.  Some of the key reasons have been the unique strengths of radio like customized communication to address local market needs, and ‘radio properties’ that contribute significantly in brand building.

     

    Sanjay Hemady

    Sanjay Hemady, Chief Operating Officer, HIT 95 FM,

    FM Radio is young, it has been evolving for 10 years and growing, adding value every single day to the listener and advertiser, its vast, extensive and unparalleled reach undoubtedly will take longer. Other mediums have taken long to establish, why should we compare with traditional mediums when there is no race, there is so much to achieve as a standalone medium. Radio broadcasters have been working towards creating their own territory, convincing clients, brands. The broadcaster is learning with day-to-day experience to give its best, by listening to the listener, by changing formats as necessary, positioning it differently, etc… it will take its own course, the time will come. We love objections and we solve them meaningfully.

     

    Expansion to newer markets will mean a bigger reach, we will get to entertain far more listeners than today, new formats will come in, fresh new talent gets identified, more jobs will get created, more brands will add radio as a definite medium. Give it some time, FM Phase III will subsequently open up a bigger offering for brands to reach out to more consumers.

     

    The top evolved brands across all mediums are convinced with radio, they have been consistently advertising since FM got privatized. Radio is a reminder medium, it scores on immediacy, it is about consistency and brands who have believed in the future of this medium have benefitted immensely. Brands who have worked closely to understand this medium and used it effectively are a happy partner. Going forward a collaborative approach will add more to this growth, and other extended avenues like Mobile Radio, Internet Radio, Radio Activation will also add revenue.

     

    Prashant Panday

    Prashant Panday, CEO and Executive Director, ENIL (Radio Mirchi):

    I disagree that it is a poor cousin of the other media! Each medium has its own relative size and one has to keep that in mind. A 48-kg lightweight boxer gets the same Gold medal in the Olympics as the 85-kg heavyweight winner gets! They are separate media and should not be compared. However, what is indeed correct is that even radio’s natural share has not yet been achieved. Worldwide, the share of radio is 8.5 percent, and this is just the average. In the countries where radio has developed well (US, NZ, Sri Lanka etc), radio’s overall advertising share is 12-13 percent. In India, radio’s advertising share is just 4.5 percent and the reason for this is that the government has simply not released enough frequencies. The share of radio will increase if 400 Khz separation is adopted by the Government as recommended by TRAI. That will increase supplies to 18-20 private channels per city.

     

    FM Phase 3 will only increase share from 4.5 per cent to 6 per cent or so. If we want to go to 8 percent or more, we have to release more spectrum in the major markets.

     

    Radio has become a “core” medium now. Every advertiser uses radio and they use it all the time. In fact, radio pricing is also quite strong. Did you know that Radio Mirchi is in the top 10 electronic media brands in the country after Star Plus, Zee, Colors, Sony, DD, Sun TV, 1-2 sports TV channels… It’s bigger than all music channels, all news channels, all regional channels, and all movie channels!

     

    Suresh Sanyasi

    Suresh Sanyasi, National Sales Director, Radio Indigo

    Yes, people consider radio a poor cousin. This has happened because of the endurance power of the medium. The people who do not understand the potential of the medium, cannot do much for it. Radio is and will remain a traditional mass medium. Radio works differently in different areas. Unlike television, this medium takes the demographic and area listenership into consideration. Radio as an advertising medium is harnessed largely by the retail sector and their ad spends on this medium is increasing. The medium provides immediate ROI, and is measurable.

     

    Regulatory issues are hampering the content creation on this medium. News and features get immediate audience. Once the regulations are eased, listenership might also increase.

     

     

    B Surender

    B Surender, Senior Vice President and National Sales Head, Red FM

    It is unfair to compare the growth and size of FM radio industry on equal terms with the print and television media here in India. To start with , FM radio was launched extremely late in India around 2002 with steep licence fees,  restriction on genres, frequencies, etc  making the business virtually unviable till the year 2005. It is only after phase two expansion with some policy corrections around 2005-06 that the industry started taking off. It has already grabbed an impressive 4.5 percent share of the media pie in India. If the Government frees FM radio further from its shackles through its phase three policies, one can expect terrific momentum in its growth.

     

    In my opinion, the  biggest roadblock for the industry’s progress currently is the most unreasonable restriction on entering newer genres like news and current affairs, live sports etc,  clubbed with issuing of multiple frequencies within a city. If the television industry was given the freedom to operate in these genres inspite of it being visually enabled, why not the FM radio industry?

     

    Phase three means a lot to our industry as it’ll considerably improve geographical coverage and reach, and enable content differentiation, to a reasonable extent, thanks to the provision for existing radio players to acquire multiple frequencies in the same city. It will consequently attract more categories of advertisers locally as well as nationally and more importantly, increase the depth of consumption of those advertising already. This in turn should take its share of the ad pie up to 7-8 percent. If they free up the news and current affairs genre, which is considered the second biggest genre on radio, properly, then the share of radio can potentially touch double digits over the next few years.

     

    The key word is ‘evangelising’. Industry players need to take up the task of promoting the enormous benefits of this amazing medium in such a manner that advertisers get a more holistic understanding. In India, listeners have lapped up the medium wholeheartedly across age groups. There is a clear case for radio players to pool their precious resources and launch a RAB (Radio Advertising Bureau) kind of initiative in India on the same lines as USA, UK, South Africa, etc to evangelise the medium among advertisers and ensure a substantial share of value in their minds.

     

    What advertisers and media agencies have to say:

     

    Anwesh Bose

    Anwesh Bose, Senior Vice President, DDB MudraMax

    The answer lies in the question itself. The argument today is why radio is the poor cousin. The entire eco-system of communication that is advertisers, agencies and the media owners are to blame for the condescending perception regarding the medium in our country. Before we answer the “why” we need to know the ‘what’s.

     

    The knowledge gap: most of the ‘professionals’ in the communication eco-system are not aware of the number of radio stations that exist in this country and a handful of them have ever seen a physical copy of the AIR rate card. An interesting fact is that the geographical coverage of radio is higher than that of any medium in this country and very few are aware of it.

     

    The information gap: Unlike TV and print, radio has very little data to prove its effectiveness and efficiency. In the times that we live in, most of the communication planners are data clerks; therefore for them radio is nothing but a ‘cheap’ medium that is local and low in reach therefore it is an option not an important component of a media plan.

     

    The perception gap: due to the lack of knowledge and information, the perception regarding the medium is dilute. Dilute perceptions lead to misplaced notions. The radio media owners have themselves done a lot of dis-service as well. There is an identity crisis among the radio brands because all of them are busy copying each other, as a result of which everyone is a ‘me-too’. Add to it the fact that it is a medium that has a one-time entry cost and no recurring costs, therefore the complete dependence on advertising revenues for sustenance. Anything that is ‘free’ is not valued.

     

    The ‘why’ will remain ‘why’ unless the ‘what’s are rectified. I would like to conclude by saying that it is imperative that the glaring gaps are closed and it is up to the stakeholders to do their bit. It calls for thought leadership – are we up to it?

     

    Abdul Khan

    Abdul Khan, Senior VP, Tata Teleservices

    I think poor cousin is an unfortunate phrase to be used for this medium. The current share of advertising pie that radio gets is about four percent. And, we only have ourselves are to blame for this. The problem is that the mode of distribution (airwaves) has been confused with medium. There exists woeful situation of lack of innovation, programming and talent in this industry. Radio is not in sync with the youth of the country, which is the biggest drawback given that youth is the TG for every other medium.

     

    The last remarkable property that one remembers on radio was Binaca Geet Mala. And radio now beams music when there lay enormous possibilities when it comes to programming. There is an enormous opportunity of delivering creativity through audio waves.

     

    Radio currently is not offering genuine value. Except for radio forums where issues and solution are discussed, there seems no sense of urgency from within the industry and the ecosystem. Even the discussions do not lead to reforms.

     

    Government regulation is not responsible for this situation. Yes, there have been regulations but other mediums also face regulations. What the ecosystem needs to understand is the fact that radio as a medium has enormous possibilities.

     

    Vivek Srivastava, Joint MD, Innocean Worldwide

    The perception of radio varies according to the advertiser’s profile. For the local advertisers, like retailers and jewellers, radio is a high-performance medium and a primary advertising medium at times. But for national and established advertisers, radio suffers from an image problem.

     

    Radio has been traditionally typecast as a low-preference medium. It has been treated as a transit medium, a medium that people listen to while they are driving or travelling. People believe that even with listeners accessing radio through their mobile phones, the listenership is actually percolating down.

     

    What is also hampering the growth of the medium is the fact that radio is a victim of current circumstances. There is hardly any money put in when it comes to producing for radio, even when huge budgets are allocated for production in print and television. Yes, we do see flashes of brilliance on this medium as well but it is only far and between. The whole ecosystem is responsible and should act towards making this medium more rich.

     

     

    Sanjay Tripathy

    Sanjay Tripathy, Executive Vice President-Head Marketing and Direct Channels, HDFC Life

    Radio is considered a very topical medium and advertisers can customize messages to geographies and city. While there is a great amount of flexibility that the medium offers but there are certain issues that the medium has:

     

    1. There is no channel or programming loyalty by consumers – Consumers listen to songs and not so much to content.

     

    2. It is still a medium (in larger cities) which is heard while concentrating on doing something else ie driving, cooking, etc. Therefore it becomes a medium that is on the background and not so much a primary entertainment medium as television.

     

    3. Radio Channel software ie Radio Jockeys have not been able to build loyalty with the consumers / listeners.

     

    Therefore, radio has become a support media to television or print, and is primarily used as a reminder medium.

     

    Radio industry is using qualitative / quantitative researches to convince marketers/advertisers but these are researches done by radio channels independently and marketers do not get a third party verified data.

     

    RAM, the measurement system for radio is not considered to be a credible system.
    Few of the reasons are:

    • Diary- entry method- whereby a selected person, maintains a diary of radio stations tuned into.
    • Coverage of just 13 cities including 4 metros.
    • Small sample size of 480 is used in metros to measure the effectiveness.

    Thus, advertisers and radio industry are concerned about accuracy, authenticity and relevance of RAM’s ratings. In my view, in order to be an efficient system, RAM must have higher sample sizes that are statistically significant, transparency in processes and electronic gathering of data.