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Category: Research

  • India’s active DTH subscriber base to reach 75 million by 2023: MPA

    India’s active DTH subscriber base to reach 75 million by 2023: MPA

    MUMBAI: Even as India continues to remain the most important market for DTH pay-TV in Asia Pacific, active direct to home (DTH) subscribers in the country are projected to touch 75 million by 2023 from 41 million in 2014.

     

    The increase in contribution from high-ARPU (average revenue per user) HD subscribers, upselling of SD subscribers to high-value packs, and a higher uptake of VAS, will bolster industry economics in India, as per a report by Media Partners Asia (MPA).

     

    Additionally, total Asia Pacific DTH pay-TV subscribers grew nine per cent in 2014 to more than 61 million in 2014 while industry revenue grew five per cent to top $9 billion, according to the MPA research.

     

    While India, Malaysia and the Philippines continue to remain strong DTH markets, Indonesia, Korea and Japan are coming under increased pressure.

     

    MPA projections indicate that total Asia Pacific DTH industry pay-TV revenue will grow at seven per cent CAGR to $12.5 billion by 2019 and thereafter grow to reach $15 billion by 2023, with significant upside coming from HD and VoD-driven value added services (VAS).

     

    DTH’s share of total pay-TV subscribers in Asia Pacific will grow from 12 per cent to 22 per cent over the next 10 years. In recent years, DTH has experienced a significant phase of growth in Asia, driven by the expansion of DTH pay-TV in India, Southeast Asia and Korea. However, the growth of broadband, IPTV and OTT is placing a natural limit on future growth while macro concerns and aggressive competition are also challenging.

     

    The Philippines has also emerged as a strong market for DTH growth in recent years, driven by Cignal and Gsat. Total DTH pay-TV subs reached 1.06 million in 2014 and will rise 3x over the next decade with future upside coming from significant HD growth and package upselling, which will help boost ARPUs.

     

    DTH will also play an important role in the growth of pay-TV in Myanmar, Sri Lanka and Vietnam but its growth remains capped in markets such as Indonesia and Thailand. However, in Indonesia there could be significantly more upside if leading operators convert the existing free satellite market to pay-TV (starting with a low cost offer) and programme more premium local pay channels.

     

    In Malaysia, DTH will retain a dominant chunk of the pay-TV market, driven by Astro through HD and DVR services as well as VoD and the emergence of premium vernacular and Asian content, exclusive to the Astro DTH platform.

  • Television dominates consumption even as other mediums emerge

    Television dominates consumption even as other mediums emerge

    MUMBAI: Despite the growth explosion in the digital and mobile universe, the age-old medium of television continues to lead the popularity chart when it comes to consumption, according to ZenithOptimedia’s Media Consumption Forecasts report.

     

    Attracting 183.9 minutes of consumption a day in 2014, television, despite its recent relatively minor decline, by far remains the most popular of all media globally.

     

    On the other hand, Internet consumption came a distant second at 109.5 minutes a day. Television accounted for 42.4 per cent of global media consumption in 2010, and 37.9 per cent in 2014 as per the report, generated after surveying the changing patterns of media consumption in 65 countries across the world. The report also predicts that television will still account for more than a third (34.7 per cent) by 2017.

     

    Internet disrupting traditional media with its robust growth

    While the internet has propelled growth in overall media consumption, it has also eroded the consumption of traditional media. The consumption of every traditional medium except outdoor (i.e. newspapers, magazines, television, radio and cinema) fell between 2010 and 2014, directly because of competition from the internet, the report predicts their decline to continue to 2017.

     

    Newspapers have suffered the most from competition from the internet, followed by magazines. Between 2010 and 2014, the average time spent reading newspapers fell by 25.6 per cent, while time spent reading magazines fell 19 per cent. Television consumption fell by just six per cent. Between 2014 and 2017, newspaper consumption is expected to shrink by an average of 4.7 per cent a year, while magazines and TV will shrink at average rates of 4.4 per cent and 1.6 per cent respectively.

     

    Internet consumption to grow at 10 % p.a, expanding overall consumption

    Global media consumption increased from an average of 461.8 minutes a day in 2010 to 485.3 minutes a day in 2014, an increase of 5.1 per cent, or an average of 1.2 per cent a year. Over these years, the amount of time people spent using the internet nearly doubled from an average of 59.6 to 109.5 minutes a day, while time allocated to more traditional media shrank from 402.2 to 375.8 minutes. Mobile technology in particular has created new opportunities to consume media, by allowing people to access the internet while out and about – shopping, commuting to work, waiting to meet friends, and so on.

     

    The report forecasts that, between 2014 and 2017, the amount of time spent consuming media around the world will increase by an average 1.4 per cent a year, reaching 506.0 minutes in 2017. Meanwhile, internet consumption will grow by 9.8 per cent a year to reach 144.8 minutes a day. The internet’s share of overall media consumption will rise from 12.9 per cent in 2010 and 22.6 per cent in 2014 to 28.6 per cent in 2017.

     

    Exposure to outdoor advertising is rising

    The amount of time people are exposed to outdoor advertising increased by 1.2 per cent between 2010 and 2014, from 106.0 to 107.2 minutes a day. This is the result of several factors more displays being built in public spaces, migration to cities in emerging markets, and consumers’ greater willingness to spend their leisure time out of the home as their disposable income recovered after the financial crisis. Between 2014 and 2017, exposure to outdoor advertising is expected to increase by 0.2 per cent a year.

     

    Latin Americans spend the most time with media; Asia Pacific the least

    Media consumption is highest in Latin America, where people spent an average of 744 minutes consuming media in 2014, and lowest in Asia Pacific, where consumption averaged just 301 minutes that year. Time spent consuming media in Asia Pacific is growing well ahead of the global average, however, as economic development gives people access to more media, and more leisure time in which to consume them: media consumption expanded by 6.7 per cent in 2014. The report forecasts average annual growth of 2.9 per cent to 2017.

     

    “The average person already spends half their waking life consuming media. But people around the world are clearly hungry for even more opportunities to discover information, enjoy entertainment and communicate with each other, and new technology is supplying these opportunities. Technology also enables brands to communicate with and learn from consumers in new ways. We expect media consumption to continue to grow for the foreseeable future, multiplying the opportunities for brands to develop relationships with consumers,” said ZenithOptimedia head of forecasting Jonathan Barnard.

  • India’s pay-TV revenue to grow at 12% CAGR over five years: MPA

    India’s pay-TV revenue to grow at 12% CAGR over five years: MPA

    MUMBAI: India’s pay-TV market remains growth oriented. A new report released by Media Partners Asia (MPA) projects a compound annual growth rate (CAGR) of 12 per cent in total pay-TV channel revenue between 2014 and 2019 and a nine per cent CAGR between 2014-23.

     

    The report further says that the total channel revenue will reach $8 billion by 2023 with 67 per cent derived from advertising and 23 per cent from subscription.

     

    Moreover, during 2014 the pay-TV channels sector generated $3.5 billion in aggregate revenue, a growth of nine per cent year-on-year. The revenue mix stood at 68:32, skewed in favour of advertising sales. Affiliate fees for pay-TV broadcasters reached $1.1 billion in 2014, with $525 million from cable and $592 million from DTH.

     

    For the first time, revenue from digital cable outgrew analog cable revenues. International revenues for pay-TV channels, which MPA does include in its analysis, totaled $280 million in 2014.

     

    Additionally, India’s pay-TV industry will grow sales at a 9.8 per cent CAGR between 2014 and 2019 to reach $12.4 billion in revenue by 2019, according to the report.

     

    The report further projects the sales to reach close to $16 billion by 2023. The pay-TV industry, as per MPA report, generated $7.7 billion in sales in 2014.

     

    The report further highlights that the total pay-TV subscribers are expected to grow from 140 million in 2014 to 184 million by 2023. Pay-TV penetration, including multiple subs in a home, will climb incrementally from 80 per cent to 83 per cent over the 2014-23 period.

     

    That apart, total digital pay-TV subscribers will grow from 68 million to 126 million over the 2014-23 period. Adjusted for multiple subscriptions, digital penetration of total pay-TV subscribers will be trending towards 67 per cent by 2023 versus 46 per cent in 2014.

     

    According to MPA, analog to digital conversion will facilitate a gradual increase in pay-TV monthly ARPUs from $3.2 in 2014 to $4.7 in 2023, offset by a 30 per cent-plus share of pay-TV subscribers still accruing to analog, by 2023. Cable will remain the dominant platform; however, its share of pay-TV subscribers is expected to decline from 71 per cent in 2014 to 60 per cent in 2023, as DTH will command a majority share of net-new additions in the industry.

     

    MPA vice president Mihir Shah said, “The pace of digitalization has slowed to a crawl as the cable industry pauses to address issues in order to improve monetization. This will help the industry deliver more ROI on already digitalized markets before addressing the remainder 70 million plus analog cable homes that require conversion. This is a big opportunity for cable, DTH and other emerging alternative pay-TV platforms.”

  • Senior citizens not reaping benefits of mobile revolution: Telenor

    Senior citizens not reaping benefits of mobile revolution: Telenor

    NEW DELHI: While mobile Internet continues to explode across Asia, a recent research by the Telenor Group in four of its regional markets suggests that not all citizens in these societies are receiving access to the benefits of connectivity.

     

    The Telenor Group released data from four Asian markets indicating that senior citizens are not fully receiving the benefits of the mobile Internet.

     

    Titled “The unconnected senior citizens of Asia,” the research draws upon customer data from four Telenor markets: India, Thailand, Bangladesh and Malaysia. The findings suggest that the senior segment in some of these markets represent as little as two per cent of active mobile users, with still fewer using smartphones.”

     

    A demographic breakdown shows that only 10 per cent of Uninor’s subscribers in India are over 45 years of age. Meanwhile, of the total mobile phone users in India, only six per cent are over 50 years of age.

     

    This difference is exacerbated for mobile data users, with only one per cent being 50 years or older. Generally, non-data users have a lower income profile and higher age than the average mobile user.

     

    The study also showed that basic and feature phones are prevalent among the elderly. GDP has a strong correlation with the prevalence of mobile Internet usage.

     

    Telenor Group executive vice president and head of Asia operations Sigve Brekke said, “Given our vision of Internet for All, it is a source of concern for Telenor that senior citizens in our Asian markets are not fully receiving the benefits of the mobile internet. The Internet can be a vital way of maintaining civic participation and even receiving basic citizen services in the near future, and thus the findings should be of interest to multiple stakeholders, from policy makers to corporations, families, and individuals. This is particularly true as several Asian societies anticipate increasingly aging populations: we must work to achieve connectivity for all, not just the young.”

  • 44% adults used Internet TV via STBS in the last 12 months: Ofcom

    44% adults used Internet TV via STBS in the last 12 months: Ofcom

    MUMBAI: Close to 44 per cent (over four in ten) adults in the UK had used an internet connected TV – most via set-top boxes such as TiVo or Sky – in the last 12 months. Some 34 per cent had watched catch-up TV services via connected TVs or set-top boxes.

     

    Moreover, Ofcom’s research into UK audience attitudes to content on TV and radio showed that households surveyed owned two TV sets on average.

     

    This research covered what people find offensive on TV and radio, their awareness of and attitudes towards regulation and their understanding of advertising and product placement.

     

    The report also includes research on consumers’ access to and views on internet ‘connected devices’, which are used to watch services like the BBC iPlayer, 4oD, ITV Player, YouTube and Netflix.

     

    The research further found that nearly half (49 per cent) of adult TV viewers felt the quality of TV programmes had stayed the same in the past year, three in ten (30 per cent) felt they had got worse, and around 16 per cent said TV had improved.

     

    Among those who thought programmes had got worse, the top reasons were repeats (57 per cent), a lack of variety (43 per cent), a general lack of quality (32 per cent) and too many reality shows (30 per cent). Among those who said programmes had improved, the top reasons were a wider range of shows (50 per cent), improved quality (48 per cent), more entertaining shows (37 per cent) and better dramas (33 per cent).

     

    Offensive material on TV

     

    Close to 79 per cent people had not been offended by anything on TV in the past year. However, one in five had found something offensive, rising to a third (33 per cent) for people aged 65 and over. Those aged between 16 and 24 were least likely to be offended (nine per cent compared with 33 per cent of over 65s).

     

    Of those who had been offended, bad language (44 per cent), violence (41 per cent) and sexual content (41 per cent) were the top concerns. Adults below 45 years old were more likely to say they had been offended by some type of discrimination (29 per cent compared with 19 per cent of over-45s).

     

    On average, about half of all people thought current levels of sex (57 per cent), violence (47 per cent) and swearing (52 per cent) on TV were acceptable. Four in ten felt there was too much violence (43 per cent) and swearing (40 per cent), while nearly three in ten (28 per cent) said there was too much sex.

     

    Attitudes differed by age: younger adults were more likely to feel there is an acceptable amount of violence, swearing and sex, while older adults tended to feel there is too much.

     

    High awareness of regulation

     

    The vast majority of adult TV viewers (90 per cent) knew about the 9 pm watershed, with over half (57 per cent) saying about 9 pm was the right time while around a quarter (27 per cent) said the watershed should be later.

     

    The report found a clear understanding about what broadcast content is regulated, with over eight in ten (82 per cent) adults aware that TV is regulated. Most adults felt the current levels of TV and radio regulation were about right (61 per cent), or did not have an opinion (18 per cent for TV and 33 per cent for radio).

     

    The research showed that 14 per cent of adult TV viewers could identify the ‘P’ symbol, which is designed to let viewers know the channel, or the programme-maker, has been paid to include products in that programme.

     

    Protecting viewers

     

    Ofcom has a duty to protect viewers from harmful and offensive material on TV and radio, as well as ‘TV like’ content on internet connected devices. When broadcasters break the rules, Ofcom takes robust enforcement action and has issued guidance to broadcasters on how they should enforce the watershed.

     

    The majority of viewing today is live on the TV and many of the programmes delivered over the internet to connected devices in the UK were first aired on TV; because of this, they are subject to Ofcom’s rules.

     

    However, people now watch programmes in a variety of ways, and on different devices, which poses challenges for parents and regulators. Hence, Ofcom is working with government, other regulators and industry to bring about a common framework for media standards.

  • America’s Gen Z represents $44+ bn in annual purchasing power: JWT

    America’s Gen Z represents $44+ bn in annual purchasing power: JWT

    MUMBAI: J. Walter Thompson Intelligence’s newly launched innovation and futurism unit The Innovation Group has unveiled a new report on Generation Z (those born in the mid-1990s and early 2000s). The report, which features original quantitative studies and consumer data, examines this emerging generation’s key behaviors and attitudes, as well as the brands and influencers engaging them.

     

    Eclipsing the Millennials, who have dominated the news and pop culture agenda in recent years, this new, younger generation identifies as a distinctly different group in both behavior and mindset. In the UK and US, Gen Z comprises a quarter of the population, and in the US alone the group represents over $44 billion in annual purchasing power.

     

    More inspired by Malala than Beyoncé, Gen Zers are characterized by ethical consumption habits, native digital technology use, entrepreneurial ambition and progressive views on topics ranging from education to gender, according to the report.

     

    “We’re excited to showcase this rich study of a dynamic new generation. Generation Zers are a complex mixture of sophistication and wide-eyed optimism. They are intelligent, confident and — importantly for brands — they question the prescribed norms of everything from formal education to gender politics. For brands to reach this group, they will need to understand what makes them tick and come to grips with these nuances,” said Innovation Group worldwide director Lucie Greene.

     

    The report features analysis and brand examples across sectors including beauty, retail, media, technology, education and more.

     

    Generation Z by the numbers:

    • 82 per cent of Gen Zers say they don’t care about sexual orientation

    • 86 per cent use the their smartphones multiple times a day

    • 70 per cent watch more than two hours of YouTube content each day

    • 88 per cent say people are exploring their sexuality more than in the past

    • 67 per cent would rather shop in stores than online

    • 83 per cent say saving for the future is important

     

    For this report, the Innovation Group conducted quantitative studies using SONAR, J. Walter Thompson’s proprietary research unit that develops and exploits new research techniques to understand cultures, brands and consumer motivation.

     

    A total of 1,000 individuals aged 12-19 were surveyed in the US and the UK in February 2015. Insights are also underpinned by original interviews and photography documenting the lives and preferences of Gen Z case studies in London, Los Angeles, San Francisco and New York. 

  • Time spent online doubles in a decade fuelled by smartphones, tablets: Ofcom

    Time spent online doubles in a decade fuelled by smartphones, tablets: Ofcom

    MUMBAI: Ofcom’s Media Use and Attitudes 2015 report, now in its tenth year, shows that Internet users aged 16 and above claimed to spend nearly 10 hours (9 hours and 54 minutes) online each week in 2005. By 2014 it had climbed to over 20 hours and 30 minutes.

     

    The biggest increase in Internet use is cited among 16-24 year olds, almost tripling from 10 hours and 24 minutes each week in 2005 to 27 hours and 36 minutes by the end of 2014.

     

    2014 saw the biggest increase in time spent online in a decade, with Internet users spending over three and a half hours longer online each week than they did in 2013 (20 hours and 30 minutes in 2014, compared to 16 hours and 54 minutes in 2013).

     

    Five years of tablet computing

     

    Increasing take-up of tablets and smartphones is boosting time spent online. Apple’s iPad launched in the UK five years ago this month, alongside Android and other devices, helped to take tablets into the mainstream.

     

    While just five per cent of adults reported using a tablet to go online in 2010, this increased to 39 per cent in 2014. Using a smartphone has more than doubled in five years, from 30 per cent of adults in 2010 to 66 per cent in 2014.

     

    As a result, the amount of time people are online while ‘out and about’ – away from home, work or their place of study – has increased five-fold over the past ten years, from 30 minutes in 2005 to nearly two and a half hours (2 hours and 18 minutes) in 2014.

     

    Overall, the proportion of adults using the Internet has risen by half – from six in ten in 2005 to almost nine in ten today.

     

    Increased mobile and online entertainment

     

    More people are watching TV and video on the Internet. Over a quarter (27 per cent) of Internet users regularly watch TV or films online, compared to one in ten in 2007. This rises to 39 per cent of 16-24 year olds, up from 21 per cent in 2007.

     

    Watching video clips online has almost doubled over the past eight years, from 21 per cent to 39 per cent of Internet users.

     

    The mobile phone is now the primary device used for gaming with over a quarter (26 per cent) of mobile users playing games at least once a week, compared to 17 per cent playing on games consoles. Fifteen per cent of adults now use a tablet for gaming.

     

    The proportion of Internet users saying they regularly play games online has doubled from 10 per cent in 2005 to 22 per cent in 2014.

     

    Surge in instant messaging on mobiles

     

    Instant messaging has become a popular way of keeping in touch, driven by services including WhatsApp, Facebook Messenger and BBM.

     

    Regular instant messaging on a mobile phone has leapt from 29 per cent of mobile phone users in 2013 to 42 per cent in 2014. Instant messaging across all devices has seen the biggest growth among 25-34 year olds, 80 per cent of Internet users in this age group are instant messaging at least once a week, up from 38 per cent in 2005.

     

    Nearly all mobile phone users are sending text messages (90 per cent in 2014, compared to 70 per cent in 2005). People are also increasingly using their mobile phone to email (52 per cent regularly using their phone to email, compared to five per cent in 2005) or make a phone call over the Internet (VoIP) – 43 per cent in 2014, compared to 27 per cent in 2013.

     

    Social media fans

     

    The use of social media has tripled since 2007, when Ofcom first asked people about their social media habits. Nearly three quarters (72 per cent) of Internet users aged 16 and above say they have a social media profile, compared to 22 per cent in 2007.

     

    Some 81 per cent of social media users log into these websites or apps – including Facebook, Twitter, LinkedIn, Instagram or Tumblr – at least once a day, up from 30 per cent in 2007.

     

    Social media has seen the biggest growth among 35-44 year olds, with 80 per cent of Internet users in this age group now on social media, up from just 12 per cent in 2007.

     

    2014 saw a dramatic surge in older people using social media, with nearly half (49 per cent) of 55-64 year olds who go online having a social media profile, up from one third (33 per cent) in 2013.

     

    People still love their TV but mobiles are a must for young people

     

    People are spending more time online but, when asked which device they would miss the most, 37 per cent of adults said they would miss their TV more than any other device.

     

    The mobile phone came a close second with nearly one in three adults (32 per cent) saying it would be the device they would miss the most.

     

    But for 16-24 year olds, the TV came a distant second to their mobile phone. Some 59 per cent of this age group said they would miss their mobile the most, compared to 17 per cent saying TV.

     

    Less concern about being online

     

    The proportion of Internet users aged 16 and above saying they are concerned about the Internet has fallen over the past 10 years, from around 70 per cent in 2005 to 51 per cent in 2014 – stable on 2013.

     

    But Internet users are increasingly likely to agree they should be protected from inappropriate or offensive online content (60 per cent strongly agreed in 2014, compared to 51 per cent in 2013).

     

    There was an increase in concerns about mobile ‘apps’ in 2014, with 28 per cent of app users reporting concerns compared with 20 per cent in 2013. This has been largely driven by issues around security, fraud or privacy, with 20 per cent of users saying they were concerned about these areas, up from 14 per cent in 2013.

     

    The majority of Internet users (68 per cent) are happy to provide personal information online in the belief they will benefit in some way. But more people say they would never provide their credit or debit card details (21 per cent in 2014, compared to 13 per cent in 2013) or their mobile number (26 per cent in 2014, 17 per cent in 2013).

     

    Public and civic activities

     

    People are much more likely to go online for public or civic activities now than they were in 2005.

     

    For example, in 2014 nearly eight in 10 Internet users (78 per cent) said they had gone online to find out about a public service, up from half (49 per cent) in 2005.

     

    More Internet users say they have visited political or campaigning websites, up from 19 per cent in 2005 to 44 per cent in 2014.

     

    Ofcom’s Adults Media Use and Attitudes Report 2015 covers the use and attitudes of UK adults (aged 16 and above) across the Internet, TV, radio, games and mobile phones.

  • 43% data service users unhappy with telecom operators: survey

    43% data service users unhappy with telecom operators: survey

    KOLKATA: The recently concluded spectrum auction for the telecom industry saw 19 days of fierce bidding and telecom companies competing for spectrum to strengthen mobile data services. However a community poll conducted by a social networking platform LocalCircles, revealed that around 43 per cent of phone users in India are dissatisfied with the quality of data services while another 43 per cent have rated it as average.

     

    According to the study, around 53 per cent of the surveyed people said the quality of network coverage was average, while 27 per cent expressed discontent with the coverage.

     

    Another 53 per cent felt that the tariffs charged by the operators were expensive, while 38 per cent voted it as a “value for money” proposition.

     

    Of the people surveyed, 53 per cent put faith on the accuracy of data billing and other services charged by the operators, while 32 per cent did not vote in its favour.

     

    “Immediate efforts are needed by the telecom regulators and the operators to improve the voice and data service quality by reducing call drops, improving coverage and quality,” LocalCircles said.

     

    As per the study, a whopping 77 per cent of respondents said the central government and telecom regulatory authorities have “not done enough” to address issues faced by consumers and another 77 per cent said they want operators to bill them based on usage and the services opted for instead of generalised packages.

     

    “Net neutrality is something that a majority of citizens support and want the telecom regulator to ensure consumer interest is protected at all costs,” it added.

     

    The company also said that the telecom regulatory body’s regulations are “loose” and the Department of Telecom’s monitoring of compliance on licensing requirements are falling short of expectations.

     

    The survey was conducted across India with 20,000 citizens responding to six poll questions followed by a “detailed structured discussion.”

  • Leagues propel Indian sports industry to Rs 48,069 million in 2015: GroupM

    Leagues propel Indian sports industry to Rs 48,069 million in 2015: GroupM

    MUMBAI: From being a country that thrived on a single sport namely cricket, India has come a long way in the last couple of years. The country witnessed a sports boom of sorts with the mushrooming of various sports leagues. And with that came in the moolah in terms of sponsorships and advertisements.

     

    According to a report by GroupM ESP and SportzPower, the overall sports industry in India has grown by 10 per cent – up from Rs 43,725 million in 2013 to Rs 48,069 million in 2015. However, cricket saw a dip in on-ground and cricket team sponsorship. While on-ground sponsorship fell from Rs 5083 million to Rs 4647 million, team sponsorship was down to Rs 3478 million from Rs 3892 million.

     

    The growth in the industry has come mainly on the back of the emergence of new sports leagues – Indian Super League, Pro Kabaddi League, World Kabaddi League, Champions Tennis League and Indian Premiere Tennis League. FIFA was the big factor for the increase in TV spends.

     

    The second edition of GroupM ESP and SportzPower’s report on sports sponsorship captures the emergence of new leagues in India along with other key highlights. The report captures the trends and developments in advertising and sponsorship in the Indian sports industry in 2014.

     

    Speaking on the future of sports marketing in India, GroupM South Asia CEO CVL Srinivas says, “Sports marketing is finally coming of age in India. Even though cricket has shown the way and continues to be the dominant sport, newer leagues are helping broad base sports and make it a great platform for brands. Digital, especially social media, is helping build a fan following much faster. At GroupM, we made inroads into sports marketing some years ago and are now scaling up our practice.”

     

    The second edition of report examines:

    • Emergence of five new leagues in India.
    • Advertising investments and sponsorship in Indian sport from four angles: On-Ground, Team Sponsorship (subset franchise fees), Athlete Endorsement, and On-Air spends
    • Investments in sports besides cricket
    • 10 trends in the sports broadcast industry

     

    Focusing on the key developments that are expected in 2015, GroupM ESP national director, sports & live events Vinit Karnik says, “The key highlights of this report are on-ground sponsorships, team sponsorships and franchise fees, social conversations and endorsements. The sports industry has grown by 10 per cent in 2014 and seen the formation of newer leagues and successful franchises. From a single sports country to a multi-sport country, India is witnessing a boom, which will benefit the sports business ecosystem. In 2015, we predict to see a change in the way consumers interact in the realm of sports and entertainment.”

     

    SportzPower co-founder Thomas Abraham further discusses the future of sports broadcasting in India. “Other sports are emerging gradually with the onset of many new league styled sport events. Even though FIFA was a big factor in the increase in TV spends in 2014, cricket yet dominated Indian sports TV broadcasting with back to back cricketing sports tournaments like the World Cup and IPL, although there was a rise in viewership of other sports too,” he says.

     

    Key Observations:

     

    · From a single sports country to a multi-sport country; India is witnessing a sports boom.

     

    · The entertainment value adds the necessary pull for the new leagues, as audiences are being offered a wide platter of sportainment that is being relished by one and all.

     

    · Split beam: India being a diverse regional market with large linguistic preference, networks have begun to offer feeds in regional languages too. This will grow further with split beams leading to ad-versioning with even regional advertisers getting a slice of the pie.

     

    · TV & Digital: The lines are now blurring. The ICC Cricket World Cup had more than 25 million views on digital. IPL is slated to surpass that in the current 2015 season.

     

    On Ground

     

    · Dip in cricket on-ground numbers are mainly due to lesser matches being held in India in 2014 – only eight cricket matches were played in India in 2014 vis-?-vis 21 matches in 2013. IPL also had no new central sponsor, resulting in a flat year for IPL ground sponsorship.

     

    · New leagues contributed in driving the growth for on-ground sponsorship. While ISL had 10 sponsors at the central level with almost Rs 500 million sponsorship amount; Coca Cola – IPTL was the landmark deal.

     

    Social Conversation

     

    · IPL had over 550,000 social conversations. In spite of the first season, ISL had around 200,000 conversations. 

     

    · PKL (70,000) has more conversation than IPTL (32,000) & HIL (11,000) put together, even though Kabaddi is the least talked about sports in India.

     

    · Pepsi received 41 per cent visible mentions with IPL, whereas 29 per cent associated with Hero Moto Corp with ISL.

     

    Team Sponsorship & Franchise Fee

     

    · Indian cricket team sponsorship price was reduced to Rs 20 million/match from Rs 33.3 million/match with the new sponsorship of Star India. Also IPL 2014 team sponsorship money saw a dip in 2014 from Rs 2750 million to Rs 2537 million, because of the tournament partly shifting to UAE.

     

    · Other sports have also contributed in growth of team sponsorship & franchise fee due to the new sports league. While Football registered a 227 per cent increase from Rs 265 million to Rs 603 million powered principally by the ISL, it was the emergence of other leagues – notably IPTL, CTL, PKL, and WKL that saw a spectacular 1,064 per cent jump from Rs 70 million to Rs 745 million.

     

    · Social & search data depicts different trends for different leagues – while the popularity of IPL led the Search and Social data trends independent to each other; Social and Search data for the other leagues were almost parallel to each other.

     

    Endorsement

     

    · A 14 per cent dip was seen in overall sports celebrity endorsement from Rs 3822 million in 2013 to Rs 3278 million in 2014.

     

    · While the new kids like Virat Kohli’s endorsement fee and number of endorsement brands are going up steadily, for the old boys like Sachin Tendulkar, Mahendra Singh Dhoni, Yuvraj Singh and Virender Sehwag, the number of endorsements and fee per endorsement have gone considerably down.

     

    · Moving off cricket and the top earners are all women of substance. Boxer Mary Kom, tennis ace Sania Mirza and badminton queen Saina Nehwal (in that order) are the Big Three of Indian non-cricket sports brand endorsements.

     

    · Tiger Woods endorsing Hero Moto Corp is first-of-its-kind in non-cricketing sports industry– Rs 500 million per year.

     

    · Social & Search Data – While Virat Kohli, MS Dhoni and Sachin Tendulkar were the most talked about & searched on digital media athletes in 2014; Saina Nehwal, Mary Kom and Sania Mirza are keeping the flame alive for non-cricketing sports.

     

    Year 2015:

     

    · Non-cricket sports are likely to expand the sports business ecosystem.

     

    · Live match content is being repurposed in multiple ways to facilitate social consumption. This trend is slated to grow even bigger in 2015.

     

    · Sporting entities will evolve by building digital and social assets to drive their valuation.

     

    · Sports businesses are predicted to build strong grassroots engagement through experiential programs.

     

    · In stadium experience will be more social and thus, more enhanced. Given that 70 per cent of fans bring a mobile device to the stadium or arena, they are expected to use it during a game too.

     

    · Pro Kabaddi League is the one to watch out for!

     

    Conclusion:

     

    In 2015, non-cricket sports are likely to expand on the lines of various trends all around. Live match content will repurpose in multiple ways to facilitate social consumption. Sports businesses will build strong grassroots engagement through experiential programs. In stadium experience will be more social, more enhanced, as a large majority of fans bring a mobile device to the stadium or arena and will be expected to use it during the game.

     

  • Events & activation industry to touch Rs 5,779 crore by 2016-17

    Events & activation industry to touch Rs 5,779 crore by 2016-17

    MUMBAI: The events and activation industry is clearly on a roll in the country. According to the EY-EEMA (Event and Entertainment Management Association) report, the sector is expected to grow to Rs 5,779 crore by 2016-17.

     

    This growth will be on the back of marketers increasing their below the line (including digital) spends to 21 per cent of their total marketing spends. The growth will also be led by personal events, MICE (meetings, incentives, conferences and exhibitions), activations and sports.

     

    According to the report titled ‘Making experiences in India: The events and activations industry,’ the events and activations industry has seen a growth of 15 per cent annually from Rs 2,800 crore in 2011-12 to Rs 4,258 crore in 2014-15.

     

    The report states that while managed events remain the largest service offering, IP (Intellectual Property) and digital events are growing at a faster rate than managed events. The key strength of the industry remains its ability to get things done and the ideation and efficiency with which it operates. “That said there is a need for the industry to work on acquiring the right talent, managing costs, demonstrating ROI to marketers and increasing transparency in operations,” states the report.

     

    Non-metro markets are expected to increase in importance as marketers look to tier II and tier III cities for incremental growth, states the report. Digital events and activation is also expected to grow significantly on the back of smart phone penetration, internet availability and the cost efficiency of such campaigns for marketers.

     

    While the industry has reported very few M&A transactions over the last few years, there exists scope for consolidation. Valuations are driven by IPs owned, advertising agencies’ interest in activations, and digital events and sports leagues. On the taxation front, double taxation, taxation across multiple states, and varying and inconsistent application of different taxes are some of the challenges faced by the industry. Also, the introduction of Goods and Services tax (GST) could have a significant impact on the industry in terms of rates and implementation across multi-state activities.

     

    The report also states that the introduction of the new Companies Act, 2013, will result in some key changes in internal financial controls, compliance with more than 60 acts and regulations, and implementing a vigil mechanism to identify undesirable activities.

     

    EY also conducted a workshop with CEOs of the industry that resulted in Vision20:20 for the industry’s future success. It felt that the industry needs to work towards the following initiatives:

     

    Internal aspects: Improve the quality of talent through skill definition for various jobs, skill development, job security, compensation benchmarking and implementation of health and safety standards. The industry must build robust policies, processes and information systems to manage business efficiently and safely, and implement technology and automation.

     

    External aspects: The industry needs to work on its positioning to marketers, build an account focus and demonstrate returns more effectively. There is a need to improve the supply chain by developing quality vendors, implementing a system of vendor accreditation and improving overall risk management. The regulatory ecosystem needs to be made more conducive by simplifying taxation, permissions and copyright issues.

     

    Strategic aspects: The industry must build more IPs focused on defined communities of interest to marketers, and embrace the opportunity provided by marketers’ increasing spends on digital media.

     

    The report is based on the findings of a survey conducted via extensive discussion with over 60 respondents including the heads of events and activation companies across the country, along with inputs from advertisers and sponsors.

     

    EY India partner and media and entertainment advisory leader Ashish Pherwani said, “The events and activations industry holds great potential and this is evident from the considerable growth that the industry witnessed over the last few years.”

     

    Event and Entertainment Management Association president Sabbas Joseph added, “With a new government at the helm, there is a growing interest in the culture and people. The events and activations industry is best poised to capitalize on this opportunity and there is a crying need for a new world order – one in which event companies work along with government to create an events calendar that drives tourism and related industries.