Introduction
The days of yore when Indian was considered to be a nascent media and
marketing market in the global scenario seem to be fading in a hurry. With more and more Indians powering into the
global headquarters of multinationals and Indian talent being now recognized even by prestigious institutions like the
IMF, the day seems not too in the distant future when India will be regarded as a major powerhouse on a global scale.
Realizing this phenomenon, TAM S-Group takes this initiative of starting this series on International markets.
This series is an attempt to break away from our every day routines and gain a wider perspective of global media
and marketing environment. In this first newsletter of our series, we focus on some interesting insights of the US market.
Though the comparison of this mature market with the evolving Indian market may not be most prudent, it provides an
insight where mature markets are headed and our pursuit for the same!
Media Scenario: Exhibit 1
In terms of the penetration of colour television as
well as remote television ownership, the penetration is almost
100% in USA compared to a 43% television penetration in India.
Out of this 43%, colour television penetration is 36% and the
remote control television ownership is 32% in India as per NRS
2002. 74% of the households in USA are multi TV set households
while in India this penetration is estimated at approximately
11%.
In terms of television reach, total TV daily reach in USA is 90.3%
compared to 68% in India. (Refer Exhibit 2).
Advertising scenario in
USA:
In terms of the size of the market, the US Ad industry (excluding
internet and Cinema) is a whopping US $98, 277 million.When
converted into Indian currency @ Rs.46.5 per US $, this sum amounts
to Rs.4.46 million or Rs. 45,69,88,05,00,000.
Exhibit 4 displays the top advertising categories
on the basis of advertising spends in USA for 2001.
If one compares the above categories with the current
Indian top list on the basis of TV and Press (refer exhibit 5),
the diversity in the two markets becomes pretty apparent.
The Capitalist Market
When one dwells on the quantum of the money being exchanged in
the two markets in the broadcast business, again keeping the US
as the benchmark, broadcasting in India has a huge distance to
go. To accentuate the argument, we compare the rates of prime
properties in US vis-à-vis India.
Here are certain statistics computed for a 30 second
spot in Super bowl on Fox in 2002 that rattle the mind. This is
diagrammatically represented in exhibit 6
As per exhibit 5, a spot of 30 seconds in Super Bowl
amounts to an investment of US$ 1.9 Million or when converted
into Indian Rupees @ Rs.46.5 per dollar this figure shoots to
Rs. 88 million for a single 30 second commercial! In terms of
value, the spot had a viewership base as huge as 86 million viewers.
If one was to take an average investment of Rs. 250,000 for a
prime time high rated programme in India, it translates to as
high as 353 spots.
To conclude, this note emphasizes some interesting insights into a mature media and marketing
market…a road that India is destined to tread in the near future!
A TAM S-Group Analysis
