Several new TV channel launches, new audience measurement systems for television, digitization of cable households, the steady growth of TV, radio’s exceptional performance, the sudden proliferation of content-on-demand with channels launching their own OTT platforms, the list goes on! These were just some of the key milestones of the Media and Entertainment industry in 2015.
To talk specifically about TV, according to the FICCI- KPMG M&E report 2015, the number of TV households in India increased to 175 million in 2015, implying a TV penetration of 62 per cent. The number of paid C&S subscribers is estimated at 145 million in 2015, implying a paid C&S penetration of 83 per cent. TV households are expected to increase to 200 million by 2020, with paid C&S subscriber base expected to grow to 174 million by 2020, representing 87 per cent of TV households.
Billions of advertising revenue is riding on television with INR 18.3bn in the year 2015 a, 17% CAGR over 2014. Television is re-inventing itself with the intervention of technology at every level across advertising, content delivery and audience measurement systems. Marketers are now targeting their audience on video content been shared across social media platforms like Facebook and Instagram based on TV viewership and publisher data. If you have missed your TA on TV, then brands can re-target them on social media. Brands launch TV commercial and then after understanding who it reached they plan its social push to fill the gaps. As this becomes more common in the industry, it will demand for more holistic buying and unified reporting from the audience measurement system.
Similarly, Geo-targeting, also known as ‘programmatic’ or ‘addressable’ TV, is an innovative method to enhance the use of available ad inventory. Advertisers can choose to air different ads on the same channel in different regions to maximize the impact and reduce costs. This is especially important in a fragmented, price sensitive market like India. Read more about it here; Amagi featured in the FICCI_KPMG report on M&E Industry, 2015.
As brands increase their focus on tier-2 and tier-3 cities, the business models need to evolve and will no longer be similar to what it was when they were targeting metros and tier 1 cities. Hyperlocal is the the new normal and is seen across all mediums- TV, Print, Radio, Digital, OOH. Particularly in markets with low internet penetration especially print payers are going hyperlocal by launching several local editions, example, Dainik Bhaskar Group launched the editions of its newspaper in Bhagalpur, Muzaffarpur and Gaya in Bihar, having launched a Patna edition in 2014. These launches took the total tally of the newspaper to 40 editions in 14 states. The Dainik Bhaskar Group also launched seven district editions in Hajipur, Purnea, Biharsharif/Nalanda, Arrah, Chhapra, Samastipur and Darbhanga in 2015. Several other newspapers like Lokmat and Hindu are planning a hyperlocal approach to their brands. TV, with the adoption of technology much like digital is now capable of offering hyperlocal media solutions to brands.
In this world of fragmented media, getting those right eye balls has become as important as getting those incremental eye balls and industry needs technology players like Amagi to make this possible.