MAM

Indian TV ad spend in 2002 up 11% to Rs 39 billion

MUMBAI: The buzz phrase of the new century may not be "integrated marketing" after all, but rather "Show me the gross ratings points!"

The total Indian ad spend on television in the year 2002 was Rs 39.09 billion (up 11.71 per cent) as compared to Rs 34.99 billion in 2001, says TAM India. The size of the Indian ad industry also grew from Rs 87.99 billion to Rs 95.09 billion in 2002.

In India, the total number of spots on TV stood at 4,408,401 by September 2002 as compared to 3,227,880 in the whole of 2001, says TAM India.

Spends (Rs billion) in different media as per TAM India

Year
TV
Press
Others
Total ad spend
2002
39.09
44.00
12.00
95.09
2001
34.99
42.00
11.00
87.99

Source TAM India estimates for 2002

The World Cup cricket spend on TV is estimated to be in the region of Rs 4.5 billion. In the fiscal year ending 31 March 2003, the spend on TV will shoot up due to the cricket World Cup and aggressive promotions by several general entertainment TV channels.

Meanwhile, in the US, a survey by Morgan Anderson Consulting finds that an overwhelming majority of big marketers in the US plan to spend more on TV in 2003 than in 2002. The Morgan Anderson survey of the top 100 US advertisers found that 63 per cent plan to spend more on TV in 2003, while only 15 per cent plan to spend less and 22 per cent plan to spend the same.

Quoting the US-based Morgan Andersen Consulting study, an adage report states that the direct-to-consumer mantra pushed global TV ad rates up rapidly in the late 1990s and early 2000 when terms such as integrated marketing and holistic marketing increasingly gained currency with traditional marketers.

The report also mentions that big advertisers in different parts of the world returned to TV in a big way post the dotcom era. Marketers will always go with the things they have the most confidence in and have experience with, and television would tend to be that. Media consultants believe that troubled times lead marketers to fall back on the security of TV.

Yet, media buyers and industry watchers aren't ready to lay to rest integrated marketing or their concerns about the long-term viability of TV advertising. During her recent India visit, WPP Media worldwide head of consumer insights Sheila Byfield states that the youngsters across the globe are watching less TV. "In fact, television, radio and print media are under threat as far as the younger audiences are concerned," adds Byfield.

Others proclaim that spending more doesn't mean shifting the focus to TV!

An adage report states that Unilever increased global marketing spending by a whopping $625 million, or 1 per cent of sales, globally in 2002, but continued a long-term movement to reduce dependence on TV. TV as a percentage of Unilever's media budget globally fell from around 90 per cent in the late 1990s to 75 per cent in 2002.

In India, several space sellers say that Hindustan Lever has started using print much more than in the past. Perhaps, the umpteen promotions and special offers to woo consumers has something to do with this emerging trend, says a media expert.

In India, it looks as the World Cup cricket 2003 has ensured that the medium of television has begun the year well. That begs the question - after the World Cup what?

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