Advertising Industry, Digital Marketing, Internet Audience Measurement, Internet Industry, Media Buying

FICCI-PricewaterhouseCoopers Entertainment and Media Report

The reports has good news for folks Media Sales&Marketing. More than anything, it gives a general trend of popular mediums consumed.

Following are the top level figures…
2006… Rs.438 Bln (Rs.43,800 Crs)
2007… Rs.513 Bln (Rs.51,300 Crs)
2012… Rs.1.157 Tln (Rs.115,700 Crs)

This means, 17% growth in 2007 over 2006 and every year after that will grow by 18%, making entertainment and Media Industry outperform a number of sectors. Television, film, print continue to dominate the media space together accounting for more than 90% of the total size of the industry. Following were other highlights…

1. Television attracted more interest among investors than any other medium. The industry has also seen venturing into online and mobile portals to distribute content.
2. Mobile Music is gaining popularity.
3. In print domain, adopted another platform, through internet (e-paper) and mobile (m-paper) to reach out to newer audience.
4. Digital Cinema is gaining popularity, and is becoming widespread with online Movie Ticket Booking and Mobile Booking.

Advertising was a significant part of this pie, and contributed 38%. Last four years (2004-07) the industry has displayed 20% growth rate, which is impressive by any standards.
2006… 161 Bln (16,000 Crs)
2007… 196 Bln (19,600 Crs)

The industry is experiencing a paradigm shift with digital platforms enabling to reach the critical masses. Digital interactive mediums are slowly becoming the advertising mainstream. Internet advertising will reach Rs. 4.2 Bln (Rs. 420 Crs) and 11 Bln by 2012 (Rs.1,100 Crs), which would only represent 2% of the whole adverting projected for 2012 (and assuming 40% advertising contribution). The growth is however very impressive at 32%. The current estimate for the Internet Media Industry is 230 Crs (Rs.2.3 Bln).

Lets look at television industry in the meantime, which is estimated to be Rs.226 Bln (22,600 Crs). By 2012, it is poised to grow to Rs.600 Bln (60,000 Crs) and CAGR of 22%, which would mean that it will still command over 60% to the total advertising pie.

Print Industry size is Rs.149 Bln (Rs. 14,900 Crs) Industry today, is poised to grow to Rs.281 Bln (28,100 Crs) by 2012. By size it would be almost half of TV industry and would contribute 30% to ad revenues. The growth is however low at the rate 14% pa.

Radio will be bigger than Internet industry, with Rs.18 Bln (1,800 Crs) with a CAGR of 24%. The current size is Rs.6.2 Bln (Rs.620 Crs).

More and more content will be digitised and this migration mirrors the global trend. Distribution of entertainment and media content will over digital and mobile platforms like online digital streaming, digital movie/TV downloads, video-on-demand, music downloaded from the Internet, music downloaded to wireless phones, online advertising, online video games, wireless video games, and online gaming, increasingly gain pace in next five years.

Read the full report here . For more interested lot, for more on global trends you can refer to an earlier post titled- Accenture Report on Digital Industry.


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Internet Audience Measurement, Media Buying, Search Engines, Viral Marketing, Web Analytics

Every Click Counts…

The other day I read one good Mediapost article on Metrics. You won’t be surprised that there are quite a few of them- Buzz Metrics, Engagement Metrics etc. And there is also our old traditional media currency- GRPs or Gross rating points. (Simply put, GRP is reach x frequency) The more you have, the richer would be the brand. However, as we see more and more new media evolve ( internet and mobile), the ground rules have changed. The communication flow is not just one way but it is interactive and more importantly, measurable (this is at the cost of being labeled as cliche).

So, what would be the traditional measure of success in the interactive internet universe. Is it only going to be mere GRPs (reach of the media vehicle times the frequency of exposure) or the measurement of interaction? The new line of thought is to quantify this engagement in a number of ways. Not just look at pageview and visitations, but also look at time spent on the site, number of pages viewed during a visit and proportion of single access visits to the total site visits. In a nutshell, all exposures are not equal, some are more engaging than others. In fact, the beauty of this metrics is that it is not precise and needs to be molded as per the site goals. You can find this discussion “the peterson calculation” by a gentleman called Eric Peterson (obviously :)) by clicking on this link.

And as I was reading through this article, I was also forced to think about media creativity. In fact, I initially tried to build this article around a few creative sites and hence how the measurement differs. But alas, there is no reference content available on this subject. Hence I will concentrate on the first step of this conversion journey, which is the click.

In this whole context of buzz, engagement etc how important is a click.? This click which might come from a search engine, a banner, a creative blog (like mine) and PR sources across the net. What is the value of this click? How relevant is it towards brand building? A click is a click and is measured by a CTR or Click Through Rate (clicks/impressions served%). How important is a creative in this context? And how “Creative” is a creative in an online space?

Traditional Media like TV and Radio is easy, we have Ad recall and various studies. And we have presentations and PR on how good a Television creative was. We have various ad forums like Cannes, which tests the creative mettle. A good creative gets awards and ad recall. But what is the measure of an online creative? I had read another great article, which substantiates that the memory on the internet space is limited (and hence the power to influence brands, I would love to hear your comments on this, if you have reached this point). And I can guarantee you that you won’t remember which banner have you clicked on, what colour was it, what was the messaging and call to action. There are very banners which can contradict this statement. So how do you measure the worth of a banner (or any such communication) in the internet space. In our performance marketing jargon we call it CTR, the definition I described before. CTR gives you the return on your media buys, it brings the browser closer to the website and it is the first link towards the conversion.

Someone rightly said every click is a wish. And the website is to fulfill that wish. The creativity lies in driving the CTRs, which means altering few creative elements here and there to optimise the media performance. I have tried to use bright idea through the banners, but they don’t deliver CTR (or bring about the conversions on our website). Banners and text links are the lowest hanging fruits of the internet marketing domain, where the interaction starts.

The greatest impact on a brand through a website is through the website. There are a few links which I think is worth a mention, because they have done a lot good to the internet marketing and getting it closer to building brands (and not just limit it to a performance driver). They are the true testimonials to engagement/buzz/interactive marketing (the order is not a reflection of their ranking)….

1. Sunsilk Gang of Girls. They boast a decent traffic with 100K users within 4 months of its launch. Though originally, HLL had to use a lot of media muscle to drive traction, but they has been very persistent on this front. The best part is that the website is updated frequently, and now has a celeb zone with Priyanka Chopra, DJ Pearl, Piya Rai Choudhary, Dippanita sharma as contributors. The wesbite looks good, but the speed of page down load is very slow.

2. I love their communication, (have you seen the latest one, which is called “the missing link“?). It is entertaining, engaging and very innovative. Checkout the helpline lady. You will also come across a great list of problems- love, professional etc. The site tickles you and has a huge brand rub-off. It has a new avatar called . If you have any problem, just share.

3. Some innovative viral, which is a buzz in the internet circle. I have seen a few guys using this link to define their personality.

There are a few more on these lines, developed by the same agency, Webchutney.

4. Bingo:, A good site, but as great as the communication.

The brand advertisers are definitely getting excited about the medium,, (from Cadburys) are a good step in this direction which builds brands through engagement. None of the brand advertisers have a decent website, which interacts and engages the prospective consumer. In today’s scenario, web needs to treated as a touchpoint and a medium that can’t be ignored. Net is a medium that is designed and built to allow people to do things and get results from those actions.

Simplicity is the name of the game. The only thing that’s unreasonable is the use of interactive technology simply to interact. More often than not, you end up with something that’s overly complex. And although it may be creative, it doesn’t match up with the desires (the wishes) of the consumer. Buzz and engagement is secondary.

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Display Advertising, Email Marketing, Media Buying, Search Engines


The other day I had a tough time negotiating with one of the big online publisher. “We sell only on CPMs”, the publisher said and were ready to discount the price by 20%. CPM is the usual discussion starter for any media negotiations and vary from publisher to publisher (at times can be as high as Rs.500). CPM stands for Cost Per Million, but in reality is only cost per thousand (CPT). Let me illustrate with an example

If you buy 1 Million impressions on Yahoo at Rs.350 CPM, means that at the end of the campaign you will have to pay Yahoo
_____________x350= 350,000 Rs.

The other way to handle the negotiation is to get a fixed spot in prime real estate, at a fixed cost. e.g if you block the DHTML position (LHS position below the header). You might have to pay Rs.200,000 and would generate say 3 Mln impressions. See the following example to access if effective CPM might be a good idea to take a fixed position.

___________x1000= Rs.67

Thus indicating that given monies the same, Rediff is a better buy.

Most of the publishers keep revising the rates, depending upon the popularity of that position. internationally, it the third party auditing sources like comScore or Neilson net rating that corroborates this, however in India, it might be decided by the availability of the inventory (which brings us to the second most used term in discussion “Our inventory is sold out” ;). How many come to the website, what is the rightmatrix for measurement, time spent/Pageview, audience profile is a different discussion and Pandora’s box. Check this article.

CPM is the starting point of any discussion and can actually multiply into lot of mathematics. The first such matrics is GRP, which brand advertisers will find most relevant. You might recall that (like television)

GRPs= Reach x Frequency

comScore has a special tool in its module that will help you to access the reach and frequency of your campaign. I’m not familiar with Neilson Netrating (as they don’t have their services in India), but I’m sure they will also have this standard tool. This matrix will help you to synergise online campaigns with the other mass media component. However, the online world has a different brand dynamics. You might note, the first trigger of an offline campaign results in search for the keyword/website. Please note that this is an inexact science and as of now has no valid data point to corroborate assumption :).

There are other bunch of guys who swear by SEM. It is only by trial and error that you will find the solution to this misery and find that optimum Offline and Online mix.

CPM also brings us to the next big currency- CPC. You might get this standard reply from a big publisher- “We don’t sell on CPCs ;)” or “We can lower the CPM”. All they mean is that they don’t have the right technology to support CPCs. Let me illustrate CPC by example. If you buy 1 Million impression on Yahoo with Rs. 3.5 Lacs as the outlay and a fixed spot on Rediff Home page for Rs.3 lacs, how would you measure the deal.

One way to do this is to use the Media Planner reach and frequency through comScore and come about a GRP number (which a brand guy should).

However, if you happen to be a marketing manager of a website, where traffic is paramount and you need visits to increase the bottomline (with your bottomline at stake), you will consider clicks. Say Yahoo creative has a an average click through rate of 0.6% and Rediff has 0.3%. The number of clicks that you will get from respective Publishers is as under…

Yahoo….. 1,000,000 x 0.6%= 6,000
Rediff…. 3,000,000 x 0.3%= 9,000

CPCs will be as under

Yahoo…. 3,50,000/6,000= Rs.58
Rediff… 3,00,000/9,000= Rs.33

Indicating that Rediff real estate works better and is more cost effective to drive the click traffic (maybe Rediff should sponsor my blog). Please note that the numbers are only indicative and for the sake of discussion.

As a performance advertiser, you would want a real estate that drives traffic and converts, not necessary a property that gets you eyeballs. CPC when used will remove this doubt from a planners mind (a smart marketer will further better this by using a better performing creative and up the CTRs). The benchmark CPCs (and effective CPCs) should be in the range of Rs.3 and upwards depending on the category. If you are jobs, it is easy and becomes tough for a luxury product/service.

In the performance marketing space the “IN THING” is the CPA (cost per acquisition), which a further distilled version on CPCs and effective CPMs. The most expected answer from a Publisher will be- “What is CPA?” and “There is a policy against CPAs”. As a smart buyer you will chance upon and start the CPC discussion with the publisher again.

Truth is, CPA deals are a potential source of loss for a publisher, unless he is in a dire need to sell his inventory. By far, Google and Other Search engines will give the Best CPAs, followed by Affiliates (if your price and conversion rates are attrctive). Another fact of the matter is that a publisher would need huge investment to CPAs, MSN has Atlas, Komli has it own technology and so does Yahoo (but they still have to start monetising it). Let me illustrate it with one last example. Suppose Yahoo campaign converts at 0.5% and so does Rediff. The cost per conversion will look as under

Yahoo Total conversions= 6,000 clicks x 0.5%= 30
Total Cost= Rs.3,50,000/30= Rs.11,667

Rediff Total conversions= 9,000 clicks x 0.5%= 45
Total Cost= Rs.3,00,000/30= Rs.6,667

Indicating that Rediff drives much cheaper conversions (Now Rediff should definitely sponsor this blog;). This however depends on a number of factors, but most importantly what a publisher must realise is that most of the conversions is brought about by Non-prime real estate or the remamant inventory. This opens their inventory to a completely new set of clientele and huge potential to monetise their inventory. Check out this mediapost article…

Please do note that the smarter you buy, the better you can justify the value and at the end of the day it your numbers and board meeting that matters!!