MxMIndia

Tag: MxM Mondays

  • MxMIndia asks industry veterans why media measurement is forever mired in controversies

    MxM Mondays | Why do we love to hate Media Measurement?

     

    By Ananya Saha

     

    Media measurement in itself is a very sensitive topic. Every data is looked at with apprehension. Why is it that all measurement statistics are scrutinized with apprehension? Why is it that objections are raised time and again, with regard to the findings? Have we lost faith in media measurement tools? In this edition of MxM Mondays, we spoke to a cross-section of industrypersons on the issue. TAM Media Research did not wish to participate given the current controversy and Nielsen Managing Director-Media was unavailable for comment, though he did speak to MxMIndia on the issue last week – see link)

     

    Lynn de Souza

    Lynn de Souza, Chairman and CEO, Lintas Media Group (also Chairman of the Readership Studies Council of India)

    Ordinarily, it is the ones who are measured who do not like what the measurement index throws up – because in any index there can only a few leaders. So, the majority could have some issue or the other.

     

    It is human nature to then pick on the messenger rather than the message.

     

     

    Santosh Desai, MD & CEO, Futurebrands

    Santosh Desai

    There are issues with media measurement in its current form. But it is also true that any form of measurement is always resented. The resentment stems from the fact that one, it is quite shallow in approach when it comes to reach and importance. Secondly, it stems from when the mental picture of your media’s reach and influence does not match with the reality of the numbers. It then becomes difficult to reconcile with reality. Third, what with the anecdotal stories about how numbers are arrived at, you tend to believe that you are on the wrong side of the great picture and the statistics are unfair to you.

     

    Personally, I believe that TV needs a new measurement currency. The current currency is also influencing the quality of TV that we watch. The media measurement does not account for engagement and reach, which from advertisers’ perspective is a huge injustice.

     

    On the other hand, the clients need to be ready too to pay for it in case they wish for more clarity in measurement results.

     

    Media measurement, in its current form, needs to be modified. The issues that are highlighted with the current measurement system need to be tackled in a very transparent way. Conceptually, what is being done is not adequate. What can make it less contentious is including more people in the process, and make it much more transparent.

     

    Bharat Kapadia, Chairman, Whatuwant Solutions (also until a few years back:Vice-Chairman, MRUC)

    Bharat Kapadia

    We do not love to hate media measurement. But we are usually put in such a situation that we hate it. There are two reasons for this. One is ‘legacy’, which we have been following. We have learnt and built the media measurement architecture learning from international models, which are not very suitable for Indian conditions. Secondly, the problem of ‘investment’. We believe in not investing much cash into the measurement system. Like the famous saying goes, ‘If you cut corners, all you get is a round zero.’ This has resulted in the current plight against media measurement. There is, however, a great possibility for change and an opportunity to improve the research methodology and structure. It is not as if current media measurement systems are in bad shape or in pathetic condition. One needs to understand that the current measurement system captures only certain segments, and thus turns unfair since it becomes the currency that everyone abides by. This currency can harm somebody’s business too. The main problem is to have a robust mechanism to check the data collection from where all the problems start.

     

     

    Sriram Kilambi, President, Bloomberg TV India

    Sriram Kilambi

    There is a lot that rides on media measurement of the current media industry, which is about Rs 15,000 crore of television media, 10,000 crore of print media and 10,000 crore worth of radio and other media. The industry does not seem to invest in proper measurement tools and mechanisms.

     

    Media measurement currently is sub-optimal. Since there is no other mechanism currently present, we have no option but to trust the numbers presented. The standard errors in the media statistics are too high, that is why the industry cannot seem to trust the data. The media measurement needs more investment.

     

    Why cannot the advertising industry and the media industry come together to formulate and create a coherent measurement system?

     

    Sanjeev Kotnala, VP, Dainik Bhaskar Group

    Sanjeev Kotnala

    ‘When did you quit smoking?’ is the classic trap question. ‘Why do we love to hate media measurement?’ falls in the same category.

     

    ‘Love to hate media measurement’ is an involuntary reaction. We all hate report cards. The foundation for that was laid while we were studying. At least for me, this holds true.

     

    Media measurements need to be accepted as an industry yardstick with constructive participation by stakeholders in the process of measurement. Not a Black Box that opens at a regular frequency to decide your fate. Till the process and the results meet expectation, everything is fine.

     

    But when we use media measurement as the final verdict, the problem starts. More so, with a lot at stake on a non-transparent extrapolation of small set of data points. Actually media measurement should have had a wider role in product health measurement and for that people should have been pushing transparently for the qualitative enhancement of methodology and matrices. Sadly, current media measurement systems have not kept pace with industry growth and changing needs.

     

    So it’s not me. And at the stakeholder end when each and every element of media measurement in terms of width and depth, process and transparency does not seem credible or transparent or reflecting ground realities, it is bound to give rise to debate and that normally ends with a love-to-hate situation.

     

    The stage we find ourselves at in the industry is not something new. I believe that objections have been raised by section of users at different point of times in forums and formats. Some media measurement process owners have shown just openness to ideas and changes. Mostly they have been feeling good. Unfortunately, with many fates riding, more questions than answers will be available. Net take out: Not Being Heard? Definitely it will not breed Love.

     

    More so when it is a single monopolistic currency, media measurement tend to lose its credibility. And anyway that only has a B2B importance. For the common men it makes no sense. They do not read, see or listen based on media measurement. They do that when the content touches them. And this traction is visible on ground level much before media measurement can reflect it. This lag makes media measurement redundant and at times irrelevant.

     

    It will always be debated till such time as measurement remains restricted to just the size – a numeric tag and not about impact.

     

    Trust, all stakeholders want a participative, constructive, transparent, collective process. And in that case these bodies must be completely neutral with all relationships at arm’s length. (*This is a personal view and not that of any company/brand, Mr Kotnala represents).

     

     

    Lloyd Mathias, Director, Greenbean Ventures (Former CMO, Tata Taleservices & Motorola and  Immediate Past Chairman, MRUC)

    Lloyd Mathias

    Media measurement – whether it is TAM for TV channels or IRS for newspapers – has always been a contentious issue. Usually it’s the media owners who feel aggrieved — especially when the results do not meet their expectations. They then want to shoot the messenger.

     

    There is a strong case for tightening media measurement tools. Often results tend to be inaccurate because media owners try to influence the respondents or the research company. Yes, the measurement methodology and samples need strengthening. For instance, TAM’s sample of 8,500 homes – measuring the television viewing habits of 1.22 billion Indians – is definitely limiting.

     

    Industry stakeholders – advertisers, advertising agencies, media owners and media agencies – need to come together and work towards effective media measurement that benefits all.

     

    It’s currently the advertiser who bears the brunt of the impact as it is their advertising moneys being wasted.

     

     

    Maheshwar Peri

    Maheshwar Peri, Chairman and CEO, Careers 360

    When there are very obvious mistakes, acknowledged by the research agency and also all parties, it is also accepted that the continuance of such mistakes is hurting stakeholders badly, but when no concrete step is taken to solve it, we lose faith. Besides, each measurement benefits or hurts each stakeholder and they will continue to question it.

     

    We haven’t yet questioned Google or ComScore as they are scientific. However, if it is sample-based, not foolproof and very obvious errors have been detected, they must be corrected.

     

    This dogfight between the stakeholders would continue till we find a way to make it more objective and scientific.

     

  • Are endless soaps, reality shows and mythologicals all that there is to general entertainment?

    MxM Mondays | Is there a crisis of ideas in Hindi GECs?

     

    By Ananya Saha and Meghna Sharma

     

    From ‘Buniyaad’ to ‘Bade Achhe Lagte Hain’, from ‘Mahabharat’ to ‘Satyamev Jayate’, Hindi entertainment has come a long way. In the channels’ bid to outdo each other in the TVR race, content can take a back seat. Can lavish sets, repeat telecasts, and infinite numbers of episodes help the GECs to win the race? Is the audience ready to lap up the same themes and content?

     

    The theme for this week’s MxM Mondays is ‘Is there a crisis of ideas in Hindi GEC?’. MxM spoke to a crosssection of industry veterans to find out.

     

    Ajay Kakar, Chief Marketing Officer – Financial Services, Aditya Birla Group

    Today, there appears to be a herd mentality when it comes to programming on GEC channels. What we have always noted in Bollywood seems to now reflect on TV too: the ‘success formula’ syndrome.

     

    If one kind of serial or format succeeds, there appears to be a rush, across channels, to try and follow and replicate that seeming formula, be it the trend of reality programmes, dance shows, talent hunt or even soaps.

     

    This apparent commoditisation makes decision-taking more difficult, as a marketer, when you are screening the market for opportunities.

     

    Anamika Mehta, COO, Lodestar UM

    In many ways, yes. We continue to see the same content and programming repackaged and marketed differently. While a couple of fresh initiatives have been undertaken over time, probably the fact they have been literally a handful is reflective of crisis of ideas. So there have been soaps and ore soaps with some twists right from the ‘K’ days to some with a social tack to comedy to the global reality formats customised to Indian flavour and culture. Given the fickle Indian viewer, and the fact that a GEC talks to the lowest denominator; the challenge is to bust existing myths and formula. And experiment large for success.

     

    Anita Nayyar, CEO, India and Southeast Asia, Havas Media

    When Colors was launched it brought a set of fresh content and then both Zee and Star followed it. It was a refreshing change because everyone was fed-up with the saas-bahu sagas. And as for the reality shows, most GECs are following safe genre which has worked well with the viewers. One must realise that programming costs are high and when a programme doesn’t work, it affects the channel. Therefore, a channel has to be very careful about what it puts out in front of the viewers. So, a time-tested genre is what most of them opt for, unless and until a broadcaster is very confident about a format and willing to take the risk.

     

    Indian viewers in general prefer only certain genres – serials, Bollywood related shows, reality shows (where they can related to the lesser known aam adami) and movies. Therefore, channels too prefer to revolve around these genres. For a channel viewership is important because only that will bring in the revenues.

     

    Himanka Das, senior vice president – West, Carat Media India

    Well, I won’t call it crisis, it has definitely become dynamic. Considering the dynamic nature of viewership patterns, viewers do not watch channels by appointment viewing but they watch programmes by appointment viewing. Having said that, it also reflects the way a broadcaster changes programming strategy within a span of 13 weeks most often, though very few of them that go for a longer period. In the term ‘GEC’, the word entertainment has significant relevance to viewers; so long as content entertains the audience, that becomes the longevity of a programme. In that regard, broadcasters do realise the competitive nature of business and are constantly trying new formats and topics in relevant time bands to keep eyeballs going.

     

     

    Jahnavi Pal, TV analyst and columnist

    If one surfs through different Hindi GECs today, he/she will find the same clichéd concepts and sometimes even titles. Today the trend is to name a serial after an old Hindi song! Broadcasters feel that is what viewers want, but to be frank it’s not true. No one is ready to take a risk. They follow each other or ride on a previous show’s success. For example, if a show XYZ was a success then others will have shows which are loosely based on it. However, there are some who are ready to take a chance; take Star Plus for instance, which showcased a revolutionary show – Satyamev Jayate. Agreed, it’s not a primetime soap opera, but a GEC did take a risk in showcasing a show like that on a Sunday morning. There are other shows like ‘Kuch toh log kahenge’ and ‘Bade achhe lagte hain’, which started off very well but somehow now have lost their plot and have become diluted. Therefore, it wouldn’t be correct to say that there is a dearth of ideas because there are plenty of them, it’s the willingness of a channel to take risk is more crucial to take the industry forward.

     

    Nikhil Sinha, producer, Triangle Film Company

    There is scarcity of fresh ideas on GECs. Right now, the trend is about following each other; if one idea works for a channel then others too will start making projects on similar lines. New concepts are considered risk-taking propositions. However, one shouldn’t be surprised if one channel took the risk to experiment and it becomes a hit, others too will follow suit. I feel that GECs should try out new concepts as audiences are maturing too. However, what will click can’t be guaranteed in advance. Having said that, I also know that consensus between business and entertainment is also very important.

     

     

    Sajal Mukherjee, Media veteran

    All channels are trying their level best to create distinct content and appeal to specific audiences. Star Plus, which is the number one channel, dominates the scene when it comes to well-produced programmes, and all the other channels like Zee, Sony and Colors try to emulate the same formula. The shows on every channel go on and on, and they try to stretch the same content without changing the format, over a very long period of time.

     

    It is actually a vicious circle. Each serial has three important parts: content producer, advertiser and viewer. If the channel produces a good show, but it gets no advertisers, because of no or less viewership, the content producer has to balance the budget of the show. If there is no money, the production values also go down.

     

    The channels need to experiment more. KBC has had a good run, and still enjoys dedicated viewership. Satyamev Jayate was appreciated. It is only a question of stretching the innovation. Every channel’s focus is to get the viewership, and advertisers. Once they start making money, then they produce better shows. But it is important that every ‘me too’ channel tries to create different programming.

     

    Saurabh Srivastava, Producer, Panglossean Entertainment (of ‘Phir Subah Hogi’)

    I do not agree that Hindi GECs are facing a crisis of ideas. We, the producers, brainstorm every day to come out with new ideas. At the end of the day, it is just a competition. There are so many Hindi entertainment channels, we try hard to make our shows distinctive and different from all other shows. We work very hard on every show. It is definitely quite hard, but we have to keep trying.

     

     

     

    Shailesh Kapoor, CEO – Ormax Media

    There is definitely no dearth of ideas in GECs. The GEC category inIndiais only about 20 years old, and has constantly evolved in terms of new ideas, formats, stories and genres. Having said that, the culture of daily shows has stretched the GEC content machinery over the last 12 years. The pressure to deliver episodes round the clock means that the creative teams spend less time on ideation and development, and more on execution. This, in turn, leads to an under-exploitation of the potential. Channels and production houses should focus on creating a robust pipeline of strong ideas, which can be tapped when the requirement arises. This would ensure that the creative abilities of the teams, both channel and production, are utilised to their potential. Focus on content development, as against just content production, will ensure that better, bigger ideas see the light of the day more often than what’s happening currently.

     

    Sukesh Motwani, head – fiction programming, Zee TV

    I wouldn’t say that there is a crisis of ideas in Hindi GECs; on the contrary they are doing their best to entertain their audiences. However, I do think that broadcasters will have to decide and show confidence about how much they are willing to experiment with. Zee has always believed in going a step forward and has taken bold steps. For instance, right now we have a paranormal show called Fear Files and earlier we showcased Jhansi ki Rani, a historic saga about a female protagonist. Who had ever thought of it before?! Even our other shows like Choti si Zindagi and Karol Bagh have been different in their approach.

     

    Today, channels are focused on genres like thriller, crime, family drama; but we have to answer the bigger question – are GECs ready to get into genres like dark comedy, science fiction or a violent tale? There is an on-going debate regarding this because most GECs cater to family audiences. So one does have to take this into account. Therefore, for me, the bigger question is, how many genres are GECs open to?

     

  • While spends may be shifting to digital globally, in India, television and print still rule. Sigh.

    MxM Mondays: Why do marketers not spend enough on digital media?

     

    By Ananya Saha and Robin Thomas

     

    According to the latest IAMAI-IMRB report on Digital Advertising, as of March 2012, the total advertising spends, including classifieds, was valued at Rs2,850 crore. It is expected that by FY2013 the digital advertisement spends will be Rs4,391 crore.

     

    Search advertising constitutes about 20 per cent of the total online advertising spend or about Rs570 crore. Display advertisement, which has many components, forms a sizeable portion of advertising spends. Advertisements on portals and vortals form 13 per cent of the overall pie (Rs369 Crores). Advertisements on Social Media, Email and Videos over the Internet form 3 per cent (Rs94 Crores), 5 per cent (Rs144 Crores) and 2 per cent (Rs59 Crores) respectively. Mobile ads form nearly 4 per cent (Rs90 Crores). A major proportion – around 53 per cent of the overall digital advertising spends – are classifieds listings (Rs1,496 Crores).

     

    These numbers seem impressive, but there has been some concern that marketers are not spending enough on Digital Media. The theme for this week’s MxM Mondays is ‘Why do marketers still not spend enough on digital?’ While marketing spends may be shifting to the digital media globally, in India, television and print still rule. Is it because digital still doesn’t reach the masses, and homemakers, in particular? Or is that the bucks (hence commissions) are still big in TVCs? MxM spoke to some players in the industry to find out:

     

    Ambika Sharma

    Ambika Sharma, MD and CEO, Pulp Strategy

    The shift to digital media is not happening as fast as the industry would like it to be. However, we are witnessing an increase in aptitude and attitude with regards to usage of digital media. Marketers are not using the media aggressively as they prefer to wait-and-watch. Even then, they are aggressive on ‘search marketing’, but not other aspects of digital media.

     

    There is hardly any youth brand which is currently not on digital platform. Education is one prominent category that has been using digital media. The cents for digital, however, remain restricted. But as the impact of digital media grows, the impact of mobile advertising has seen a decrease as most people now do not prefer to click on banner ads on mobile screens. Some studies show that in the past one-and-a-half-year, the user has been ignoring banner ads.

     

    The digital spends depend on ROI, search and impressions, which needs robust backend engine. E-commerce websites have been the heavy users of digital advertising to create impressions. But there is little or no response mechanism on impressions and the visibility is highly fragmented. The numbers, like there is TAM for television, are not available for digital media. If a marketer advertisers on three digital platforms, every platform gives their own numbers. So, there is no comprehensive measurable strategy.

     

    Going forward, digital media will grow, but it will be a long while before it catches up with other media vehicles. Lotof factors such as measurability, reach, people not preferring to buy online are affecting the growth.

     

    Gyan Gupta

    Gyan Gupta, CEO, I Media Corp Limited (IMCL), Dainik Bhaskar

    In the US, the online spend is 29 per cent of the total advertising pie; in UK, it is 26 per cent. Now if you see the figures in India, it is not even 5 per cent. The trend shows that there will be 50 per cent increase.

     

    But I will not say that marketers in India are spending enough yet. The typical spender (who spends on television) is yet not on-board. Till the main spenders come on-board, the growth will be limited. FMCG’s have a deep share of the pocket, and it is necessary that they spend on digital media. Auto companies, e-commerce companies, financial companies have been heavy spenders on this medium.

     

    What are the marketers spending on, and how they spend also becomes important. What needs to be analysed is if the cost of acquisition is happening, if the leads are getting generated, how much a brand is spending on digital activation vis-a-vis on brand promotion. Trending is happening. This year will actually showcase the brands spending on digital media.

     

    Harneet Singh Rajpal

    Harneet Singh Rajpal, Vice President-Marketing, Domino’s Pizza India

    The use of digital media is picking up in India. For any marketer present in India, the digital media is beginning to become a part of their media plan. It is on radar for everyone, especially in the categories where youth is the target.

     

    For Domino’s, digital media has been important ever since we began our online ordering platform. Currently, it helps us drive traction. Hence, our media spends for digital medium have increased over the last two years. For us the return-on-investment is visible for every buck we spend on this media, since it results from direct conversion from inventory to revenue generation.

     

    We now spend close to 4-5 per cent of our total advertising budget on digital marketing, from almost nothing in the last two years. We work with leading publishers in the domain to create applications for Google search, Facebook and social media. I must say that on Facebook, we have the largest number of fans in the food category, and also followers on Twitter.

     

    Social Media management needs time and investment. It is important that the brand keeps the target in mind when planning the digital activations. Going forward, marketers will have to evaluate the prospects digital media brings. Of course, that depends on category to category. Digital media is still limited because of its reach, whereas traditional media garners higher reach. Also, the confidence about using the media is not too high among the marketers since there are no hard numbers to prove its success. The penetration of internet and the efficacy of the media will be tested over time.

     

    Jonathan Bill, Senior Vice President and Business Development, Vodafone India

    Digital Advertising is a growing medium in India. It will be everything we are hoping it to be and that too quicker than we think, so I think the business is starting to get in a healthy shape. The advertisers are starting to embrace digital more openly and they should do so, because India has the third largest internet population on the planet.

     

    On TV and Print bagging bigger ad share, I think that is a legacy issue among advertisers, but I do get a sense that it is fast changing. In the West, however, TV and Print advertising have declined in favour of online advertising. Print, therefore, has very less revenue share from advertisers as compared to online advertising and now online is beginning to even threaten television as a medium.

     

    I think we just need to continue on the path we are going. The quality of sales and, to a certain extent, the market needs to be made. The West took nearly two or three years to be made as far as the start of digital advertising market is concerned and in India we are only about a year ready. So, I am very bullish on digital advertising in India, particularly on mobile on three to five years timeline.

     

    Narayanan SP

    Narayanan SP, Senior Vice President, and Head VAS Mobile Commerce and Long Distance, Idea Cellular

    Compared to the global benchmark, certainly advertisers in India are not spending as much money on digital or mobile, but this is something which will change over a period of time. Marketers are experimenting to see if it makes sense for them to connect digitally for certain set of products/features and whether digital is the right medium to communicate or engage their brands. Thus, lot of experiments are happening.

     

    On the internet front, we are already seeing a significant traction which may not be as big as the international market because of the low internet penetration in India. So if you are looking at a certain type of product wherein the target audience are already digitally connected, then it makes immense sense to go digital. Digital, I believe, will evolve as more and more customer profiling is done and advertisers are able to target their customers precisely. When advertisers are able to measure the ROI (Return on Investment), then we definitely believe that a lot more investment will come into digital.

     

    The fact that TV and Print still bag more advertising share will definitely change over a period of time in terms of mobile being one of the vibrant channels. This does not mean print and television advertising disappear but, you will see an increase in spends on digital advertising and mobile advertising in particular over a period of time. This is because mobile is able to give the advertiser not only a more precise profile of the customer which makes it a lot easier for the advertiser to reach out to its consumers effectively, but it also allows the advertiser to interact with customers and measure the results of their campaigns effectively.

     

    Mobile industry, for instance, has a wealth of data in terms of customer usage, but there has not been much mining of the data which can be heavily leveraged by the advertisers. However over a period of time, you will see a lot more advertisers leveraging this data.

     

    Rakesh Rao

    Rakesh Rao, National Sales Head, Zapak Digital Entertainment

    The digital media has been growing exponentially. The year-on-year growth of this media vehicle is close to Rs2,800 crore, and is supposed to reach close to Rs4,000 crore in a year. So to say that it is not a preferred media would not be the right statement. Of course, it is not a dramatic growth, but given the growth of internet and smart phones, digital media is becoming a part of our daily life. The marketers are also following the trend.

     

    The ROI, when compared to TV and radio, is much more measurable. Cost per lead and cost per click measure actual conversions. This is the only interactive platform too, while rest of the media only give reach.

     

    Education, travel, finance are becoming the biggest spenders on digital because of conversion aspect. E-commerce, and categories like travel that look at selling inventory believe in digital media.

     

    The challenges that this media is encountering is getting TV-centric brands such as FMCG onboard because of reach. It is a given that while TV is cost-effective when it comes to reach, digital media will catch up in some years. About 60 per cent of these brands are on digital, but 40 per cent need coaxing. There is no hindrance apart from the fact that broadband numbers need to grow. Digital media is here to stay and grow.

     

    Sandip Tarkas

    Sandip Tarkas, President (Customer Strategy) and CEO, Future Media and T24

    As far as Future Media is concerned, our advertising spends on digital have been increasing year-on-year. Despite a lot of digital activities done by marketers specifically on social media, it does not reflect in spends. The problem with digital is not a lack of a credible or universal measurement system, but the fact that it is too measurable as people try to measure every little thing. Although there are so many metrics which evaluate the digital medium, I don’t think it is a lack of measurability at all, as in digital we are clearly able to measure our CPM’s (Cost per Thousands) and so on. Digital is something we use for more engagement rather than reach because it does not offer reach.

     

    We look at advertising based on two things – reach and cost efficiency. And then you look at everything else – whether the medium is interactive and so on. So, it is primarily about reach and cost efficiency. Digital media spend in India is a reflective of India’s internet penetration, whereas in a lot of markets digital penetration is very high. In those markets both print and television advertising have declined and digital advertising has been growing.

     

    In India too, digital is growing much faster than the traditional media, and the growth of the media certainly shows the growing importance of digital. The current size of the digital advertising pie is reflective of the kind of inroads it has made in the country.

     

    On digital being a 360-degree medium in itself and the role of online video and social media advertising, the biggest gain happening in digital at present is the fact that it is changing quite rapidly. Since the late 90s when we first started using digital advertising until now, the role of the medium has changed quite drastically.

     

    Digital today not only offers more opportunities for engaging the consumers, but the vehicles used in digital have also been changing with time. For instance, in the early days television ads would continue for quite a lot of time, but today with more options, even the television channels have begun to announce that the programme will be back in say a minute or two. So as consumers have more choices, the way the medium gets utilized also changes. Digital, I believe, be it in any form – video, social, mobile – if it is not going to be interactive, it will not be very successful.

     

    For anybody targeting the youth, digital is an inescapable medium. I believe the biggest change in digital advertising will take place through mobile, particularly mobile VAS and the data cost. Growth spurt in digital advertising will also come through the increase in smart phone usage and the lowering of data cost will revolutionize digital advertising.

     

    This is because India has a very high tele-density and today mobile phones have reached the lower-most strata. I believe digital advertising in India will explode once mobile advertising comes of age but, right now it is still in its infancy.

     

    Eventually digital advertising will impact television and print ads as marketers will have to allocate their budgets for digital advertising, once it comes of age. It may probably hit print advertising first and then television but for that to happen there is still some time.

     

    Sanjay Tripathi

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

    There is still limited spend on digital due to lack of knowledge about the medium and utilizing it effectively as a part of marketing plan; reach/penetration of the medium; and its ability to create impact in the short term. Digital still reaches about 10 per cent of the Indian population and there hasn’t been much of a development in building infrastructure to support the growth of internet. TV continues to be the mass medium which gets the maximum eyeballs and reach.

     

    While the ROI variables will drive spends to digital, marketing needs a serious mind shift to look at the additional advantages which digital brings along –  a medium which allows two-way dialogue  and measurability to the last mile.

     

    Thirty per cent of our budgets are dedicated to digital this year – a big move from the fact that we spent a negligible amount last year. As BFSI marketing and advertising becomes more ROI focused, digital media will play an important role. Digital budgets will have a healthy growth each year and will also account for a significant part of the marketing budget.

     

    While marketing spends may be shifting to the digital media globally, in India, television and print still rule. This is because reach plays an important role. Penetration of Internet in India is still low compared to international markets. The consumption of non-traditional online media is still low and 360 degree integrated communication planning in India has not evolved to have online as an integral part of marketing plans. Also, online medium do not works in sync with other media.

     

    While there has been a tremendous amount of growth in the usage of internet among SEC A, SEC B audience, internet is yet to gain as big an audience in tier 2 or tier 3 cities. TV continues to be the mass medium due to lack of digital infrastructure. It is the reach and channel affinity which mainly drives the spending and this is where a traditional channel like TV gets one up over digital. There is also a problem of lack of content on digital. Either the content has not been customized to cater to the audience or often the language becomes a hindrance in consuming the content.

     

    But digital media will make a huge impact. Level of engagement, interactivity and ROI afforded by the medium means it has big role to play. For brands which don’t engage their users online will tend to lose their relevance. As reach increases, the importance and level of competition will also increase –  YouTube already affords a higher reach compared to most of the TV channels and is increasingly becoming an important part of the traditional media mix.

     

    Digital offers tremendous potential for business – whether it’s about spreading awareness or generating business even in the face of a slowdown. In fact, as people tighten up their purse strings, they will want to do more research before they arrive at a purchase making decision and internet remains the primary medium of product research.

     

    I see the spends going up because the whole media pie has been asymmetric- if you look at the reach-frequency formula and compare it to TV, print, radio and then digital. There are more people spending time on digital in comparison to other traditional media touchpoints. I see the digital percentage increasing in the overall pie.

     

    Youtube and pre-roll videos have become a mainstay when it comes to hosting TVCs on digital and these unique ad formats are as effective in reaching out to audience as a TVC. For print QR codes help bridge the gap between offline and online world.

     

    Saugata Bagchi

    Saugata Bagchi, Senior VP, Tribal DDB India

    The primary challenge is the need of cracking an ROI metric, which is acceptable by advertisers across the board.  The media spends are happening, but is it delivering enough clickthrough rate goes unanswered. Digital media cannot ensure high reach like television, but with 12 per cent penetration among various categories it can definitely give high frequency. Currently, only 25-30 per cent of population is online; hence, the spending on this medium will remain lower than other mediums.

     

    The point of advantage is that there is a big influx of youth, and they are ready to spend. While the marketers would want to catch the youth online, they (marketers) get no justification in form of numbers to spend much on media. Hence, they prefer doing mall activation to spending on digital platform. The agency and publishing community need to be more forthcoming to speak to the marketers, and in their language.

     

    Digital media is currently registering 15-18 per cent year-on-year growth, but it is important to note the gap between digital and television media.

     

    Since the offices of MxMIndia are closed on Monday, August 20, there will be no MxM Mondays next week. We will announce the theme for the next edition on Tuesday, August 21.