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Tag: TV advertising

  • Global TV advertising market reached $278 billion in 2020

    Global TV advertising market reached $278 billion in 2020

    Mumbai: The global television advertising market reached a value of $278 billion in 2020, according to ResearchAndMarkets.com’s latest report titled ‘Television Advertising Market: Global Size, Share, Revenue Statistics, Research Report & Forecast 2021-2026’. Looking forward, the publisher expects it to exhibit moderate growth during the next five years.

    Television represents one of the most popular and widespread forms of media worldwide with around 1.6 billion households having one or more television sets. The prevalence of television makes it a preferred choice for advertisements for both large and small businesses. It also offers advertisers the ability to use motion, colour and audio to send a strong and persuasive message to the audience. The audio-visual effects also help in creating a long-lasting and emotional impact depending on the services and audience of the advertisement.

    In spite of the competition from new media platforms, television is expected to remain as the largest advertisement segment. Moreover, the increasing penetration of television in emerging markets such as Latin America, Eastern Europe, Africa, Middle-East, China and India is also expected to drive the television advertisement market in these regions, thereby facilitating the overall growth globally, according to the report.

    It has segmented the market on the basis of service type. Currently, terrestrial TV networks dominate the market accounting for the majority of the total global share. Terrestrial networks are followed by multi-channel and online television segments. Online television currently represents the fastest growing segment. The report has also segmented the market on the basis of industry, listing the key industries which are actively using television advertising.

    The study has further analysed the market on the basis of key regions. North America currently represents the largest region for television advertising. Other key regions include Asia-Pacific, Western Europe, Latin America, Eastern Europe and Middle-East and Africa. The report has also analysed the competitive landscape of the market. Some of the key global players operating in this market are CBS, Comcast, News Corporation, Viacom and Cox Communications.

    The report provides a deep insight into the global television advertising industry covering all its essential aspects ranging from macro overview of the market to micro details of the industry performance, key market drivers and challenges, recent trends, Porter’s five forces analysis, television advertising pricing models, margins in television advertising and more.

  • TV ad spend touched Rs 35, 015 crore in 2020 despite pandemic

    TV ad spend touched Rs 35, 015 crore in 2020 despite pandemic

    New Delhi: Despite the pandemic’s devastating blow to businesses worldwide, the Indian media and entertainment sector showed ‘remarkable resilience’, according to PwC’s Global Entertainment and Media Outlook 2021-2025.

    TV advertising continued to expand in 2020 as the country emerged from the onslaught of the first wave and reached Rs 35, 015 crore, making India the fourth-largest market globally after the US, China, and Japan. Further expansion at a 7.6 per cent CAGR is likely to take TV ad revenues to the level of Rs 50,660 crore in 2025, according to PwC.

    The outlook for India suggests, multichannel advertising will account for nearly 92 per cent of the total TV advertising market in 2025. Online TV advertising will make modest inroads in the forecast period, with broadband penetration likely to remain extremely low at 7.3 per cent of households.

    The pandemic hit the industry hard, and according to PwC, the total global M&E revenue fell 3.8 per cent year on year in 2020, by far the most significant drop in revenue ever. While sectors like cinema, live music, and trade shows suffered unprecedented setbacks, the persistent growth of digitisation softened the blow for the broader industry.

    Amid all this uncertainty, PwC’s outlook suggests that India’s M&E industry is likely to reach Rs 412656 crore by 2025 at 10.75 per cent CAGR. A significant part of this growth story will be written by demand for great, localised content, increased internet penetration, and the creation of new business models. Technology and internet access will continue to influence the way Indians consume content, says the report.

    The report also shed light on how India is emerging as the fastest-growing Internet advertising market in the world at a CAGR of 18.8 per cent during 2020-2025. Around the world, pandemic lockdowns made home entertainment effectively the only choice, with internet access an essential. Growth in mobile ad revenue overtook wired revenue in 2019 and is expected to be 74.4 per cent of the total internet advertising revenue of Rs 30471 crore by 2025. In 2020 revenue from mobile internet advertising in India was Rs 7331 crore and will rise to Rs 22350 crore in 2025 – increasing at a 25.4 per cent CAGR.

    “This makes India the fastest-growing mobile ad market in the world, reflecting the growth potential, with over half the population yet to take up a mobile Internet subscription in 2020,” says the report.

    One of the worst impacts was seen on the cinema industry, which saw a 70.4 per cent collapse in revenues. With theatres shut, and movies heading to the OTTs, the box-office revenues in India plunged by 75 per cent year-on-year in 2020 to Rs 2,653 crore. However, according to PwC, the box-office revenue is expected to recover and grow at a CAGR of 39.3 per cent grossing up Rs 13,857 crore by the end of 2025.

    “The overall segment comprising box-office and cinema advertising is predicted to grow back to pre-covid level by mid of 2023,” says the report, providing a glimmer of hope to the industry.

    Meanwhile, the gaming market in India continues to enjoy exceptional growth and shows enormous potential. Video games and esports revenue reached Rs 11250 crore in 2020 and is set to expand to Rs 24212 Cr in 2025, at 16.5 per cent CAGR. India’s gaming market is dominated by the social/casual category, which accounted for 77 per cent of all video games and esports revenue in 2020.

    “India’s esports market is small but as awareness grows and, crucially, the mobile esports offering becomes stronger, this sector will see rapid expansion, at a 31.6 per cent CAGR over the forecast period,” it says.

  • Face of M&E industry in the next 5 years

    Face of M&E industry in the next 5 years

    KOLKATA: Overall advertising spend took a hit in 2020 due to the unprecedented Covid2019 crisis. With hints of recovery, experts are upbeat about adex growth this year as well as in the long term. India’s advertising market is estimated to post a CAGR of 16 per cent over the next five years factoring Covid2019 impact. While digital advertising is estimated to double its share in the overall ad pie, TV spends will largely remain stable, according to a report from Elara Capital.

    However, it mentions that TV advertising may witness a decline in the ad share pie post-2025, if digital scales up further. Globally, digital advertising accounts for 61 per cent of ad spend whereas TV is 23 per cent, given demographics in India (the big mass market with several languages), it is believed that the share of mediums like TV and print will remain higher than the global average.

    Elara Capital VP research analyst (media) Karan Taurani said huge pent-up demand in some sectors (travel, retail & tourism), which were negatively affected during Covid2019, an increase in the number of SME-led advertisers, and the surge in digital advertising led by favourable demographics will drive the growth.

    “Facebook, Google and YouTube will continue to dominate the social, search and video advertising segment within digital advertising. Video advertising, which accounts for almost 30 per cent of digital advertising spend, has outperformed with a 50 per cent growth rate in CY19; however, the larger share keeps moving toward Hotstar and YouTube as they account for almost two thirds of this video advertising pie,” he stated.

    During a panel discussion in Vibes 3.0, The Everywhere Content, Elara Media & Entertainment Conference, experts also reflected similar optimism. They said broader advertising trends within the TV vertical indicate a good recovery, backed by IPL after a big blow during the lockdown. Currently, ad spend stands in good stead after a K-shaped recovery, with some new ad verticals coming up while some old ones are drying up, they added.

    The panellists added that digital will trigger new opportunities as millions of advertisers have moved to digital. SMEs do their own digital advertising, but their adoption is much slower. However, gradually these businesses have been shifting, in line with trends overseas a few years back.

    Digital adoption has been noticeable in consumption patterns too, especially as it has leapfrogged during Covid times. In India, around 10 million viewers have cut chords during Covid2019 lockdown, choosing OTT platforms largely due to a variety of content. The key remains to keep up the engagement of audiences on the OTT platform. TV and OTT can coexist at least for the next eight-ten years. While men used to explore OTT content and women preferred daily soaps on TV, this trend has changed during the pandemic, where family viewing has grown significantly.

    According to the panellists, the value of a revenue-paying subscriber is going to increase significantly. Earlier, with 30-40 OTT platforms and several TV networks, content demand was high. But now, the audience has become quality content-specific and is willing to spend on marquee shows and content. Partnerships with telecom service providers (TSP) will continue to account for a larger chunk of SVOD revenue for broadcaster and other OTTs in the near term; smart TV and smartphones too will support the growth of India’s SVOD ecosystem in the medium term, Taurani added.

    Among other trends in media and entertainment industry, Taurani said cinema remains an outing and socialising trend in Asian countries, such as Singapore, Taiwan, China, the UAE and India. This means there is relatively low or no threat of OTT, unlike the West (US and UK) wherein consumers visit a cinema only to watch a movie. In terms of screen openings too, APAC has 88 per cent of screens open, whereas the US and the EMEA have opened up only 38 per cent and 24 per cent of screens, respectively, until now.

  • Zee is becoming a part of advertisers’ culture: Ashish Sehgal

    Zee is becoming a part of advertisers’ culture: Ashish Sehgal

    NEW DELHI: Zee Entertainment Enterprise Ltd has gone through turbulent times for the past 18 months but under the able leadership of CEO Punit Goenka it seems to have managed to win the market confidence despite the impact of Covid2019 pandemic on revenues and the new NTO orders of channel pricing. With the confidence of investors back and advertising slowly clawing it's way back, the network is looking to a better tomorrow. Its chief growth officer of advertisement revenue Ashish Sehgal sat down for a virtual fireside chat with Indiantelevision.com founder CEO and editor-in-chief Anil Wanvari discussing the way ahead for the network and TV industry at large, on Tuesday evening. 

    Sehgal claimed that television, as a medium of entertainment as well as advertising, has a lot of scope in the country. “The first fact is that the penetration of TV itself is only 67 per cent in this country and so we see a huge growth opportunity there. Secondly, the consumer still has this habit of watching videos on television.”

    He added that TV was recording double-digit growth till 2018-19, a pretty handsome growth from the perspective of how TV ad volumes work. “It’s just in the last financial year, 2019-20 that the economy started to take a dive and then this pandemic happened. The loss was pretty hard on other mediums too but recovery is faster on TV.” 

    Sehgal shared that the medium has already reached 70- 80 per cent of pre-Covid numbers and will match that by the end of this year. “FMCG, which is the mainstay for television contributing around 65 per cent of the overall ad revenues is coming back. And there is a lot of competition in that category, so I am expecting the other similar categories will also come back soon. Advertisers have realised that as the economy opens up they should start promoting themselves.”

    He insisted that television has a bright future and the industry will pick up on a month-on-month basis from here on. 

    Sehgal said while he will not compare it to the last year numbers, in comparison to how the previous 3-4 months went, they had a good run during Ganpati and Onam. 

    He elaborated, “The sentiment is coming back. For example, I stay in Delhi and when you go out, you can see the traffic jams happening again and people are visiting markets. People have started venturing out. They are understanding that while they should be careful, they can’t be staying in the fear of the virus forever.” 

    According to him a number of channels have already started consolidating. During Onam, the Malayalam language channel Zee Keralam locked in numbers similar to last year and also maintained a steady viewership. The network’s Bhojpuri channels are market leaders and doing great in the Telugu market too. He is also expecting IPL to be a good time for his channels as well as the whole medium. 

    However, despite high viewership and ad volumes, one problem that still remains with TV as a medium of advertising is the cheap ad rates and the negotiations that are made on the advertisers’ part.

    Sehgal quipped, “Television is still the cheapest medium to advertise and which is why it is also the preferred medium for advertising. It is also because advertisers are still paying on CPR basis but if you look at BARC ratings, it is (not) representing a very large population. A lot of genres, like English, are not very well represented by these ratings. Digital is monitoring each and every impression and TV is not doing that.”

    To counter this, Zee has been working on newer approaches to help clients. Rather than just providing a medium to advertise, they are providing them solutions catering to their specific needs. 

    “We don’t have an approach of selling on our network any more. We are working with them to extend solutions helping them generate good ROI. We are working more like consultants to them. Be it curating special ads as we did for Cadbury where they wanted to thank all Covid2019 warriors or using our characters as influencers for their products, we are assisting them with a tactical understanding of their brands and TG.”

    He added that each advertiser has its own culture and if a media partner starts becoming a part of that culture and not work on a transactional basis, it will retain the client for a long time. 

  • Update Geotarget promotes Prabeer Patankar as head of national sales

    Update Geotarget promotes Prabeer Patankar as head of national sales

    NEW DELHI- Update Geotarget, India’s only regional-focused, narrowcasting TV advertising free-to-air platform, has promoted Prabeer Patankar as head of national sales.

    In his new role, Patankar will be responsible for overall national sales and will report to Update Geotarget MD Sharad Alwe. The announcement also emphasises the company’s objective to enable marketers with effective narrowcast services pan India with their 2500+ hyperlocal channels & set-top box solutions.

    Prior to this, he led the sales for the north and south region. Patankar was instrumental in building the business ground up in the last 10 years for Update, with his 24 years of experience in media sales and prior engagements in reputed media houses such as HT Media, Herald Publications, and Navabharat Press Pvt. Ltd

    Commenting on the appointment Alwe said, “As we look forward to festive & brighter future ahead, we are fast-tracking ‘transformation’ which is true to our DNA over the last 25 years. We are clear on our strategic priorities, strengthening our connections with a growing the universe of clients, agencies, brands, and partners in the marketing ecosystem. To be able to do so, we needed a passionate leader and strong structure within our organization to continue our path to greater success."

    On his advanced role, Patankar said, “I am delighted and grateful to Update Geotarget for giving me this opportunity. With brands adapting their strategy to the post COVID environment, they are focusing more than ever on Geo-targeting. NTO has not made their life easy either, shrinking the actual ‘on-ground channel availability’ of their mainstay channels. I think this is our window, our hyper-local channels are more relevant than ever for advertisers. We should see good traction before this financial year ends.”

  • Synamedia introduces Iris – a new addressable advertising solution

    Synamedia introduces Iris – a new addressable advertising solution

    KOLKATA: Independent video software video provider Synamedia introduced Iris, a sleek new addressable advertising solution. Iris will create addressable advertising opportunities for pay-TV and broadcasters as well as OTT and hybrid service providers to unlock new revenue streams. As demand for more targeted TV advertising increases, they can use Iris to help create compelling advertising propositions that reach specific TV audience segments of any size and makeup across all services, devices and screens.

    An end-to-end solution, Iris delivers faster time to value by removing the friction points that characterise piecemeal addressable advertising products. From a single platform, Iris supports unified campaign management, delivery, and measurement to multiple screens across apps and live, linear and catch-up services, overcoming one-way and hybrid broadcast/OTT challenges. This simplifies the execution for service providers and broadcasters, helping them to merchandise their inventory more efficiently while also minimizing operational costs and boosting income.

    Harnessing data from multiple sources, Iris enables sophisticated audience insights and anonymised household, user and device-level profiles that can be checked against an advertiser’s desired characteristics. Combining the most effective advertising screen available with the precision of digital campaigns, Iris provides cross-platform ad measurement to exploit all forms of video inventory in a single campaign. Big brands and new advertisers can reach their target audiences cost effectively without wasting impressions, while consumers enjoy a more relevant viewing experience, and service providers and broadcasters boost income.

    Synamedia has a long track record in the targeted advertising space, having worked with media and digital agencies for over ten years and collaborated with Sky on the development of the AdSmart platform.

    “With Iris, the TV industry can finally combat the erosion of ad revenues to digital platforms and achieve its long-held ambition of generating new income from advanced TV advertising. Our end-to-end solution with its unified campaign management capability makes it easy for customers to drive new revenues from their inventory – even over more challenging one-way and hybrid networks – and offer established and new advertisers an alternative to the increasingly wild west world of online advertising,” Synamedia VP Advanced Advertising and Data Scott Kewley said.

  • Not viable to continue Covid2019 discounts with new episodes: Viacom18’s Mahesh Shetty

    Not viable to continue Covid2019 discounts with new episodes: Viacom18’s Mahesh Shetty

    MUMBAI: Covid2019 had a devastating impact on GECs with close to no advertisement revenue for almost three months. Now, television shooting has finally resumed and TV channels have begun to telecast fresh episodes of the shows.

    According to Viacom18 network sales head Mahesh Shetty, in the month of April and May, advertising was severely impacted due to the lockdown. However, with considerable relaxations from June, retail markets opening up and supply chains for brands stabilising, advertising spends have moved up. He points out that more brands are now willing to advertise and even spend more. Shetty also thinks that though new advertisers are queuing up, most of them are still FMCG brands. However, there has been a jump as compared to lockdown levels.

    Shetty explains that the channel is actively working with brands to go beyond the regular free commercial time (FCT) ad spends. “Thanks to the strong ‘impact properties’ portfolio that we have, we are giving customised sponsorship and integration packages to advertisers. In addition to this, we are also working closely with some of the brands on their specific briefs and exploring options on content solutions for our fiction shows,” he adds.

    He highlights that post easing of the lockdown across the country, overall advertiser interest has gone up in July as compared to the previous month. New advertisers have come onboard across categories. Maruti has been the channel's long term partner for Khatron Ke Khiladi and according to Shetty their spending has increased post resumption of the fresh episodes.

    Shetty also mentions that all broadcasters had given special pricing with discounts to advertisers in the April-June period in the absence of original programming. However, with fresh episodes starting this month, it is not viable for any broadcaster to continue with the Covid2019 discounting. “There has been a drop in discounting in July and we are steadily moving close to pre-Covid2019 level pricing,” he shares.

    In terms of inventory fill, growth rate has been at 45-60 per cent level in comparison to April. Advertisers are hopeful to catch up to last year’s level by August.

    DAN India Amplifi group trading director Sujata Dwibedy says, “During the lockdown very few advertisers were active. We are seeing slight momentum since May-June. Hopefully, the festivals would turn it around. As soon as there will be normalcy and the pandemic will contain, we may see more brands coming back. The time slot that would deliver better be more cost efficient and would definitely be preferred.”

    Dwibedy believes original shows will definitely change the previous quarter’s pattern to the classic viewing behaviour.
    Even though audience sentiments are still low, the rates might go up slightly due to original content. But it will still take some time for broadcasters to get back to the original January-February levels as the lockdown is still on and many advertisers are not yet willing to advertise.

    So the new episodes have quite a lot of catching up to do.

  • IPL, FTA channels boost TV advertising by 10.3% in FY18: KPMG report

    IPL, FTA channels boost TV advertising by 10.3% in FY18: KPMG report

    MUMBAI: The media and entertainment industry is now on the road to recovery after facing headwinds due to major regulatory interventions such as demonetisation, GST and RERA, resulting in lower consumption and ad spend during FY18. 

    The KPMG in India’s – Media and Entertainment report 2018, launched on 5 September 2018, stated that strong and consistent economic growth fueled by a rise in consumption and growth in digitisation provided support, enabling the Indian media and entertainment (M&E) industry to grow at 11 per cent over FY17 to reach Rs 1,436 billion in FY18.

    The TV industry in India was estimated at Rs 652 billion in FY18, a growth of 9.5 per cent from FY17, having grown at a CAGR of 10.7 per cent between FY14-18. The market size consisted of advertisement revenues of Rs 224 billion and subscription revenues of Rs 428 billion in FY18.

    Television advertising grew at a rate of 10.3 per cent in FY18, aided by the strong performance of Indian Premier League (IPL), free-to-air (FTA) channels and consumer promotions by FMCG companies in the festive season. FMCG, telecom and auto sectors contributed more than two-thirds of the spends on television advertising in India. However, the first half of FY18 was majorly impacted by the implementation of GST and RERA as FMCG and real estate companies kept their ad spends on hold. Large broadcasters with a client base of national advertisers were less impacted than the ones with a predominantly local advertiser base.  

    The long term outlook for the M&E sector remains strong on the back of a buoyant Indian economy, robust domestic demand, particularly in rural and regional markets and growing digital access and consumption. This year, telecom-media-technology (TMT) convergence took centre stage. This has the potential to significantly change how media is created, distributed and consumed and media companies need to take a relook at their strategies and business models to successfully operate and thrive in the new paradigm.

    KPMG in India partner and head – media and entertainment Girish Menon said, “The India media and entertainment industry was affected by lower ad spend in FY18 due to goods and services tax (GST) rollout and the lingering effects of demonetisation. However, this effect has been temporary and the industry is seeing positive long term outlook on the back of rapid growth in digital access and consumption, coupled with strong domestic demand especially from the rural and regional markets. The sector grew by 10.9 per cent in FY18 to reach Rs 1,436 billion and it is expected to grow at a CAGR of 13.1 per cent over the next five years to reach Rs 2,660.2 billion by FY23. Growing presence of telecom and technology players in media distribution has led to convergence of business models across TMT and media companies will have to evolve to successfully operate in the new paradigm.” 

    According to the report, digital advertisement revenues have been growing rapidly in India, and the trend continued in FY18 with a growth of 35 per cent to reach Rs 116.3 billion. Key growth drivers were developments in digital infrastructure; increased inclusion of and adoption by regional, non-urban users; increase in the penetration of mobile phones; and increase in maturity in the digital ecosystem driven by public and private investments.

    KPMG in India head – technology media and telecom Mritunjay Kapur said, “Digital technology, coupled with radical shifts in consumption patterns have undeniably resulted in blurring of boundaries that define the TMT sectors. TMT convergence is now a reality and will likely cause significant disruptions across the value chain. Media organisations would need to re-evaluate their existing strategies and operating models to leverage the emerging opportunities and sustain against new evolving challenges.”

    Mobile gaming in India has seen a tremendous uptick. From a meagre contribution of 18 per cent in 2012 (the smallest segment), mobile gaming comprised 46 per cent of the global gaming revenue in 2017 and this number is set to reach 60 per cent by 2021. Mobile gaming already leads from the front in India with nearly 89 per cent of all gaming revenue in India generated by mobile games in 2017. The higher than expected growth in online gaming over the past 18 months has primarily been on account of the mobile gaming segment, which has benefitted from the fall in 3G and 4G data costs. “On the other hand, Esport is a very niche market and while it is growing, I’m not sure that it is going to become a very sizable number. The bulk of the gaming revenue is going to come from the online gaming business,” Menon added. 

  • Online majors are biggest spenders on TV, says a global report

    Online majors are biggest spenders on TV, says a global report

    MUMBAI: Some of the biggest tech giants are the biggest spenders on TV.Figures from around the world show the extent to which online businesses are now investing in TV advertising.

    For example, in Australia in 2017, Google spent sixtimes as much on TV advertising, reaching A$11.3 million and Apple increased its ad spend by 17.4 per cent to A$20.2 million. Amazon backed its Australian launch with a TV ad investment of A$3.2 million, and Uber increased its TV spend with a first investment of A$3.4 million, according to Nielsen Adex,.

    Using comScore data in the US, the Video Advertising Bureau found that online businesses see an immediate and significant lift in web traffic once they launch TV campaigns – data from 14 online businesses showed the lift ranged from 11 per cent to 1,075 per cent. Studies from around the world have proven the impact that TV advertising has on online activity. A study in France by SNPTV found that organic traffic to a pure players’s website increases by 66 per cent during a TV advertising campaign.

    The global figures were compiled by The Global TV Group, an informal grouping of TV broadcasters’ and sales houses’ trade bodies in Europe, the US, Canada, Australia and Latin America. Findings show that from Brazil to Germany, brands such as Amazon, Zalando, Netflix, Expedia and Airbnb are building their image, reputation and sales through the reach and influence of TV.

    The investment trend demonstrates the strong relationship between TV and online, with viewers armed with Internet-connected devices able to respond to TV advertising immediately.

    According to Google Australia and New Zealand marketing director Aisling Finch,”Like most marketers, we use a range of channels to achieve campaign objectives. We know that audiences engage with content across different platforms at different times, and marketers do the same. For campaigns such as the launch of Google Home we used a combination of radio, TV, cinema, print, outdoor and online channels including search, YouTube and social. In this campaign we found the combination of contextual media and creative drove stronger uplift.”

    In Belgium, during 2016, TV represented a 62 per cent share of the online business sector’s media investments. The Rocket Internet group, the second biggest spender, which owns companies like HelloFresh and Home24, spent a total of €6,072,463 in 2017 on TV advertising.

    Online businesses’ TV ad spend grew by 17 per cent in Brazil between 2015 and 2017. When including the e-commerce players owning physical stores, the increase is almost 20 per cent. In Canada, online businesses represent one of the fastest growing sectors in TV advertising. Online businesses have doubled spend on TV over the past five years, with spend in 2017 topping $105 million.

    Over a 3-year period (2015 to 2017), Airbnb’s TV ad spend increased by 44 per cent. Expedia and Amazon show even more impressive figures with an increase of 65 per cent each. In Italy, online businesses invested a total of €95,653,000 in TV in 2017, representing a 10.7 per cent increase compared to 2015 whereas in Netherlands, e-commerce advertisers increased their TV investment by 26 per cent between 2015 and 2017 to become the fourth biggest category of TV-advertisers. 200 e-commerce advertisers invested €300 million gross in TV in 2017. The highest TV investor was the German booking site Trivago with a gross investment of €25 million. Spain saw Amazon’s TV ad spend go from €106,990 in 2015 to €11,006,360 in 2017, more than 100 times the investment in 2015. Google’s investment in TV went from €40,250 in 2015 to €603,620 in 2017, 15 times more.

    In United Kingdom, online businesses including brands Amazon, Trivago, Google and Purple Bricks invested a total of £682 million in TV advertising in 2017, up from £590 million in 2015. Despite cuts in other categories due to ongoing economic uncertainty, online businesses, which in 2016 became the biggest spenders on TV in the UK, remained steadfast in their TV investment.

    United States of America in 2017, saw digital-native companies including brands like Amazon, Expedia, Wayfair and eBay spend over $5.9 billion US dollars on TV, representing a 10 per cent increase over 2016.  Within this spend is a group of 50 “direct-disruptor” newcomer brands, including Gwynnie Bee, Peloton and Leesa – who only recently began investing in TV but now collectively spend over $1.3 billion US dollars in TV annually.

    The positive trend is set to continue in 2018 as more e-commerce brands around the globe put their trust in TV advertising to strengthen their image, drive traffic and generate return.

    Video Advertising Bureau president and CEO Sean Cunningham said, “We’ve been analysing digital-native companies since 2014 and found that those who turned to a heavy reliance on TV early in their company’s history saw substantial benefits.”

    n a more recent study, featuring various case studies, the VAB looked into how TV drives business outcomes for disruptor brands. For example, expanding brands saw an average increase of 188 per cent in their search volume as they increased their TV investment.

  • Indian OTT/VOD will not impact cable TV and DTH: Edelweiss Capital

    Indian OTT/VOD will not impact cable TV and DTH: Edelweiss Capital

    MUMBAI: Financial services firm Edelweiss Capital’s research division’s latest report on the impact of OTT on television in India is surely going to delight the cockles of executives in broadcasting companies and probably raise the hackles of those in the video on demand space. The report says that, even as consumers are bound to increase their spends and time spent on video – either on handheld devices or on their smart TVs or their laptops, this will have a negligible impact on traditional linear TV’s fortunes.

    Cord cutting or cord shaving which has been rampant in the US as cable TV and DTH viewers shift from their expensive services to cheaper VOD options or to cheaper TV packages is not something that is going to pop up in a hurry in India, says the Edelweiss report. The Indian cable TV and DTH segments are marked by low monthly rentals of Rs 300-450 as compared to the US where DTH and cable TV fees have soared.

    “The Indian OTT market is at a nascent stage and is quite like the US was seven years ago,” it points out.

    However, it is optimistic about the growth of the OTT sector. Currently, the challenge is broadband speed, the report points out, with the average home clocking 3.5 mbps, which is not enough to offer lag-free HD video streaming. It reveals that this will change with cheaper data and broadband options fueling VOD and OTT taking consumption of video content up from 3.5 hours to five hours daily.

    Consumers are going to open their wallets and spend Rs 600-700 per month from the current Rs 300-450 per month to view video content across various platforms in the next five years, the report says. “In the case of India, it is largely a single-TV home market where not everyone in the family gets to watch what they want during prime time which will aid the OTT space,” the report adds.

    But, VOD and OTT is only going to complement traditional television and not erode it is the report’s guidance.

    The brokerage house is quite clear that TV advertising is also going to hold its ground because its viewership is going to continue to be steady. And, there is going to be no loss in revenues on account of VOD/OTT and the heady growths in digital video consumption and digital advertising.