50

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Volume
IX Issue
5 | February
2012
Volume
IX Issue
5 | February
2012

PRESENTS

Disappointing 2012

Cautious 2013
Advertisers are expected to remain
frugal on ad spends in 2013 too, unless
the Union Budget springs some surprises

Pitch | February 2012

PRESENTS

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INTRODUCTION
PRINT REVIEW 2012

Yesterday Once More

PMMAO 2013 expects the industry to register a cautious growth of 7.4 per cent,
slightly better than the growth achieved in 2012
By SAM BALSARA

he year 2012 was largely tepid

for the media advertising industry, where most verticals saw a
slowdown in growth and fell short of
projected targets. The only sunshine, so
as to speak, was provided by digital and
internet, which continued on its strong
growth trajectory and grew by over 50
per cent with display and search both
growing around 50 per cent.
As far as the industry is concerned,

one cant help but be reminded of The

Carpenters song, Its yesterday once
more, because just like 2011, the global economy in 2012 too, faced turmoil,
inflation remained high and the Rupee
continued its weak rally against the US
Dollar for most parts of the year. The
media advertising market in 2012 grew
by 5.2 per cent against a projected
growth of 7.5 per cent.
Television, the biggest media platform,
Sam Balsara
Chairman & MD, Madison World

18%
28%

18%
19%

Projected
Growth

10%
18%

18%
7.4%

5.2%
18%

18%
-9%

GROWTH %

YEARLY SPENDS
2008
` 21,382 Cr

2009
` 19,470 Cr

2010
` 24,898 Cr

2011
` 27,282 Cr

2012
` 28,694 Cr

2013
` 30,809 Cr

Pitch | February 2012

POWERED BY

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8.0%
0.53%

6.5%

How the Ad Pie

split in 2012

3.2%

TV, the biggest shareholder till 2011, lost its

share marginally, to
let Print become the
leader once again
TV
Print

40%

41.7%

Radio
Cinema
Outdoor
Internet
against a projected growth of 10 per
cent, remained flat and did not grow
in 2012. The absence of the ICC World
Cup, which had roped in revenues close
to ` 750 crore in 2011 and the IPL failing
to garner in as much revenue as 2011,
were the major reasons why TV took a
hit in 2012. Thus, the figures fail to reflect the actual growth achieved by a lot
of channels.
Print, on the other hand, surprised
with a 4 per cent growth, as against a
projected negative growth, riding on the
back of strong growth shown by Hindi
and regional dailies and new editions.
However, English dailies, which contribute almost 50 per cent revenue of the
total newspaper advertising, registered
a de-growth. Magazine advertising improved its overall contribution from 3.9
per cent to 4.2 per cent to the overall ad
pie and maintained its 10 percent share

in the print pie.

The automobile sector continued to
increase its share in print spends with
an 11.4 per cent share compared to 9.8
per cent in 2011. However for TV, its
share declined to 6 per cent from 7.6 per
cent in 2011.
FMCGs share in TV and print went up
from 52.8 per cent to 54.4 per cent and
from 8.9 per cent to 10.3 per cent respectively. FMCG continued to form the
backbone for the TV advertising industry.
For the first time since 2008, print
superseded TV to become the largest
contributor to the ad pie at 41.7 per cent
while TV was at 40 per cent. In 2008,
print had contributed 47 per cent, while
TV lagged behind at 39 per cent.
Cinema also disappointed with an 8
per cent growth against the projected
15 per cent. The base for cinema continued to be low, with a meager contri-

FMCGs share in TV and print ad pies went up from

52.8% to 54.4% and from 8.9% to 10.3% respectively.
It continued to be the backbone for TV advertising

Pitch | February 2012

bution of 0.5 per cent to the ad pie.

Conventional outdoor grew by only 2
per cent against a projected growth of
5 per cent. However, advertisers seem
to have taken to transit media in a big
way with a 28 per cent growth against a
projected growth of 20 per cent and far
surpassing 2011s growth of 3 per cent.
So what is the road ahead for the media advertising industry? Will the slowdown continue? Will the sentiments remain tepid? There is a lot that depends
on global economy and union budget
and advertisers would be watching it
closely and then try to de-mystify and
understand the nuances of it, because
it will surely have a telling on how 2013
pans out for them.
Pitch Madison Media Advertising
Outlook 2013 is quite conservative and
not at all bullish. It expects the industry
to grow by 7.4 per cent, which actually is
less than the projected growth for 2012.
Some predictions for 2013:
TV is expected to grow well, because
of digitisation that will lead to more
spending on niche channel and TRAIs
regulation (10+2) which is likely to be
enforced informally, but more strictly,
which may have an inflationary effect
on TV rates.
For print, regional press is expected to
continue to grow at a faster rate than
English, as will revenues for special
and niche magazines.
A modest 4 per cent increase in radio
and a 10 per cent increase in cinema
is the forecast. In traditional outdoor,
a marginal 2 per cent growth is foreseen, however, transit media will continue to grow at 10 per cent.
Digital will continue to grow strongly
and even on a substantial increased
base, achieved on the back of around
50 per cent year-on-year growth for the
last 9 years. It will still grow at a healthy
32 per cent, on the back of FMCG advertisers waking up to the interactive
medium and engaging power of digital.

PRINT REVIEW 2012

Elephantine March
Print is expected to grow steadily, even though it is seen losing share
in the ad pie, owing to the growth of digital

With a contribution of
41.7 per cent, print has
emerged as the largest
share holder in the entire
ad pie. From 2008 to
2011, TV had been ruling
the roost

In 2013, Print will continue

to grow at 4.7 per cent
and is expected to clock
revenues worth ` 12,526
crore

18%
30%
18%
18%

0 (% GROWTH)

10%
18%

Projected
Growth
18%
4%

18%
4.7%

18%
-20%

YEARLY SPENDS
2008
` 10,050 Cr
4

2009
` 8,073 Cr

2010
` 10,487 Cr

2011
` 11,509 Cr

2012
` 11,970 Cr

2013
` 12,526 Cr

Pitch | February 2012

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` 1,202 Crore
Maga
zines
10.2%

Dailies Vs
Magazines
in 2012

The rise of magazines

Magazines, as against a projected
negative growth, achieved a growth
of 4.5 per cent in 2012
Magazines also retained their share
in the ad pie at 4.2 per cent
Going ahead, magazines are
expected to grow at a rate of 6 per
cent to clock revenues worth
` 1,274 crore in 2013 as against
` 1,202 crore in 2012

Dailies 89.8%
` 10,768 Crore

Categories fond of Print

Print

Growth of FMCG
FMCG continued to bet its money
on print taking its contribution
share from 8.9 per cent in 2011
to 10.3 per cent in 2012. Its
contribution in 2010 was 7.4 per
cent
Auto continued to be the largest
contributor to print at 11.4 per cent
Some categories that lost share in
the print ad pie, include corporate,
household durables, BFSI and
telecom/internet/DTH

Pitch | February 2012

FMCGs volume growth has

been ever increasing
(% Contribution)

2008

2009

2010

2011

2012

Alcoholic Beverages

0.3

0.3

0.2

0.2

0.1

Auto

6.8

7.8

7.1

9.8

11.4

BFSI

8.3

7.9

8.7

6.7

5.7

Clothing/Fashion/Jewellery

5.1

5.5

5.3

6.5

7.1

Corporate

3.6

3.0

3.0

2.8

2.2

Education

17.1

17.3

14.6

10.6

10.6

FMCG HH

1.9

2.5

2.6

3.1

4.1

FMCG Impulse

0.3

0.6

0.4

0.3

0.4

FMCG Personal Care

3.6

4.1

4.4

5.5

5.8

HH Durables

6.5

5.3

5.3

5.7

4.9

Media

1.9

2.2

2.2

1.5

1.4

Real Estate & Home Improvement 6.4

6.5

8.0

8.4

8.6

Retail

5.5

5.8

5.8

5.6

5.8

Telecom/Internet/DTH

6.2

5.4

6.3

4.7

4.1

Travel & Tourism

4.3

3.5

2.5

2.8

2.3

Others

22.2

22.5

23.6

25.7

25.3

PRINT REVIEW 2012

2013

New Delhi : March 1, 2013

Mumbai : March 6, 2013

:
For Sponsorship opportunities, contact
Rohit Sardana
Varnikaa Jain
Sneha Walke
6

(Delhi)
+91 98113 77592
(Mumbai)
+91 97691 53087
(Bengaluru) +91 98455 41143

rsardana@exchange4media.com
vjain@exchange4media.com
Sneha@exchange4media.com

Pitch | February 2012

TELEVISION

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Smashed
With advertisers tepid response to IPL
and the lack of a big sporting event like
the ICC World Cup in 2011, advertising
on TV largely remained stagnant in 2012

18%
24%

Growth for TV in 2012, marginally

went in the negative. It, however, is
likely to cross ad revenues worth
` 12,000 crore in 2013

However, growth rate, projected at

6 per cent for 2013, is unllikely to
touch the peak growth of 2010 or
even 2011

TVs share in the ad pie in 2013, is

expected to erode further by 0.5
percentage points from the current
40 per cent

18%
17%

18%
9%

Projected
Growth

18%
2%

18%
6%

18%
0%

GROWTH %

YEARLY SPENDS
2008
` 8,319 Cr

Pitch | February 2012

2009
` 8,492 Cr

2010
` 10,530 Cr

2011
` 11,478 Cr

2012
` 11,478 Cr

2013
` 12,166 Cr

PRINT REVIEW 2012

TELEVISION
Which genres got what?
Dispersion %
Row Labels

2012

Hin GEC
Hin News
TN CS
Eng News
Tel CS
Info
Kids
Hin Mov
Mar CS
Ben CS
Ker CS
Sports
Kan CS
Other Reg
Eng Mov
Others
Music
Eng Ent
DD

25
8
7
6
6
5
4
4
4
4
4
4
3
3
3
3
3
2
2

Kids grow up; Sports lose

Growth %
(2011/2010) (2012/2011)

4
7
27
17
20
45
5
23
5
16
5
87
14
35
29
25
19
47
-5

-2
4
14
-3
6
12
20
-20 Driven by IPL
-2
-1
9
-23 Driven by ICC WC
9
15
5
23
13
40
-8

Hindi GECs continued to garner the

maximum share in the TV ad pie;
yet the genre saw a negative growth
of 2 per cent
Sports emerged as the biggest
loser with a negative growth of 23
per cent. Ad revenues in 2011 were
driven by the ICC World Cup
Even Hindi Movie Channels took a
hit, as IPL seems to be losing sheen
amongst advertisers
The biggest growth gainers though
seem to be the Kids channels, a
genre which has seen growth rate
rise exponentially from 5 per cent in
2011 to 20 per cent in 2012

Will digitisation emerge as the game changer?

ne of the major developments in the Indian

television space has
been the advent of digital
modes of broadcast reception
and the conversion of analogue
to digital, which represents a
big change for consumers and
the broadcast business.
The Indian television industry has always followed an

advertising revenue dependent model as opposed to the

subscription based structure
adopted by the western counterparts. Digitisation has also
led to a spurt of ad free channels such as Disney Junior,
HBO Defined, HBO Hits and
Nick Junior, which would be
completely ad free and focus
on subscription for revenues.

Not that ad-free proposition

was missing in India prior to
this. The kick-off of HD (High
Definition) offerings from
various channels, more specifically of sports related events
on channels such as ESPN or a
channel such as Zee Golf from
the Zee Entertainment bouquet
also have ad-free or minimum
advertising versions.

Pitch | February 2012

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Categories fond of TV
TV

FMCGs contribution to TV
has been ever increasing

(% Contribution)

2008

2009

2010

2011

2012

Alcoholic Beverages

0.8

0.4

0.6

0.8

0.9

In the fast goods lane

Auto

5.6

6.7

6.7

7.6

6.0

BFSI

7.7

5.7

5.2

5.5

4.3

Clothing/Fashion/Jewellery

3.2

2.8

3.3

3.6

3.7

With 54.5 per cent contribution

to the TV ad pie, up from 52.8 per
cent in 2011, FMCG continues to
rule the roost in the TV ad space

Corporate

3.6

2.5

2.7

2.5

3.4

Education

1.5

1.5

1.6

1.6

1.8

FMCG HH

26.8

30.7

30.0

28.2

29.2

FMCG Impulse

8.2

9.9

8.9

8.2

8.6

FMCG PersonalCare

13.7

15.0

15.6

16.4

16.6

HH Durables

5.3

4.7

5.4

5.5

6.3

Media

0.2

0.1

0.2

0.1

0.0

Real Estate & Home Improvement 3.3

2.8

3.3

3.3

3.7

Retail

1.1

0.6

0.8

0.8

0.8

Telecom/Internet/DTH

13.9

11.8

11.1

11.5

9.4

Travel & Tourism

0.8

0.9

1.5

1.4

1.4

Others

4.2

3.9

3.2

3.1

3.9

Juhi Ravindranath, Network

Head, Ad Sales, South Asia,
Turner International India says,
In the movies business, digitisation has positively impacted
the genre, our channel performances and thus we expect
both, HBO and WB, to drive
extremely strong revenue
growths. WB is currently trending at twice the channel shares

Pitch | February 2012

Corporate advertising, is another

emerging big spender on TV
Auto seems to be moving more
towards Print. Hence, the sectors
contribution to TV ad pie has
dipped from 7.6 per cent in 2011
to 6 per cent in 2012

it was a little over a year ago.

According to experts, along
with better quality viewing experience and providing a level
playing ground for the channels, digitisation will also lead
to the increase of niche genre
channels with the focus increasing on channels pertaining
to infotainment, edutainment,
lifestyle and food etc.

PRINT REVIEW 2012

INTERNET

Speeding away
With attributes like enhanced flexibility, scalability and measurable results in real time as
well as cost-effectiveness and better targeting, the pool of digital immigrants is growing fast

rom playing second fiddle to

becoming a part of conventional
marketing methods, internet
marketing has gradually crept in
to assume an important place in
brands marketing blueprint. With
attributes like enhanced flexibility,
scalability and measurable results in
real time as well as cost-effectiveness and better targeting, the pool of
digital immigrants is fast growing.
According to Pitch Madison Media
Advertising Outlook 2013, internet
has seen a growth of 50 per cent in

10

2012 - in line with projections and a

slight improvement over the growth
in 2011 (49 per cent), taking internets ad revenues up from
` 1,535 crore in 2011 to ` 2,303
crore in 2012 (including Search).
Both Search and display advertising
have seen a growth of 50 per cent
respectively in 2012.
The mediums share in the overall
ad pie has also substantially increased from 5.6 per cent in 2011 to
8 per cent in 2012. While Searchs
contribution to the overall ad pie has

risen from 2 per cent in 2011 to 2.9

per cent in 2012; display advertisings
contribution too went up from 3.6
per cent in 2011 to 5.2 per cent in
2012.
While Searchs contribution went
up from ` 550 crore in 2011 to ` 825
crore in 2012, Display advertising
saw revenues grow from ` 985 crore
to ` 1,478 crore.
Outlook 2013
According to Pitch Madison Media
Advertising Outlook 2013, digital will

Pitch | February 2012

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continue to grow strongly and

even on a substantial increased
base, achieved on the back of

around 50 per cent growth yearon-year for the last 9 years. It will
still grow at a 32 per cent on the
back of FMCG Advertisers waking
up to the interactive and engaging
power of digital.
In 2013, total spends on internet
including Search is projected to
increase from the existing ` 2,303
crore to ` 3,040 crore a 32 per
cent increase. Meanwhile, spends
on Search are projected to go
from ` 825 crore to ` 1,089 crore
in 2013.
The contribution of internet to
the total ad-pie is projected to
increase from 8 per cent to almost
10 per cent.

32%

is the projected growth rate

for Internet in 2013. Sitting
at a little above ` 2,000
crore, digital is expected
to cross the ` 3,000 crore
mark in 2013

18%
50%

Both search and display

advertising on the web are
growing at a healthy rate of
50%
The growth is likely to
slowdown in 2013 to
32% in 2013

` 825 Crore

35.8%

64.2%

Search
vs
Display
` 1,478 Crore

Search
Internet (Excl Search)

Net worthy

Internet emerged as the third largest share holder (8%) in

the entire ad-pie pipping Outdoor. It will further consolidate its
position taking its share up to 10%

49%
18%

46%
18%

18%
50%

18%
34%
GROWTH %

YEARLY SPENDS
2008
` 470 Cr

Pitch | February 2012

2009
` 703 Cr

2010
` 1,030 Cr

2011
` 1,535 Cr

2012
` 2,303 Cr
11

PRINT REVIEW 2012

OUTDOOR

Bitter-sweet
cocktail
Outdoor is expexcted to retain its growth rate and share in the ad pie, riding on the
back of transit OOH

n 2012, the outdoor industry had a

bitter-sweet mix of highs and lows;
the first quarter was very challenging due to volatility of Indian market.
Most of the brands had squeezed
their budget for outdoor advertising. But, the second half of the year
brought new opportunities thanks to
the new set of media options such
has transit mediums which gave the
industry a new boost.
With businesses going beyond
borders, people spending more time

12

in travelling, cities are expanding into

distant suburbs and tier II and III cities are gaining prominence. People
are spending up to nine hours outdoors, leading to exponential growth
of the transit medium especially
with around 30 modern upcoming
airports and metro rail expansion in
all major metros.
Considering the potential that
transit media has and the fact that it is
significantly contributing to the overall growth of outdoor advertising,

starting this year, Pitch Madison

Media Advertising Outlook 2013, has
included transit media in addition to
the traditional outdoor advertising in
its analysis. Conventional Outdoor,
against the projected 5 per cent
growth, grew by only 2 per cent.
However, advertisers seem to have
taken to transit media in a big way.
Expensive airport advertising showed
strong growth and as a result, Transit
Advertising grew by a robust 28 per
cent against a projected 20 per cent.
Pitch | February 2012

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Though the year 2012 has not been

the best one for the outdoor medium,
it has definitely proven to be much
better than 2011. 2012 showed an 8.4
per cent increase in the mediums
overall revenues. The mediums revenue in 2012 stood at ` 1,862 against
` 1,717 in 2011. Outdoors share in the
total ad pie also increased to 6.5 per
cent in 2012. In 2011, the share of the
medium was at 6.3 per cent.
As per the Pitch Madison Media
Advertising Outlook 2013, outdoor
is expected to grow by 4.3 per cent
to clock ad revenues worth ` 1,943
crore in 2013, of which ` 593 crore is
expected to come from transit OOH.

Transit OOH continued

its bullish run in 2012
with a growth rate of 28
per cent as against a
growth rate of 2 per cent
recorded for traditional
outdoor
Transit outdoor is
expected to grow at
10 per cent in 2013

` 539
Crore
28.9%

Rs. 539
Crore

In transit
mode

71.1%
` 1,323 Crore

OOH Transit Media

Traditional Outdoor
More or less, Outdoor achieved the
growth target of 8.7 per cent by
achieving 8.4 per cent in 2012
Fueled by growth in transit OOH,
Outdoor is expected to grow at a
moderate rate of 4.3 per cent in 2013

18%
30%
18%
24%

18%
8.4%

Projected
Growth
18%
4.3%

18%
-7%
GROWTH %

18%
-19%

YEARLY SPENDS
2008
` 1,752 Cr

2009
` 1,419 Cr

Pitch | February 2012

2010
` 1,848 Cr

2011
` 1,717 Cr

2012
` 1,862 Cr

2013
` 1,1943 Cr
13

PRINT REVIEW 2012

RADIO

Scaled and Flat

Even Phase III of FM radio expansion isnt encouraging the
advertisers to bet their money on the medium

As against a projected growth of 5 per

cent, Radio grew only at the rate of 3
per cent in 2012, adding only about Rs
27 crore more to its revenue total of
2011

The outlook isnt very encouraging for

radio and the Phase III expansion is
also not likely to shake up the industry
much

Expect its share in the ad pie to drop

further from 3.2 per cent in 2012 to
3.1 per cent, as advertisers look for
greener pastures on digital

18%
38%
18%
30%

Projected
Growth

18%
3%
18%
2%

GROWTH %

18%
3%

18%
4%

YEARLY SPENDS
2008
` 662 Cr
14

2009
` 681 Cr

2010
` 885 Cr

2011
` 903 Cr

2012
` 930 Cr

2013
` 967 Cr
Pitch | February 2012

CINEMA

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The Talaash continues

Despite blockbusters like Dabangg 2, Ek Tha Tiger, Rowdy Rathore and Talaash
besides others, Cinema failed to attract expected quantum of advertising
18%
24%
18%
15%

18%
18%

Projected
Growth

8%

18%

18%
10%

GROWTH %

18%
-20%

Cinema, in 2012, grew only by 8 per cent lagging far behind 2011s
growth of 18% and failing to achieve the projected growth rate of 15%
The dry spell is expected to continue in 2013 too, with advertisers
betting more on measurable media like internet and mobile

YEARLY SPENDS
2008
` 129 Cr
Pitch | February 2012

2009
` 103 Cr

2010
` 118 Cr

2011
` 140 Cr

2012
` 151 Cr

2013
` 166 Cr
15

Who better than them can

PRINT REVIEW
2012
understand
your hard work!

Jury Chair: Harit Nagpal Abhra Rajib Banerjee

Managing Director & CEO, Executive Business Head
Tata Sky Ltd
Century Plyboards (I), Ltd

Amitesh Rao
Director,
Brand & Media
MTS India

Bharat Dhuppar
CMO, Omkar Realtors
& Developers

Karan Kumar
Marketing Manager, Education
& Stationery Products
Business (ESPB), ITC Limited

Rajiv Kr Vij
Managing Director & CEO ,
Carzonrent India Pvt.Ltd.

Raiq Gangjee
VP, Marketing &
Communications,
YASH RAJ FILMS

Madhumita Dutta
Chief Marketing, Pantaloons,
Planet Sports & Converse

Nalin Kapoor
Sr. GM & Group Head
-Marketing
Hyundai Motor India Ltd

Pratik Mazumder
CMO, Yatra.com

Pravin Kulkarnii
GM, Marketing
Parle Products Pvt Ltd

Shaswati Saradar
Director General,
MRUC

Shubhodip Pal
CMO,
Micromax

Sudeep Narayan
Marketing & PR Director,
Volvo Auto India

Tanmoy Mukherjee
Head Brand Integration
& Marketing,
Lavazza in India

more to join...

&

OOH

Conference
& Awards

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entries is 15th February

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3RD EDITION OF THE OOH ADVERTISING AWARDS

Friday, March 22, 2013 | Leela Kempinski, Gurgaon

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For sending Entries contact:
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Sneha Walke at sneha@exchange4media.com, or call +91 98455 41143

Pitch | February 2012

Names in alphabetical order

Alok Bharadwaj
Senior Vice President,
Canon India