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Show
me the money. That was what ad sales execs in television
networks managed quite well, thank you in 2004. It was a
year that witnessed solid growth across genres, sports and
Hindi cinema being the exceptions. The big story of 2004
was of course news, as well as regional and music channels
to a lesser degree.
A
tale that was in sharp contrast to the "confusion on
the ground" as regards distribution revenues. Cable
penetration may have increased to approximately 50 million
households in the country and the sector may have got a
regulator, but the chaos in the broadcast and cable segment
continued unabated in 2004. However, this is not to say
that pay channels failed to collect as regards distribution
revenues. It was just that it generally remained more flat
than up. But more on that in another report that comes out
next week on the distribution scenario in India. Wait for
it.
Coming
back to the ad sales scene. This has been a rare year where
Print has managed to notch a slightly higher growth than
TV. At a broad level, the categories that are responsible
for Print pipping TV in growth rates were - Properties/real
Estate; Education (Coaching Centres, Computer Education,
Competitive Exams); Travel & Tourism; Retailers; and
of course election related spends.
Advertising
Revenues across all media
| |
Year
2002 |
Year
2003 |
%
Change |
Year
2004* |
%
Change |
| TV |
39090 |
42999 |
10
|
48600 |
13
|
| Press |
44000 |
47520 |
8
|
54500 |
15
|
| Radio |
1500 |
1800 |
20
|
2200 |
22
|
| Cinema |
3300 |
3550 |
8
|
3750 |
6
|
| OOH |
6900 |
7900 |
14
|
8500 |
8
|
| Internet |
300 |
400 |
33
|
600 |
50
|
| |
| Ad
Industry Size |
95090 |
104169 |
10
|
118150 |
13
|
| (All
figures in Rs. Million) |
| |
| Source:
Industry Estimates compiled by AdEx India |
| * Estimates
on the basis of the first 3 quarters of 2004 |
Estimates
by AdEx India indicate that print will rake in about 54,500
million, well ahead of television which saw ad revenues
of Rs 48,600 million. That still gives television a 13 per
cent growth (print grew at 15 per cent) above last year's
43,000 million, as per AdEx estimates.
A
point of note is that in the media mix, it was Internet
advertising that showed the highest growth rates, up 50
per cent from Rs 4,000 million in 2003 to Rs 6,000 million
in 2004.
As
regards television it was the news genre that made the headlines.
Revenues this fiscal are expected to cross Rs 5,000 million
(Rs 5,006 million to be precise), up a whopping 70 per cent
from last year's Rs 4,300 million. Whether the news genre
can keep up this scorching pace going forward into 2005
remains the big question though. The general elections in
May and the state elections in October, as too the historic
India-Pakistan cricket series which came on the back of
a thawing of relations between the two neighbours had a
lot to do with the growth that news channels witnessed.
Whether
the growth can be sustained remains a moot point. But what
there is little doubt about is that fragmentation in the
news segment will increase in 2005. Channels from the Dainik
Jagran stable, Times group, NDTV, CNBC and Zee group are
all hoping to make an impact in the course of the year.
Another
big growth area both on revenue and viewership terms is
expected to be the regional space. Especially with the big
players like the Star Group, Zee Telefilms and Viacom's
MTV planning to spread south. Southern titan Sun Group on
the other hand is readying its first serious foray beyond
its bastions in the southern states of Tamil Nadu, Andhra
Pradesh, Karnataka and Kerala. And it is the Bengali language
space that Sun has chosen as its breachhead into the north.
The
biggest downturn was of course in the sports arena. However,
before anyone presses the panic buttons, this could well
be one indicator of the huge impact the cricket World Cup
has on ad revenues for broadcasters.
Break
Up of Television Ad Revenue according to genre
| |
Year
2003** |
Viewership
share 2003 |
Revenue
share 2003*** |
Year
2004 |
Viewership
share 2004 |
Revenue
share 2004*** |
Revenue
share change |
| Mass
Ent.* |
20210 |
36% |
47% |
25029 |
40% |
52% |
13% |
| Regional* |
7740 |
40% |
18% |
9914 |
38%
|
20% |
32% |
| Hindi
Films |
2150 |
4% |
5% |
1798 |
8% |
4% |
-10% |
| News |
4300 |
3% |
10% |
5006 |
5% |
10% |
70% |
| Sports* |
5590 |
10% |
13% |
2916 |
4% |
6% |
-125% |
Infotainment
+ Kids |
860 |
3% |
2% |
1069 |
3% |
2% |
13% |
| English
Ent. |
1720 |
2% |
4% |
2138 |
2% |
4% |
13% |
| Music |
430 |
2% |
1% |
729 |
1% |
2% |
125.58%
|
| |
| (All
figures in Rs. Million) |
| |
| Source:
Industry Estimates compiled by AdEx India |
| * Estimates
on the basis of the first 3 quarters of 2004 |
| **
2003 - Cricket World Cup year. World Cup and other Cricket
on non-Sports channels has been clubbed with Sports |
| *** Revenues
have been recomputed on Industry Estimates with relevant
discounts |
AdEx
estimates that regional in 2004 will reach Rs 9,914 million,
up 32 per cent from last year's Rs 7,740 million.
All this hectic activity going on around it has not affected
the Hindi entertainment space too badly however, which continues
its onward march. Hindi mass increased its overall viewership
share from 36 to 38 per cent. The revenue share of Hindi
mass is expected to grow to 51.5 per cent this fiscal at
Rs 25,029 million, up 13 per cent from last year's Rs 20,210
million.
Next
year the choice for both advertiser and viewer is only going
to get wider. Whether it be kids (that Disney has landed
says it all), spiritual channels and a whole host of niche
channels, expect a whole load of action.
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