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S. V. Institute of Management
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
What is Advertising?
Advertising is a non-personal form of promotion that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement. Advertising is, in fact, the most prominent and powerful medium in the present commercial world. It creates an entire world view, shaping our attitude and beliefs. Advertisements permeate every aspect of life and most of us are hardly aware of it. it largely depend on how an individual bring works and so utmost care is taken to exploit the emotions that play an important role in establishing a firm memory of an advertisement and predisposing the consumers to buy the brand that is being advertised. Over a period of time, advertising has been undergoing morphing changes slowly and steadily with multi-facet approach. Advertising has long been viewed as a method of mass promotion in that a single message can reach a large number of people. But, this mass promotion approach presents problems since many exposed to an advertising message may not be within the marketer’s target market, and thus, may be an inefficient use of promotional funds. However, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted advertising. Advertising also has a history of being considered a one-way form of marketing communication where the message receiver (i.e., target market) is not in position to immediately respond to the message (e.g., seek more information). This too is changing. For example, in the next few years technologies will be readily available to enable a television viewer to click a button to request more details on a product seen on their favorite TV program. In fact, it is expected that over the next 10-20 years advertising will move away from a one-way communication model and become one that is highly interactive. Another characteristic that may change as advertising evolves is the view that advertising does not stimulate immediate demand for the product advertised. That is, customers cannot quickly purchase a product they see advertised. But as more media outlets allow customers to interact with the messages being delivered the ability of advertising to quickly stimulate demand will improve.
S. V. Institute of Management
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
By looking into the meaning and definition of advertising we can sum up the following features of advertising. Non- personal presentation of message: In advertising there is no face-to-face or direct contact with the customers; it is directed to the prospective buyers in general. Paid form of communication: In advertising the manufacturer communicates with prospective customers through different media like, newspapers, hoardings, magazines, radio, television etc. He has to pay certain amount for using some space or time in those media. Promotion of product, service or idea: Advertisement contains any message regarding any particular product, service or ever an idea. It makes people aware about the product and induces them to buy it. Sponsor is always identified –The identity of the manufacturer, the trader or the service provider who issues advertisement is always disclosed. Communicated through some media- Advertisements are always communicated through use of certain media. It is not necessary that there will be just one medium. All the media may also be used. Types of Advertising If you ask most people what is meant by “type” of advertising, invariably they will respond by defining it in terms of how it is delivered (e.g., television ad, radio ad, etc.). But in marketing, type of advertising refers to the primary “focus” of the message being sent and falls into one of the following four categories: Product-Oriented Advertising Most advertising spending is directed toward the promotion of a specific good, service or idea, what we have collectively labeled as an organization’s product. In most cases the goal of product advertising is to clearly promote a specific product to a targeted audience. Marketers can accomplish this in several ways from a low-key approach that simply provides basic information about a product (informative advertising) to blatant appeals that try to convince customers to purchase a product (persuasive advertising) that may include direct comparisons between the marketer’s product and its competitor’s offerings (comparative advertising). However, sometimes marketers intentionally produce product advertising where the target audience cannot readily see a connection to a specific product. Marketers of new products may follow this “teaser” approach in advance of a new product introduction to prepare the market for the product. For instance, one week before the launch of a new product a marketer may air a television advertisement proclaiming “After next week the world will never be the same” but do so without any mention of a product or even the company behind the ad. The goal is to create curiosity in the market and interest when the product is launched. S. V. Institute of Management
For instance. In most cases there is an underlying benefit sought by an organization when they engage in advocacy advertising. In these types of ads. image advertising may be used in situations where a merger has occurred between two companies and the newly formed company has taken on a new name.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 4 Image Advertising Image advertising is undertaken primarily to enhance an organization’s perceived importance to a target market. Objectives of Advertising You have learnt that the main purpose of advertising is to communicate massage or information to the customers. Image advertising does not focus on specific products as much as it presents what an organization has to offer. such as teen-age smoking. Image advertising is often used in situations where an organization needs to educate the targeted audience on some issue. For instance. may run on television. not-for-profit organizations are permitted to run advertisements through certain media outlets free-of-charge if the message contained in the ad concerns an issue viewed as for the “greater good” of society. V. if products are mentioned it is within the context of “what we do” rather than a message touting the benefits of a specific product. or if a company has received recent negative publicity and the company wants to let the market know that they are about much more than this one issue. Public Service Advertising In some countries. Institute of Management . an organization may take a stand on a political issue which they feel could negatively impact the organization and will target advertisements to voice their position on the issue. ads directed at social causes. Advocacy Advertising Organizations also use advertising to send a message intended to influence a targeted audience. Let us look into the various objectives of advertising. illegal drug use and mental illness. radio and other media without cost to organizations sponsoring the advertisement. For instance. But while communicating such message or information it also serves purposes beneficial for the sponsor or advertiser. S.
To educate customers Can you remember the advertisement of Dandi Namak on television? In this advertisement it is said that Dandi Namak is good for health as it contains Iodine. ii. the sale of the product also increases. or groups the advertiser is attempting to reach or “get a message to” Figure 1. v. This message educates you that iodine is good for health and Dandi Namak contains iodine. To create demand for new product You read in newspaper that a new type of pen called ‘Gel pen’ is introduced in the market. advertising helps the manufacturers not only to create a demand for a new product but also to retain the existing customers. After knowing this the persons who were earlier using Nirma did not switch over to Wheel and continued using Nirma.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 5 i. after Wheel powder came to the market the sale of Nirma suddenly decreased. To assist salesman In most advertisements the salient features of a product. which is very economical and convenient in writing. many students like you shall also buy gel pen after coming to know about it through advertisement. Institutions involved in field of Advertising Management The concept of markets and consumer will be use interchangeably to refer to any classification of individuals. This assists a salesman to sell the product quickly without spending time in explaining and conniving the customer. In this manner Nirma sustained its existing demand. Similarly. Then the manufacturers of Nirma improved the product and advertised about the same in different media.1 Markets and consumer behavior S. organization. Institute of Management . This motivates you to buy the said pen. Thus. This will create a demand for the new product launched in the market. To retain existing customers You might remember that Nirma washing powder was a very popular detergent. with increase in demand. iv. its qualities and its uses are expressed in detail. iii. To increase sales We have learnt that advertising creates demands for new products and sustains the demand of old one. But. V. Thus.
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 6 Control Institutions Facilitating Institution Advertising Agency Government Advertiser Competition Media Research Supplier Markets and consumer behaviour Figure 1. Institute of Management .2 Media of Advertising S. V.
magazines.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 7 Print Media Print media is a very commonly used medium of advertising by businessman. opinions and current events. Newspapers You must have read Newspapers. Thus. These are the sources of news. The cost of advertising is relatively low because of wide publication. This makes advertising quite flexible. Newspapers are published from different regions and in different languages. Hence. they provide greater choice to advertisers to approach the desired market. Even last minute changes in the content is also possible. region and readers through local or regional language • Limitations i. After 24 hours we get a fresh newspaper and this makes the life of the newspaper short. S. Newspapers are read soon after they are received and then are kept generally in some corner of the houses. iii. Newspapers are also a very common medium of advertising. Newspapers normally have wide circulation and a single advertisement in the newspaper can quickly reach to a large number of people. Hindi and in other regional languages. In addition. The advertiser communicates his message through newspaper which reaches to crores of people. and is also called press advertising. V. It includes advertising through newspaper. In our country newspapers are published in English. v. etc. journals. The matter of advertisement can be given to newspapers at a very short notice. Institute of Management . the same advertisement can be repeated frequently and remind reader everyday. Generally newspapers are published daily. • Advantages i. iv. ii.
Institute of Management . fortnightly. Yojana. India Today. hence last minute change is not possible. Nandan and Champak in Hindi. • Advantages i. whenever required. manufacturers of products and services to be used by females prefer to give advertisement in this magazine. This includes Radio. newspapers advertising does not benefit them. ii. The advertisement materials are given much in advance. Periodicals have a much longer life than newspapers. which is a magazine for women. advertisements related to products to be used only by males are rarely published. advertisements published in them reach a number of people. There are also popular programmes sponsored by advertisers. Swagat. Periodicals Periodicals are publications which come out regularly but not on a daily basis. Advertising in periodicals are costlier. These may be published on a weekly. Periodicals have a selected readership and so advertisers can know about their target customers and accordingly selective advertisements are given. monthly. However. bimonthly. For example.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 8 ii. iii. It was sponsored by Hindustan S. Grihasobha. These are preserved for a long period to be referred in future or read at leisure or read again. This reduces flexibility. in a periodical like Femina. The number of people to whom the advertisements reach are small in comparison to newspapers. • Limitations i. ii. In radio there are short breaks during transmission of any programme which is filled by advertisements of products and services. Let us look into detail about these. Frontline. published regularly in English. Similarly there are also periodicals in Hindi and other regional languages. etc. quarterly or even yearly basis. Femina. Illiterate persons can not read and thus. Electronic Media This is a very popular form of advertising in the modern day marketing. iii. V. Radio Advertising All of us are aware about a radio and must have heard advertisements for various products in it. (One of the longest run programme in Radio was a sponsored programme started as “Binaca Geetmala” and later renamed as “Cibaca Geetmala”. For example you must have come across magazines and journals like Onlooker. People read newspapers mainly for news and pay casual attention to advertisement. All these periodicals have a large number of readers and thus. Television and Internet.
For example. but you can hear radio. • Advantages (i) It is most effective as it has an audio-visual impact. toothpowders and tooth brushes and it continued for a period of 30 years on a weekly basis). Television Advertising With rapid growth of information technology and electronic media. occasional listeners tend to forget what they have heard in Radio. Now-a-days people are switching on channels whenever there is a commercial break. • Limitations (i) A regular listener may remember what he has heard. while driving you can hear a radio but cannot read a newspaper. TV advertising has a lasting impact. V. who can not read and write. For example.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 9 Ciba-Geigy Limited for its products like toothpastes. (ii) It is also useful to illiterates. (iv) With regional channels coming up any person even illiterates can watch the advertisements and understood it by seeing and hearing. who can forget Aamir Khan saying “ Thanda Matlab Cocacola” or Sachin Tendulkar in Pepsi advertisement. you can hear radio while traveling on road or working at home. TV has the most effective impact as it appeals to both eye and the ear. There may be some other disturbances that distort communication. • Limitations (i) TV advertisements are usually expensive to prepare as well as to telecast. Radio is less effective as it lacks visual impact. (iii) There are places where newspapers reading may not possible. Institute of Management . But. (ii) The message that any advertisement wants to communicate may not be proper as there is no chance to hear it again immediately. (iii) In comparison to Television. • Advantages (i) It is more effective as people hear it on a regular basis. song and dance sequences. advertisements are shown in TV during short breaks and there are also sponsored programmes by advertisers. famous personalities exhibiting products. Similarly. but you can not read newspaper. Advertising (ii) With almost every manufacturer trying to communicate their message through TV advertising the impact among the viewers is also reducing. Just like radio. (ii) With catchy slogans. (iii) With varieties of channels and programmes advertisers have a lot of choice to select the channel and time to advertise. S. Products can be shown. their uses can be demonstrated and their utilities can be told over television. television has topped the list among the media of advertising.
except radio and newspapers or magazines to some extent. Posters Poster are printed and posted on walls. trains. (ii) User can see the advertisement at their own time and as per their requirement. • Advantages (i) Information from all over the world is made available at the doorsteps. buildings. In almost all the search engines or portals different manufactures or service providers advertise their products. If you have a computer and with an access to internet you can have information from all over the world within a fraction of second. Posters of films which are screened on cinema halls are a common sight in our country. etc. S. Hoardings While moving on roads you must have seen large hoardings placed on iron frames or roof tops or walls. bridges etc to attract the attention of customers. etc. Through internet you can go to the website of any manufacturer or service provider and gather information. V. (ii) It is not very suitable for general public. where the consumer has to spend nothing and he can see such advertisements while moving outside. • Limitations (i) It is not accessible without a computer. The advertisers have to pay an amount to the owners of the space.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 10 Internet Are you aware about internet? Infact it is the latest method of communication and gathering information. Institute of Management . there are other media available. vehicular displays. Some of such advertising are hoardings. Other Media All the media of advertising discussed above are mostly used by consumers while they are at home or inside any room. Sometimes when you do not have website addresses you take help of search engines or portals. gift items. Moreover in all these media. These are normally boards on which advertisements are painted or electronically designed so that they are visible during day or night. posters. the consumer has also to spend some money to access the advertisement. (iii) It is not suitable for illeterate and those having no knowledge about the operation of Internet. where the hoardings are placed. Vehicular displays You must have seen advertisements on the public transport like buses. However. Unlike hoardings these vehicles give mobility to advertisements and cover a large number of people.
calenders. Global Scenario Impact on Supply and raw material side Newsprint prices in CY2008 have already risen 10-12% S. to buyers and prospective customers. the user remembers the products as well as the producer. Some jewelers give small purse or boxes when you buy a jewellery. or trader or service provider as well as descriptions of the products in which they deal in are printed. While using. Sometimes manufacturers gives diaries. These items are normally items of daily use given freely to the customers.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 11 Gift Items from manufacturers When you buy a cycle. address and telephone number of the manufacturer. etc. Institute of Management . purse. V. the shopkeeper sometimes gives you a key ring to hold the cycle key. In all these items the name.
2mn tons. Further. the scenario has now changed. Institute of Management . However. over the last several years. V. the largest North American newsprint producer accounting for almost 50% marketshare. several mills closed down resulting in a shortage of 2mn tons taking the prices up. declining demand in UK and parts of Europe and strong push by Chinese newsprint companies into the Indian market. The merged entity announced closure of the 600. this gap has vanished. the North American newsprint market was suffering from a large demand-supply gap keeping the prices under check. Newsprint prices in CY2008 have already risen 10-12% to US $640MT levels with more hikes anticipated in the near future. Old News Print (ONP).a surplus of 2. However. the primary raw material for recycled newsprint. Newsprint prices to stabilize post 2HCY2008 S. most Print Media companies reaped the benefits of lower newsprint costs on account of the dual benefit of declining newsprint prices and rising Rupee. We attribute the sharp rise in global newsprint prices to the following factors: Capacity rationalisation in North America In CY2007. Rising crude prices High crude prices at US$100-105 per barrel are pushing up freight rates as well as the cost of production of newsprint. have been able to purchase imported newsprint (largely from North America) at competitive prices owing to a positive supply scenario (vast capacities created by international newsprint manufacturers). global demand for newsprint was 38. in the last 5-6 months. have pulled out as recycled newspapers. After bottoming out in July 2002 at US $430MT. by the end of 2007. Catalyst Paper acquired AbitibiBowater's 375.3mn tons while the global supply was at 40. one of the main raw materials for recycled Chinese newsprint has seen an increase in price ranging from $130 to $270 per ton. The rise in newsprint prices during the period was attributed to steady demand and cost push inflation. newsprint prices were on a steady rise for almost four years and peaked at US $640MT levels in July 2006. But.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 12 Indian companies. The Chinese equation The Chinese suppliers. owing to the merger of Abitibi and Bowater to create AbitibiBowater. Domestic consumption in China has also gone up owing to the run-up to the Beijing Olympics.000 ton/year of capacity as a part of its rationalisation plan and effected a price hike of US $60/ton for 1QCY2008. a highly energy-intensive process.000 ton/year Snowflake mill capacity resulting in an equation where the Top-five newsprint producers now account for over 80% of the newsprint capacity in the North American market. In FY2008 however. At the beginning of CY2007. is in short supply. who were aggressively selling to the local buyers.5mn tons .
Institute of Management . sundry and real. the largest consumer. we have modeled in an 18% rise in newsprint prices in FY2009E from $600/ton as a base case followed by a 6% jump in FY2010E. which largely depend on circulation revenues. has declined by 10.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 13 We expect newsprint prices to remain firm and rise to higher levels in the near term. the strong domestic demand in China is more of a transitory phenomenon and is likely to witness moderation in 2HCY2008 leading to better supply situation. Indian Advertising India is an immerging market and Indian advertising has remained robust despite the signs of sluggishness. S. adapting itself to changes with passing time. Our Sensitivity Analysis indicates the impact of an additional 100bp rise on EBITDA and PAT on our base case assumptions for the different companies.8% yoy in CY2007 and is expected to remain subdued. high Operating leverage and ability to garner high amount of advertising revenues. It is like a kaleidoscope exhibiting different perspectives enthralling. We have modeled in a 24% cumulative hike in newsprint prices over the next two years For our Print Media universe. Advertising provides a free rein to the art of persuasion. Moreover. which arise due to changing business dynamics. it is much more than a few printed lines or more pictures with some printed text. However. we note that newsprint demand in the US. most large publishing companies have strong cash flows and balance sheet. higher use of imported newsprint and higher pagination compared to its peers. We believe HT Media is the most sensitive to newsprint price hikes owing to its large circulation base. The large newsprint publishers are in a better position to absorb the hikes owing to their strong Margin profile. today. V. will likely witness sharp erosion in profitability rendering their business model unviable. The field of advertising has progressed in leaps and bonds. which gives them the additional advantage to explore acquisition opportunities. We believe the Newspaper publishing companies are likely to use a combination of counter-strategies to mitigate the impact of rising newsprint prices to protect their Margins and remain competitive. Rising cost pressures likely to lead to industry consolidation If newsprint price hikes sustain at this rapid pace for another few quarters. Besides. we believe the smaller publishers.
They also discovered paintings on rocks that were used to advertise commodities. sports. Advertising is frequently considered as the compensated. public endorsement of a cause. Practice of Multilanguage an d translated syntax like Fruit salad ehk minute main or Ek dum fit appeals to people of all regions across the country. it S. the trend of using Hinglish is gaining prominence and emerging as a language most suited for Indian advertising and the fact that brand ambassador like Amirkhan speaks this language in the ad reflects the confidence of the advertiser. Thus. product. Institute of Management . In the current scenario. It is an important part of an overall marketing strategy. Examples of this were discovered by archeologists’ ancient wall paintings announcing fights of gladiators. Seeing his favorite celebrity in an advertisement motivates the consumer to use the product. History Advertising is attracting the interest of the public towards the goods and services by endorsements which are performed with the help of a range of media. advertising also score high and various media strategies are now employed to meet different advertising needs. Today. companies are experimenting with novel techniques to attract consumers. Proper research is carried out to significantly reduce the risk involved in advertising task. All these have the potential to influence our rational consideration for making purchase Brand ambassador are used by companies to attain some definite objectivity. as it simplifies the language. At the commencement of advertising. proposal. With the development of print media. radio and television. Advertising has adopted many dissimilar forms since the initial period of time. and improved the potential of the creative vehicle and the actual performance in the market. or service by a branded supporter endeavoring to inform or influence a particular target audience. and games. religious and education.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 14 Indian advertising is a vast field where new trends are continuously emerging everyday. The Amul ads were one of the first to use Hinglidsh to great effect “Amul Big boss of Makkans”. They are constantly looking at new apertures to market. politics. The use of English words in between Hindi words or Multilanguage to create a ‘special effect’ is becoming a fashionable trend it is more accessible to all. Indian consumer has developed a treatment for the swift transformation that has taken place in the strategy and presentation of ads. The language used in the advertisement is influenced by many sociological factors like market. V. rural market. online marketing and mobile marketing growing at rapid speed targeting the ever increasing number of Indian web users in all possible promising ways.
frescos. The archaeologists have discovered quite a few signs. Before the development of print media.hordings and signage seen near bus stop and at the back of the vehicle are the developrd version of information or messages with the trade mark on the wooden planks. and hawking were the means of advertisement. It was discovered that in the era relating to the middle ages. These ordinary town criers were the people who gave rise to the concept of the current day announcer who presents radio and television commercials. Researchers revgeal that earlier hawking was also one of the popular medium of advertising. With the development of civilization . the use of word-ofmouth to express approval and administration for products. Evidence has been discovered by archaeologists of the fact that advertising. robust changes are seen in advertising also. which touch the heart and leave an evergreen print in the minds of the mass ? “babu mein laya majedar chananchor garam. The religious messages inscribed on the Stupas in Sanchi are examples of such advertising. Nearly. hawkers had a very unique musical style of magnetizing people an popularizing their products.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 15 was simply a proclamation or an announcement. This people were also haired by traders to shout out and express approval and admiration of their articles which were being offered for sale. S. Institute of Management . Indian Merchant’s Slik clothes weaver’s cooperative association had in described an advertisement in the form of a poem on a wall of a sun temple in Dasapur (now called as Madsour in MP) which is consider as one of the oldest advertisement in the world. The origin of Hindi advertisement is not known or cannot be stated as clearly. V. Rajas and maharajas royal orders were displayed as fresco or work embedded in the wooden planks. particularly at sites like ancient ruins and caves. This outdoor advertising was normally in the form of an attractive sign which was painted on a building wall. carving on the rocks and pillar. outdoor display was the first to be recognized. The people who performed word-ofmouth services were called caries and they were citizens who were responsible for reading out public notification. Hawkers use to cry out the quality of their products In a musical way to attract people in the states and lanes. Some of these messages were signs relating to certain real estate for purchase or rent and somewhere signs trying to bring to the notice of travelers the availability of guest house located at another location. led to generation of an elementary but powerful form of advertising. Who can forget this popular jingle. the businessmen in early Egypt made use of caries to proclaim or announce the arrivals of ships along with the arrivals of cargo. some two thousand years back during the reign of Kumar Gupta. Latter on this people become a regular feature on the streets of various colonial settlements. an example of which is. metallic plates or stones use in the olden days. The practice of using trade mark is seen ancient civilization also. mera chana bana hai aala……” yes.
To popularized product identity. the most widespread type of advertising was done by word-of-mouth. But. modern Indian consumers are moving towards experimenting conspicuous consumption The consumer buys a produce most probably because the consumer identifies a requirement or want for it. the main intension behind the advertising was only to transmit the information. where four pages were set aside exclusively for including ads. During the period success of the newspaper depend largely on the financial help received from the advertisement published on it. The spread of jingoistic feeling and xenophobic attitude was echoing in the advertisement published after 1902. V. Earlier. Institute of Management . Painting on the walls and rocks for the purpose of the commercial advertising is another demonstration of an early from of media advertising. Advertisers were using language enriched with theoretical devices. Superior visual and portraits were used in advertisement published after 1954 which targeted the larger consumers over a larger geographical\al area. S. The use of idioms and phrase was an added advantage to create a strong identity for the product. Government advertisement contained only vacancies and tender notices. After that the demand has been increasing. Agra. agencies were working a single sided basis and were not much interested in criticism or views and response from others. which differed from the ordinary course of idea and subsequently generated larger upshots. on the one brand. Neither during the time of East India company not during the British reign advertising was given much significance. various properties of the products were elaborate using idioms and phrases that helped to showcase them in a better way. Along with this other messages. sales messages and wall posters had also been found in the ruins of Egypt. for example the ad Poorn Bharatya parentu aayuthith bootom thatha jootham ke samaan ( totally Indian but equal to imported boots and shoes) was published by Sttewart factory . mostly of East India companies. On the other hand the message of the commercial nature and displays of the political campaigns have been found in the ancient ruins of the countries like Egypt. 1780. The consumer makes decision with respect to the brand to be purchased and whom it is to be purchased from.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 16 The prospective of advertising escalated when manual press was invited in the 15 th century. Up to the 20th century. If they were any other advertisement then they published in the government gazette whose circulation was very limited and so was far above the reach of the common people. which still can be found to exit in quit few parts of Asia and Africa. messages and pertaining to lost and found contain were a common from of advertising in the primeval times in countries like Rom and Greece. With the availability of products increasing manifold. Similarly. During the mid 1980s advertisement having a poetic style became very popular. India’s first newspaper Bengal Gazette most published on June 29. In primeval times. the effort behind contemporary advertising is to “generate a demand” by manipulating the apparent wants or need or wish of the buyer. The knowledge of their options and an assessment of the alternative have an effect on the consumer’s decisions.
creating totally new and creative messages. it becomes very hard to forecast and hypothesize. For this reason. almost every time there is ascertain amount of ambiguity as to the way it will advance and flourish. such advertisements were very much affordable. Institute of Management . classify advertising started becoming accepted and gaining popularity. particularly during the period of the 15th as well as 16th centuries During this period. which in turn made advertising more attractive viewing for the consumers. Latter on the period of the 17th century advertisement began to appear in the tabloids and newspapers. printing also expended and developed. During the period of the 160s advertising started to advanced towards futuristic and a much more scientific process in which the artistic imagination was given to full scope to sparkle. not only about the future operation of the technology. V. there is nothing else which can be use as the basis for our expectations and hence. but also about the impression and impact it will have on culture lifestyle and also on society. During this period. During the period of the 19th century when the economy was growing at the frantic pace. When something is new and one of the kinds. the necessity for advertising was also expanded at an even pace. These advertisements were economically priced.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 17 Even though pictorial type of advertising becomes visible early on history. printed advertising made slight progress until the innovation of the printing press. I is not at all possible to anticipated the definitive traits that will make it gel with popular culture. This initials advertisement in the print media was made use of primarily to endorse books and newspapers. and hence. advertising developed and went on to incorporate handbills. comparison is made with the different types of media. The effectiveness of this type of advertising paved the way for mail order advertising in the form of catalogs. With the development of the printing press. The newspapers were full of different types of products. Growth While making and appraisal about the effects of a new communication medium. thanks to the advent of the printing press. S.
in turn influenced the progress and expansion of the advertising industry the time when the first commercial appeared on television. As we have seen that the retailing sector is booming this will again also support the advertising industry as the FMCG segment is the largest advertiser in Indian Advertising Industry. It is also necessary to distinguish the way in which the identification of the medium influences the message and also evaluate the sociological influence of current fashionable advertising.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 18 Some channels of media are dependent on the revenue generated through advertising right from the inception. Each specific medium has an intrinsic quality of marketing and the part that the viewer plays inside the range of the text of an advertisement is connected with the provisions and the limitations of the medium. it is the growth of each specific medium and the traits that describe than and that in turn impacts the way in which he advertising industry has developed. This industry boost because of big MNC in India. Institute of Management . Indian Advertising Industry size S. while others become the outcome of commercialization. V. This industry has a 0. closely followed by the consumer durable segment and automobile industry. To understand the growth of advertising industry. it is necessary to understand the manner in which social development and political happenings have moulded the commercial media and.65% part of GDP growth.
the advertising industry continues to make its importance felt registering a robust growth of 21.1% registering a strong 20. this is also become a huge medium for this advertising industry. was seen as a major boost for the advertising industry.3% CAGR in revenues for the advertising industry during CY2007-11. about 200 million newspaper readers and about 38-million users of internet in India. It is sure that in near future the mode of advertising and the present method of advertising will be changed by different mode and modern technology. There are about 70-million cable & satellite homes.. pre and post campaign analysis market research. print and radio. media planning conceptualization. in turn. which was commercial in nature and sales reliant. Up till now we see advertisement on television. This resulted in an increase in the levels of income and there was also an increase in production. S. The Indian advertising today handles both national and international projects. the reason that the industry offers a host of functions to its clients that include everything form start to finish that include client servicing. Institute of Management . Print Media continues to account for the largest share of the advertising pie at 48. marketing branding and public relation services keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness The launch of TV service. Print and Television are expected to converge in CY2011. led to the necessity of creating new markets. During the period following the Second World War there was a very fast and strong growth in the economy of the countries. V. This breadth of mass media will give huge market for advertisement. both the traditional platforms viz. In terms of contribution to the total pie.5% yoy growth during the year. India has about 350 million mobile phone users. But now the scenario has changed.5%yoy in CY2007 to Rs195bn. The commencement of TV advertising was considered to be one of the means by which it was possible to develop economy. the basis of which was competition. buoyant economic growth and high growth in new media platforms are expected to drive a steady 19.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 19 As consumer wallets swell and companies slug it out to capture a larger share of these wallets. Low ad spends relative to GDP. which.
For e. They stressed that both the types of advertisement stressed the endorsement of concern. these commercials also are no table to convey the sequence of events and since they do not have the quality of narration. it was apparent that conveying the characteristics and advantage of product was essential and imperative. which is made available by the images with movement. On the other hand. The idea of endorsing a brand name was thought to e the most vital in advertising during 1960s. In contemporary society. print advertisements are less open in their ability to provoke emotions. The intention behind this was that with brand loyalty. Analyst. some advertisements seem to be bit immature and prehistoric when they are compared to current examples.g. In the initial campaign of TV advertising. Branding was successful in creating an intrinsic association connecting the product and the campaign. it is imperative that the advertisement itself compelling enough to stop us from switching channels or making use of the time brew a cup of tea. TV advertising had the capability of entering the pirate zone and aim for the people inside their homes. Along with the fact that TV advertising had the multi. which were multisensory in nature brought a fresh lease of life to the advertising industry.sensory feature the fact that truly separated it from advertising in cinemas was the fact that the nature of TV advertising was very domestic.. Just like the newspaper. we are inundated with media communication and continuously exposed to household disturbance. Analysts argued that there was a basic connection in way prints as well as TV. The conception of the advertisement. as advertisers placed enamors importance on the necessity of generating an exclusive brand but ignored the necessity to create a center of attention for the product. V. the largest consumer groups were women and the priority of the advertisers was to attain loyalty towards their brand. they would not only be ale to create market for their brand but they would also retain the market from their competitors. fright or want and the perception of product awareness. the feel was like watching a documentary. in retrospection. commercials in the print media are successful because they are very simple. During this period. The important and unique fact was that even though the modus operandi was same TV advertising effectively communicated the marketing campaigns in a way that was stimulating both to the eyes as well as the ear and this was very new. But this did not mean that the basic modus operandi used was largely diverse from the fundamental techniques used for advertising in the print media. also claim that in spit of being extremely effective.based advertising campaign was created.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 20 After the Second World War. the name of the product and the commercial technique of the product. Therefore. Brands were considered to be a means of developing links that would help the consumer in associating the product with its packaging. But in being so. The result of this was a multitude of advertisement that gave accurate information. the advertisement campaign for products of domestic use like cleaning products would time and again shows professionals or experts and endorsing the qualities of S. however. Advertiser felt that a sense of truthfulness was vital in connecting the trust factor with a particular brand. TV advertising was considered to be a novelty and revolution and the people reacted very positively to advertising after the initial doubts and resistance. This association is allowed identification both on the screen and the off screen. Institute of Management . But for the consumer.
which was still in the process of straying to prove its potential in area of marketing and also in the area of making profit. The more important trends in advertising include: S. The latter period off the 1980s and the initial period of the 1990s witnessed the launch of cable television and what stood out in particular was MTV. Alternatively they prefer to ensure that the contain of advertisement was presented lucidly and accurately. Advertisement developed and become more stylish. was considered to be a risk. and advertisements of the time mirrored this. advertisers were at a distance and prefer to refrain them selves from being to experimental. Earlier the ad was meant for general know for consumer but now it is all about MIND & HEART share. Advertisement campaign for indulgences like chocolates and alcohol were associated with fancy desire and pleasurable feelings. Hence. Being the groundbreaker in the idea of the music video. There was awareness that businesses would have to vie for customers. Some argue that change has affected advertising more than any other marketing function. Advertisements started to endorsed lifestyle advertisement. bringing complication in to the area of play by bringing in components like comedy. Trends If we talk about present trend in this industry we could like simply say mind blowing. During 1980sadvertising began to mirror more powerfully the economic principles of a spirited. MTV brought in an innovative style of advertising: the customer watches the channel with the intension of specifically watching the advertisement. signifying to the observed the way in which the product be used. Products became linked with particular kinds of populace or movement and would time and again be revealed only at the conclusion of an advertisement. Today’s ads are made so creative and unique that it gave new birth to new concept “BRAND LOYAL” Like most areas of marketing. Lifestyle advertisement depends on the desire of the viewer to acquire the qualities of the individual in the advertisement and for that reason they resorted to a resourceful method of aiming at specific collection of people. Institute of Management . Today ads have made unique image in consumers mind. liberated market. V. as and for that reason. Retailers were seriously investing to promote their products on a commercial media outlet. The initial period was one of the setting up advertising standards. advertising is changing rapidly.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 21 the product so as to induce a sense of unbiased credibility for the product.
For media outlets delivering information in digital form.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 22 Digital Convergence While many different media outlets are available for communicating with customers. technology may allow ads delivered to one household to be different than ads delivered to a neighbor’s television even though both households are watching the same program. Any media outlet that relies on computer technology to manage the flow of information does so using electronic signals that eventually form computer data. the ability to distinguish between outlets is becoming more difficult due to the convergence of different media types. But convergence is not limited to just television. refers to a growing trend for using computer technology to deliver media programming and information. GPS tied to satellite radio) pass by or direct mail postcards that carry a different message based on data that matches a household’s address with television viewing habits Focus on Audience Tracking The movement to digital convergence provides marketers with the basic resources needed to monitor user’s activity. The convergence of television and Internet opens many potential opportunities for marketers to target customers in ways not available with traditional television advertising. S. is known as digital information. telephone or satellite hookup. the potential exists for greater tracking and matching this with information about the person receiving the digital data. In simple form. in many areas around the world television programming is now delivered digitally via cable. For instance. and more appropriately digital convergence. All digital information can be stored and later evaluated. This activity can be tracked then used in future marketing efforts. The future holds even more convergence opportunities. These include outdoor billboards that alter displays as cars containing geographic positioning systems (GPS) and other recognizable factors (e. This delivery method uses the same principles of information delivery that is used to allow someone to connect the Internet.. In computer language this is further represented by two numbers “0” and “1” and.g. For example. In advertising convergence. V. consequently. Institute of Management . it also works with information being sent from the customer. digital data. by clicking on their television screen viewers will soon be able to instantly receive information about products they saw while watching a television show. Convergence allows one media outlet to take advantage of features and benefits offered through other media outlets. as we noted earlier. electronic data is represented by either an “on” or “off” electronic signal. And tracking does not stop with what is delivered. For instance. Many media outlets are experiencing convergence as can be seen with print publications that now have a strong web presence. namely.
Internet Spyware – Downloading entertainment from the Internet. telephone and satellite providers to track user activity through the settop boxes connected to a subscriber’s television. A digital video recorder (DVR). video and software. television recording devices offer marketers tremendous insight into viewers’ habits and behavior. Yet consider the following examples of how marketers are tracking users: • Television Viewing – As we noted. such as TiVo. which then results in delivery of special ads when a user visits a certain site. may contain a hidden surprise – spyware. Future innovation will make the user television experience even more interactive and. consequently. the DVR is changing how people view television programs by allowing them to watch programming at a time that is most convenient for them. The other main reason consumers are attracted to the DVR is their ability to quickly skip over commercials. such as games. make suggestions for programs they may want to record. Yet from the consumer side. Viewer convenience is not the only advantage of the DVR. Advertisers who feel frustrated with television ad-skipping may opt to invest their promotional funds in other media outlets where consumers are more likely to be exposed to an advertisement. the advent of digitally delivered television allows cable. S.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 23 Audience Concern with Tracking While media convergence offers marketers more options for tracking response to advertisements. Many consumers are not pleased to learn their activities are being monitored when they engage a media outlet. Of course this presents major issues for advertisers who are paying for advertisements. • • Ad Skipping and Blocking As noted above. open to even more tracking. Additionally. V. Institute of Management . Television recording – The days of television videotape recording are quickly coming to an end. replaced by recording using computer technology. can track users recording habits and. based on a viewer’s past activity. The information is then used to gain an understanding of the user’s interests. Spyware is a special program that runs in the background of a user’s computer and regularly forwards information over the Internet to the spyware’s company. such activity also raises ethical and legal concerns. As more DVR devices with ad skipping or even ad blocking features are adopted by mainstream consumers the advertiser’s concern with whether they are getting the best value for the advertising money becomes a bigger issue. advertising services can program the DVR to insert special advertisements within a program targeted to a particular viewer. In some cases spyware keeps track of websites the user has visited.
This type of setup will soon allow marketers to insert special content. Many traditional media outlets. are seeing their customer base eroded by the emergence of new media outlets. • For marketers these new technologies should be monitored closely as they become accepted alternatives to traditional media outlets. within game play. the downloading of video to small. handheld devices. such as blogs. for a fee. The bottom line for marketers is they must stay informed of new developments and understand how their customers are using these in ways that may offer advertising opportunities S. Examples include: Podcasting Audio – This involves delivering programming via downloadable online audio that can be listened to on music players. such as advertising. such as newspapers and major commercial television networks. • RSS Feeds – This is an Internet information distribution technology that allows for news and content to be delivered instantly to anyone who has signed up for delivery. In particular. Institute of Management . gaming systems attached to the Internet for group play is relatively new and becoming more practical as more people move to faster Internet connections. news and information. offer free downloadable audio programming. Many news websites and even other information site. • Networked Gaming – While gaming systems have been around for some time. mostly younger. Marketers should also be aware that new media outlets will continue to emerge as new applications are developed. Clearly those registering for RSS feeds represent a highly targeted market since they requested the content. The Internet has become the major driver of this change. such as Apple’s iPod. including cellphones. they may soon offer such opportunity. a number of important applications tied to the Internet are creating new media outlets and drawing the attention of many. V.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 24 Changing Media Choices There is a major cultural shift occurring in how people use media for entertainment. albeit. Many television networks are now experimenting with making their programming available for download. • Podcasting Video – While audio downloading has been available for some time. consumers. As these technologies gain momentum and move into mainstream acceptance marketers may need to consider shifting advertising spending. While these technologies are currently not major outlets for advertising. is in its infancy.
the to find out more about specific products on television by just pressing a button on the remote or using a mouse to click on an advertisement banner on the internet is the ultimate desire of a marketer. S.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 25 Future The path that lies ahead for advertising being unpredictable. which is significantly on a come back trail. it is difficult to forecast and it depends very strongly on the trends in the media usage. help to affect the way in which potential consumers associate with advertising. The announcement of mobile majors about the offer o put up the market airtime for advertising on its network was done with a plan to offer advertisers an express channel. The discovery of new technologies and the provision of these technologies as a podium on which to advertise. V. Institute of Management .
particularly since the rise of “entertaining” advertising. in the case of this type of advertising. bigger amounts are being paid so as to acquire a commercial spot durig world-famous spectacular event. Another noteworthy and important trend for the future of advertising is the increasing significance of niche advertisement or in other words. develops additional interest in the product. On the other hand. probably the most resourceful technique to convey a message was to cover the biggest mass market audience that was actually possible. the advertising population has not yet been able to make this very simple even though some of them have started using the internet to spread extensively their advertisement to any person who is willing and wishing to see or hear the commercials. some consumers may be fond of a particular advertisement to such an extent that they would want to watch the advertisement late or they may want to show the commercial to a friend. In the past. there will also be an increase in the demand for advertising that is entertaining. immediate a collaborative communication between the customer and the seller/producer. By this. targeted advertisement. S. which. With each passing year. On the whole. This was not possible with the earlier print-based media and the media campaigns in the broadcasting media. When the customer uses a mobile phone. a registration from that offers a free trial or sample or even the option to make an immediate purchase transaction on the internet. Also.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 26 Marketing activities with the help of internet created new boundaries for the advertisers and this opened the gates for the dotcom era to grow by leaps and bounds. With the emergence of the internet. the internet offers options like a website for the promotion of products. we can see that the electronic media enable direct. is considered to be the most major and the most significant football event of the relevant or particular year. Advertiser will have an ever-increasing capacity to get in touch with constricted viewers. he or she gets an opportunity to get directly associated with the product. with the demand for advertising. in turn. which was one-way transmission only. This concept has generated mainly because of the emergence and the popularity of the internet. watches digital television or advertisements on the on internet. Major corporations functioned singularly on the revenue generated from advertising. a number of new advertising opportunities which are able to instantly attract the attention of the consumer and encourage interaction have been generated.. making a vast variety of offers ranging from internet recharge coupons to non chargeable access to thee internet. Institute of Management . V. An example of this is Football World Cup event. which by any measure.
Its time they make clients understand the two are partners who have only one Client: the Consumer ‘ . V.Piyush Pandey . S. Creative Director. O & M A unique aspect of advertising is advertising agency. which in most cases.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 27 Advertising Agencies “Ad agencies in India today are scared of their clients. Institute of Management . makes the creative and media decision.
Function of Advertising Agencies Professionals at advertising agencies and other advertising organizations offer a number of functions including: Account Management – Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. Probably the first agency with a reputation for a creative work was Lord and Thomas with two remarkable copywriters. For large accounts one task account managers routinely delegate involves generating ideas. • Researchers – Full-service advertising agencies employ market researchers who assess a client’s market situation. Organization handles advertising in different ways. film and audio production. By the turn of the century. the account manager works closely with the client to develop an advertising strategy. designing concepts and creating the final advertisement. John E. possibly. Different agencies have different policy and criteria for its client and they create competitive edge on that basis only. with only one of the client’s product lines. such as large consumer products companies. An agency’s creative team consists of specialists in graphic design. whose manager reports to the wise president of marketing. copywriting. computer programming. These responsibilities include locating and negotiating to acquire clients. • Creative Team –The principle role of account managers is to manage the overall advertising campaign for a client. Kennedy and Claude Hopkins. Palmer. agencies started to focus their attention on the creation of advertising for clients. V.for 25 per cent of cost he sold space to advertisers in the various 1400 newspaper through out the country. though non-competing. which often includes delegating selective tasks to specialists. accounts. and much more. an advertising agency may assign an account manager to work full-time with only one client and. For smaller accounts an account manager may simultaneously manage several different. Institute of Management . To perform all the advertising activities there are different advertising agencies. A large company will often set up its own department. including understanding customers and • S. which generally becomes the responsibility of the agency’s creative team. Once the client has agreed to work with the agency.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 28 The first advertising agent Volney B. advertising is handled by someone who is in the sales or marketing department. establish an office in Philadelphia in 1841. In small companies. Kennedy believed that advertising was “salesmanship in print” and always tries to provide the reason why people should buy the advertiser goods. For very large clients.
such as different advertising cost structures (i. media planning and buying and accounting planning. or media buying) audiences (minority. which is also known as research. it must be placed through an appropriate advertising media. In addition there are specialized agencies in all marketing communications areas.g. medicine and pharmaceuticals. These agencies handle a variety of client from within that field. A full service advertising agency will also have its own accounting department. different ways placements can be purchased (e. has its own unique methods for accepting advertisements. who looks for the best media match for a client and also negotiates the best de Types of Advertising Agencies Full service Agencies A full service agency is one that includes the four major staff function-account management. • Media Planners – Once an advertisement is created. and also are used to test creative ideas. in the early stages of an advertising campaign researchers may run focus group sessions with selected members of the client’s target market in order to get their reaction to several advertising concepts.. Industry Focused Agencies Numerous agencies concentrated on certain fields or industries such as agriculture. events and sports marketing and packaging and point of sale. agriculture and business to business communication. a department for broadcast and print production (usually organized between creative departments) and a human resource department. producing art.. Institute of Management .. computers. Each advertising media.e. making them essential full service. They either specialize in certain function (writing copy. V. sales promotion.g. what it costs marketers to place an ad). Researchers are also used following the completion of an advertising campaign to measure whether the campaign reached its objectives. size of ad). and different time schedules (i. Specialized Agencies Many agencies do not follow the traditional full service approach. youth) or industries (health care. health care and computers. such as direct marketing.e. a traffic department to handle internal tracking on completions of project. creative service. of which there are thousands. direct contact with media or through third-party seller). For instance.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 29 competitors. when ad will be run). different requirements for accepting ad designs (e.. Understanding the nuances of different media is the role of a media planner. Minority Agencies S. public relations. so they are able to apply their particular expertise in those areas.
media has become more complex. media and agencies will have their own internal research department. Advertiser Agency Media Research Suppliers Large companies. and placement of advertisements. As the no. The advertising agency is a representative between media and advertiser. Third. and in the planning and execution of promotional campaigns for products and services of their client S. the creative product. This type of agency does not use conventional office space. design.V. First. and each will also be purchasing data externally from some outside research supplier. V. Second. There is no staff for media. but it sometimes retain by advertising agencies when they are overloaded with work. creative boutique usually serves companies. This agencies are organized in much the same way as full service agency . A creative boutique will have one or more writer for artist in staff. usually small (2 or 3 people to a dozen or more) that concentrate entirely on preparing the creative execution of client marking communications.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 30 Agency that focuses on ethic group or minority agencies is minority agency. at each levels of advertiser. The focus on the organization is entirely on idea. of choices grows-think of the proliferation of new cable channels. Creative Boutiques Creative boutiques are advertising agency. media buying services offer by media at a low cost because they can group several client purchases to gather to develop substantial buying power. research.but they as specialize in reaching and communicating with their particular market. Virtual Agencies Virtual agency is agency that operates as group of freelancers and is paid accordingly. typically this agencies can prepare advertising to run in print media out doors and on radio and T. They are in high demand for any reasons but three reasons stand out. or strategy planning. An advertising agency is a firm that specializes in the creation. A major roll of the advertising agency is the purchase of media time and space. magazines and radio stations. Institute of Management . Media-buying Service Media-buying Service specializes in the purchase of media for clients. the cost of the maintaining of competitions media department has escalated.
Ltd. Rediffusion – DY&R 6. V. ( O&M) 2. The Indian Media market has been on an upswing in the last 5 years and 2007 has been no exception. 8. Ltd. which looked very ebullient at the time. Grey World Wide 9. 5. What is even more heartening is that the estimates in the TYNY 2007 report. FCB-Ulka Advertising Ltd. Leo Burnett India Pvt.Walter Thompson Association Ltd. Ogilvy & Marther Pvt. New media S.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 31 The basic techniques that is adopted by different advertising agency are Basic appeals Attention getting headline Slogans Testimonials Product characteristic. This is significantly benefiting the entertainment and media industry in India as this is a cyclically sensitive industry and it grows faster when the economy is expanding. 7. Comparison of product Repetition Some of the famous advertising agencies in India are as bellow. 1. It is rising on the back of economic growth and rising income levels that India has been experiencing in the past years. Mccann Erickson (India) Ltd. That’s why for effective agency follows the below procedure and pays complete concentration on it. J. Mudra Communications 4. (JWT) 3. Contract Advertising (India)Ltd. Research Media selection Creative work Production Indian Media and Entertainment Industry The Indian Entertainment and Media Industry have out-performed the Indian economy and is one of the fastest growing sectors in India. 10. Institute of Management . Ltd. R K Swamy/BBDO Advertising Pvt. have been met. An add ed boost to the entertainment and media industry in India is from the demographic point of view where the consumer spending is rising due to increasing disposable incomes on account of sustained growth in income levels and reduction of personal income tax over the last decade.
Institute of Management . which is helping them demand value A strong business environment that supports this growth Increase in advertisers’ spends on traditional media to maintain status quo and their willingness to look at new media (which also tend to be cheaper options) to create differentiation and grab attention Shift in focus from conventional target consumers (Housewife. Inner circle represents shares in 2004 and outer circle represents projected shares in 20 Indian Media and Entertainment Industry Size S. V. Radio and the Music segments. aged 25-45 years). and they have continued to show strong growth. The main reasons for this are: Willingness of emerging advertisers to pay for impact Expansion of traditional media into new markets and formats.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 32 have grown at high rates in line with their expected potential. The current size of the industry as a whole is estimated at US$ 7 billion in 2004 and is expected to grow at a CAGR of 14 per cent to US$ 13billion by 2009. However. who are the primarily being targeted through new mediums like Mobile and Internet. to include the Male and the Youth. though their share of the total media pie has expectedly shown a slight dip. and Radio and Niche Publications. The Filmed Entertainment and Television segment dominate the industry followed by the Print. traditional media have not been disadvantaged by this.
the Indian M&E Industry accounted for a mere 0.9% of the Global M&E Industry. we believe that the Indian M&E industry has just touched the tip of the iceberg. if India continues on its steady growth path over the next two decades. more money will flow into leisure activities giving a steady impetus to M&E Industry.While traditional segments like Television and Print continue to account for the largest shares of the overall pie. In CY2007. Income growth will be the fastest in the urban areas where average real household incomes will increase by 5.432bn and is expected to grow at a CAGR of 6. In terms of size.8% whereas rural incomes will accelerate by 3.6% over the next two decades. Besides the macro-economic factors. Such strong growth and higher incomes will move over 291mnpeople out of desperate poverty and India's middle class will swell by almost ten times from its current size of 50mn to 583mn people (41% of population/ 128mn households) by 2025. Institute of Management . Income levels will triple and result in India taking over as the fifth largest consumer market (currently twelfth). it is emerging segments like Internet advertising. Media Industry generally tends to exhibit cyclical nature wherein it grows faster when the economy is buoyant and we believe the time is right for the Media industry to bask in the glory of India Shining story. Indian Media & Entertainment (M&E) Industry has consistently out performed most other sectors in terms of growth. which are expected to register higher growth. a major transformation will take place in the Indian consumer market. which stood at US $1.6% over CY20072011. Moreover.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 33 Over the last several years. as higher disposable incomes propel consumer spending. In perspective. according to a McKinsey report (MGI India Consumer Report). A buoyant economy and extremely favorable demographics are the two key macroeconomic constituents on which the Indian Media industry stands today. Standing tall at an estimated size of Rs. 513bn in CY2007. we believe steady advertising S. V. it is expected to continue to grow at a steady pace of 18. Radio and Animation and Gaming.3% CAGR during CY2007-11.
This has rendered the market highly fragmented with approx. Further. 1900 news publications for a circulation figure of just 200 million. as a proportion of the reading population (i. further contributing to this growth potential. The segment hence provides for several opportunities as listed below: • Tapping the reading population As per the latest readership survey NRS 2005. 15 years and above) is only 27 per cent.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 34 growth. Institute of Management . India’s leading daily hasbeen able to retain its leadership position for the last three years isbecause the number of literates in Uttar Pradesh. The global average readership is estimated to be over 50 per cent. liberal government regulations and convergence of diverse platforms will be the key growth drivers for the Media industry. the reach of the print media (dailies and magazines combined). as literacy (as measured in the NRS) grows by nearly eight points and even higher in the rural areas.e. This can be illustrated from the fact that one of the reasons that Dainik Jagran. Indian Print Media Indian print media has evolved through a series of revolutionary events. Time spent on reading has also gone up quite significantly from an average of about 30 minutes daily to around 39 minutes daily over the last three years. Vernacular news dailies thus dominate the market with a 49 per cent share. V. Bihar and Jharkhand(strong Dainik Jagran markets) has grown explosively. the potential of the print media assumes a significant proportion. • Build a pan-India presence Due to low levels of literacy and India’s marked regional diversity. This highlights the significant potential of the print media market in India. the print media segment is characterized by a large number of players dominating specific geographies (See Table below). Regional dominance is not just typical of only vernacular S.
Chennai. this trend is now changing and publishers are looking to expand their market though both organic and inorganic routes. Print media players continue to add new properties and territories. However.even English news dailies have managed to gain dominance only in specific pockets. Magazines account for 10%market share. As a result. Subscriptions contribute 57% of the total revenues. These publishers hence had low access to capital and information and thus concentrated only in the geographical location in which they were the leaders. this segment thus offers significant investment opportunities More than 220 million readers of English and vernacular language newspapers and magazines & It is close to 10% of the total base Newspapers account for 90% of the market. Institute of Management . With an added push of foreign investment being allowed in the print media segment. V. rest by Advertisement Print media. S. Bangalore and Mumbai.38 bn in 2005 to USD 4. DCHL also entered the financial daily segment with the launch of Financial Chronicle in Hyderabad.37 bn in 2010. • Leveraging a fragmented market The print media market today is highly fragmented with most publishers being family owned. Revenues expected to grow from USD 2. HT Media expanded the presence of Hindustan in UP. Deccan Chronicle launched its much awaited flagship daily Deccan Chronicle in the Bangalore market. the print segment is reeling under 30% increase in newsprint prices since the past six months on account of Closure of two mills in North America (end-CY07) resulting in consolidation of capacity.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 35 papers. However. there are hardly any players with a pan-India presence.
V. Institute of Management . Print Media is expected to deliver a 14% CAGR in overall revenues during CY2007-11 driven largely by advertising revenues as circulation growth is expected to witness a slowdown. registered a 16. grew at a marginally lower rate of 15%. In CY2007.5%. High prices of crude oil and wood and increase in newsprint demand in USA due to presidential elections. Going ahead. Notwithstanding the threat from Television and emerging media like Internet and Radio.Expanding Geographies S. the Print Media segment in India stood at Rs149bnregistering a yoy growth of 16.6% yoy growth whereas Magazine publishing. the Print Media in India continues to dominate the M&E space attracting the highest revenues in terms of advertising. Sharp depreciation in rupee in the past three months as against the earlier trend of appreciating rupee. which accounts for 87% of the segment. which contributes the balance. Newspaper publishing. Print Media Industry Size Print Media in India .In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 36 Shortage of waste newsprint for Chinese newsprint plants resulting in global price increase of US$35per ton.
Moreover. Equipped with a large war-chest of money. V. Nonetheless.In general. is largely focused on the primary urban centers. due to lack of funds and localized nature of the newspaper business. Post opening up of FDI in the sector. Niche focus .In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 37 We attribute this unique feature to the following: Family owned businesses .Newspaper business has extremely strong entry barriers owing to strong brand equity. launching new editions and even venturing beyond Print. most of them have remained content in their own boundaries. S. Regional newspapers (Hindi + Vernacular) offer local and regional focus to their readers. We believe this trend will pick up further momentum in the future as Print companies taste the benefits of ad-bundling (arising out of the ability to offer advertising in multiple editions) and derive synergies from common infrastructure and brand equity. readership loyalty and requirement for a wide distribution network. Moreover. both enjoy their own set of readers and advertisers. on the other hand. these players have broken from their regional strongholds expanding into newer geographies. The content and circulation of English-language newspapers. several players have attracted large investments and also tapped the IPO market to raise funds. often issuing several different regional editions. Institute of Management . as advertising revenue in a region is generally absorbed by the top-two players. the scenario is fast changing.Most Newspaper businesses in India are family owned and have a strong regional focus. in most cases it makes competition unviable. Hence. Strong Entry barriers . which have left enough room to expand within.
The rise in newsprint prices during the period was attributed to steady demand and cost push inflation. India imports almost 70% of its newsprint requirement. as a medium.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 38 Key Concerns Rising Newsprint Prices The cost of production of a newspaper is directly linked to the cost of newsprint. which varies with the market price of newsprint. corporate communications. • Several advertisements are best conveyed only though the print medium including tenders. cinema listings. newsprint prices were on a steady rise for almost four years and peaked at US $640MT levels in July 2006. Moreover. Ability to communicate lengthy. has certain inherent advantages over other mediums particularly TV. Newsprint is a freely traded commodity on the international markets and exhibits price volatility. forms and descriptions is also unique to print. Institute of Management . Newsprint costs generally account for almost 50-70% of total expenses for a publishing business. After bottoming out in July 2002 at US $430MT. Print scores over Television due to inherent advantages. which helps the segment retain higher portion of advertising revenues: • Newspaper advertisements have a better shelf life and visibility unlike TV where viewers flick through channels during commercials. Below we have enumerated newsprint costs for our Print Media universe vis-à-vis their total expenditure and revenue. detailed and complex information. In our Print Universe. the ratio of Imported: Domestic newsprint stands at 90:10 for Deccan Chronicle. Newsprint costs vis-a vis Expenditure & Revenue Newsprint prices vary according to quality. Print. ads S. V. The English newspapers generally use higher quality and mostly imported newsprint compared to the regional players which use a mix of imported and domestic newsprint. availability and location of printing facilities and the number of pages used. most Print Media companies reaped the benefits of lower newsprint costs on account of the dual benefit of declining newsprint prices and rising Rupee. 70:30 for HT Media and 35:65 for Jagran Prakashan. In FY2008 however.
we believe Newspaper publishing in India is set to grow owing to the following inter-related structural growth drivers: Low Penetration One of the key factors influencing allocation of ad spends towards different media platforms is reach. Improving literacy levels According to NRS 2006. matrimonial and services offered are reserved for Print (Internet is now posing a threat). The fact that out of the 359mn people in India who can read but do not currently read any publication.9% to 71. indicating strong headroom to grow readership numbers. Even though. real estate. 2008). readership (dailies and magazines combined) increased to 222mn from 216mn. its reach in the urban areas at 58% is substantially higher compared to the rural areas at 30% (FICCIPwC Report on Media. it is witnessing faster growth in terms of reach compared to television. due to the sheer number of people falling in the lower brackets. Print also again scores over TV in case of reach of the local ads. etc. Print ad costs are drastically low in India compared to the TV ad spots making print the affordable medium for a larger number of advertisers.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 39 • • • relating to sectors like education. are also better suited for print. reach of Print media is lower than television. Literacy levels in urban areas at 85. financial products. literacy levels in India have risen from69. Institute of Management . Certain categories like classifieds related to jobs. Newspaper easily wins over TV in case of ease of targeting audience by demographic and/or region. compared with those in the lower brackets.1%. Moreover. However. Moreover. V. This has led to significant scope for growth for newspaper publications in terms of untapped potential readers. The reach of Print Media in India is significantly low at 38% constrained by poor literacy and income levels. in % terms. Also. the number of print readers in the lower strata outnumbers the readers in the upper strata on an absolute basis.3% witnessed a 90bp rise whereas rural areas at 64. Structural factors to Drive Print Media growth in India While advertising revenue growth is largely related to strong economic growth in the country. 68% can read Hindi indicates strong potential for readership growth. However.8% witnessed a higher rise of 120bp during 2006. 20mn of these S. the print media penetration is higher among people in the upper socioeconomic classes.
We estimate the print media segment will grow at 14.8% CAGR in circulation revenue. which has We expect the Indian print media industry. which indicates the potential for higher circulation as affordability improves. whereas we anticipate circulation revenue growth of 8. A booming economy. Print Media companies have started to realize the importance of convergence of media platforms and moving beyond their core business. rising incomes and low media penetration are some of the factors driving the growth in India print media.8% CAGR. Institute of Management .8% to Rs282bn over FY06-11E. Advertising revenue should clearly lead the growth with a CAGR of 16. In 2001-06. We believe the Print Media companies in India have just embarked on a global trend. driven by rising income levels and increasing literacy. Rising competition. each regional daily is read by almost 7-9 readers compared to 2-3 readers for English dailies. estimated at Rs144bn.5% growth for most other markets globally over 2001–06. It should be noted that. India is one of the fastest growing print media markets in the world. based on a 16. to grow at a CAGR of 14. Going forward. Improving affordability Rising income levels coupled with aggressive marketing by print media companies is also driving growth of Print Media in India. growing efforts by Print Media companies to push up circulation in terms of discounted cover prices and incentives(subscription schemes) have not only accelerated penetration of dailies. V. which can help publishers attract strong advertising revenues.8% CAGR in advertising revenue and 8.Playing its part in Print Media Sitting on huge cash piles and with the ability to generate strong cash flows. Moreover. In S. the need to capture a larger advertising pie and ability to derive cross-synergies are some of the key reasons necessitating this transformation. increasing literacy.8%.8% CAGR over 2006011E. the Indian print industry grew at an 8. against 1–3. India is one of the few markets in the world where newspaper readership is growing. but have also helped push multiple dailies into homes. we expect strong economic growth. rising incomes and rising literacy levels to accelerate India’s print media industry growth.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 40 literate non-readers belong to the upscale SEC A and B segments (higher socioeconomic brackets).8%. Convergence .
real estate. In 2006. which still makes it largest revenue generating advertising medium and higher than the global average of 42-45%. While newspapers in India are not gaining ad spend at the same rate as other media. seems to have stabilized over the last few years. Print has 47% share of advertising pie Over the last decade. print advertising’s share stood at 47%. V. especially TV and Internet. and financial services has led companies to target penetration in Tier II Tier III cities. local print advertising is an effective means of communication. however. with positive implications for print sector growth. there is a literate population of about 300m who do not read newspapers. In these markets.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 41 addition. increasing penetration of cable and satellite TV has shifted market share from newspaper advertising towards broadcasting. telecoms. Institute of Management . We expect newspapers to be a key beneficiary of S. newspapers still capture a significant share of overall advertising. Strong growth in sectors such as retail. This trend. which provides for opportunity of growth in readership.
for the most part. Owners can and do dictate editorial policy. The Urdu press is the third largest. Marathi. with circulation trends pointing up. Newspapers remain relatively in expensive. In 1997. Institute of Management . the Prasar Bharati Act was en acted. Hindi publications have a 36% share of the total circulation of newspapers and magazines. A few newspapers are linked. n India boasts more than 43. officially or ideologically. Telegu. Kannadaand Punjabi. and the print media. The Indian press is. especially the English language press. despite the rapid growth of electronic media.n India’s language press is booming. independent and privately owned. Both the English and the “language press” (nonEnglish) tend to support the Indian government on foreign policy issues. Bengali. V. The past20 years have seen a remarkable growth. to political parties.000 newspapers and magazines published in English and dozens of other languages. Newspaper readership is steady. Other major language newspapers with a circulation of at least 100.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 42 Newspaper and Magazine Advertising in India. giving BBC-style autonomy to S.000 are in Tamil. are feistier and more apt to criticize the government on domestic issues than their electronic counter parts. English publications have a 17% share. Malayalam. Gujarati.
Radio is the most popular means of information and entertainment. All India Radio has a countrywide network of regional broadcasting and programming center as well as a national channel that broadcasts in Hindi. Television is assuming tremendous importance in the country. which would provide a regulatory framework for the industry. particularly for the rural and illiterate population. Doordarshan and All India Radio. especially among the growing middle class. was awaiting action. two dozen satellites beam signals to India. Urdu and English. a draft broadcasting bill. and some subscribers have access to as many as 50channels. V.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 43 the formerly state-controlled TV and radio networks. Viewer ship is estimated at nearly 300 million. Private cable and satellite television reach the entire country. Institute of Management . By early 1999. S.
The major reason for the revenue growth has been the consistent hike in Card Rates of major players. despite being the biggest incumbent medium. V.290 cr.7.856 cr.) as against the 17% predicted by us in last years report. continued to attract the largest share of advertising spends. While this has been made S. This is a growth of 18% over calendar 2006 (Rs. Print.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 44 The Market: The Display advertising component of the Newspaper market in India for calendar year 2007 was valued atRs. in spite of increased competition in the top 8 Metros and stagnant Average Issue Readership (AIR) numbers.9. The India Print story is in stark contrast to the threat being faced by the medium globally. Institute of Management .
Expensive English print became even more expensive with leading brands making forays into new markets or improving relative readership contribution from smaller markets. The newly launched Mail Today (JV between Associated Newspapers Ltd with Living Media India Ltd) and Metro Now (JV between HT Media and BCCL) have indicated that there might be a subtle shift towards ‘Tabloidisation’ of the Indian market. publications are increasingly targeting retailers and cashing in on their diverted OOH spends. With restrictions on OOH medium usage in some cities.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 45 possible due to the continued dominance of publications in their home markets. While some players have grown on the back of increased offerings and entry into new markets. The Players: Within each language there are one or two players that have seen over 25% growth and others which are closer to 10% levels. Publications which promoted their Classifieds portals as separate entities have succeeded in penetrating segments like Matrimonials. The Product: • Death of the Front Page as we know it: Product innovation is the name of the game today. Real Estate and Jobs. Institute of Management • . It has become a very attractive option for advertisers as well. However. Publications are using e-paper versions by targeting NRI population. Rise of the Tabloid: Even though broadsheet still remains the popular format.60% of total volume consumption in 2007 was in colour as against 52%the year before. which gives them over 75% of the total hits. others have done so on the back of Rate Hikes and improved Colour to B/W ratios. On the other hand the local retail market continued to strengthen its media investment in regional publications. Here increased colour options helped publications improve their yield from advertisers. Leading publications are also creating new avenues for growth through forays into other languages and formats. Publications are also actively looking at ways to tap into the local advertising market with “Go Local” drives by way of new Supplements. Typically the big players have got bigger. it would take some time before this avenue begins to generate real value. V. Rate hikes have taken place at both the premium and the popular ends of the product spectrum. rate hikes in some part have also been imposed to offset their entry into new markets. TOI has made the half front-page gate fold a regular feature and most other publications have followed suit. might only accelerate this trend. Factors such as increasing cost of newsprint and shift in reader preference (young readers who find newspapers dull have shown interest in this format). S. there is an increasing accent towards smaller formats.
S. While 2 years back everything appeared plain vanilla. • The Reader: The Indian reader has never had it better. Business Standard was not far behind with its launch of Hindi editions for Delhi and Mumbai. The launch of supplements designed for special interest areas such as lifestyle.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 46 • Move to other Languages: 2007 witnessed the transition in areas such as Business papers which have always been considered the domain of the English press. education and careers. he or she has a choice of multiple flavors and publishing houses are more than willing to cater to his or her tastes. entertainment. technology. today. Institute of Management . V. Economic Times broke the trend by launching a Gujarati edition in Ahmedabad and a Hindi edition in Delhi.
Growth in transport infrastructure will result in the launch of commuter newspapers across cities. While existing print players will diversify in related genres and enter new geographies. Newsprint prices are on the rise and the next few quarters will continue to see increasing prices and shortages. this year will see a host of new launches. forcing publishers to look at new formats and revenue streams. We do not expect the digital wave to dampen our attachment to the morning daily. will have 100 stations in three years' time and is expected to carry 3 million commuters. daily. V. Just as in 2007. Delhi's underground.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 47 The Future: 2008 will continue to be an exciting year for print. which did not exist before 2002. Rising literacy levels and limited access to Internet will be the key reasons why print will continue to grow. For instance. This will put pressure on margins. This is the TG most coveted by advertisers and media houses are already launching publications to tap in to this bunch. Private Equity players and bankers will also continue to explore investment opportunities in Indian media houses. mostly in the age group of 15-45. non-print players will enter print to diversify. with Metro Now being the pioneer. Institute of Management . S.
This nature of dual stream of revenues requires newspaper publishing companies to create a balance between both streams to achieve maximum potential and sustainability.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 48 Newspaper publishing . Newspaper Publisher Business Model S. a thriving business in India. Newspaper Publishing Industry size Revenue Model skewed towards advertising. Going ahead. the industry is expected to register a 13. V.9% CAGR in overall revenues during CY2007-11 largely driven by advertising revenue growth.8% growth in advertising on television.2% yoygrowthduringCY2007 as against 20. generated Rs130bn in revenues during CY2007out of which 61% came from advertising and the balance from circulation. While advertising revenues are generated from sale of advertising space in a publication. circulation revenues are a function of the number of copies sold and pricing of the publication. it once again outpaced television registering a robust 21.advertising and circulation. A typical newspaper publishing model has the following structure.Standing tall in India Contrary to popular belief and in defiance to global trends. The Print Media model involves dual stream of revenues .Newspaper publishing. Newspaper publishing still stands tall in India accounting for similar share of advertising pie as the popular idiot box (television). Institute of Management . In terms of advertising revenue growth.
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 49 Print Media in India – Readership Even in terms of overall readership. Institute of Management . the Regional dailies (Hindi and vernacular dailies) dominate the pie with The Times of India being the only English daily to feature in the Top-10 list. V. the Regional dailies have a readership: circulation multiple of 7-9 times compared with English newspapers of 2-3 times. This is primarily due to higher cover prices of Regional newspapers compared with English newspapers and the readers of Regional newspapers are generally from the lower socio-economic segment S. Moreover.
V. S. higher readership and a better proportionately distributed readership (urban + rural).In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 50 Top Ten Newspapers by Readership However. Institute of Management . despite having higher number of registered newspapers. English dailies (including Business dailies) attract the highest advertising revenues with approximately 50% of ad-spend followed by Hindi and other Indian language newspapers with approximately 25% of ad-spend each. the Regional dailies commands a lower share of the print advertising pie.
due to that more people are reading the newspaper. S. Institute of Management . in 2005 budget the government the service tax over the space for advertisement INDUSTRY LIFE CYCLE 140000 120000 100000 80000 60000 59639 32396 24500 27950 26360 35064 29796 39857 42125 118064 97633 73004 64471 R ) o l M n i ( . s 40000 20000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 in television but it was untouched for print media and due to that there was a sudden boost in the income for print media from year 2005 to 2007.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 51 Industry life cycle The life cycle of the print media is shown below it shows that the industry in the growth stage its earnings are increasing year by year from the year 1995 its earnings were 24500 mn and in year 2007 it has increased to 118064 it shows the constant growth in the industry and the reasons behind the growth of industry are that the literacy level increase. even the government support the industry. V.
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 52 CAGR 140000 120000 100000 80000 60000 118064 14% 24500 ) o l M n i ( s R 40000 20000 0 1995 2007 And as the industry is in growing stage and chance of earning are high more players are attracted towards the investment in the industry compounded annual growth rate of the industry is 14% and it shows the profitability of the business that is there are more chance of earning good profit in the industry which can be seen from the figure shown below. V. S. Institute of Management .
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 53 PEST ANALYSIS S. V. Institute of Management .
I is allowed due that foreign players are restricted.06.D. excluding that in print media and that by broadcasting agency. The scope of this service has been expanded by substituting the explanation 2 to the clause (zzzm) which defines print media.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 54 • Political Factor: advertising purpose (advertising cost increases). The pre-conditions of FDI in print. sale of space for advertisement in such publications will also be livable to service tax under this service.2007 (i) Sale of space or time for advertisement. • At least three-fourth of the board of a print media company with FDI must be a a Indians. (Source: Equity master union budget – 2006-07) 4. Scope of certain existing services expanded [Section 65] 1. other than in print media Sale of space or time for advertisement. other than in print media is chargeable to service tax under sub-clause (zzzm) of clause (105) of section 65. • Any print media company wishing to change its share-holding pattern must get a a prior government approval.D.I is allowed in non news segment which includes magazines like scientific magazines but in news segment only 26% F. Sale of space or time for advertisement service. yellow pages and trade catalogues which are primarily meant for commercial purposes.D. Foreign Investment in Print Media Only 26% FDI is allowed: the government allow 26% F. brought under the service tax net. 3. • All key editorial posts must also lie with resident Indians. And in the company ¾ of the board member should be Indian only and should be having control in their hands. The new explanation states that print media does not include business directories. V. Service tax on development and supply of content for use in All the changes in respective services specified below have come into effect from 01.I limit for the investment in print media in that 100% F. Budget 2002-2003 S. (Source: Amendments by the finance act 2007) 2. Institute of Management . Consequently. Service tax increased from 10% to 12%. Sales of space for advertisement in print media left out of the ambit of service tax.
and S. taken by the Union Cabinet. While they can be vibrant and gutsy. with a view to causing harassment and cowing newspapers and other members of the media deemed to be ‘unfriendly’. The decision. Lucknow and Delhi. Bhattacharya. remain barred. Thus.K.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 55 The process of economic liberalization in India. once a case of defamation is taken to trial. and breach of legislatures’ and Parliament’s privileges.K. the offence chiefly concerning the press. A. editor of the Hindi daily Swatantra Bharat. however. Technical and medical publications have been allowed a higher FDI of 74%. has taken another significant step.000 publications. In 1997. The government has attempted to address the concerns of political parties that fear FDI in print might lead to foreigners controlling the Indian media. criminal proceedings can be initiated against a newspaper. marketing. the then editor of The Pioneer. the matter is deemed to sub-judicial and cannot be commented upon. most are starved for technology. at the state’s expense and without the person claiming to be defamed having to appear in court. The print media Government of India in June 2002 had decided to allow 26% foreign direct investment (FDI) in news and current affairs print media. A. which began more than a decade ago. Foreign investments in news agencies. First. India has 49. there are some restrictive enactments in place to deal with contempt of the judiciary. Civil suits for defamation are also possible under Indian law. (Source: ibef july-sep 2008) 5. Criminal contempt. Singh filed a criminal case under Sections 500 and 501 of the Indian Penal Code against Raman Kirpal. namely opening up a very sensitive sector. The Opportunity The desire for foreign help is palpable. Institute of Management . Two significant aspects of the defamation law impact on the press. This enactment has been used by the chief ministers of some states to launch vexatious litigation against the press. Ghanshyam Pankaj.1 billion. the prosecution can be launched by the public prosecutor. is defined as any publication that interferes with or undermines the administration of justice or has a tendency to do so. but annual revenues total just $1. Second. While there are no apparent restrictions on the free coverage of groups or issues. in other words. reverses the 1955 Cabinet resolution prohibiting any foreign investment in print media. IPC (Indian Penal Code): The Indian Penal Code makes criminal defamation a noncognisable offence. A detailed policy statement on FDI in print would be issued shortly. V. where the person claiming to be defamed is the Prime Minister or the chief minister of a state. and capital to expand. TV or radio channel if the complainant is able to satisfy a magistrate that a statement made about him/her was on the face of it defamatory.
as the installed capacity is around 12 lakh tonnes. approximately five lakh tonnes of newsprint are being imported at the cost of around Rs 1.asp) 6.000 crore to the country's exchequer. Act for surrogate advertisement. such monopolies in fact straddle various units of the media. respectively.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 56 Sanjiv Kanwar and Dipak Mukherjee. Currently. Such monopolies and cartels are found largely in the press. MRTP act on news: While general legislation exists to regulate monopolies and cartels – the Monopolies and Restrictive Trade Practices Act – this has been ineffectual in curbing the formation of monopolies and cartels of private media companies.com/bareact/Indian penal code. V. This is largely because such monopolists support ruling dispensations. Page no. 2007.asp) 7. (Source: Adverting and promotion management by Beltch & Beltch. Media monopolists are generally proestablishment and support the governments of the day to ensure that their monopoly positions are not threatened. S. 2004 This Act may be called the Prohibition of Publication or Telecast of Vulgar. (Source: vakilno1. 2004. The domestic production of newsprint by the existing manufacturers can fully meet the country's demand.) 8. private monopolies and cartels of the media do exist. Chief Judicial Magistrate Suresh Chandra pronounced his judgment on September 3. Thus. In the absence of restrictions on cross-media ownership. Custom duty on import of newsprint. The Judge said in his order that it had been established that the interview published by the accused was concocted and defamatory.com/article/print. are adept at gauging the popular mood about political parties and see no difficulty in swearing or switching allegiance to those in power. These monopolies exist mainly to enrich the owner of the media company. obscene and Surrogate Advertisements and Re-mix Songs by Print and Electronic Media Act. After a 10-year-long trial. holding the reporter and the other accused guilty. printer\publisher of The Pioneer and Swatantra Bharat. but some media barons have overlapping interests in television and FM radio. He also said that the accused persons had failed to prove that the reporter had actually taken the interview. (Source: legalserviceindia. State authorities have in the recent past not taken any action against private media monopolies. The total requirement of newsprint in the country today is around 10 lakh tonnes. Institute of Management .
The present newsprint policy of the Government of India is as follows: a) Not less than one-third of the annual production of indigenous newsprint will be reserved for small and medium newspapers. outdoor board companies. V. WTO bound rate for newsprint is 25 per cent.bd/2007/07/01/budget-hasmeasures-to-contain-price-hike-scopes-for-job-creation/ . Institute of Management . The above duty is even less than the duty on raw material i. waste paper whereon the duty incidence is 9. large quantities of the same are being dumped from South-East Asian countries. In Chile.htm) 9.e. But too much lobbying carries the risk of generating bad publicity. there is five per cent.2 per cent (basic duty five per cent plus SAD four per cent).40k. Legal remedies: Advertisers may also consider fighting advertising legislation in court. advertisers and sign painters filed suits in civil court when the government asked advertisers to place outdoor boards several • • S. the prevailing mood is in favor of liberalization with the important exception of tobacco and alcohol advertising. But duty was bound to be reduced because of the increase in the price of news print globally and due to that government reduce the duty from 5 percent to 3 percent and due to that import can be done at easy rate But import on newsprint for newspaper is exempted from the import duty. advertising agencies and the media.. b) Import of newsprint is allowed to actual users. "Due to negligible duty on import of newsprint.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 57 Currently on import of newsprint. Russia and America and the indigenous industry is suffering badly." FICCI said. Coping with Regulations: Marketers can cope with advertising regulation in various ways: • Monitor regulations and pending legislation: Monitoring legislation and gathering intelligence on possible changes in advertising regulations is crucial since advertising regulations change from time to time. In many countries.com. (Source: www. especially when the issues at hand are highly controversial. Lobbying: Local governments or international legislative bodies can be lobbied usually jointly by advertisers.bangladeshnews.
its best-selling cigarette brand. A widely popular mechanism to cope with tobacco ad bans is brand extension or surrogate advertising. Virginia slims pitched itself as a man’s cigarette because the Korean law banned advertising that targeted women and young adults. For instance. whose brands have captured more than 80% of the Swedish cigarette market started promoting sunglasses and cigarette lighters under the blend name. the leading cigar brand. Institute of Management . shifted to other media vehicles following the ban on all TV tobacco advertising in the United Kingdom in octomber1992. In South Korea. In the European Union. page no. to cope with a complete tobacco ad ban in Sweden. (Source: Anil Varma. 3. “Advertising Industry facts and regulation”. chapter no. the Swedish Tobacco Co. • Modify marketing-mix: Tobacco marketers have been extremely creative in handling advertising regulations. It ran a sales promotion campaign at a horse race where losing bettors got a free Hamlet cigar. it also started selling a video cassette with about 20 of its celebrated commercials. advertisers appealed to European commission or the European court of justice to overturn local laws. installing them at 2. Hamlet. Hamlet started using outdoor boards for the first time.258 sites.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 58 blocks from the road. 67) • Economical: S. V. In the United Kingdom.
Since the changes in the regulation many foreign investors have taken strategic stakes in the domestic print media companies.7 3. foreign investment regulations were relaxed in 2002. In non-news publications. Institute of Management .5 1 1. up to 26% foreign direct investment (FDI) is permitted in newspapers and periodicals dealing with news and current affairs.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 59 Attracting foreign investment Most Indian print players continued to dominate the local regions and did not enter new territories. (Source: Economic times (gujarati) page no.3 1. bn) 1.2 12 Source: Ficci PWC. 2 date: 4th nov. Domestic Company Jagran Prakashan HT Media Jagran Prakashan Deccan Chronicle HT Media Henderson Dainik Bhaskar Amar Ujala Ushodaya Enterprises Investor Independent News& Media Public (IPO) Public (IPO) Public (IPO) Henderson Warburg Pincus DE Shaw Blackstone Amount Invested (Rs. companies Global crises: Due to global crises in the whole world the corporate has control their expenditures and due that they had restricted the their advertising expenses which directly affect the earning of different medias and this also affect the print media earnings because advertising income contributes 75% of their total earnings and due to these reduction their earnings are negatively affected. mainly due to lack of funds.5 1. 08) GDP v/s Growth of Print Media: S. However. V. Currently. 100% foreign investment is permitted.7 3.
29%. Contribution in GDP: Another favorable thing is that the contribution in GDP of print media is increasing at increasing rate.39%.3% and in year 2007 GDP increased by 0. As per 11th five year plan the GDP growth was forecasted round about 8.2% and growth rate of print media also decreased by 1.4 7. Institute of Management .81 25 9. Thus.33% and the estimated contribution in year 2008 is 0.04% to 0.9 15 22. (as per NRS) Effect of inflation: Inflation rate has positive relation with the growth of print media advertising because when inflation rate increases the purchase of an individual also get increases and that lead corporate to advertise more.05% increased compare to year 2007. Effect of GDP growth: G V/S G W RA O PRINT A DP RO TH TE F D 12 PERCENTAGE 10 8 6 4 2 0 2004 2005 YA E R 2006 2007 10 5 0 8. In 2005 GDP decreased by 1% and growth of print media also decreased by 0.6 21 20 PERCENTAGE G P grow rate D th Print ad grow rate th (Source: cii presentation july 2008) In 2006 GDP increased by 1.5 15.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 60 GDP has no relation with Print media’s growth. this increased advertisement of corporate lead the print media to grow more.40 to 8. so as per Angel broking survey 2008 the estimated growth of print media will also be decreased.6%. in year 2006 the contribution as 0. As the entire picture reveals the situation that whatever change in GDP incur same happened to the growth of print media.5% and growth rate of print media was 15.29 9. in year 2007 it increased by 0. V.29%.38% which is 0. On the other hand when inflation rate decreases purchase of an individual also get decreases and at S. as the given graph reveals that in 2004 GDP was 8.90 which shows the decline rate.9% and growth of print media also increased by 7.5 14.
61% of their revenues come from advertising. Any slowdown in the Indian economy and the consequent impact on disposable income could adversely affect advertising income.29% of year 2004.9% of year 2005. Institute of Management .5% of year 2005 and the growth rate also show the same picture. the advertising industry has had a strong correlation with the growth in the economy. while the economy grew at an average 6%. Further. While in year 2006. Story remains same in year 2007 also. the growth of print media advertising also decreased to 14.9% in year 2005 from 15. Between 1996 and 2006. Slowdown in the economy: Historically.8% from 4. Inflation vs Growth of print ad 8 7 6 percentage 5 4 3 2 1 0 2004 2005 year 2006 2007 15.81 5. it increased to 22.9 3. which is very sensitive to the overall trends in the economy.8 21 25 20 15 10 5 0 percentage Infaltion Print ad growth (Source: cii presentation july 2008) As in given chart when inflation rate decreases to 4.29 4. V. inflation rate increased to 5.4% of year 2004.2 7. ad spend is influenced by a number of factors including the Indian economy.5 14.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 61 that time generally corporate do not prefer to increase the frequency of the advertisement.4 22. the performance of particular S.5% in year 2005 from 7. the advertising industry grew at a CAGR of 11%.81% from 14. While. circulation revenues for newspaper companies are recession-resistant.
2007) Increasing disposable income: In India. which varies with the market price of newsprint. Classified etc. 2008) Increase in price of newsprint: The cost of production of a newspaper is directly linked to the cost of newsprint. Increasing literacy level 2. Newsprint is a freely traded commodity on the international markets and exhibits price volatility. Even the 6th pay commission also increases the purchasing power of individual. (source: equity master march 26. For e. Newsprint costs generally account for almost 50-70% of total expenses for a publishing business. the disposable income of people is increasing year by year. 1. (Source: equity master November 30. Below we have enumerated newsprint costs for our Print Media universe vis-à-vis their total expenditure and revenue.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 62 industry sectors.g. Increasing awareness level of stock market 3. Newsprint prices vary according to quality. People are spending more money day by day that lead advertiser to increase their frequency of advertisement. shifts in consumer spending patterns and changes in consumer sentiments and tastes. Regional newspaper are also providing news of Business. (Source: angel survey april-2008) Geographical expansion: The national players are penetrating regionally because the regional and especially rural market is also showing more potential. Low cost of production (small players can easily survive): S. Institute of Management . availability and location of printing facilities and the number of pages used. The numbers of readers are increasing in rural area. reasons for that are. purchase power also get increased. the print companies faced pressure on the ad revenues as a slowdown was witnessed in the retail and real estate sectors. V. in 2QFY08.
9 m copies per day.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 63 Less technological changes in every business make small players to grow faster or help to survive up to some extend. Also.5 bn advertising spend in the country. Institute of Management . there were approximately 6. Same is the situation in print media industry where the technological changes are very nominal and that give a chance to small player to survive. The initial subscription offers of ‘DNA’ and ‘Hindustan Times’ (HT) in Mumbai. further reduced the cost of the newspaper to around 50 paise for an average issue. In 2006. No single newspaper had a national circulation.1% as compared to 69.3%. S. as compared to the global average of 50%.9% in 2005. Higher ad spends: Print media accounts for 48% of the total Rs 137. As per the registrar of newspapers. the ad spend in India is just 0. However.0%. the newspaper had higher cover charges. Lower cover prices: Earlier.8%. V.3% in the US and a world average of nearly 1. However. due to strong hold over a region. Currently Indian print media is estimated to reach over 220 m people. and has immense growth potential since close to 370 m literate Indians are believed to not be served by any publication. With rising consumerism and growing interest from domestic and global brands in Indian market. 1. Many English dailies are sold for as low as Re 1 or Rs 2.4% of GDP as against 0. second only to China with 98.5% in China. the growth in ad segment is expected to be strong. The changes in industry are only in Production capacity and the cost related to production like increase in paper cost which is nominal in nature.7 m copies a day. during their launch period. Higher literacy levels: In 2006. While rural literacy is at 64. the literacy levels increased to 71. with increasing competition and venture into newer regions the companies have reduced the cover prices to augment more sales. the reach of newspapers is only 27%. urban literacy touched 85. India had the second largest circulation of newspapers with 88.529 daily newspapers as of March 2005.
6 27 5.1 1.6 16 6.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 64 Base Population Any Publication Any Daily Any Hindi Daily Any English Daily Any Magazine Urban & Rural Urban (m) % (m) % 184 170 24 100 22 94 36 42 40 15 Rural (m) % 84 77 16 14 63 8. V.2 59 7.3 25 4.1 17 2.6 0.7 34 14 (Source: NRS 2006) • Sociological factors: S. Institute of Management .
and a growing resentment of it. including standing for election to the Board of Governors and voting at general meetings. This certainly will affect your ability to compete and grow. decent advertising cumbersome if not impossible. in their endeavours to influence buying decisions of the Consuming Public. You can have a say. you can mould the course of Self-Regulation and participate in the protection of healthy. It stands for the protection of the legitimate interests of consumers and all concerned with advertising . As the Code becomes increasingly accepted and observed pro-actively. false advertising also constitutes unfair competition. misleading and offensive advertising has resulted in consumers having an increasing disbelief in advertising. only means more freedom for you to practise your craft or carry on your business effectively. Bad effect on children: S. If this kind of advertising continues. truthful. effective advertising. media. in the further development of the Code and future appointments to the Consumer Complaints Council (CCC). It is a commitment to honest advertising and to fair competition in the market-place. as in several advanced economies.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 65 ASCI NORMS: WHY SELF-REGULATION IN ADVERTISING In recent years the quantity of false. As a member of ASCI. Increasing respectability Which. It could lead to marketplace disaster or even litigation. for advertisements carried by the Media. through the Board of Governors. it won’t be long before statutory regulations and procedures are imposed which make even fair.advertisers. which is concerned with safeguarding the interests of consumers whilst monitoring/guiding the commercial communications of Practitioners in Advertising on behalf of advertisers. Institute of Management . there is only ONE BODY for Self-Regulation in Advertising – the ASCI. Why not have a say in matters affecting your own destiny? Why not make Self-Regulation truly work for you? In India. three things will begin to happen. Fewer false. 1. misleading claims 2. Misleading. Membership of the ASCI (open only to Firms) entitles you to appoint your nominee to discharge your function as a member. V. Fewer unfair advertisements 3. advertising agencies and others who help in the creation or placement of advertisements. The Advertising Standards Council of India (ASCI) (1985) has adopted a Code for SelfRegulation in Advertising.
distributors or ad agency people. print and visual. The ad drew heavy criticism from the Brazilian church authorities and the Vatican. The grid classifies national cultures on various dimensions: power distance. only veiled women can be shown in TV commercials. In Brazil. the Arab countries. Culture barriers: Advertisers must escape cultural traps by getting inputs from local staff. Since most middle class families have both parents working the marketer tries to work through the children on the guilt of the parents and thus encourage children to make very unreasonable demands. International Marketing Conference on Marketing & Society. IIMK 71 Language barriers: Language is one of the most alarming barriers in international advertising. Numerous promotional efforts have misfired because of language-related issues. and long termism. individualism. ran into problems when it used an ad with a Christ-like depiction of Ronaldo. Volkswagen withdrew a billboard campaign involving an ad the relaunch of Golf with a modern version of the Last supper. Institute of Management . Ads that position products or services as status symbols may be effective in countries with large power distance (e. Indonesia. 8-10 April.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 66 Parents have a different opinion according to them the excessive information and products thrown at them via the media. In Saudi Arabia. after protests from local bishops. The Hofstede cultural grid is useful in understanding the influence of culture on global advertising. V. for example. Religious barriers: Many of the trickiest promotional issues occur in the area of religion. the Italian tire maker. uncertainty avoidance. The ad showed Ronaldo with his arms spread and a tire tread on the sole of his foot. P&G overcame that constraint by creating a spot for pert plus shampoo that showed the face of a veiled woman and the hair of another woman from the back.g. Mexico). S. In general. standing in place of the “Christ the Redeemer” statue. there are three different types of translation errors: simple carelessness. 2007. words with multiple meanings and idioms. spoiled the children. Such restrictions create problems for hair care advertisers. the Brazilian soccer star. Power distance refers to the degree of inequality that is seen as acceptable within the country. masculinity. advertising copy translation mistakes are easily made. Most marketers were targeting kids even for products that had nothing to do with children. Given the bewildering variety of language. Pirelli. In France.
starting from the clothes to food and recreation. advertisers are using comparative advertising. 000 cr. the name of the competitor is not directly mentioned. But the question remains whether it is advisable or not? Another question that comes to mind is “how effective comparative advertising is?” Ads to Kids: As per a study conducted by Business Today.20. According to experts. Advertisers often take the help of puffery (praising the item to be sold with vague claims. The problem here is that there is no adult who is shown supervising the child near the swimming pool. which has always been there in the advertising world. This figure is enticing the marketers to target the children with specific advertising. it appears when owner of brand X claims that his product is better than brand Y of the competitors. S. They are targeted through TV and print media. but with the context in which they are used. Comparative Advertising: In the mad rush to outweigh the competitor. the advertisements of Mountain Dew of PepsiCo and Sprite of CocaCola. Let us take the example of baby shampoo (name of the company withheld).. the icfai university press. july 2005. use of ambiguous phrases. for example. This has been extensively criticized by various researchers.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry Source: Global CEO. and is also another cause for concern to the advertisers. V. The Children’s Advertising Review Unit (CARU) of the batter business bureau (BBB) keeps a close eye on kid’s advertisings and advocates that adults be shown supervising children if the product and service are supposed to be risky. for example. It can take quite a number of forms like making a claim which it cannot fulfill. More and more companies are resorting to “masked” comparative advertising. ever year. All right reserved. 67 Deceptive Advertising: Sometimes. the advertisement of fairness cream for men. because of the wrong perceptions in the minds of the consumers. Institute of Management . without specific facts) to achieve their goals. kids between the age group of 8 and 12 in India spend a whopping sum of around Rs. By this. advertisers give untrue and misleading information. One of the major areas of concern for the regulatory authorities is whether advertisers can substantiate the claims which they are making. the problem is not in using children in advertising. publicizing false benefits. etc.
7 September. McDowell’s No. Tobacco companies have a tough challenge ahead of them in using advertising to target potential customers.e. The ‘X’ Factor: A debate had been initiated a few years ago regarding the portrayal of women in advertising. but the biggest market for condoms lies outside this context. mo0dels having perfect bodies are preferred. This is another aspect to be looked into. an advertisement for condoms shows a couple in their wedding attire.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 68 Tobacco and Alcohol Commercials: Advertising related to tobacco (in any from) is under the scanner of the government of many nations including India. i. No. In the process the news media got a new opportunity to reinstate their credibility and unleash an era of transparency in public affairs of the country. mostly. Certain sections of the society feel prickly when these advertisements are shown in front of their children. For example. the focus is mostly on the nuptial bed. Condom Ads: There is a heated argument going on about the use of advertising to promote condoms. For example. Most of the time. Newspapers started taking RTI route as a source for news and for “investigative journalism”. Similarly. Some people might call this hypocrisy. the objection comes through stereotyping. the advertisements of alcohol brand are restricted in many from media. It has an adverse effect on the. According to Scott A Lukas (teacher at Lake Tahoe Community College). The coverage of contentious issues and the ones which would not have got into public domain started making head lines in 2007. Volume I. but one has to keep in mind the Indian values and ethics when advertising any product related to this category. Institute of Management . “Women’s bodies are objectified in common ways. the cover page of a fashion magazine features photographs which are not conducive to Indian culture. but the advertisers are smart enough to use the name of their brands for other products. In the case of many popular ads.. RTI Act: The landmark Right to Information Act of 2005 with several implications to news media and good governance would have remained dormant had newspapers not given the coverage in 2006 and 2007. On close examination of the ads featuring women.1 is advertised through the product “mineral water” this known as surrogate advertising. population. it is observed that. especially the young. 2008 Transparency Review S. V.” Women are used extensively by different advertisers to promote their products.
Institute of Management . V.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 69 • Technological factors: 30000 color copy in an hour is available with new machines: Scanners : S.
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
Colors: Yellow, Meganta, Cyan, Black Which are major color. Ink: Pilofranic nature Paper: Green shade paper Machines There are Three types of machine which used in producing or printing newspaper or magazine. They are as below: City line machine: German machine which has capacity to print 20 copy in one print Way Mack machine: Swiss machine which has capacity to print 24 copy in one print 45 GSM machine: An Indian machine which is capable to print 24 copy in one print Indian and swits machine can print 35000 copy per hour.
S. V. Institute of Management
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
Five Force Analysis
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In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
Bargaining power of buyer
Rivalry among competing sellers
Bargaining power of supplier
Threats from new entrants
Major Newspaper daily in industry ranked on readership:
S. V. Institute of Management
in addition to their strong presence in urban areas. The newspaper industry has relatively high entry barriers due to the strong brand equity of existing players. Times of India follows strong brand loyalty in Mumbai and it was difficult for Hindustan Times to enter Mumbai. S. are largely focused on the primary urban centers. The print media is further divided on the basis of the languages. with a readership of approximately 15% and 5% of persons in urban and rural areas. Institute of Management . existing players have strong control over the distribution network. Also. Hindilanguage newspapers have a proportionately larger readership in rural areas. For e. Of the daily newspapers. making it difficult for new players to enter. The newspaper industry is regionally divided.g. Approximately 7% of the population in urban areas read English-language newspapers. compared to a readership of only 0. respectively. V. with existing players enjoying strong brand loyalty. (Source: IRS 2005) In contrast to this. Hindi and vernacular language newspapers offer a local and regional flavour to their readers.3% of the population in the rural areas. about 46% are vernacular. The content and circulation of English-language newspapers. on the other hand. 44% are in Hindi and 10% are English.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 73 English Newspaper Daily No ALL publication 1 Times of India 2 Hindustan Times 3 The Hindu 4 Deccan Chronicle 5 The Telegraph 6 Mumbai Mirror 7 The Economic Times 8 DNA 9 Mid Day 10 The Tribune (Source: Impact November 2008) 08 R 1 6789 3277 2243 1225 1008 775 743 676 571 429 08 R 2 6712 3523 2121 1151 1019 895 752 710 535 466 change -77 246 -122 -74 11 120 9 34 -36 37 % change -1 8 -5 -6 1 15 1 5 -6 9 English Magazines No ALL publication 1 india today 2 reader digest 3 general knowledge today 4 competitio success review 5 Outlook 6 Wisdom 7 Stardust 8 diomand cricket today 9 the week 10 business today (Source: Impact November 2008) 08 R 1 2402 1594 1350 899 665 598 553 469 446 416 08 R 2 2141 1355 1225 794 573 477 438 400 336 326 change -261 -239 -125 -105 -92 -121 -115 -69 -110 -90 % change -11 -15 -9 -12 -14 -20 -21 -15 -25 -22 Competition is very high The regionalism aspect is clearly visible in the newspaper sector.
Higher income for advertising in national players (regional players are earning less): Because the national players are having their foot hold in the whole country so if any individual or a company wants to give advertising in news paper they will go for national players only because of their presents every where the reach of advertisement is also increased and due to that it becomes beneficial for the company who is giving advertising in news paper but this kind of benefit is not available for regional players because they are present in particular region only and not in whole country so if a company gives any advertsient it will be restricted to that particular region only. Bihar. Income of circulation: S. Institute of Management . Equitymaster Political lobbing: Times of India made the political lobbing with ministers in the government for making the fdi restriction with other players and put pressure on the government to restrict the entry of FDI in India. Tie up with foreign players: To fight with domestic players and to increase the market share these local companies made a tie up with the foreign players due to which the flow of capital will increase as well as they will bring new technology and by this they will be far ahead of their domestic counterpart and due to this their market share will increase with not giving more stake to the foreign players and having the control over the business by having 3/4 of the member in the board of the company. V. Jharkhand Andhra Pradesh Chennai Kolkatta Bangalore Punjab Source: Companies. If FDI is allowed in India allowed then its obvious that the domestic players competition will increase and their market share will be reduced but they restricted the entry for certain period only but in 2002 government open the sector for FDI.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 74 Newspaper Jagran Prakashan Times of India HT Media Deccan Chronicle The Hindu The Telegraph Deccan Herald Punjab kesari Place of strong hold Uttar Pradesh and Uttaranchal Mumbai Delhi.
A point is reached here the industry becomes crowded with competitors. creating a situation of excess capacity with too many goods chasing too few buyers. and company failures. Family owned businesses: S. V. Industry shakeout: A growing market and the potential for high profits induces new firms to enter a market and incumbent firms to increase firms to increase production.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 75 Income of circulation is higher than income from advertisement for vernacular paper and vice versa for national news papers that is the national players are having their majority because of their presence in whole country the companies are attracted to give ad in national level news paper due to this their reachness will be high because of higher number of reader and due to that they national players are having most of their income that is around 75% to 80% of their income is from advertisement only but they are having only 15% to 20% of their income from subscription because of their presence at national level and not having that much presence at the regional level but for the regional level the main source of income is from the subscription that is around 20% to 75% because they are having presence in particular region only and due to that they are not having much of their revenue from advertisement. price wars. A shakeout ensues. The industry may become crowded if its growth rate slows and the market becomes saturated. Institute of Management . Brand identification. And it also depends on the presence of that regional player in the particular region. Low switching costs increase rivalry: When a customer can freely switch from one product to another there is a greater struggle to capture customers. on the other hand. with intense competition. their earnings are around 25% to 80% earning only. Low levels of product differentiation: It is associated with higher levels of rivalry. Marketing Strategy: New schemes in subscriptions by different news paper: now due to higher level of competition in the newspaper business the companies are implementing aggressive marketing strategies and coming with different marketing schemes due to which they are able to increase their earnings and can increase their market share for eg Divya Bhaskar had come in Gujarat with the schemes of coupons and gift after collceting that coupon for one month and due that it sales was increased tremendously but than after certain period of time its competitors like Gujarat samachar and sandesh also came with the same scheme and at that time the sales of divya bhaskar was affected. tends to constrain rivalry. and demand cannot support the new entrants and the resulting increased supply.
Hindi and vernacular language newspapers offer a local and regional flavour to their readers. Institute of Management . most of them have remained content in their own boundaries. Jharkhand Andhra Pradesh Chennai Kolkatta Bangalore Punjab Source: Companies. Bihar. Newspaper Jagran Prakashan Times of India HT Media Deccan Chronicle The Hindu The Telegraph Deccan Herald Punjab kesari Place of strong hold Uttar Pradesh and Uttaranchal Mumbai Delhi. Equitymaster • New entrants: Fragmented industry The regionalism aspect is clearly visible in the newspaper sector. due to lack of funds and localized nature of the newspaper business. V. Of the daily newspapers. The content S. Moreover. 44% are in Hindi and 10% are English.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 76 Most Newspaper businesses in India are family owned and have a strong regional focus. The print media is further divided on the basis of the languages. about 46% are vernacular. For example Jagaran Prakashan is Market leader in terms of market share only because they have strongly grabbed the market of North to east region. Like wise every company have their own competent area.
readership loyalty and requirement for a wide distribution network. making it difficult for new players to enter. compared to a readership of only 0. are largely focused on the primary urban centers. Jharkhand Andhra Pradesh Chennai Kolkatta Bangalore Punjab Source: Companies. The newspaper industry has relatively high entry barriers due to the strong brand equity of existing players. Also.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 77 and circulation of English-language newspapers. in most cases it makes competition unviable. The newspaper industry is regionally divided. Equitymaster Strong Entry barriers Newspaper business has extremely strong entry barriers owing to strong brand equity.g. Approximately 7% of the population in urban areas read English-language newspapers. Cost of production is low anyone can easily enter in the industry: S. Moreover. V. with existing players enjoying strong brand loyalty. Hindilanguage newspapers have a proportionately larger readership in rural areas. Institute of Management . with a readership of approximately 15% and 5% of persons in urban and rural areas. in addition to their strong presence in urban areas. Newspaper Jagran Prakashan Times of India HT Media Deccan Chronicle The Hindu The Telegraph Deccan Herald Punjab kesari Place of strong hold Uttar Pradesh and Uttaranchal Mumbai Delhi. For e. Bihar. (Source: IRS 2005) In contrast to this. as advertising revenue in a region is generally absorbed by the top-two players. respectively. on the other hand. Times of India follows strong brand loyalty in Mumbai and it was difficult for Hindustan Times to enter Mumbai. existing players have strong control over the distribution network.3% of the population in the rural areas.
entry is not easy at all. Low switching cost: Cost of newspaper is very negligible that’s why for an individual switching cost to newspaper is low. New player can easily have their business Common Technology: In this industry role of technology is not that much visible. News channels In television constant update of the news is available so changes taken are speedy and get that information at that particular time only whereas in newspaper no at time update is available as well as you cannot able to get fresh news in newspaper. Scanning & packaging. • Threat from Substitute: A. In such industry where competition is very high. Institute of Management . S. V. Television to newspaper: 1. Intense Competition: Due to low cost production and low switching cost for buyer.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 78 For any industry the major problem is cost of production. Only different types of machine for printing. Here in this industry the cost of production is comparative less and that thing is positive for new entrants. there N number of newspaper and magazines are available which makes industry more competitive.
Companies s have seen that television advertising can make an effect on children which print advertising can not in 20 times (Source: equity master Aug 29. 2007) 49% stake of FDI in television (print only 26%) Television is the most competitive substitute of print media. V. This factor has the threat that television can grow S. The major plus point of television is that government has allowed FDI in television up to 49% while in print media it is only 26% allowed. Institute of Management . Marketer’s influence towards children to target: In current era of advertising world.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 79 Top 20 news channels and their share in over all TV channel (source: TAM people meter system) 2. advertisers are focusing on children for everything.
models. famous personalities exhibiting products. audio and visual. With regional channels coming up any person even illiterates can watch the advertisements and understood it by seeing and hearing is another good advantage of television. With catchy slogans. Music channel. Entertainment. (ii) (iii) (iv) (ii) S. V. Another good thing with television advertisement is that it the only medium that uses two organ of human body which are highly effective. Regional channels through television players are penetrating in semi urban / rural area. With varieties of channels and programmes advertisers have a lot of choice to select the channel and time to advertise. Sports.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 80 faster with the help of foreign players. Now-a-days people are switching on channels whenever there is a commercial break which is called Zapping in advertising terms. • (i) Limitations TV advertisements are usually expensive to prepare as well as to telecast advertisement. Institute of Management . Now channel have also stands for specific area like News. TV advertising has a lasting impact. • (i) Advantages It is most effective as it has an audio-visual impact: The biggest advantage of television as a medium of advertising is it has both the effect. An advertiser can use all the creative tools that one can use in advertisement. The most expense in television advertisement is of production of advertisement. who can forget Aamir Khan saying “ Thanda Matlab Cocacola” or Sachin Tendulkar in Pepsi advertisement. An advertiser need to have director. While the print media advertisement only provide the visual effect but can not provide motion in it. music director and also need to book a production house which is very expensive in nature. song and dance sequences. If we go more specific then we have Business News and Cricket as sports channel. For example. eyes and ears. With almost every manufacturer trying to communicate their message through TV advertising the impact among the viewers is also reducing. Then after advertiser will have the expenditure of telecast of that advertisement.
677 1. YEAR 1998 1999 2000 2001 2002 Users 1.000 7.7 % 1. The decrement in year 2006 can be because of change in its source.094.094. 1. Institute of Management .677 0.870.094.094.000 Population % Pen.000 5.094. V.500.870.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 81 B.870.000 16.000.800. Internet blogging to Magazine 1.6 % Usage Source ITU ITU ITU ITU ITU S.3 % 0.677 1.000 2.870.677 1.1 % 0.500.400.870.677 1.5 % 0. Increasing internet user Year over year the penetration level in internet is increasing up to 2005 it is increasing like anything but in year 2006 shows the decreased figure than year 2005 and then again year 2007 reveals increasing trend in internet penetration.
129. 2007 The some of the best things that newspaper providing is provided by internet also and people use internet for that also.677 1.528 2.000.I.65 month) Growth (%) 28 15 212 Source: JuxtConsult. 2007 (%) Rank 1 2 3 4 5 6 7 8 Online Activity E-mailing Job search Instant messaging Check news Online music Chatting E-greetings Check sports 2007 95 73 62 61 60 59 58 57 2006 94 53 37 53 48 49 57 35 Change 1 20 25 8 12 10 1 22 S.870. V.6 % 4.000.677 1.225.7 % ITU C. The interest and habits of individual is getting changed day by day.870. Urban India Online Activities by Regular Internet Users.112. Almanac C. Those who are occasional internet user are increased by 212% in year 2007.225.95 Occasional Internet users (less than once a 5. As given in below table that number of people who are using internet for Job search. share of print advertisement will decrease because the budget of advertiser is fixed always.000 42.094.000 39.812 1. 2007 As many numbers of people penetrate to use internet. 2007 2007 (M) 2006 (M) Total urban Internet users 30.15 1.000 1. checking news and checking sports which are also given by newspaper. If advertisers start to be attracted by internet than they will give advertisement on internet.000 40.1 % 3.I. it can be harmful for print media because as many number of people increase using internet big advertiser will be attracted towards it.6 Regular Internet users (at least once a month) 25.500.000 50.32 23.6 % 3.812 1. Almanac IAMAI IWS Source: JuxtConsult.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 82 2003 2004 2005 2006 2007 22.600.17 21. Urban India Internet Users by Type.094. Institute of Management .667.5 % 3.200. Also the number of people who are regular user increased by 15% in 2007 compare to 2006.112.
50% 2. V.50% 0.60%3. 2007 Internet Penetration (YOY) 5.50% 4.50% 0.10% 0. Classification of internet user based on users characteristics URBAN POPULATION URBAN POPULATION LITRACY POPULATION ENGLISH KNOWING PC LITERATE CLAIMED USER ACTIVE USER IN (MN) 250 205 77 65 46 32 Icube report 2007(source: PITCH FEB-2008) S.00% 0.00% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Percentage % Pen.00% 1.50% 3.50% 4.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 83 9 10 Online games Dating/friendship 54 51 35 27 20 25 Source: JuxtConsult. Institute of Management .00% 4.60% 3.00% 3.00% 2.50% 0.10% 2.70% 1.30% 0.70% 3.60% 1.
(ii) User can see the advertisement at their own time and as per their requirement. young man and old man. (iii) It is not suitable for illeterate and those having no knowledge about the operation of Internet. • Limitations (i) It is not accessible without a computer. Institute of Management . It is also a noticeable point for magazine because the internet user includes woman (working and non working). • Advantages (i) Information from all over the world is made available at the doorsteps. (ii) It is not very suitable for general public. college students. V. Almost majority is covered here.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 84 Urbanpenetration(in m n) ACTIVE USER CLAIMED USER PCLITERATE ENGLISH KNOWING LITRACY POPULATION URBAN POPULATION 0 50 100 150 a mount 200 250 300 in mn Demographic break up of internet user working woman College student school going kids older man young man Non-working wonen (source: PITCH FEB-2008) Percentage 11 21 14 15 33 6 Demographic break up of internet user is showing the types of internet user and other details of them. S.
3. News Cricket Movies Automobile lover Music and lots of other blogs are available online which are giving direct competition to magazine. V. 6. 4. There is a positive thing for magazine is that still the internet blogging is not considered as a creditable source. Institute of Management . The Top Ten sites internet users browse in India are the following: 1. 9. This facility is very useful when the target audience is based on high on ID personality as per Freudian theory of personality for the product like Domino’s Pizza. 8. Magazines were the only medium to reach to specific target segment one can reach to women segment to IT professional but after introduction of internet blogging. 7. 2.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 85 Online shopping: Internet facilitates an individual to purchase any product while he/she is watching an advertisement online. 2. 2. 4.com Windows Live Rapid Share S. 5. Yahoo Google India Google Orkut Rediff Youtube Blogger. 5. Internet Blogging Another big threat of internet is ‘Blogging’ – a specific blog for specific group like: 1. 3. While in news paper the reader has to visit that shop and has to give the order.
Radio: Radio with Newspapers Characteristics of Newspapers Newspaper brings 'immediacy' to a communication.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 86 10. S. and are good at presenting detail. Newspapers also have the authority of the written word. V. Institute of Management . Wikipedia (Source: http://www.sybrant.com/blog/?p=59) C. As a print medium.
in most sectors. radio allows brands to emphasize specific key times of day (press reading is spread across the day) Geographic variation flexibility means radio allows geographical variation on top of a national press campaign Radio with Magazine: Magazines are useful to advertisers because of the relationship they have with the readers. Institute of Management . radio can more strongly convey the brand's tone of voice (important for service brands). adding radio also means increased share of voice thus overcoming clutter In communication Radio brings intrusiveness to a press campaign. who consume them in a personal way. Weaknesses of magazines include the fact that lead times can be very long depending on the title's frequency of publication. and the reader's inclination to simply turn the page. radio brings brand messages closer to the individual. They allow targeting by lifestyle and interest group. In many magazines the ads are seen as part of the magazine experience. What radio adds: In planning radio adds frequency with little zapping. radio also reaches non-readers so it can significantly increase coverage.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 87 the national press suffers from clutter and from the fact that the reader can and does edit ruthlessly to avoid advertising. the high levels of clutter. speaking in a more personal way than press. V. radio can bring to life ideas which might seem flat on the page. and this is real frequency in that exposures take place in real time. and there is less ad avoidance. What radio add: S.
In communication Radio brings intrusiveness to a magazine campaign. S. cooking.driving. who can not read and write. • Limitations (i) A regular listener may remember what he has heard. (iii)In comparison to Television. occasional listeners tend to forget what they have heard in Radio. Similarly. day of week and even week of month. (ii) The message that any advertisement wants to communicate may not be proper as there is no chance to hear it again immediately. which means overcoming clutter. you can hear radio while traveling on road or working at home. radio can more strongly convey the advertising tone of voice (important for service brands). but you can not read newspaper. and the opportunity for geographical variations • (i) (ii) Advantages It is more effective as people hear it on a regular basis. radio allows tighter timing . radio also extends coverage well beyond the magazine readership. (iii)There are places where newspapers reading may not possible. For example. and there is less ad avoidance. radio also offers a greater share of voice for most categories. V. while driving you can hear a radio but cannot read a newspaper. but you can hear radio. radio can bring to life ideas which might seem flat on the page.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 88 In planning Radio adds frequency and there is little zapping. housework etc In detail Radio offers fast turnaround within the long copy deadlines of magazines. It is also useful to illiterates. Institute of Management . radio allows brands to speak to consumers close to certain activities . Radio is less effective as it lacks visual impact. There may be some other disturbances that distort communication. But.time of day.
Posters Poster are printed and posted on walls. Outdoor media: Hoardings While moving on roads you must have seen large hoardings placed on iron frames or roof tops or walls. address and telephone number of the manufacturer. Posters of films which are screened on cinema halls are a common sight in our country. These are normally boards on which advertisements are painted or electronically designed so that they are visible during day or night. These items are normally items of daily use given freely to the customers. which is growing at very high rate only because of its own attribute. The advertisers have to pay an amount to the owners of the space. calendars. the shopkeeper sometimes gives you a key ring to hold the cycle key. E. etc. buildings. the SMS advertising can reach to the target audience. trains. Even by creating a database. S. bridges etc to attract the attention of customers. SMS advertising the new medium The latest trend in advertising world is SMS advertising.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 89 D. Unlike hoardings these vehicles give mobility to advertisements and cover a large number of people. Even it will not have chance for zapping or zipping like in television commercials. While using. In all these items the name. Some jewelers give small purse or boxes when you buy a jewellery. or trader or service provider as well as descriptions of the products in which they deal in are printed. etc. The attribute is that an individual will always check the SMS before deleting it. Vehicular displays You must have seen advertisements on the public transport like buses. purse. the user remembers the products as well as the producer. Sometimes manufacturers give diaries. Gift Items from manufacturers When you buy a cycle. V. to buyers and prospective customers. where the hoardings are placed. Institute of Management .
which is used in printing the newspaper. V. It is the only medium which has higher reach and strike rate with lowest cost while in Print media reach. • Bargaining power of Supplier: Few major players Though there are over 500 paper and newsprint production units in India. Institute of Management .Calcutta S. There are three major players in supplying the raw material of newsprint. strike rate and cost are high. • Hindustan newsprint Ltd. not even 10 per cent of theses are big or dynamic enough to turn out quality paper products at a competitive price. (HNL) . For small advertiser the SMS advertising is more affordable and preferable. if advertiser wants to advertise his product in print medium there are vernacular newspaper and magazines available that have comparative less cost.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 90 Medium Television Radio Internet (Banner) Email PRINT MEDIA Billboards Moving Media Telephone Fax Standard Mailers Personal Interaction SMS Reach One of the Highest Medium High High HIGH Medium Medium Medium Low High Low EXTREMELY HIGH Cost Very High Medium Medium Extremely Low HIGH Medium High High Medium High High EXTREMELY LOW Strike Rate Good Poor Dropping Extremely Low HIGH Medium Medium Medium Low Medium High EXTREMELY HIGH The above table reveals the comparison of SMS advertising with other mode of advertising.
So many of the leading paper mills in the country have taken to social forestry schemes under which small and marginal farmers are provided saplings and knowhow for raising plantations of fast growing trees with an assurance of a buy back at a remunerative price. acquired earlier. Many paper and newsprint production units are working towards becoming selfsufficient in wood pulp and other feedstock’s.. used in paper manufacturing. The biggest stumbling block for production units keen on attaining self sufficiency in wood pulp is the prevailing environmental laws. Many of the paper production units are now using bagasse. S. Though an estimated 55-million tonnes of bagasse is available. Short supply The wood pulp which is used as a raw material of newsprint is in short supply. V. Like Ballarpur Industries Ltd (BILT) has now drawn up a 20-million Euro plan for the modernization and augmentation of the facilities at Sabha Forest Industries (SFI) of Malaysia. The modernization programme will see its in-house pulp production going up to 440-tonnes a day from 240-tonnes a day. South India-based Seshasayee Paper and Board Ltd. But.Mumbai Mysore Paper mills – Bangalore NEPA papermills . is now close to commissioning its new pulp production mill designed for boosting the pulp production.000-million. The Indian paper and newsprint industry has already urged the Government to amend the laws with a view to permit them to make use of the degraded land for raising plantations of fastgrowing trees. rice and wheat straw instead. Once the expanded pulp mill capacity is in place. the Government is yet to respond.Nepanagar Over 60 per cent of the newsprint production in India is concentrated with a few state-owned units by Hindustan Newsprint Ltd (HNL) and Tamil Nadu Newsprint and Papers Ltd (TNPL).In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 91 • • • • Tamil Nadu Newsprint and Papers Ltd. Switching cost is low Switching cost of newsprint is very nominal and there are options that easily provide raw material with lower cost.Chennai MP Rama Newsprint Ltd. which prevent the industrial plantations of private sector on degraded land stretches. only eight per cent is currently put to use for paper production. the company will initiate work on boosting its paper manufacturing capacity with an additional investment of Rs 3. Institute of Management . .
Lack of Financial resources 2. cost value added ) Differentiation input is the only point which shows the bargaining power of supplier over here.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 92 Differentiated input (quality.00. Major customers of suppliers. Jagaran Prakashan BCCL Hindustan Times Deccan Chronicle Malaya Manorama Threat of forward integration: There is not any kind of chance of threat of forward integration of supplier in this industry because of: 1.000-tonnes. There is at some part differentiation in quality of newsprint is higher in Hindustan newsprint Ltd. V. On the other hand.000-million for expanding its production capacity to 4. – Chennai that’s why they are having the nearly 60% share of newsprint business. is also mulling to put up a cement production unit that would make use of waste lime sludge generated from its paper-making operations and fly ash generated in its power boilers. 3. Not having big Brand name 3. Another thing they are in business from many years so they do have the learning curve and experience benefit. Not having experience in this business Expansion in capacity Tamil Nadu government-owned enterprise TNPL has unveiled an ambitious action plan to invest Rs. (HNL) – Calcutta and TamilNadu Newsprint and Papers Ltd. 4. 2. Other Big player’s entry. TNPL known for its range of products including printing and writing paper and copiers and newsprint. 5. Institute of Management .10.45.000-tonnes a year from the present 2. 1. Paper Boards and Specialty Papers Division (PSPD) of the FMCG (Fast Moving Consumer Goods) giant ITC has gone in for an innovative range of products with an eye on emerging as the largest outfit in S.
Thus it forayed into the farm forestry programme by tying up with small and marginal farmers to raise plantations of fast growing trees. It started operations in 1979 in Bhadrachalam primarily because it was a forest area and provided access to raw materials. they contact different corporate or corporate contact S. Institute of Management . Advertising agency: The advertising agencies are the first layer buyer of this industry. The PSPD has a unique business and revenue generation model. by early 80s strict regulation on the use of forest resources was introduced and this forced PSPD to look for alternative sources of raw materials. Export of paper and other things are ban so suppliers power will increases due to domestic purchase: Bargaining power of Buyer: There can be three types of buyer in the print media industry and they are as below: 1. V.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 93 the paper production sector.00 tonnes of paper boards and fine paper a year. Advertising Agencies 2. “Our specialization in producing value-added paper boards has made us realise the huge potential for creating gifts and toys for 200 million children. However.” is ITC’s aim. Basically they play the role of mediatory.00. Its Bhadrachalam facility is now producing 4. from the new borns to 15 years of age. Small and medium companies 1.
Agency make advertisement and they also contact appropriate media to publish or telecast the advertisement. They are the real consumer and only because of them industry is having existence but they do not have influence more than content of any news which is the most key success factor of any newspaper or magazine. Even the switching cost for agencies is not much higher but again the preference of advertiser also plays a vital role over here.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 94 them to make corporate promotion strategy and promotional activity also. They purchase it in very nominal prices so they do not have any influence to print media. The advertising agencies do have little influence on print media players because they are the mediatory one and because of them industry player gets advertiser. Consumer Consumers are the common people who purchase newspaper or magazine. Small and medium companies: The small and medium companies can not afford the expense of agencies. Institute of Management . 2. V. Overview of Five Force Analysis Threat from new entrants/entry barriers Low Low to moderate Moderate Moderate to high √ √ √ Rivalry against competitors Threat from substitute Bargaining power of buyers √ Bargaining power of suppliers √ S. if the newspaper or magazine does have strong brand name like ‘TIMES OF INDIA’ then agency can not suggest advertiser not to advertise on that particular newspaper. they craft the advertisement in house and then contact newspaper or magazine to publish their advertisement. So. 3. They purchase it for news purpose or reading habit. In such situation they do not have any influence on newspaper or magazine.
One of the first and best known of the portfolio model is the growth share matrix developed by the Boston consulting group. Here the vertical axis indicates the industries growth rate and the horizontal axis shows the business relative market share. V. The Boston consulting group’s model of print industry S.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 95 High • B C G Matrix The Boston consulting groups (BCG) Growth-Share Matrix. It analyzes the impact of investing resources in different businesses on the corporation’s future earnings and cash flows. Institute of Management .
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
A B P
o t s
0.1 0 0.19 0.18 0.15 0.12
Jagran prakashan Bennett Coleman & co The Hindustan times Deccan chronicle group Malayalam Manorama group ABP group others
35% 30.71% 12.18% 6.60% 5.18% 6.28% 4.05%
The growth share matrix assumes that a firm must generate cash from businesses with the strong competitive position in the mature market. Then it can fund investment and expenditures in industries their represents attractive future S. V. Institute of Management
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
opportunities. Thus, the market growth rate on the vertical axis is a proxy measure for the maturity and attractiveness of an industry. The model represents business rapidly growing industry as more attractive investment opportunity for future growth and profitability. Similarly, the relative market share is a proxy fir its competitive strength within its industry. It is computed by dividing the business’s absolute market share in dollars or units by that of the leading competitor in the industry.
Resource Allocation and Strategy Implications of print industry
Each of four cells in the growth-share matrix represents a different type of business with different strategy and resource requirements. In the B C G matrix of print industry the overall growth of print media is shown is 21% Here we had taken 6 top companies having the maximum market share .the companies are 1.jagran prakashan 2.bennett Coleman & co ltd. 3.hindustan time’s 4.malayam manorama 5.ABP group ltd. & others. Here from the matrix sheet it has been seen that most of the companies are in the growth stage. And after calculating the relative market share it has seen that most of the companies fall in the star group or the build (question mark) group.
1. Strategy recommendation for star (high growth, high market share):
Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. Here in print industry jagran prakashan is the market leader with the growth & share of 18% and 35% respectively. Its have newspaper dainik jagran in Hindi language which is highest sold daily in India with a strong base of 16.5mn readers (IRS R2 2007) and a daily circulation of 2.5mn (ABC JJ 2007) First published in 1942 as Jagran, the paper is now published in in 37 editions (five launched in the last couple of months) across 11 states. Dainik Jagran enjoys the distinction of maintaining its lead over the other Hindi newspapers, and its readership base is substantially higher than the Top-five English dailies combined. JPL has selectively entered the English Print Media with the launch of two new offerings viz., City Plus (English weekly infotainment) and I-Next (bilingual compact tabloid) in its existing as well as new markets. It also has Hindi magazine sakhi which have high market. And also it joined with the TV 18 for Hindi/regional business dailies .its highly active in northern part of India.
S. V. Institute of Management
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
Strategy for leader (jagran prakashan):
Expand (cover) the market: As per readership survey done by IRS, It clearly shows that Rajasthan and chattishgarh are the open market for the jagran prakashan. Here it interviewed 13654 readers in Rajasthan. It clearly shows that dainik bhaskar is the market leader and it covers 5744 reader in survey. And in chattishgarh it interviewed 2606 reader dainik bhaskar is the market leader it covered 1095 readers. So its shows positive market foe the jagran prakashan. Because jagran prakashan cover entire Hindi belt and it already cover 40% of the population there is one survey by angel research shows that 68% of the population of the India read Hindi language also low newsprint cost help the jagran prakashan because it purchase 65% newsprint from the domestic market. So its shows positive market for the jagran prakashan.
New edition and alternative media:
S. V. Institute of Management
also its competitor H T MEDIA & BCCL have there own radio station which shows positive growth. Turnover in excess of USD 700 million . The Times Group is one of the largest media services conglomerates in India. Strategy recommendation for build(question mark): Question marks are growing rapidly and thus consume large amounts of cash. 15 printing centers.readership of times of India is less then dainik jagran because of language problem. 29 niche magazines . S. 5 dailies including two of the largest in the country with approx 4.market share of BCCl is 30. Here companies like BCCL. 2.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 99 For maintain the market share jagran prakashan should have produced new edition and try to add more supplement to attract the costumer. The result is large net cash consumption. It reaches out from: 11 publishing centers. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. but because they have low market shares they do not generate much cash. then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. A question mark (also known as a "problem child") has the potential to gain market share and become a star. Growth of radio industry in 2007 is 325 as compared 2006 are 28% it shows 4% increased in one year. D C. 2 lead magazines . ABP LTD. So radio should be a profitable venture for the jagran prakashan.3 million copies circulated daily .71 which is lower than market5 leader. and eventually a cash cow when the market growth slows. Radio is the growing industry right now.Reaching 2468 cities and towns . HT EDIA. If the question mark does not succeed in becoming the market leader. Due to it generates free cash flow and thus they invest certain alternatives which generate good income for them. This group shows market opportunity in the market. MM & others are come Strategies for Bennett Coleman & co: As per growth wise Bennett Coleman & co is the highest in India with the growth rate of 22% which is higher than market leader jagran prakashan. 55 sales offices. In this group relative market share of the company is lower and market growth rate is high. It is headed by brothers Samir and Vineet Jain of the Sahu Jain family. V. Over 7000 employees. Institute of Management . Because print media companies enjoy extremely high operating leverages once their edition launches stabilized and start generating strong advertising revenue. All players who are come under this group are trying to increase their market share.
which is higher than market leader. Institute of Management .: LESS sensitive towards newsprint prices : HT MEDIA and Deccan chronicles are high sensitive toward newsprint price. Because in the northern part most of the people prefer hindi language newspaper. So if it have ti grab the market share it should have to come with the newspaper with specific hindi language. even B C CL and Jagran prakashan also purchase newsprint from the domestic market. Deccan Chronicles. This shows the impact on its revenue. V.there is one survey done by Angel research shows that times of India loose it advertising revenue up to 5% in the year 2006 because of high ad rates. So its shows negative impact in the revenue growth . Malayala Manorama and A B P Ltd. newsprint quality of the domestic newsprint is very good . Because Deccan chronicles purchases 90% of its newsprint from the international market. Here BCCL still doesn’t find a space at northern region. And HT MEDIA purchase 75 % of its newsprint from the international market. Because of the hike in price company have to pay more money to the newsprint provider. News print cost of Deccan chronicles is 432cr and cost of H T MEDIA is 204. AD rates: Compare to the other BCCL charged higher rates. So from our point of view follower should have to purchase newsprint from the domestic market. So news print cost of the both company account almost half of the company’s expenditure.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 100 Strategies: Come with flanker product in northern region: Northern region is the very big region. Because newsprint price in international market is rise up to 10 to 12% its shows 2% increase in the newsprint price. In the northern region HT MEDIA and Jagran Prakashan have very good market share. S. Strategy for (followers) HT Media.
5 0. So it is important to maintain relationship with the advertiser and advertising agency.275 8.9 1.35 8.7 0.C 6 7 6 6 7 6 5 Score 1.9 1 0.8 1.6 0.6 0.05 1.15 BCCL 8 8 8 7 10 9 8.8 0.2 0. Content of the HT MEDIA and Deccan chronicles magazines and newspaper is not very good.1 0.2 0. Institute of Management .7 0.9 5.2 0.8 0.8 1 0.6 0.3 Jagran 10 8 10 9 8 8 9 Score 2 0.2 7.15 0.E 9 CELL Matrix of Print Media Competitive Strength/Market Position Business strength Market share Cost of production Bargaining power of buyer Bargaining power of supplier Profitability Growth Brand image weightage 0.5 1.7 0.1 M.6 0.M 4 5 6 5 6 5 6 Score 0.75 S.2 Industry Attractiveness Industry Attractiveness Growth Weightage 0. So for improving the content it should have hire intelligent and creative editors and journalist.6 1.6 1.8 0.75 6.85 D. G.1 0.4 1.5 Score 1.7 1.2 1.8 0.25 Rating 7 Score 1.2 0. V.5 0.475 HT 8 8 7 7 6 7 8 Score 1.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 101 Established relationship with the local advertiser and the advertising agency: Most of the revenue come from the advertising.1 0.9 1. Editorial content: Content should be specific and attractive.
20 1.assocham. Market Growth is important because by this parameter we can find that that industry is growing at which rate if is higher then GDP growth rate then industry Growth is Good define Kotlar and it is lesser then GDP growth rate then it is considered as a attractive market. Industry Profitability. Institute of Management . Government Rules and Regulation and Domestic Economic Condition.20 0.60 0. M jp S.15 For the GE nine cell matrix on the Y axis we have define Industry Attractiveness that is measured on the parameter like Market Growth.75 6.75 0.php?id=1281 GE 9 Cell matrix JP BC CL HT D C M. V. Intensity of Competition.15 0. Source: http://www. Market Size.05 Competition Opportunity/Threat Political factor Uncertainty & Risk Total 0.org/prels/shownews.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 102 6 7 4 5 1. India’s GDP of last three year is about 8% while market is growing at a rate of 18-19% last eight Years.25 0.
Generally 9 cells are studied for position of that industry and its future conditions. Institute of Management . Growth rate: Then after growth rate of that particular industry is taken in to consideration because on the basis of the growth rate only the position of the company in the product life cycle can be known. Even the government may put restriction by putting control over the functioning of the companies through several norms and regulations putting ban on certain kinds of advertising.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 103 Competitive Strength Point Industry Attractiveness GE9 cell matrix it is about the study of the industry attractiveness that is about if the investment in the industry is made than will it be profitable to stay in that industry for a long period of time and will be able to earn a good profit. . S. In print media industry the growth is taken to study before investing last 4 years growth is shown in the below figure. This may be prove to restrict or may be proved to be beneficial for the company. V. And due to that the political factor has been given the weightage of 15% out of 100%. This includes study of all the factors affecting the industry like political factors which is one of the main factors taken in to consideration while studying the attractiveness of that industry for print media the factors taken in to consideration FDI limit that is 26% for news segment and 100% for non news segment.
Opportunity and threat: It related to that particular industry are taken in to consideration before entering in to that particular industry. But as the literacy level increases the people are more attracted towards the internet usage which is one of the biggest for the print media advertising. Institute of Management . S.3 15 Growth 22. Like as India is a developed country industries are growing and due to that to make buyer aware about their product and due to that income for print media is going to increase. V. it just like pros and cons of that industry if the opportunities in that industry are more than the industry is in the growth stage.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 104 Growth rate of print media ad 25 20 percentage 15 10 5 0 2004 2005 year 2006 2007 15. level of competition It is very high in the industry and the players are always fighting for making the highest share and covering the larger market and try to earn maximum from advertisement and circulation and due to that more weightage is given that is of 20%. Due to that readership of newspaper will increase. And the weightage given to growth of the industry 25%.81 21 (Source: Pitch February 2008) It shows that there are ups and down in the industry but the industry is in the increasing stage which is seen from the year 2004 to 2007. Even the literate population is also increasing in India. In the print media also there are many opportunities available as compare to threat.
the highest rank is given to those factors which are very important for the industry and which affect the development of the industry. the highest rank is given to those factor which are very important for the development of that industry. S. Here uncertainty is less so it is given less weightage of 15%. Institute of Management . Now number of 24*7 readership has been increased which is giving constant update of news and it is the major threat for print media. Business strength And on the basis of the information the ranks are given to the factors taken in to consideration which are necessary to study the attractiveness of the industry. In this industry the highest ranks are given to the factors like growth rate and level of competition which plays an important role for the development of the industry. One of the biggest opportunities for the print media advertising is that still 359 mn literate adults don’t read any publication. than development of that industry is quite difficult. V. though external factors are affecting to the industry but they are common for all the industries.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 105 . but there is no factor as of uncertainty in the print media advertisement. The weightage given to opportunity and threat are 25% because they are playing important role for print media advertising. Uncertainty: If in any industries if uncertainty is more.
V. And on that basis different ranks are given to different players in the industry on the basis of their market share in the industry.C M. eg increase in overall price of paper affect the profit of all the players.6% 5. And even the bargaining power of the the supplier is also less in India because in the industry most of the newsprint is imported and it is 70%. But it was seen that in the cost of production it includes cost of print includes paper.And the company who is facing this kind of problem less are given the highest rank and the weightage given to this factor is 10%. Company name Jagran Prakashan BCCL HT D.M Market share 35% 30.18 6. Profitability: It is the major point to be taken in to consideration if the current players are earning good profit then other players will be attracted to invest in the business. ink and plates. if the cost of production is high than it will directly affect the earning of the company. the study of different players and their position in the industry is necessary to be studied on the basis this study position of different players is studied by taking certain factors taken in to consideration and different weight are assigned to different factors. And due to that highest weightage is given of 20%. Institute of Management .71% 12.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 106 Now after considering industrial strength and its attractiveness. Bargaining power of buyer and supplier: Bargaining power of the buyer is low for the industry and due to that less weightage is given of 10% only. Now the first point taken in to consideration is the relative market share of all the major players on the basis of that the position new entrants can be known. so less weightage is given of 10%. Generally if price of any production material increase it will affect to all the players of the industry.18 Rank 10 8 8 6 4 Cost of production is an important point to study the earnings of that company. but if the S.
And after the given weightage the score is calculated on the basis of which the allotment is done in different cell of the matrix and on that basis the position of that particular player can be known and from the 9 cell matrix of the print media the position of the top 5 players can be known and on the basis of their score the allotment is made in the different cell.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 107 current players are facing difficulty in earning good profit then it will not motivate others to invest in the print business and on that weightage is given of 15%. not using proper resources. Weightage given to the growth is 20%. Brand image: The weightage given to the point is 15% because in many areas sales are depend on the brand image of that particular company.5. They are in this cell because they are having the highest market share and properly using their resource properly. Institute of Management . and newsprint cost of the daccan chronicles is higher because it imporet 90% of the newsprint from the international market. here the growth of BCCL is higher that is of 22% so BCCL is given the highest rank. Growth: The growth factor is taken in to consideration that in future is there any further growth in the business and on that basis it is decided whether to invent in the business or not. then after Jagran prakashan got the share of 20% and rank given is 8. Here the benefit for the daccn chronicles is that it can easily import from outside at low cost. Bennett and columan company Ltd and Hindustan Times lies in the same cell of high priority cell and in that the company are in growth and build stage. But the Deccan Chronicles and Malaya Manorama lies in the cell of medium priority where the hold is required because they are facing high competition. And the ranks are given on the basis of their profit where BCCL got the highest rank of 10 and Malaya manorama got the lowest rank of 6. the lowest rank given to MM of having growth of 12% and the rank given is 5 th. S. Jagran prakashan. Here jagran prakashan is given good brand image in whole northern region and having 40% of India’s readership and it is given the highest rank and than after the highest rank is given to Times of India of 8. V. and the lowest rank is given to Deccan Chronicle because of its late try in many southern region and the rank is 5th. So if these companies properly use the resources then only they can move to upper cell and eve they have to study properly the region in which the leader are not present in that area these player can cover the market share.
The driving force for the print media are government policies.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 108 Driving Force The force due to which the industry is driven and due to which its earning is directly affected. forces may be directly or indirectly affecting working of the industry. V. increase in industrialization. Government policies: Government policies directly affect the working of the industry that is if the government make the smaller change in the policy related to media it will directly affect the print media. increase in the young population. When in budget the service tax on the on the space for advertising was increased from 10% to 12% for the television but it was not increased for the space for advertising in print media and due to that cost for advertising in television media and due to that there was increase in the demand for S. Institute of Management . literacy level.
Economic Survey 2007-08.44 Source: www.95 118. and now the newspaper are also providing more information about stock exchange and people are also attracted to know about the stock market which also plays an important role in the increase of print media and so print media is directly affected by the increase in level of literacy.59 123. Increase in level of literacy: Now the level of literacy also increases in India and due to that it is directly related to increase in revenue of the print media.rbi.42 128. chapter 8 Scale Company would like to target the customers in the regional area only and the print media is the best source for reaching the regional areas of that particular state. because people are more interested to know about things going around them. Growth of Small Scale industries: From the above table it is seen that the growth of small scale enterprise increases due which number of advertising in the news paper will increase because generally small SMALL SCALE ENTERPRIZE 130 No.org. S. V. Institute of Management . of units ( lakhs) 125 120 115 110 105 100 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 109.49 113. with the help of advertisement they would like to increase their sale and the regional level of newspaper are the best platform to reach their target customers.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 109 print advertising and it is having the maximum reach to different region of the country which is beneficial for the corporate.in.
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 110 Revenue Drivers Generally most of the company depends on the revenue to grow further and to increase their business. Here we have mentioned all the top 10 sectors that spend more in print advertising. They are as given below: Top Sectors Education Services % Share 17% 12% S. V. if the company is not able to earn notable revenue at that time its future is under scanner. Institute of Management . In print media advertising the revenue drivers are the major sectors that spend in print advertising.
Advertising growth of 46% was registered under 'Computer Education' in Print followed by 'BPO/Call Centers' S.May '08 compared to same period in 2007. max.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 111 Banking/Finance/Investment 10% Auto 7% Retail 5% Corporate/Brand Image 4% Durables 3% Personal Accessories 3% Telecom/Internet Service Providers 2% Personal Healthcare 2% (Source: Adex India (A Division of TAM Media Research)) Education Sector 14% rise in Print advertising of Education sector during Jan . V.e. Institute of Management . share ( i. 67%) of overall Education sector ad pie in Print followed by 'Coaching Centre/Competitive Exam' and 'Computer Education' with 15% and 10% share respectively. ‘Educational Institutions' garnered a high share of 67% in Print during Jan . ‘Planman Consultant India Pvt Ltd' was the number one advertiser of Education sector in Print during Jan . (Source: Adex India (A division of TAM Media Research) Among the Sub Categories of Education sector.May '08. Educational Institutions' had max. Tamil Nadu leads in advertising of Education sector in Print during Jan .May '08.May '08.
Top 5 states accounted for 57% of overall Education sector advertising in Print during Jan .May'08.e. Service Sector: Services sector includes categories like Properties/Real Estate. Andhra Pradesh and Uttar Pradesh were the Top 3 states in advertising of Education sector in Print. Tamil Nadu. there is steady increase in number of advertisers of Education sector in Print. Internet /SMS service.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 112 and 'Vocational Training Institute' with 40% and 32% share respectively during Jan . 'Vellore Institute of Technology' and 'SRM University' were the top 3 key advertisers of Education sector in Print during Jan . Hospitals/Clinics. During Jan . ‘Planman Consultant India Pvt Ltd'. Non Metro Newspapers had the highest share of Print advertising of Education sector i. Institute of Management . etc.May '08. Top 5 segments accounted for more than 75% share of overall Services sector Print advertising during 2007. V.May '08. Since 2004.May '07. (Source: Adex India (A division of TAM Media Research) S.May '08 compared to Jan . 63% followed by 'Metro' and 'Mini Metro' Newspapers with 24% and 13% share respectively. During Jan .May '08. ‘Hospital/Clinics' and 'Travel & Tourism' had close competition for the 2nd position with 15% and 14% share respectively during 2007. DTH Service Providers.
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
‘Tata Sky’, 'New Era Entertainment Network' and 'Air India' were the top 3 advertisers in Services sector in Print during 2007. During 2007, 4 of the top 10 advertisers in Services sector belonged to 'Travel & Tourism' segment and 3 from 'Airlines' segment. The top-10 list of new entrants in Services sector advertised in Print comprised 6 brands of 'Properties/Real Estate' and 3 from 'Internet/SMS service' segment.
Print advertising of 'Financial Industry' up by 10% during FY 2007-08 compared to FY 2006-07. Banking & Financial services' segment had the largest share of 63% of 'Financial Industry' in Print during FY 2007-08. ‘SBI' was the number one advertisers in 'Financial Industry' advertising in Print during FY 2007-08. Metro and Non Metro Newspaper together accounted for 90% of overall Financial brands advertising during FY 2007-08.
(Source: Adex India (A division of TAM Media Research) Top 10 Financial brands share aggregates to 14% of overall 'Financial Industry' advertising share in Print during FY 2007-08. Public Issues of 'DLF ','Emaar MGF', 'Reliance Power' and 'Omaxe Ltd' made it to the Top 10 brand list of 'Financial Industry' during FY 2007-08.
S. V. Institute of Management
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
The readership in print media in the newspaper and magazines sows favorable data for the advertising in newspaper and magazine. 45 % of any publications readership is in the urban area.
S. V. Institute of Management
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry
The above graph shows that, even globally the majority people are interested in reading hardcopy rather than the digital content in the all age groups. There is appositive impact in the newspaper and magazine advertising industry, is that it boost up the advertising publishing in the print media.
According to the survey majority respondents including male and female denies that they will not read their favorite magazines or newspaper if it will be available in digital form. This will have the good opportunity for the newspaper and magazine advertising even globally
According to NRS 2006, literacy levels in India have risen from 69.9% to 71.1%. Literacy levels in urban areas at 85.3% witnessed a 90bprisewhereas rural areas at 64.8% witnessed a higher rise of 120bp during2006.
S. V. Institute of Management
68% can read Hindi indicates strong potential for readership growth. Sandesh – weekly in Chicago 2. Chennai Daily Tabloid Free English Infotainment Weekly I-Next Bilingual Daily Business Standard Regional Financial Daily (Hindi) Financial Chronicle Financial Daily Source: PWC Waterhouse report Because of the geographical expansion done by the major players the reach of newspaper will also increase and the local as well as national advertiser will get the benefit of this expansion. readership (dailies and magazines combined) increased to222mn from 216mn. Also. Bangalore UP. which can help publishers attract strong advertising revenues. Institute of Management . Geographical Expansion The leading players are expanding their geographic area in the country as seen in the following table Publishing House HT Media & BCCL (JV) Ht Media (JV with WSJ) Times of India Times of India Jagran Prakashan Jagran Prakashan Business Standard Deccan Chronicle New Edition MetroNow Mint Economic Times (Gujarati) Bangalore Mirror City Plus Segment City-centric Daily Tabloid Financial Daily Region Delhi Delhi.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 116 Moreover.g. 20mn of these literate non-readers belong to the upscale SEC A and B segments (higher socio-economic brackets). Bangalore Regional Financial Daily Gujarat Bangalore Delhi/NCR. ABP – Fortnghtly in US 3. Malyalam and Madhyaman Manorama – daily in Dubai. The fact that out of the359mn people in India who can read but do not currently read any publication. List of overseas editions for many dailies 1. The expansion is also done world wide of Indian newspaper in which they are publishing the advertisement. For e. Mumbai. Buhrain S. This has led to significant scope for growth for newspaper publications in terms of untapped potential readers. The players of newspaper and magazines are also targeting the NRI population and publish the newspaper and magazine. Mumbai Hyderabad. V. Uttaranchal Delhi.
5 56.5 37. Institute of Management . V. The advertising targeting to the group of above 60 years age group like advertisement of financial services.3 30.1 Population Demographic Shift 1997 2002 37. etc.9 7.0 Under 15 years Between 15-59 years Above 60 years There is an increase in the demographic population shift because of this the consumption of newspaper and magazine is also increased and the advertiser will have the opportunity to giving the advertisement in particular segment.000 – 115.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 117 4. Demographic Transformation Of India (In USD) Rich (Above 115. 50 40 30 20 10 0 1997 2002 2007 6.3 2007 30.30% 06. Gujarat Samchar – weekly in New York 5. insurance.2 33.00% 62.10% 59. The advertisement related to younger children could be shown in their supplements like Bal Bhaskar issued by Divya Bhaskar.90% POPULATION DEMOGRAPHIC SHIFT 59.50% 56.30% 07.50% 62. Divya Bhaskar – Fortnightly in Newyork Demographic expansion Age % of population Under 15 years Between 15-59 years Above 60 years 70 60 POPULATION (%).000 POPULATION (MILLION) 2001-02 2005-06 2009-10(E) 2 9 20 9 17 33 S.000) High Income (57.20% 33.60% 06.6 6.
000 – class 115.000 (23. etc. S. the reach ness of newspaper and magazines will increase in the offices.200) As there is a continuous increase in working class and needy class. as a result any big player can have the opportunity to give the advertisement in full page and it can also increase the frequency of the advertisement.000) Needy (Below 10. at homes.000) (57.200) 726 (Source: FICCI PWC Research) 74 285 710 120 404 613 Demographic Transformation of India Population (In Million) 800 700 600 500 400 300 200 100 0 726 710 613 404 285 221 2 9 20 9 17 33 120 48 74 Rich (Above High Income Consuming 115.200 – 23. Service Tax There is not any service tax is applied on the print ad space.000 – 57.000) 221 Needy (Below 10.000) Income Working class (10. V. Institute of Management .000) 48 Working class (10.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 118 Consuming class (23.200 – 23. during the traveling.000 – 57.
it is in fact.00.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 119 Threat Online Advertising Online advertising is a one type of digital form of print advertising.00. of Internet Users in India 14.00.000 70. as the following table shown.000 28.000 55. 17 Even the various sectors are also interested to do the advertisement online.000 2.60 (Rs 70) by the end of the year.00. which could be $ 1. E-Advertising.92. For example.00. the advertising spend on internet is also increasing at 32 % in 2007. to promote admission to professional courses or for various competitive exams.00.00. Sectors Telecom Financial Services Technology Travel Automobile Consumer Durables FMCG Online Services Entertainment % Spends 6 24 11 12 11 9 5 11 7 Source: Advertising Express.00.20 (Rs 52.65. August 2008.00. Institute of Management . The online banner ad spend per Internet user is only about $ 1. V. Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 No.000 1. August 2008.00.06.000 5. the young and educated segment has to be tapped.000 Source: Advertising Express. 17 S. a supplement to traditional advertising.00. The changeover has started and experts see a promising future for online advertising which is growing rapidly in India as the internet users increases.Many companies in India started online advertising to reach the public faster.50). E-Advertising. pp. pp.000 3.000 12.000 7.20.25.
the blogging on the internet is also target to groups with equal interest. In the magazine the lead time is very high. Institute of Management . Many dailies provide “e-paper” version with search options like • Monetized by dailies like Hindu • Free access in the case if TOI and HT Declining reach in Urban For any newspaper or magazine the most powerful factor is its reach that how many people read it in particular area or region. This figure shows the negative trend to newspaper and magazine players 24*7 news channels on TV. The reach of print media in urban area is declining in was 46% in 2007 compare to 48% in 2006. S. So it will create the competition for the circulation of magazine and it will have an impact on the advertiser also. V. so it might be not preferable for the industry players for giving the advertisement. because the frequency of the advertisement is high as compared to the newspaper. it will create a threat for the newspaper. The advertiser will go for the online advertising. It is used by the advertisers to reach the NRI. As the numbers of news channels are increasing.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 120 Almost all the leading dailies have their internet editions. Blogging on Internet As the different types of magazine target to the different audience.
In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 121 Key Success Factors Reach ness: As compared to the other media vehicle. 07.26.000. because they get the proper media vehicle for giving their advertisement to their targeted audience. 24. The Times of India has launched the “Education Times” as additional supplement.4.000 • Out Look Business. 38. For example the ads related the beauty products will target the women’s magazines. etc. Corporate advertisers will prefer the Business magazines. The circulation of • Business Today .2.668 no of magazines are available in different language in different region in India.000 • Business India . S. The advertisers have a great benefit for this. in which it has advertisement of all Educational Institution. including urban as well as rural area. According to the RNI there are 18.000 • Business World – 2. V. 8. job Portals.611 different newspaper copies are circulated daily.91.2. Institute of Management . the reach of newspaper and magazines are high. Advertisers have the different target segment according to their product need and they can have the benefit of these high reach in of the magazines Preferred Segmentation The newspaper and magazines have their own different segments.16.
Advertising Express. February 2008. “An overview of Indian media”. 5. pg 78 – 82. “ E – Advertising “. pg 46 – 52. November 2008. 2006. 7. pg 12 – 88. MAGAZINE : 1. Prentice Hall of India Pvt Ltd. A Sengupta and Noopur Agrawal. Deepti Aggarwal.ciiionline. Purva Panchal. August 2008. Pitch bureau. “Radio More music to ears”. February 2008. Jaishri Jethwaney and Shruti Jain. 4. pg 33. www. “Advertising & Promotion an IMC perspective”. Pitch. Pitch. “Online advertising”. IMPACT. Chandrashekhar and N Shridhar. pg 70 – 74. pg 64 – 66.org S. Kruti Shah and Alan D’souza. Pitch. Oxford higher educatio. Pitch. February 2008. V. pg 670 – 674. 2. 8. February 2008. Mcgraw Hill companies. pg 12 – 18. Jayshree Maji. Chepter-8 WEBSITE : 1. September 2008. 6. 3. “Outdoor Gaining from clutter”. 2004. “Print continuing the growth streak”. 2008. Economic survey 2007-08. “Television Holding the ground’. “Advertising Management”. Institute of Management . 3. pg 56 – 60. Kruti Shah. “Internet weaving a wider net”.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 122 BIBLIOGRAPHY BOOKS : 1. February 2008. “Advertising Industry Trends and Regulations”. 2. Deepti Aggarwal. REPORT : 1. pg 467 – 486. Advertising Express. Pitch. pg 17 – 20. Anil Varma.
adex.exchange4media. Institute of Management .pib.com 8.Thompsonrouters.com 4. www. www. V. www.nic.com 6.com 3. www.afaqs.com 7.com 10.indiamart.economictimes. www.com 12. www. www. www.In Depth Study Of Newspaper & Magazine Advertising In Advertising Industry 123 2.indiatimes.equitymaster.com 9.com 5.com 13.tamindia.angelbroking.com 11. www.adindia. www.com S. www. www.
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