ADVERTISING MEDIA

Advertising is the means of informing as well as influencing the general public to buy products or services through visual or oral messages. A product or service is advertised to create awareness in the minds of potential buyers. Some of the commonly used media for advertising are T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc. As a result of economic liberalization and the changing social trends advertising industry has shown rapid growth in the last decade. Advertising is one of the aspects of mass communication. Advertising is actually brand-building through effective communication and is essentially a service industry. It helps to create demand, promote marketing system and boost economic growth. Thus advertising forms the basis of marketing. Advertising plays a significant role in today's highly competitive world. A career in advertisement is quite glamorous and at the same time challenging with more and more agencies opening up every day. Whether its brands, companies, personalities or even voluntary or religious organizations, all of them use some form of advertising in order to be able to communicate with the target audience. The salary structure in advertising is quite high and if you have the knack for it one can reach the top. It is an ideal profession for a creative individual who can handle work-pressure. Today, new areas are emerging within advertising like event management, image management, internet marketing etc. Event management wherein events are marketed, Image management wherein a a particular profile of an individual or an organization is projected. Internet marketing has also brought about a lot of changes in advertising as Internet means that one is catering to a select group of audience rather than a mass audience. Almost every one grows up in the world which is flooded with the mass media e.g. television, advertising, films, videos, billboards, magazines, movies, music, newspapers, and internet. Of all marketing weapons, advertising is renowned for its long lasting impact on viewers mind, as its exposure is much broader. Advertising is a subset of promotion mix which is one of the 4Ps in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, advertising serve as major tool increasing product awareness in the mind of a potential consumer to take eventual purchase decision. Advertising, sales promotion and public relations are masscommunication tools available to marketers. Advertising through all mediums influence audiences, but television is one of the strongest medium of advertising and due to its mass reach; it can influence not only the individuals attitude, behavior, life style, exposure and in the long run, even the culture of the country. Telecommunication technology enables business and industry to grow at a faster pace while simultaneously contributing to the economic development and at the same time telecommunication infrastructure can be reliable indicator of economic development.

The evolution of advertisement dates back into the ancient times. Societies used symbols, and pictorial signs to attract their product users. Over centuries, these elements were used for promotion of products. In the early ages, these were handmade and were produced at limited scale for promotions. Later on, this phenomenon was used and gained strength more intensively for promotional purposes. Todays modern environment, advertisements have become one of the major sources of communicational tool between the manufacturer and the user of the products.

Advertising and consumer behaviour Advertisers primary objective is to reach Prospective customers and influence their awareness, attitudes and buying behaviour. They spend a lot of money to keep individuals (markets) Interested in their products. To succeed, they need to understand what makes potential customers behave the way they do. The advertisers Goals is to get enough relevant market data to develop accurate profiles of buyers-to-find the common group (and symbols) for communications This involves the study of consumers behavior. The mental and emotional processes and the Physical activities of people who purchase and Use goods and services to satisfy particular needs and wants (Arens, 1996).Proctor et al. (1982) noted that the principal aim of consumer behaviour analysis is to explain why consumers act in particular ways under certain circumstances. It tries to determine the factors that influence consumer behaviour, especially the economic, social and psychological aspects that can indicate the most favored marketing mix that management should select. Consumer behaviour analysis helps to determine the direction that consumer behaviour is likely to make and to give preferred trends in product development, and attributes of alternatives communication method etc. Consumer behaviours analysis views the consumer as another variable in the marketing sequence, a variable that cannot be-controlled and that will interpret the product or service not only in terms of the physical characteristics, but in the context of this image according to the social and psychological makeup of that individual consumer (or group of Consumers). Economic theory has sought to establish relationships between selling prices, sales achieved and consumers income; similarly, advertising expenditure is frequently compared with sales. On other occasions financial accounting principles maybe applied to analyze profit and loss. Management ratios, net profit before tax, liquidity and solvency ratios can all be investigated. Under the situations the importance of the consumers motivations, perceptions, attitudes and beliefs are largely ignored. The consumer is assumed to be rational that is, to react in the direction that would be suggested by economic theory and financial principles. However, it is often apparent that consumer behaviours do not fall neatly into these expected patterns. It is for this reason that consumer behaviour analysis is conducted as yet another tool to assess the complexities of marketing operations.

Advertising Media for Brand Owners/Advertisers Advertising provides a range of options for brand owners and advertisers to promote their brand or service in the market place. Following are some common options of advertising widely used by advertisers. Television Advertising Television ads are also known as TV commercials, ad- films, adverts etc. These ads come in between various programs which are broadcast via a particular channel or channels. Television advertising is one of the common mediums used for brand promotion. One advantage of television advertising over other means of advertising is its audio-visual facilities. Most of the TV commercials about brands are interesting and entertaining in nature with all the catchy slogans and musical jingles. This interesting as well as entertaining nature makes television ads one of the most popular means of brand promotion. Radio Advertising Radio commercials with its musical jingles provide good brand recall value. Radio advertising is considered one of the most effective tools for brand promotion. This is because; radio ads reach out to a large number of target audiences at an affordable cost. Radio advertising also provides good reach ability since radios offer portable features. If utilized effectively, radio ads have the potential to promote brands/service at every nook and corner of the country. Print Advertising Print ads come in the form of newspaper classifieds, magazine ads, fliers, leaflets, pamphlets etc. Print Advertising is one of the oldest modus operandi for brand advertising. The advantage of print advertising over other forms of advertising is that print ads provide more reliability without any condition of time or factor. Customers may not have time to watch a television ad or listen to a radio commercial. However, print ads offer customers a flexible choice to have a look at a particular advertisement as per their time convenience. Outdoor Advertising Also known as OOH or out of home advertising, outdoor ads like print ads are one of the oldest means used for brand promotion. Outdoor advertising has stood the test of time thereby cementing its own foot print as an ideal channel for brand advertising. The essence of outdoor advertising is still alive and many brand owners prefer to promote their brand/service via outdoor channels of advertising.

Airport Advertising Airport Advertising is one of the latest practices adopted by outdoor advertisers. Airport Advertising has the capability to drive more sales for a product/service. One of the distinguishing points about Airport ads is that these ads are posh in terms of its look and style. It is needless to mention that airport ads are displayed with a touch of technological sophistication. Airport advertising deploys brand promotion campaign through state-of-the-art mediums/ tools in order to create a rich brand experience to the target customers. Internet Advertising Internet Advertising commonly known as the modern tool for modern advertising, internet ads are in vogue in advertising world at present. Some marketers even opine that the future of advertising belongs to internet and mobile ads. The best part of internet advertising is that it is the most affordable means to promote a brand or service. Also personalized in nature, internet advertising connects brands with customers in a friendly and interactive manner.

ADVERTISING IN INDIA India is a big country with 28 states, over one billion people and 120 dialects/languages. From the market perspective, people of India comprise different segments of consumers, based on class, status, and income. India is a lucrative market even though the per capita income in India is low and it remains a huge market, even for costly products. The Indian consumers are noted for the high degree of value orientation. Such orientation to value has labeled Indians as one of the most discerning consumers in the world. Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market. Indian consumers have a high degree of family orientation. This orientation in fact, extends to the extended family and friends as well. Brands with identities that support family values tend to be popular and accepted easily in the Indian market. Indian consumers are also associated with values of nurturing, care and affection. These values are far more dominant that values of ambition and achievement. Product which communicate feelings and emotions gel with the Indian consumers. Apart from psychology and economics, the role of history and tradition in shaping the Indian consumer behavior is quite unique. Perhaps, only in India, one sees traditional products along side modern products. For example, hair oils and tooth powder existing with shampoos and toothpaste. Television advertising has the biggest impact on purchases of less expensive consumables like cold medication and athletic shoes. And newspaper articles have the biggest influence when purchasing certain items like appliances, as well as making investment decisions, for example buying stock in a certain company. As it is with news, television is the predominant source for product information among less educated Americans. On almost all of the items listed, people with less formal education rely more heavily on television, while the highly educated are influenced more by the print media, particularly magazines. Again, the Internet appears o have a big influence. Significant numbers of people look to the Web to help them make decisions about buying a new car, a computer, or investing in company stock most studies of consumer reaction to advertising tend to reveal a negative bent, but reaction to advertising varies by the medium in which it appears.

In Consumer Perceptions of Various Web Ad Formats, a December 2003 study by Dynamic Logic, consumers were most favorable towards print advertising (probably the least intrusive and personally directed). Television ads fell in the middle ground, with approximately 20% seeing them as somewhat to very negative, followed by online ads, just over 30% seeing them as somewhat to very negative. At the bottom of the list was Telemarketing at more than 95% somewhat to very negative, non-opt-in email ads (sparn) at 80% negative and direct mail at 40% negative.

The State of the Media Democracy survey in 2010 by Deloitte, re-affirms what the majority of brand owners in India already believe that television is the preferred medium both in terms of usage (by consumers) and advertising impact. The Deloitte survey, that reached 2,000 consumers in the age group of 14 to 75 years, focuses on how consumers interact with technology, purchase products and respond to advertising. The State of the Media Democracy Survey - India provides a generational reality check on how consumers are interacting with technology, purchasing products, and responding to advertising, and what they want in the future. The results of the survey reveal insightful information which will be useful for virtually all sectors of the business world including to the enterprises in the advertising world. The survey focused on consumers between the ages of 14 and 69 which were divided into the following age buckets: Millennials: Trailing Millennials - 14-19 years; Leading Millennials - 20-25 years; Generation X - 26-42 years; Boomers - 43-61 years; Matures - 62-69 years. The survey was commissioned by Deloitte and covered cities in Tier I and II categories. Apart from the Metro cities the other cities covered were Bangalore, Lucknow, Ludhiana, Patna, Surat and Indore. A combination of upper and middle class people was surveyed in the aforesaid cities by way of face-to-face interviews. The survey provides keen insights on dozens of evolving trends and detailed data on issues ranging from advertising effectiveness and mobile adoption to social media and internet usage. The results from the survey provide critical insights which can help business enterprises make smart, well-timed business decisions and investments.

Sources of Entertainment Just as changes in technology are affecting all sectors, so it is changing the way an individual uses various products for entertainment. There are abundant choices products and services, which are available to a consumer. This has made the entertainment industry a consumer centric industry. Sources of entertainment include television, newspaper, magazines, going to movies, radio, internet, live performances, gaming, eBooks etc.

In India the most preferred medium of entertainment is the television. Around 92% of the population surveyed rated television as the preferred medium across all age groups. The scores in all age buckets are near or above the 90% mark. This may be due to the fact that television still has a wider reach than any other medium and the visuals of television have a greater impact to all irrespective of their educational background, status etc. In India, the growth of the DTH platform has ensured that the remotest corner of the country can now get hooked to the numerous soaps, sports, news and other powerful visuals that modern day television beams out. A point to note is that even the senior citizens of the country, which form part of the Matures age bucket rate television as the preferred entertainment medium their score being as high as 95%. Also, females watch more television (93%) than males (91%). Second place in the preferred medium is taken by newspapers. Indians, unlike as in the western countries, prefers to read their daily newspapers with their morning cup of tea. This reading habit is more visible in Generation X and above (above 26 years), with the maximum score of 68% returned by Boomers (43 to 61 years). No wonder then that the newspapers still remain king in the world of media. Among the younger generations, going to the movies, listening to music, listening to radio are high on their next preferred medium of entertainment. The younger generation is also more tech savvy being more inclined towards internet, gaming, and cell phones as means of recreation. The cell phone has become an important entertainment device for the Millennials (14 to 25 years) with an average score of as high as 64%. The personal computer too has become an important entertainment device for the Millennials, 46% of whom rated the computer over the television. There is also an observed trend that the males are more technology pro as compared to the women.

Source: Deloitte State of the Media Democracy India March 2011

The Media in Advertising Enterprises are spoilt for choices when it comes to selecting a media to use for advertising their products and services. Advertising rms have a never-ending job on hand to help their client decide the media or a combination of media to maximise the impact of the ad campaigns in this constantly changing world of consumer preferences. From a consumers point of view, the television media appears to have the maximum impact on them. Between the age buckets, Matures (98%) and Boomers (96%) are more in uenced by viewing advertisements on television than the other media. Even the Millennials scored more than 90% when it came to concluding that television is the preferred media which creates the maximum impact. Advertisements in newspapers come a close second in creating impact on consumers. Here too the impact is maximum in Matures (95%) and Boomers (92%).The impact on the Millennials is lesser. Although close to 60% of the Millennial mentioned that they will read a printed magazine even though the information contained therein is available online.Leading Millennials are in uenced more by advertisements on the internet their score is as high as 35% and is the highest among all age buckets. They are most in uenced by banner advertisements (>65%) and more by advertisements relating to gaming (51%). 34% of the Trailing Millennials were willing to pay for online content (news, sports, games etc.).The medium of radio too seems to be picking up as a medium which is being increasingly used by advertisers. Here too the Millennials are inuenced more by advertisements on the radio (18%).

Source: Deloitte State of the Media Democracy India March 2010

Media Conversations Quite often, articles/news from newspapers, TV shows, books, magazines, web sites, music, movies etc. nd a way in day-to-day conversations at home, workplace or between friends. Overall newspapers are the most discussed, with maximum discussions being done by Boomers (39%) followed by the GenXers (36%) and Leading Millennials (35%). Television shows are the next most important thing discussed by people in all age groups.Music, movies and advertisement form the balance four in the list of top ve of discussion topics. The Leading Millennials lead the pack when it comes to discussing music, movies and advertisement.

Source: Deloitte State of the Media Democracy India March 2011

Advertising spends are expected to reach INR 541 billion in 2015 Television-39.5 Print- 43.6% Radio- 4.6% Out of home 5.5% Digital- 6.6%
According to the FICCI-KPMG report March 2012, the Indian media and entertainment (M&E) industry registered a growth of 12 % over 2010, to reach Rs 728 billon. The growth trajectory, as per the report, is backed by strong consumption in tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the industry is expected to register a CAGR (Compounded Annual Growth Rate) of 15 % to touch Rs 1,457 billion by 2016. Ad spends across all media accounted for Rs 300 billion in 2011, contributing to 41 % of the overall M&E industrys revenues. Ad revenues witnessed a growth of 13 % in 2011, as against 17% observed in 2010. Print: The print industry grew by 8.3 % from Rs 193 billion in 2010 to Rs 209 billion in 2011. The growth was slightly lower than our expectation of 9.5 % last year due to the challenging macro-economic environment and reduced ad spends. Television: The over-all television industry is estimated to be Rs 329 billion in 2011, and is expected to grow at a CAGR of 17 % over 2011-16, to reach Rs 735 billion in 2016. The share of subscription to the total industry revenue is expected to increase from 65 % in 2011 to 69 % in 2016. The TV industry continues to have headroom for further growth as television penetration in India is still at approximately 60 % of total households. Radio: Owing to increase in listenership in both metros and non-metros, overall the industry grew at 15% in CY 2011 to reach Rs 11.5 billion compared to Rs 10 billion in CY 2010.

New Media: Growth in ad revenues is expected 40% over last year; online ad spend reached approximately 4% of total M&E industry ad revenue. Growth is largely driven by increase in internet penetration and proliferation of new age devices. Out of Home: The OOH sector was hit relatively harder by the global economic slowdown than other sectors of the advertising industry. The sector registered a year-on-year growth of 7.6 %.

Overall Industry size (INR Billion)

Advertising trends and projections Advertising spends across all media accounted for INR 300 billion in 2011, contributing to 41 percent of the overall M&E industry revenues. Advertising revenues witnessed a growth of 13 percent in 2011 as against 17 percent observed in 2010.Print is the largest contributor accounting for INR 139 billion and 46 percent of the advertising pie. It is expected to continue being the most dominant medium for next 5 years, despite the threat from new digital platforms. Advertising spends are expected to grow at a CAGR of 14 percent to reach INR 586 billion in 2016. The media industry is an ad dependent business and will continue to be so for some time, largely due to the relatively low ARPUs on account of hyper competition and lower price elasticity of consumers.

Contribution of advertising revenues of overall industry size

ADVERTISING REVENUE (INR BILLION)

Key Themes and trends going forward Growth drivers for multiplex exhibitors: Digital technology continues to revolutionize media distribution be it the rapid growth of DTH and the promise of digital cable, or increased digitization of film exhibition and has enabled wider and cost effective reach across diverse and regional markets, and the development of targeted media content. There has been increased proliferation and consumption of digital media content be it newspapers and magazines, digital film prints, and online video and music or entirely new \categories such as social media. For example, the print players are increasing becomingly available on the digital platforms in order to establish a connect with current readers as well as to establish a relationship with new readers. Accordingly, online advertising spends have seen a spurt in growth vis a vis spends on traditional media. At the same time, the ability to develop models that get consumers to pay for online content is still limited. Currently, advertising is the primary source of revenue online but we expect new revenue models to emerge as the payment infrastructure develops and consumers begin to pay for content. Further, understanding and tracking online media behaviour of consumers would enable companies to progress to the next level of their online strategy and monetizationGoing forward, the adoption of 3G and 4G services could further fuel broadband penetration and offer opportunities for scaling digital media businesses Media on the go: Proliferation of New age user devicesAnother seminal change is being brought about by the proliferation of screens making media consumption more personal than ever. Smart phones, tablets, PCs, gaming devices, etc. all form the foundation of a new wave in media usage.This is gradually impacting the way content is being created and distributed. Multiple media including TV, films, news, radio, music etc are being impacted with this change.

For example, radio listenership has increased largely due to out of home mobile listenership. The number of internet users is expected to cross 546 million users by 2016, increasingly driven by wireless connections. The increase in tablet penetration in future can have a big impact on internet usage and in particular, video consumption, as its large screen allows a more user friendly experience compared to\current mobile phone models. Increasingly savvy and new age consumers: As consumers evolve and with Indias growing young population, there is a heightened need to engage them across platforms and experiences. There is a greater need for integration and innovation across traditional and new media, with changing media consumption habits and preferences for niche content. Media companies today have no choice but to provide more touch points to engage with audiences.A recent example of a very successful 360 degree marketing campaign was in the marketing of RA One, which had one of the longest and the most elaborate marketingcampaigns in the history of Indian cinema in order to build audience anticipation. It effectively used traditional and new media in the form of unveiling its first look on a popular social networking website. In addition, the campaign also leveraged digital and merchandising platforms to its advantage. Activation has become a key service now provided by many media companies. Players in the print and radio industry have been building a strong value proposition in customizing campaigns for advertisers which include marketing across platforms, including organizing events for them. India is a young nation and in many ways the youth is driving change in terms of strategies of media players in the industry due to their different media consumption habits and preferences. Since youth is an important target segment for a large number of heavy advertising sectors like Telecom, Financial Services etc, media players are trying to engage with young audiences in innovative ways in order to grab their attention and build some stickiness. Print players across the world are exploring new ways to revamp readership as the young generation looks forward to social media, television and online channels for its dose of daily news. Not only are they breaking news and promoting their brands and shows on portals, search engines and social media, They are also organizing events and promotions especially targeting the youth, for example, Dainik Bhaskar launched The Brain Hunt 2012 across 13 states with an aim to develop reading habits among school students. Regional markets bucking the recessionary trends: Regional television and print continued it strong growth trajectory owing to growth in incomes and consumption in the regional markets. National advertisers are looking at these markets as the next consumption hubs and local advertisers are learning the benefits of marketing their products.In order to tap the increasing regional budgets of the national advertisers and growing interests of local advertisers, media players are in expansion mode to increase their footprint in these regions. For example, large broadcasters have looked at increasing their presence in regional markets by new channel launches and M&A activity, for example, launch of Discovery Tamil, ETVs takeover by Network 18 etc. Dainik Bhaskar entered Marathi by launching editions in Aurangabad, Nasik, Jalgaon and Ahmednagar and strengthened its position on Rajasthan and Jharkhand by launching more editions. Jagran Prakashan expanded its newspaper to a fifth language Punjabi. More film studios and funds are looking at investments in regional cinema.

M&E still an advertising revenue dependant industry: The ARPU for television, average newspaper cost for print and average ticket price for films continue to be low on account of hyper competition in these industries. Segments like Radio and a significant portion of online content are available free of cost to consumers. Owing to this, the Indian consumer is still not used to paying for content and hence the industry players are sensitive to the impact of macro economic slowdowns which affect advertising budgets of spenders. Hybrid or bundled pay models which are a combination of paid and free experience may be required to drive up subscription revenues. For example, in case of print, the editorial content, in depth investigative journalism, specialized business coverage and local city news etc which readers may not get readily through other information sources can potentially be moved behind a pay wall to build subscription revenues while the commoditized content may be offered free of cost to drive traffic towards the website. Also, research in consumer segments can bring about a better understanding of audiences who will be willing to pay for niche content, analysis and value added services. Awaited Regulatory shifts: Lastly, apart from the shifts in consumer preferences, player strategies and business models, one big change awaited for the next growth wave is the implementation of recently enacted regulations on digitization for cable. Other anticipated events are the implementation of Phase 3, copyright clarification for Radio and the roll out of 4G. These shifts are expected to be game changers in terms of how business is being done currently and what could be the path going forward. The companies which will be able to adapt and use these changes to their best advantage will survive and flourish, whereas the rest might find it difficult to keep pace with the dynamic environment. It will be vital for players to continuously keep pace with preferences and behavior across customer segments, (including regional, hyper local communities, youth) and tailor the business models accordingly across content creation, distribution and price points. TELEVISION Television is the largest medium for media delivery in India in terms of revenue, representing around 45 percent of the total media industry. The TV industry continues to have headroom for further growth as television penetration in India is still at approximately 60 percent of total households. India continues to be the third largest TV market after USA and China with 146 million television households. Cable and Satellite (C&S) penetration of television households is close to 80percent, with DTH driving a significant part of the growth in the last 12 months. With the impending digitization of all analog cable subscribers imminent, penetration level of digital households is expected to increase significantly, going forward. The over-all television industry was estimated to be INR 329 billion in 2011, and is expected to grow at a CAGR of 17 percent over 2011-16, to reach INR 735 billion in 2016. The share of subscription to the total industry revenue is expected to increase from 65 percent in 2011 to 69 percent in 2016. The total number of TV channels in India has gone up to 623 in 2011, and many more channels are awaiting approval for broadcast. There has been a significant increase in demand for satellite bandwidth, with the introduction of HD channels, DTH expansion, and new channel launches. This increases the options to the consumer, who may be amenable to paying more for content in the medium to long term. While there has been a significant increase in advertisement inventory, advertisement rates have generally remained flat or declined in 2011, with advertisers cutting ad budgets due to the global and domestic economic slowdown. However, with a large number of untapped advertisers who are currently using only the print platform, there is potential for further growth for TV.

2011 has been a challenging year for the television broadcasting industry. Advertising rates faced pressure from the global and domestic economic slowdown, resulting in a lower than expected increase in advertising revenues, particularly in the second half of the year. At an aggregate level, the total TV advertising market is estimated to have grown around 12 percent in 2011, lower than the 15 percent growth projected in our report last year. A study of the total marketing spends of large advertisers suggests muted growth in 2011 (vis--vis 2010), depressing advertising revenues for the television industry. Advertisers expect tighter budgets in 2012 given the current economic climate, and may face pressure to deliver more with less.

The top 10 sectors accounted for around 60 percent of the overall TV advertising volume share during 2011, similar to 2010. Apart from FMCG, services, telecom and auto sectors were key advertisers. Within services, DTH was the largest category, followed by real estate. 2011 also saw newer categories of advertisers such as internet / new media companies use the television medium, with advertisers such as Flipkart, Justdial, Quickr etc.

HUL, with its large portfolio of brands, remained the top advertiser on TV, followed by other FMCG brands. 9 out of the top 10 advertisers on TV were FMCG players, indicating the dominance of the consumer business on media spending.

PRINT The growth in advertisement revenues has been at a CAGR of 8.7 percent, whereas circulation revenues have displayed a CAGR of 3.7 percent between 2007 and 2011. The advertisement revenues continued to be the main source of revenue for the print industry, contributing 67 percent to industrys revenues.

In 2011, 94 percent of total print revenues were contributed by the newspaper publishing sector up from 92 percent in 2007. The newspaper industry is estimated to be worth INR 197 billion while magazine industry is estimated to be INR 13 billion.

RADIO Overall, the industry grew at 15 percent in CY 2011 to reach INR 11.5 billion compared to INR 10 billion in CY 2010. The ad rates in metros increased by 7-10 percent and the utilization was also slightly better. In smaller cities the stations witnessed similar growth of 15 percent-18 percent in ad revenues driven largely by increased utilization as ad rates remained steady. Utilization levels are now in the 70-85 percent range in the top eight metros, and in the 50-65 percent range in key non metros, leaving room for volume growth.

ONLINE The primary means of monetization today in the digital world continues to be advertising. As mentioned earlier, the online ad market (excluding mobile) in India stands at about INR 14 billion currently, and is expected to grow at a 30 percent CAGR to reach INR 57 billion in 2016. Mobile advertising currently accounts for a small share of the market, estimated at INR 1 billion but is expected to grow significantly over the coming years.

Advertising online has so far been dominated by search and display and while growth rates in these categories have stabilized somewhat (albeit still high compared to off-line), social marketing and video will see strong growth over the coming the next few years. On the back of rising internet penetration and content consumption, online and mobile advertising have seen increased interest from categories that have historically had a limited presence in this space. Large advertiser categories on traditional media like Automobiles, Telecom and FMCG are increasing their ad spend online, resulting in some share shift from traditional media to digital.

OUT OF HOME

Brand owners spent approximately INR 17.75 billion in 2011 on Out-ofHome (OOH) advertising which amounts to approximately 5 percent of total advertisement spends. The OOH sector was hit relatively harder than other sectors of the Advertising industry and the sector registered a Y-o-Y growth of 7.6 percent. The year 2011 was a mixed bag for different players and segments. Also, the Industry saw a reduction in spends by telecom players, who were the leaders in the last five years. This was offset by increased spend by auto companies, entrance of web based E-commerce companies, thrust in the entertainment space driven by release of large budget movies, TV channels and DTH, and increased real estate spends. Though OOH continues to be used by various brands, there are still 4-5 industries which dominate its usage. However, as a result of the change in market dynamics, there has been a shift in the sectors advertising on this medium.

Billboards appear to continue as the medium of choice. Though this may not change for a while, one can see the overall percentage of spends on billboards reducing over time. Airport and other transit media have seen growth and as people spend more time out of home, advertisers are investing more at malls. Further, there have been various new formats that have evolved; smaller format ambient medium, transit medium, etc. which are increasingly being used to customize and localize a brands communication needs.

References http://www.deloitte.com/assets/DcomIndia/Local%20Assets/Documents/State%20of%20the%20 Media%20Democracy.pdf http://www.kpmg.com/in/en/issuesandinsights/thoughtleadership/ficci-kpmg-report-2011.pdf

http://www.cable-quest.in/pdfs/FICCI-KPMG_Report_2012.pdf http://www.livemint.com/2010/03/12205157/TV-most-preferred-medium-stud.html