ITV

Tag: Radio

  • Elimination of advertising on CBC/Radio-Canada services would be bad public policy: Nordicity

    Elimination of advertising on CBC/Radio-Canada services would be bad public policy: Nordicity

    MUMBAI: A new study by Nordicity Group reveals that advertising does not detract from Canada‘s public broadcaster‘s mandate and that there is no good public policy reason to eliminate advertising from its television services. In fact, most public broadcasters around the world carry advertising or are engaged in commercial activities.


    Removing ads from CBC/Radio-Canada‘s services would result in a significant reduction of Canadian content and have serious consequences for both the independent production sector and advertisers.


    The study was released by CBC/Radio-Canada in the context of the International Institute of Communication‘s pre-conference on public broadcasting, organised alongside the Corporation‘s 75th anniversary celebrations. 
     
    Commissioned as part of the Corporation‘s ongoing efforts to inform debate about the role and responsibility of the public broadcaster, the findings will inform decisions as the Corporation continues the implementation of its five-year strategy, 2015: Everyone, Every Way.


    CBC/Radio-Canada president, CEO Hubert T Lacroix said, “Private and public broadcasters compete on many levels in our mixed public-private system, but each has a contribution to make. The national public broadcaster has access to advertising revenues to help meet Broadcasting Act objectives, while private broadcasters have, most notably, access to public subsidies to help them meet Canadian content requirements.”


    “The elimination of advertising revenues would seriously compromise the Corporation‘s ability to fulfill its mandate and roll-out initiatives planned under 2015: Everyone, Every Way,” added Lacroix.
     
    Nordicity estimates that the elimination of advertising from CBC/Radio-Canada would result in a net financial impact of $533 million. That would translate into a $160 million reduction in Canadian programming expenditures. CBC/Radio-Canada, alone, invests as much in Canadian programming as all conventional private broadcasters combined ($696 million in broadcast year 2010).


    In addition, Canadian businesses that rely on the public broadcaster as an advertising vehicle, would suffer from the loss of CBC/Radio-Canada as an option. This would mean fewer – if any – alternatives in smaller markets. And because of reduced inventory, TV ad rates would invariably be pushed up.

  • CTM Group partners Mango Cabs for ad space

    CTM Group partners Mango Cabs for ad space

    MUMBAI: Creative Thinks Media (CTM) Group has entered into an agreement with Round-O-Clock Services for the managing the advertising space in the Mango Cabs.

    With the deal in place, CTM Group will be responsible to sell the advertising space inside and outside of the cabs.

    CTM Group MD Ritesh Malik said, “The objective is to create different media vehicles owned by CTM which would help in creating more revenue streams thereby working towards making ourselves a leading media house from an advertising agency that we are currently.”
     
    Mango Cabs business model runs on the lines of London Radio Taxi, under which driver own the cabs and are attached with company for business activities. At present, the fleet size is of 500+ cabs and the company is planning to double the number with in next six months. It is also planning to launch in Bangalore, Agra and Kanpur.

    CTM is also eyeing to go public and already is in talks with private equity firms to raise funds. “The vision is to work towards an IPO in the coming years and we are also talking with few venture capital firms and investment firms which would help us in our growth path by infusing the necessary funding requirements. We are a zero debt company with our own asset base which has made us worthy of the growth that we are looking for ourselves,” Malik added.

  • Hollywood happy of Canadian govt.’s move

    Hollywood happy of Canadian govt.’s move

    MUMBAI: The Canadian government‘s reintroduction of the copyright reform legislation to protect against digital piracy has been welcomed by major Hollywood studios.

    The new rules also proposes to bar anyone from making, importing or selling devices that can break digital locks.
    The proposed legislation also seeks to distinguish between personal and commercial use of recorded TV, radio and online content by Canadians.

    "We support the government‘s commitment to give copyright owners the tools they need to combat online content theft, and promote creativity, innovation and legitimate business models," Wendy Noss, executive director of the Motion Picture Association of Canada, Hollywood‘s point-person in Canada, has been quoted to have said.

    Also lining up to applaud the Canadian government‘s move were Canadian exhibitors, major US music labels and video game developers.

    At the same time, Canadian ISPs that fail to retain subscriber traffic records or to forward notices to suspected pirates will be liable for civil damages if Bill C-11 passes through Parliament into law.

    Ottawa‘s latest proposed copyright reform legislation very much falls in line with U.S.-style protections against piracy. Bill C-11, for example, proposes to bar Canadians from picking a digital lock on music, film or any entertainment product protected from duplication.

    This move is a departure from a Canadian legal tradition that stopped short of pursuing consumers that use circumvention devices to access or copy content as Ottawa looked to balance the interests of consumers and copyright holders.

     The Bill will now move through the committee stage of Parliament in Ottawa and undergo likely amendments, before a vote is taken on whether to pass the legislation into law, likely by the end of the year.

  • TV, radio to air spots against bidi smoking

    TV, radio to air spots against bidi smoking

    NEW DELHI: Two public service announcements (PSAs) are to be aired on all major radio and television channels under the National Tobacco Control Programme as part of its mass media campaign on bidi smoking and the association with cardio-vascular diseases.

    The campaigns by the Health and Family Welfare Ministry will be first government sponsored mass media campaign anywhere in the world that links bidi smoking to CVD.
     
    The campaign has been developed with technical support from the World Lung Foundation, and the spot has been field tested in different settings. The main message of the campaign is – ‘Quitting smoking is hard, but the consequence of not quitting is harder’.

    The campaign ad comprises two PSAs – ‘Heartbreak’ and ‘Surgeon’. While heart break has 15, 30 and 45 second versions, the surgeon PSA has only a 15 seconder. These PSAs will also be supported by radio. This nationwide campaign will be aired during August. It has been dubbed in 14 regional languages for pan India coverage.
     

  • ‘The challenge is to differentiate in a cluttered market’ : HDFC Life executive VP marketing and direct channels Sanjay Tripathy

    ‘The challenge is to differentiate in a cluttered market’ : HDFC Life executive VP marketing and direct channels Sanjay Tripathy

    HDFC Life‘s advertising spend will stay flat this year as it seeks to turn profitable for the first time.

     

    The insurance company, which ranks No. 4 among the top 10 advertisers in the category in terms of ad volumes, is looking to spend more judiciously and utilise a 360 degree approach to reallocate money across new mediums like digital and OOH.

     

    While 70 per cent of HDFC Life‘s marketing spend goes towards above the line, 50 per cent of this goes towards television. On television, HDFC uses news and sports for advertising as it fits into the 25-45 male target audience.

     

    Print, radio and OOH play a supportive role. HDFC Life has also started using social media to engage the youth.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, HDFC Life executive VP marketing and direct channels Sanjay Tripathy talks about how insurance companies need to differentiate in a cluttered market and build a brand equity that includes the youth.

     

    Excerpts:

    Why did HDFC Life go in for a brand makeover last year?
    We did a brand equity study as we wanted to see where our brand is and how it is faring versus competition. We had last done a similar study way back in 2005. We wanted to see the changes; we wanted to know how through our cmmunication and marketing activities the brand had progressed in people’s minds.

     

    Consumers found the brand ethical and the service value was strong. Then we asked about the areas where they felt the brand could be improved upon. They wanted it to look like belonging to the same HDFC family; they felt that the brand could look more modern and dynamic.

     

    Indian consumers are getting younger. People work in areas like BPO and they look at life insurance at an early age. A person buys their first insurance product between 23-28 years of age. As a brand, we wanted to attract the youth towards our products; we needed to be in the youth segment. We spoke to our board and got a favourable response.

     

    Also, the word standard only conveyed the basic level of facilities; it was not giving the message of Standard Life being an international brand. We wanted to be seen as being a customer centric brand. Through the rebranding, we wanted customer centricity to come out more strongly for us. The new logo represents a youthful, energetic HDFC brand.

    How do consumers perceive HDFC Life as a brand compared to the competition?
    Our awareness has gone up by 30 per cent over last year. Our communication has been well accepted.

    When marketing to consumers, what challenges do insurance companies like you face?
    The market is cluttered. There are over 23 players. The challenge is to differentiate and ensure that consumers can see your service offerings and products.

     

    We need to be seen as having products that are more consumer friendly; the challenge is to see that the consumer understands your brand and products.

    How do you build and leverage brand equity in the insurance category which is getting more competitive?
    We started six years back to find out why consumers buy insurance. We found that they bought it as they do not want to depend on anybody else; they want insurance for self respect. They do not want to depend on their parents; similarly, the parents do not want to depend on their children. This is how the thought for our campaign came about which is – Sar Utha ke Jiyo. We positioned our brand under the ‘self respect’ motive.

     

    Over time, we took the thought of Sar Utha ke Jiyo across our platforms – be it for children, pension, youth or home loan cover. It gives you a long term solution for pressing needs and self respect. Insurance operates in a long term savings plan; investment in insurance has to be linked to a long term need. This is what we have focussed on and have built consumer segments.

    To what extent will your marketing budget go up for the year?
    We are maintaining a similar spend as last year. This is the first year we are trying to become profitable. We are looking to spend more judiciously and utilise a 360 degree approach to reallocate money. New mediums have come in like digital and OOH. The aim is to make a more judicious mix of mediums available.
    “Our ad spend will stay flat this year. We are looking to spend more
    judiciously and utilise a 360 degree approach to reallocate money. New
    mediums have come in like digital and OOH”

    To what extent was this category affected by the economic downturn in terms of sales and marketing spends?
    New companies are spending heavily. Some of the older players who want to go for a public listing and want to make marketing money work harder are keeping a check on their spending. Spending in this category went down by around 20 per cent during the downturn.

    Which marketing vehicle is the most effective for you – print, TV, radio, online?
    Seventy per cent of our marketing spend is for above the line activities; fifty per cent of this goes towards television as it is the most effective medium for us.

     

    As we are present in over 700 cities, television offers a more cost effective reach. It provides an emotional touch point. You can link the customer with your brand and emotional thought. You can explain your concept in a situation linked to his day to day life.

     

    Print, radio and OOH play a support role. We have started using social media more to engage the youth.

    Which genres do you use on television?
    News and sports for TG 25-45 males works. Apart from cricket, we also do on-air sponsorship of Euro, Fifa World Cup and Wimbledon. We also spend on regional news and regional entertainment; they are pretty big for us.

     

    The aim is to get the top-end audience in metros and mini metros. The cost of contact may be high but cost of impact and cost to the top-end segment is less compared to other vehicles. This is the most profitable customer segment for insurance.

    Do you advertise heavily only during the end of the financial year?
    We advertise across the year. Our IPL campaign is running at the start of the fiscal. When schools open, we can run a ‘Children Plan’ campaign. Advertising in the insurance category has moved from just being end of the year to being more spread out.

    What about the festive time?
    Advertising at that period does not work. People think about spending and not about saving. It could be a counter campaign to do it in Diwali; this has not worked in the past.

    Do you use brand ambassadors?
    No! HDFC Life is a product for the common people. The thought is powerful when you connect to people; they want to see communication where people like them are investing rather than seeing somebody who does not need life insurance but is still talking about it.

    What campaigns have been done recently?
    The last campaign was a rebranding one. You don’t need to spend Rs 3-5 billion for this if you realise the core thing that you need to convey. It is not that overnight you have to change every single collateral and signage. The consumer has to be convinced that your rebranding is actually being delivered on the ground; they look at rebranding more in terms of on-ground delivery rather than on just an image or a design change.

     

    We also did a children’s plan campaign. We used more persuasion which was different from what was done earlier. We explained that while the child is doing fine, seats are limited and competition is severe. Parents need to plan properly; it will help the child reach that goal and get into the institution they like. The aim is to make a parent see that while things are happening normally, they still need to do something.

    As a platform, how has the Rajasthan Royals deal worked out for you?
    We look at associations where there is a good brand fit. In case of Rajasthan Royals, while Shane Warne is the captain, ordinary Indian players who people might not have heard of are given a platform. Warne helps them think like winners. If you look at the premise of believing in yourself, this goes well with our tag line ‘Sar Uthake Jiyo’.

     

    As a team they support youth and some of them have started playing for India. Shane Watson’s career also got revived with this team. It helps youth to think that they can beat world beaters.

    In terms of activation with that IPL franchise, what innovations did you do this time around?
    We brought a social angle into our activities for the home games. We used to take employees and distributors to meet players. We also used players for ads. We gave fans the opportunity to get tickets to enjoy the match and spend time with the cricketers. We took fans for the toss. This was run on Facebook. We also gave tickets to underprivileged people.

    Last year the franchise got into trouble with the BCCI. Did that force you to temporarily change tack in terms of your campaign?
    Not really! The IPL was over by the time these issues came up. The team management kept us informed about the steps they were taking and why they believed that they were in the right. They said that there were no issues and kept us in the loop all the time. We have a one year deal with them.

    Rajasthan Royals has not fared well during the IPL. Are you concerned at any negative brand rub off for HDFC Life?
    No! For a while, they were in the top rung of the points table. You have to look at the core strength of the association rather than one off wins or losses. The youth looks at ‘Sar Uthake Jiyo’ in a different light. The team has more youngsters compared to the previous year. So we came up with the tag line ‘Sar Utha ke Jeene ka Naya Andaaz’.

    How many campaigns do you do in a year and are there new audiences that you have started to address?
    We will do four to five campaigns and are looking at new audience segments. We have done a lot of research on this.

    The rural areas have a lot of potential but the marketing vehicles that work in the major metros might not work there. So how do you connect with those consumers?
    More than just marketing, the basics of the business have to be in place. Insurance is a long term business – and you need to understand the rural area. We do pilots to understand the rural area much more; this has multiple models that have to be run simultaneously.

     

    You need partners like microfinance institutions so that you can reach out to them in a much more cost effective manner. The rural areas consist of the rural rich and poor. You need different products for them while their aspirations are similar.

     

    We are trying to do partner marketing at the moment. We do below the line activities with partners who have the trust factor in that area. The aim is to make the brand relevant and differentiated at a local level. We do things like street plays. We need somebody to carry the message and explain it. That is why below the line activities are important.

    Could you give me examples where experiential marketing has worked for you?
    We do ‘Spelling Bee’ in 35 cities. Children in classes six to nine participate. We have 300,000 children and over 1500 schools taking part. It allows children to understand things like vocabulary and sentence formation. Parents encourage children to do this. It is a good engagement activity. Parents are also engaged in terms of helping the child spell correctly.

     

    Somewhere your brand rub off is also very high. The parent thinks that HDFC Life has brought a competition which they want their children to participate in. Consumer engagement is key for our category. The consumer should keep engaging with you over a longer period of time. What we are seeing is that people buy five to six insurance products over a lifetime.

     

    People like a brand but the decision may be deferred. I need to stay engaged constantly. I may create an engagement now, but later you may buy competition. The engagement has to be done through different methods. That is why we look at a 360 degree approach.

    Could you talk about the growing importance of OOH for you?
    This has really increased. In metros and mini metros, consumers spend time out of home. TV viewing time has come down. There is innovative media available. Obviously, hoardings have been there for a long time. Airports and stations have OOH media. You have to figure out how you can catch your TG when they spend time away from their home.

    But isn’t lack of measurement a problem?
    This is why it is a support medium. If you utilise it for the right reason and use it to support the main communication, it works well. As a support medium, it gives good ROI. OOH always complements the TVC. I can measure ROI better that way.

    Do you address women?
    In India, most homes have a single income. The male is the breadwinner; women in the working segment are still small and their needs are similar to working men. Their media consumption is similar. The campaign for men works for them also.

     

    We addressed upwardly women through an endowment plan campaign. The only segment that is different from men is the unmarried working woman. Other categories for women are similar to men; so I do not need to do a separate campaign for them.
  • IRS: C&S sees strong growth, radio continues to fall

    IRS: C&S sees strong growth, radio continues to fall

    MUMBAI: Cable & Satellite (C&S) and Internet are two sectors which are seeing robust growth in reach compared to the sequential quarter, whereas radio is continuously dipping.

    As per the IRS 2010 Q4 data, C&S reach has gone up by 22.1 per cent CAGR and Internet by 35.9 per cent.
     
    C&S total reach is up at 403.38 million, from 383.60 million in Q3.

    The total reach of TV media has also gone up by 5.7 per cent CAGR to 516.41 million, according to the report released today by the Media Research Users Council (MRUC).

    The Internet reach is at 24.33 million (24,329,000) as compared to 22.52 million (22,520,000) in the third quarter survey. (See table for details).

    Source: IRS
    (TR numbers, All figures n ‘000)

    Source: IRS 
     
    Meanwhile, radio is the only sector which is continuing its trend of negative growth. In the Q4 report, total reach of radio has seen a negative CAGR of 9.8 per cent, to 163.91 million. In Q3, the total reach for radio was at 168.67 million and in Q2 it was 172.60 million.
     

  • Big CBS Prime launches 4-week marketing campaign

    Big CBS Prime launches 4-week marketing campaign

    MUMBAI: The recently launched English GEC, Big CBS Prime, has kicked off an integrated marketing campaign. The four shows being marketed through this campaign are NCIS, Survivor, Bellator and Letterman.

    The holistic four-week campaign has a mix of traditional and non-traditional media across TV, Radio, Print, Out of Home, Digital, Experiential Marketing, Retail touch-points.

    The broadcaster‘s campaign will go beyond traditional media to coffee shops, public transport, online contests and games, mall activations, book stores etc. In addition to the media options available within the Reliance Broadcast Network’s business divisions, the company says that it is ensuring no stone unturned by bringing to play Reliance ADAG’s complete media muscle to get maximum mileage for its first channel.

    This communication is created by McCann Erickson to build a premium image of the brand among both consumers and customers. The creative idea behind this campaign is to highlight Big CBS Prime as the destination for the “Latest, Freshest and Hottest” entertainment concurrent with the United States.

    The media mix is designed to deliver maximum impact using both traditional and non traditional media. Given the evolved audience Big CBS Prime targets, media selection has been made keeping in the mind the lifestyle and habits of the young upscale audience.

    Innovation and digital media play a key role in the plan ensuring high impact and noticeability for the campaign. Aside from TV, Radio, Print, Cinema and OOH, other media added to the mix include digital, retail, malls, Inflight entertainment, mobile and online applications and a comprehensive social media campaign.

    RBNL media platforms – 92.7 Big FM, Big Street, Big Live and Big Digital are playing a key part in the launch campaign being used extensively across the country. The Big CBS Prime campaign is also leveraging all of the Reliance ADA Group platforms relevant to the target audience – Big Cinemas, Zapak, Big Adda, Reliance Web Worlds, Big Flix, Big Oye etc , adding significant muscle to the campaign.

    The media mix includes over 100 OOH sites across Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Chennai, Pune and Ahmedabad; news, lifestyle and sports channels, print in national dailies as well as key media focussed publications.

    The campaign is also be supported by Big Cinemas across India and Big Street across Delhi, Mumbai & Bangalore. 92.7 Big FM is already being used to create hype for the launch of the channel followed by radio spots on key shows as well as the line ‘Whats On Prime Tonite‘ capsules running through the day, everyday.

    The non traditional media mix includes digital. this would cover online communication on portals, show communication innovations, Online and Mobile widgets, and SMS messaging. There will also be live media screens across relevant retail touch-points, In Flight- Entertainment channels, Experiential Marketing in malls to amplify the key shows, etc

    Big CBS Networks GM Aparnaa Pande said, “Big CBS Prime marks the launch of the first television channel from not just Reliance Broadcast Network but the entire Reliance ADA Group. A very ambitious project, we have created an integrated multi media campaign ensuring we touch our relevant audiences through multiple touch points. The campaign ensures huge surround sound with little scope to go un-noticed. We are very confident that the combination of great marketing with the unbeatable, latest TV content Big CBS Prime has, will be an absolute winner in the market.”

  • ‘Our aim is to become the currency tool for media research’ : Ormax Media co-founder & CEO Shailesh Kapoor

    ‘Our aim is to become the currency tool for media research’ : Ormax Media co-founder & CEO Shailesh Kapoor

    Ormax Media, the consumer knowledge and consulting firm for the media and entertainment industry, was launched jointly by Vispy Doctor, the managing director of Ormax Consultants, a specialist in qualitative research, and former Filmy business head Shailesh Kapoor in July 2008.

    The company has expanded across categories like television, radio, films, and media agencies. It has launched various tools, which can predict the future of a show or a film.

    The expansion plan includes doing research in the news and South Indian market. The aim is to establish Ormax Media as the currency tool for media research.

    In an interview with Indiatelevision.com‘s Gaurav Laghate, Kapoor sheds light on the research needs in the media and entertainment industry and Ormax Media‘s drive to plug the gaps.

    Excerpts:

    You have worked with companies like Sony, Zee, Zoom and Filmy in roles across marketing, content and business strategy. So what led to Ormax Media?
    The idea was always there, I wanted to start something of my own. And I wanted to set up something which combined the media and entertainment industry where I came from with the marketing and consumer understanding that was always my interest.

    The exciting part is that we are working on multiple categories – like GECs (general entertainment channels), niche channels, movies, radio and digital. So there is a wide variety that makes the learning experience far more dynamic than it would have been in a traditional media role.

    What the company has achieved in these two years?
    Since it has been a new company, the first year focus was on consolidation and the second year was really of growth and expansion into new categories, businesses and clients.

    We started with TV. It was for two reasons – a far more organised industry in the M&E sector and also because of size.

    In 2009 we started with GECs, then moved on to niche channels and radio. During this time, we also started creating specific products.

    How did you identify the need for the product offerings?
    As we met more and more people, we recognised that there were common needs across the category. For example, there was common need for tracking marketing campaigns for TV programmes. This resulted in a tool – Showbuzz.

    You said you are in expansion mode. What all categories are you looking at?
    Initially, we spent time on developing tools, products and methodology. Then our focus was clearly on categories where we had strength. Like Bollywood – so we launched Cinematix. We are planning to launch a structured product of test screening of Hindi movies soon.

    How has the film industry responded so far?
    We have already worked on 7-8 movies in the last six months. And I think for an industry which is still getting used to the idea of research, it‘s a pretty healthy number. Going forward, the film industry will continue to be the focus. First we were trying to get them on board and trying to make them understand the whole idea of research. And we were pleasantly surprised. Once they (film industry) were exposed to this; they were more than willing to receive research in a far more flexible manner.
     

    What are the challenges you have been facing for getting clients?
    The biggest challenge has been to meet more and more people and give them the flavour of what research can give them. And once they get the right flavour and do one project, they certainly understand the importance of it.

    Apart from films, what are the other areas you will be focusing on now?
    The areas which we are going to focus on now are specific categories – like South and news.

    What opportunities do you see in the southern regional market?
    South is a very big market for both TV and cinema industry. The fundamentals of TV and film research are not different. And we have teams in the four southern states.

    And what are your plans for the news industry?
    The news market is one that largely relies on Tam. But at the category level, there may not be any tools and products available. So we are looking at that option.

    News is also a big category in terms of revenue. It is a category where the advertiser buying is often based on decisions based not directly on the function of the ratings. Particularly English news channels where many different parameters come into play.

    All your tools basically try to asses and predict the future – cinematix or showbuzz?
    A lot of our work is going into putting tools and analytics in place. We are trying to create ways in which future prediction and future analysis can be made rather than just looking at the past and getting a sense of that.

    Research is not just looking at today and giving feedback at what people are liking or not liking. I think the more important area, where a lot of our energies are focused on, is to predict the future.

    So what all services you offer to clients?
    We have three kinds of products. Syndicated products are owned by us like Showbuzz, Cinematics, Characters India Love, RJ Files. We do them at our cost, irrespective of who is subscribing or not subscribing to it. This is data which is registered and trademarked to us. Whoever subscribes to it, gets it.

    These products are most cost effective for all as they are common to the industry. Multiple people are subscribing and paying for it . It cannot be affordable for someone wanting to do it alone.

    Second is commissioned research, which could be qualitative or quantitative research. These are need based research.

    We also do consulting work, which is specifically beyond consumer research and is more advisory in nature. But it is not our main area of work. We are primarily a consumer understanding firm.

    How much market share are you looking at acquiring in future?
    We hope to be controlling at least 75-80 per cent of the research market in a couple of years. That doesn‘t mean we are going to compete with already established systems such as Tam, Ram etc. We are going to complement the information available through them. So if Tam gives the viewership, we will add value by explaining the viewership understanding. We are more about adding value beyond the measurement systems.
    If some other similar company starts working on the same lines, what will be your plan of action?
    See, eventually, in a category like this, one becomes currency. We have seen that in case of Tam. The second player to come will have a disadvantage. It is difficult to say at this stage who will become currency, but my sense is that till the time other players will come, we will be established as the industry currency. We are moving in the right direction.
  • Radio: The 5 Metro Phenomenon – By Reliance Media World CEO Tarun Katial

    Radio: The 5 Metro Phenomenon – By Reliance Media World CEO Tarun Katial

    India lives in its villages…

    Does it, anymore?

    Let’s look at the statistics…

    A recent Ernst & Young study indicates that 58 per cent of advertisers on radio in the country are national corporate advertisers, while 42 per cent are from towns or states in which the station is based. Not surprisingly, the larger radio networks have taken home a higher share of national advertiser revenues.

    Now, let’s look at the larger picture. India is tipped to become the 5th largest consumer market in the world by 2025, with urban India defining the growth of the domestic economy in the coming years. An independent study has shown that around 45 per cent of Indians will be living in urban areas by 2050, up from 30 per cent in 2007-08.

    This tells us that while the tier II and III cities ensure spread and reach for radio, the metros will continue to play a critical role as far as advertisers and revenues are concerned. Adex data only re-iterates this, when it shows that 70 per cent of the total advertising consumption in the radio industry comes from the 5 metros (Mumbai, Delhi, Kolkata, Bangalore and Hyderabad).

    So why do advertisers focus on the metros?

    The answer lies in the fact that the core economy and majority of the educated consumers belong to this cluster. Add to that the fact that people are migrating in increasing numbers from small towns and villages to metros, accelerating the economic growth of these cities, creating concentrated centers with large markets.

    Distinctly higher demographic development, better infrastructural facilities, lower poverty ratios and higher purchasing power are just few of the things that favour the market. Even though the future growth potential of the smaller key urban towns is universally acknowledged, concentration of media spends in metro markets is a well-established reality.

    Globally, radio is used extremely effectively as a tool for brand building. In India too the developments of the recent past have accelerated the growth of the radio industry propelled by the increasing radio listener base, favourable demographics, political advertising, prospects from phase III expansion and the increase in its space in the advertising mix of brands.

    The recession, while had its rippling effect on the radio industry, led several new and first time advertisers to flock to radio after understanding its cost effectiveness, coupled with its high reach and impact. While the ‘West’ was melting down due to the recession, India was empowering itself with effective streamlining of resources and delivering optimal returns to both clients and listeners.

    Today radio offers multiple platforms at a single point to the ‘value demanding’ advertiser, thus moving out from selling vanilla radio to a more holistic approach. While corporate and retail advertising will continue to retain its critical place as a source of revenue, other sources such as on-ground activation, in programme placement, internet and cross media sales are also becoming significant revenue streams. Similarly larger networks work effectively for advertisers who want to reach deeper into the country. 

    The key five metro markets performance for any media platform is critical to business health. An advertiser looks at maximising reach across the 5 metros – selecting media which can deliver this without excessive spillover. That is where radio plays an important role in the advertising mix.

    Advertisers today divide their budgets across the top two players and this works excellently for Big FM which has been performing consistently in the five metros and today commands the second highest reach across these markets, ahead of its contemporaries (Delhi, Mumbai, Kolkata and Bangalore, as per RAM and Hyderabad, as per IRS-09 R2 data).

    Going by the way radio is being used extensively as a medium of communication and advertising, the future promises nothing but bigger opportunities and greater growth prospects for this industry, led by the metros!

  • Radio losses drag down TV Today net

    Radio losses drag down TV Today net

    MUMBAI: TV Today Network has seen an 8.69 per cent dip in its net profit for FY10. The company posted a net profit of Rs 308.67 million, lower than last fiscal’s Rs 335.5 million.

    The income from operations at Rs 2.85 billion is up 13.83 per cent from FY09 when it stood at Rs 2.5 billion.

    As far as the expenses for the firm go, its overall expenditure of Rs 2.54 billion is higher than last year’s Rs 2.25 billion, which is in tune for a growing firm. However, while almost all segments of expenditure saw an increase, the advertising, marketing and distribution expenses dropped to Rs 602.9 million this fiscal, as compared to Rs 675.32 million in the previous year. This is in sync with what analysts had predicted would happen post the merger of Radio Today Broadcasting (which runs Meow FM).

    The company’s operating profit went up by 25.37 per cent which is a significant jump. The operating profit of Rs 309.24 million in FY10, compared to Rs 246.67 million in FY09, indicates that the normal business activities of the firm are growing.

    The other income earned by the firm is marginally down this fiscal at Rs 231.04 million from last year’s Rs 242.08 million. However, one of the key factors that led to a lower net profit this year is the hit that it has taken in its balance sheet on account of higher interest and finance charges courtesy Radio Today’s merger with it. The latter had been making losses and had taken huge loans. At Rs 70.49 million, the interest and finance charges in the TV Today financials were significantly higher than last year’s Rs 1.37 million.

    However thanks to the company’s overall growth its EPS on a Rs 5 face value share is only marginally lower. At Rs 5.31 in FY10 on a diluted basis, it compares well to Rs 5.79 in FY09. The company’s management has announced a dividend of 15 per cent for the fiscal.

    The income generated by the radio segment was Rs 43.61 million, while TV Broadcast was Rs 2.80 billion. However, while the TV segment made a profit of Rs 578.49 million this year, the radio segment made a loss of Rs 221.26 million and this was a major factor in the overall net profit of the firm being down.

    The firm has made an advance of payment of Rs 185 million to Mail Today Newspapers to subscribe to its equity and enter the daily newspaper space. The venture is currently notching up huge losses but the management believes it will end up being a profitable decision.