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Tag: TAM Adex data

  • If the pandemic does not cause any more disturbance, print will reach the 2019 level much before 2025, writes Indrani Sen

    The Push & Pull of Print

     

    By Indrani Sen

     

    Indrani SenPrint media in India was the worst affected by the coronavirus pandemic last year. As per the FICCI EY Report on M&E industry 2021, the revenue of print shrunk by 41% from INR 206 billion in 2019 to INR 122 billion in 2020.  The report estimated that while TV will recover its 2019 level of revenue by 2022 and the combined revenue of traditional media will recover the 2019 level by 2023, it will take print at least till 2025, if not more to recover the 2019 level of revenue.

     

    I commented on print media in an earlier article in www.mxmindia.com “However, the industry seemed to be recovering well during the first quarter of 2021 as TAM AdEx data for Jan-Mar 21 showed that 1350 new brands advertised on print during that period.  When compared with Jan-Mar 20, the quarter also showed 9% increase in ad space mostly from Hindi and other language newspapers. Similarly, April-May 2021 recorded better results compared to April-May 2020.”

     

    Now, it appears from the latest TAM AdEx report that the print media has begun the first month of the July-September quarter with an upward swing. At the end of July 2021, ad space per publication on an average has grown by 35% when compared to July, 2020. Multiple educational courses, cars, hospitals/ clinics, two wheelers and real estate have topped the list of categories who advertised in print media during last month. Media planners are hopeful that the next months of August and September will see further increase in print advertising with many regional festivals, Onam, Independence Day, Raksha Bandhan and Ganesh Chaturthi dotting the calendar.  The dhamaka of 15% discount has already begun in newspapers, the tempo will surely build up further before August 15, 2021, the 75th Independence Day. This year, Onam in Kerala begins on August 12 and ends on August 23, overlapping Independence Day and Raksha Bandhan on August 22. Ganesh Chaturthi will be celebrated next month on September 10. Together these festivals will be the precursors of the main festive season of Dussehra (Durga Puja) and Diwali.

     

    Why print media still works in India, particularly during festivals? It is convenient to execute sales and other promotional campaigns in newspapers at short notice. The entry cost or the cost of creating static creative content for print media is less expensive than creating video creative content for TV, OTT and other digital formats. The local advertisers with comparatively small budgets rely on print media for advertising throughout the year. By definition all traditional media are push media delivering content to the users with little interactions between the media and the users. Pull media by definition is the opposite of push media where the users seek out information from media. During festive season, print media plays a dual role of both pull and push media as brands step up their advertising activity and consumers seek out information on various offers and discounts available in different stores and retail outlets. This interplay of push and pull of the print media will definitely continue for the next two or three years enabling the print media to recover its lost revenues.

     

    In the last month, we saw many full-page and jacket advertisements in newspapers, a trend which is likely to continue well into the main festival season. Ads placed below the mastheads as well as some other formats which were considered as innovations when first introduced by newspapers, have now become part of the regular options like half page, quarter page, etc. offered by regularly by newspapers. As per market reports the deal sizes in the print media has started going up, demand for inventory for advertising space in newspapers is also on the rise. It can be safely assumed that if the pandemic does not cause any other disturbance, print media will recover a substantial portion of their lost revenue during 2021 and will reach the 2019 level much before 2025.

     

     

  • After circulation & ad revenue going south in 2020, newspapers seems set on the path of recovery, writes Indrani Sen

    Newspaper Industry in India after the Second Wave of the Pandemic

     

     

    By Indrani Sen

     

    Indrani SenThe Indian newspaper industry faced an unprecedented crisis last year after the National Lockdown was declared at a very short notice. Circulation fell drastically when many subscribers, particularly housing societies, shut their doors for the newspaper delivery persons for the fear of the contagious virus being carried by the newspapers or the delivery folk, leading to change is consumption pattern of newspapers. Lack of local transport also prevented the distributors and hawkers from reporting for work. This was followed by withdrawal of commercial advertising as advertisers were worried about a fall in circulation and readership and were themselves affected by choking of distribution pipelines and economic slowdown leading to loss in their sales. The FICCI EY Report on Indian M&E industry 2021 showed that ad revenue of Print came down from INR 206 billion in 2019 to INR 122 billion in 2020.

     

    After the National Lockdown was lifted in 2020, the newspaper industry tried its best to recover their lost grounds. As per the same FICCI EY report, it will take Print four to five years to regain the pre-Covid ad revenues level. However, the industry seemed to be recovering well during the first quarter of 2021 as TAM AdEx data for Jan-Mar 21 showed that 1350 new brands advertised on print during that period.  When compared with Jan-Mar 20, the quarter also showed 9% increase in ad space mostly from Hindi and other language newspapers. Similarly, April-May 2021 recorded better results compared to April-May 2020.

     

    As per TAM AdEx analysis in May 2021, when the second wave of the Covid-19 was at his peak, there was an average 58% growth in ad space per publication as compared to May 2020. However, all was not well as compared to February 2021 and March 2021, the ad space in Print saw a drop of 42% and 29% in April 2021 and May 2021 respectively. As the phased process of unlocking has begun, the newspaper publishers expect that both the ad volume and value would pick up by August 2021 and grow further during the festive season of 2021.

     

    It appears that newspapers were better prepared to handle the second wave of the pandemic in 2021 and the lockdowns imposed by various state governments across the country. Along with the process of gradual unlocking, the newspapers now are looking forward to recovering their lost grounds. The credibility of the printed word, the vaccination drive, revival of the corporate sector and good rain forecasts are the other factors which are expected to contribute to the overall growth of the newspaper industry in 2021. The Print industry has appealed to the government for a stimulus package and an increase in FDI in 2021. The government has not responded so far, but the industry is still hopeful of getting, some positive response though no relief was announced in terms of waiving the import duties on newsprint by the finance minister in her 2021 Union Budget.

     

    The newsprint prices, which saw a decline in the international market (below $300/metric tonne) in 2020, have started going up from the beginning of the calendar year 2021. The price was $670/tonne-$700/ tonne in April-May. The industry expects it to go up further. It appears that quite a few paper mills which used to export newsprint to India and other countries, either shut down their business or migrated to the businesses of producing brown papers and craft papers during last year when their business was hit due to the global pandemic.

     

    As India is far from being self-reliant in newsprint production, our newspaper industry, struggling to recover from the effects of the pandemic, has been hit further by this demand supply imbalance of newsprints in the international market. Many newspapers are increasing the use of indigenous newsprints to balance out their cost of productions.  However, most newspaper owners feel that this crisis of newsprint prices is not going to last for a long term and expect the international market to stabilise before our festive season in the third quarter of 2021.

     

    To sum up, the newspaper industry in India seems to be set on the path of recovery after a severe decline of both circulation revenue and advertising revenue in 2020. In recent times, during the second wave of the pandemic, the industry was not much affected and would have been in a better financial position if they were not hit by the crisis of newsprint prices. It is expected that by end of the calendar year 2021, their overall performance may be better than predicted earlier by media analysts.

  • Indrani Sen hopes that adequate notice would be given to the industry for changing their ads as per the new guidelines

    Can ASCI Play A Role In Review of Surrogate Advertising?

     

    By Indrani Sen

     

    In the week before the last, the Consumer Affairs Ministry had issued a draft of the Central Consumer Protection Authority (Prevention of Misleading Advertisements and Necessary Due Diligence for Endorsement of Advertisements) Guidelines, 2020 requesting people to submit their comments and suggestions on the guidelines by September 18, 2020. As per industry estimates based on TAM Adex data, the size of total surrogate advertising in India is around Rs 700-800 crore per annum with 70% share of TV in the pie. The new draft guidelines, if enforced with immediate effect, may affect the post lockdown financial recovery of TV channels.

    Along with guidelines for endorsements, definitions for valid advertising, new rules for advertisements targeting children etc., the new guidelines clearly prohibit surrogate advertising — the practice of promoting banned products like liquor and tobacco by promoting another product under the umbrella of ‘Brand Extension’ unless the promotion of the said product advertised under the same brand name can be substantiated with certain proofs of its legitimacy. The legitimacy would be judged based on (a) if the new product is produced, distributed and sold in ‘reasonable quantities’ having regard to the scale of the advertising campaign in question, the media used, and the markets targeted and (b) do not have any direct or indirect indication of a banned product. While the guide lines do not give definition of ‘reasonable quantities’, the same allow for some concessions like advertisements wouldn’t be disqualified just for using similar branding of a banned product.

    The revised guideline issued by the Ministry of Information & Broadcasting  last week, under rule number 7(2)(vih)(A) of Advertising Code in the Cable Television Network Rule 1994,  notifies that all such TV commercials  falling under the ‘Brand Extension’ of  banned products like cigarettes,  other tobacco products, wine, alcohol, liquor etc. will have to be first previewed by Central Board of Film Certification and certified as fit for consumption before any TV channel can broadcast the same. It is not very clear from the advisory if the legitimacy of the product will also be reviewed by the CBFC or if that would be done separately by the MIB before the advertiser invests in the production of the TV commercial. Traditionally, the Chairman and members of the CBFC are from the film and entertainment industry. The CEOs are usually selected from bureaucrats like Ravinder Bhakar, a 1999 batch officer of Indian Railway Stores Service (IRSS), who has taken over as the Chief Executive Officer (CEO) of Central Board of Films Certification (CBFC) from March 2020.

    Can ASCI play an active role in this entire new process of decision making on surrogate advertising?  They would be in a far better position to judge the legitimacy of the product than the MIB or CBFC.       ASCI’s role has been acclaimed by various Government bodies including The Department of Consumer Affairs (DoCA), Food Safety and Standards Authority of India (FSSAI), Ministry of AYUSH as well as the Ministry of Information and Broadcasting (MIB). In January 2017, the Supreme Court of India in its judgement affirmed and recognized the self-regulatory mechanism as an effective pre-emptive step to statutory provisions in the sphere of advertising content regulation for TV and Radio in India.

    I read a research paper ‘Surrogate Advertising or Brand Extension Advertising: A Need for Strict Norms’ authored by Prof. Neha Bansal in International Journal of Marketing & Financial Management, Vol. 2, Issue 1, Jan-Feb-2014 ISSN: 2348 –3954. Prof. Bansal presented in her paper a six point formula for developing and implementing strict norms:

    1. Developing an explicit plan of action.

    2. Code to differentiate between acceptable advertising from unacceptable advertising.

    3. Translucent laws for banning such kind surrogate promotion.

    4. More powers in hands of ASCI.

    5. Increase consumer awareness.

    6. Strict actions against those involved to set lesson for future wrong doers.

     

    The Consumer Affairs Ministry and the Ministry of Information & Broadcasting have taken steps in the right direction except involving ASCI in the process. ASCI can also explain to the ministry the need for having a two step approval process, first getting the legitimacy of the brand extension approved and then applying for the approval of the TV commercial to avoid the financial loss of investing in a TVC and then getting stuck at the approval stage on the legitimacy issues. ASCI can also  advise the government regarding the paper work needed for establishing the legitimacy of the products  as ‘non-surrogate’ and as genuine brand extension. We can only hope that good sense will prevail in the implementation of the new rules drafted by the government and adequate notice would be given to the industry for changing their advertising campaigns as per the new guidelines.

     

  • The shift of OTT viewing from small screen to large screen would be a trend to watch out for, writes Indrani Sen

    Will OTT consumption trends last beyond the Lockdown?

     

    By Indrani Sen

     

    Starting March 25, Covid-19 imposed four phases of a lockdown over 68 days in India. We have seen many changes in our Media & Entertainment industry during this period. The rise of consumption of video streaming or OTT platforms is a major one among the various changes. As we enter the Phase 5 of lockdown with gradual unlocking of restrictions, the questions which are foremost among the various sectors of the M&E industry ‘will the gain made during the Lockdown last/ can the loss made during the Lockdown be reversed?’

     

    How long does it actually take to form a new habit? Maxwell Maltz, a plastic surgeon published his thoughts on behaviour changes in an audio book called Psycho-Cybernetics which was not only a blockbuster hit, but also influenced thinkers like Zig Ziglar, Brian Tracy, Tony Robbins etc. Maltz’s submission “it takes minimum 21 days to form a new habit” was shortened to “it takes 21 days to form a new habit” and the ‘21 days’ myth was born.

     

    There have been other scientific studies on the subject and a study by Phillippa Lally published in European Journal of Social Psychology found that on average, it takes minimum 66 days before a new behaviour becomes a habitual one. Though we have had 68 days’ of lockdown, the consumption of OTT platforms did not increase at one stroke at the beginning of Lockdown, but has increased gradually over this period. Still, it would be fair to assume that a large percentage of the viewers contributing to increased OTT consumption is on the verge of forming a new habit which is likely to last as we slowly emerge from the lockdown.

     

    From only nine in 2012, today the number of OTT platforms in India now stands at 35. The technique of personalisation of content for individual viewers has been helping them to increase their subscriber base which in turn has started attracting distribution of recent movies and other interesting contents. According to TAM AdEx data, the OTT platforms have been advertising aggressively during the Lockdown period on national and regional TV channels across different genres. Most of the platforms have been rewarded with growth of paid viewers and rise in viewing time.

     

    Apart from the above increases, what other trends we can expect to emerge in OTT viewing in India? As the consumption of OTT platforms increase both vertically and horizontally, the bandwidth required for delivery would continue to remain as an issue. The Cellular Operators’ Association of India has already asked OTT platforms to limit the quality and quantity of video to reduce the strain on the cellular network infrastructure.

     

    The shift of OTT viewing from small screen to large screen would be a trend to watch out for. As we would be living under the cloud of COVID 19 till an effective vaccine is discovered and is available globally at an affordable price, we will be accepting ‘new normal’ in various wakes of life including spending more time at home with family. The urge to view content together as well as the limitations of the broadband internet may lead to a shift of OTT viewing from the small screen of the mobile to the large screen of TV, a fact which was highlighted in the recent KPMG study.

     

    Another trend to watch out for would be a shift in prime time viewing of OTT platforms due to WFH and early return from work to home due to night curfew.  A recent article in Financial Times stated: “According to a recent survey by mobile marketing platform InMobi, 46% viewers are watching more content online. Another consumer survey conducted by Hammerkopf has found that OTT consumption primetime has moved to 7 pm onwards, as opposed to 10 pm-12 am before.” (https://www.financialexpress.com/brandwagon/how-is-coronavirus-impacting-the-streaming-platforms-with-an-increasing-appetite-of-viewers/1919916/).

     

    Various websites have recently carried articles on the ad spend on OTT platforms based on the TAM AdEx report of January to April 2020 showing that ad insertions doubled from 16000 in March to 33000  in April on this medium. An article on www.warc.com made an excellent analysis of the same ( https://www.warc.com/newsandopinion/news/adspend-on-ott-platforms-double-as-advertiser-mix-shifts-in-india/43633) pointing out that while some  categories/advertisers/ brands withdrew their advertising from OTT platforms, many new categories/ advertisers/ brands started advertising in their place. The churning of traditional to new advertisers would be the third trend that we can expect to see in near future on OTT platforms.

     

    Could there be a negative impact on the Lockdown on OTT business? If there is a further spike in Coronavirus cases after unlocking and the Government is forced to impose Lockdown again, then the economy may take a grievous down turn due to prolonged Lockdown resulting in a severe cash crunch and loss of employment. In such a situation, there may be de-growth in subscription of the video streaming platforms along with de-growth across M&E industry.

     

    The OTT platforms have restructured the content creation and distribution in the entertainment industry and it appears that the Lockdown would be acting as catalyst to accelerate the growth of this sector and the current consumption trends would last beyond the Lockdown period.

     

     

  • TAM Adex data show that the big four e-commerce companies ­ Amazon, Flipkart, Snapdeal and OLX alone spent a staggering Rs 600 crore on ads in 2014. Overall, the sector spent Rs 750-800 crore in 2014 and the budget would cross Rs 1,000 crore in 2015, say media planners

    E-com majors Flipkart, Amazon etc spend mega on ads

    By Shambhavi Anand & Pritha Mitra Dasgupta

     

    Ecommerce, probably the most happening sector in India, has turned into one of the hottest for the advertisement industry , too.

     

    Spending on advertisements by e commerce companies surpassed that of consumer durables, banking and financial sectors in 2014. They are spending as much as the traditional table-toppers -telecom and auto companies.

     

    TAM Adex data show that the big four e-commerce companies ­ Amazon, Flipkart, Snapdeal and OLX ­ alone spent a staggering Rs 600 crore on ads in 2014. Overall, the sector spent Rs 750-800 crore in 2014 and the budget would cross Rs 1,000 crore in 2015, say media planners.

     

    The big spending has come despite the fact that Amazon started advertising in India as late as in May 2014. But that forced rivals, local leader Flipkart and Snapdeal, to beef up their efforts. In 2014, the sector spent Rs 60-70 crore on print ads, as they vied for premium positions, such as front page, jacket and double jacket ads in newspapers.

     

    The sector spent Rs 32-35 crore only on jacket ads ­ four full pages of advertisement that cover the rest of the newspaper as a jacket.

     

    But, more money has gone to television ads: as much as 50-60% of the total ad spend. While 15-20% of the total was spent on digital, 10-15% went to print media and the rest to radio and out-of-home media. “We expect the spend to go up by 20% in 2015,” said Anand Chakravarty , head of western India operations at media agency Maxus.

     

    The media mix of the sector will continue to be driven by television, followed by digital in 2015, he said, as the primary objective of the players is to build reach and ensure high visibility to garner more investment interest.”Digital drives business performance,” he said.

     

    Foreign investors who saw e-commerce as an opportunity to play in the nation’s mammoth $500 billion retail market have bank-rolled top online retailers’ efforts to scale up quickly over the past few years.

     

    This has also increased competition in the online market, where the players are waging a war to win over the consumer. While the companies have of late cut down on discounts to consumers, they are focusing more on brand building, signing up Bollywood celebrities as brand ambassadors and stepping advertisement activities around sporting events.

     

    The e-commerce sector is expected to spend heavily on the Indian Premier League.

     

    Source:The Economic Times

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