Thursday, January 17, 2008

Advertising and media: Lintas Media Guide 2008

Lintas Media Group has launched its annual offering Lintas Media Guide 2008, according to exchange4media.

Lynn de Souza, Director, Media Services, Lintas Media Group, said, “There are some surprises in store – ad spends have grown by a mere 3.5 per cent in 2007 over 2006, reaching a figure of Rs 17,356 crore, largely due to a fall of 1 per cent in TV expenditure, with large advertisers moving into more cost-effective channels, slots and durations. With increasing media reach amongst the rural masses and the urban youth shying away from mass media, 2008 is set to offer enormous advertising opportunities as well as tremendous challenges.”

The Guide studies all genres – television, print, radio, Internet, cinema and outdoor – giving a break-up of the media environment and general media industry trends of the previous year. Covering more than 28 states and seven Union Territories, the Guide is an all-inclusive take on the Indian media industry and players.

While print continued to hold major share with 50 per cent of the total media spends with Rs 8,591 crore, Internet as a means of advertising saw an increase in ad spends of 43 per cent compared to last year, reaching Rs 215 crore. Radio, cinema, and outdoors, on the other hand, capitalised on innovations and saw an increase of 28 per cent, 16 per cent and 17 per cent, respectively, reaching figures of Rs 529 crore, Rs 194 crore and Rs 1,062 crore, respectively. TV ad revenues showed a decline of 0.8 per cent at Rs 6,766 crore as a result of competitive pricing offered by general entertainment channels (GECs) to retain their market share.

In television, with the number of channels likely to touch as many as 500 in the next two years, television as an industry is growing at a dynamic pace.

In print, with literacy levels rising to 551 million people in India, more people in rural and urban areas are reading newspapers and magazines today. Current estimates reveal that the reach of print media in India has increased to 316 million people. Print media is also the favourite segment for global investors with maximum foreign investment in this segment.

The highlight of 2007 for the radio medium was launch of several new channels, especially in tier II and III towns. Of the total amount spent on ads in India, radio is estimated to have a share of 3 per cent in 2007. This share is expected to rise to 5 per cent during 2008-09.

According to PricewaterhouseCoopers, the out-of-home industry is expected to rise from Rs 1,000 crore in the present year to Rs 2,150 crore in 2010, with a growth rate of 17 per cent.

Internet is one medium which has grown by leaps and bounds amongst the emerging media category. Besides the obvious, that is, the increasing number of PC households, factors such as awareness of Internet as a tool for empowerment has led to the expansion. Also, several one-time non-communication applications like exam results and e-ticketing have encouraged the less affluent to be on the Internet. Initiatives like National e-Governance Plan (NeGP) should increase the usage amongst lower SECs in the next two years. In terms of advertising, the revenues have grown by 43 per cent.