After
the huge excitement that surrounded the opening up of the Insurance
sector in 2001, the entire composition of the Financial Services
sector changed! Insurance within 6 months had shot up from 9%
of the Financial Services monies spent on mass media shot up to
almost a quarter of the overall spends as shown…
The
TAM ADEX team decided to revisit the issue again to find out if
Insurance is still just as hot as a category as it used to be.
We also wanted to evaluate if Life and Non-Life had both shown
growths in terms of ad expenditure increase.
The overall ad spends in 2002 in the Insurance category are estimated
to be just under Rs 2 billion. Of this close to Rs 1.45 billion
have been on TV+Press.
Now
within the Insurance sector, the Non-Life versus Life analysis
yields very different results. One clear insight is that the distance
between Life & Non-Life is growing as shown in chart below.
The 38% spends contribution for Non-Life Insurance has got
reduced to a meager 12%! That's primarily because Life Insurance
has been growing much faster than No-Life Insurance as shown below.
The other interesting
observation is the fact that both Life & Non-Life insurance have
the same TV to Press skews. While around 53% monies go to TV, the
other 47% goes onto Print.
While
the top brand for the Life segment is Life Insurance Corporation
of India, Non-Life Insurance is topped by IFFCO Tokio. Overall Insurance
as a category is also topped by LIC.
The analysis throws up lots of questions. Will these growth levels
will be sustained by the Insurance sector? Will Non-Life insurance
bounce back? Will money be spent on mass media or on below the line?
The fact that most private insurance companies have been holding
back mega bucks due to lack of ground support in terms of distribution
networks is a fact well known. The ADEX team will be watching this
sector and some other critical sectors and bringing you newer insights
in the future.
Atul Phadnis, director, S-Group, TAM Media Research
Source : TAM ADEX (TV, Newspapers and Magazines)
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