Its a wonderful report by GroupM. Very insightful. Will give you a complete idea of Indian Media Industry with all the facts and figures you are looking for.
To download this report please copy paste the following link in your web browser:
http://rapidshare.com/files/260479643/Indian_Media_Industry_GroupM_Report_April_2009.pdf
Friday, July 24, 2009
Wednesday, July 08, 2009
Top 500 Marketers Spend Just 5% On Internet; Online Ad spends To Grow 44% In FY10
Leading digital agency has released Digital Media Outlook 2009: A Study Of The Indian Digital Marketing Scenario. While the study has the customary projections on ad spends, what we found more interesting was the ‘perception mapping’ exercise that plots the perceptions of brand heads, marketing heads and other senior executives across India’s top 500 marketers. (Click the image for a slideshow of the key slides from the study.)
Here are some interesting numbers and findings from the study:
1) Only 82% of the top 500 marketers spend any money online. Together, the top 500 marketers in India spent Rs5,163.26 crore in 2008-09. Of this, only 5.4% (about Rs278 crore) was spent on the Internet. The study estimates that this amounts to 64% of total Internet ad spends—this means the total money spent advertising on the Internet is about Rs435 crore.
2) Banking, Financial Services and Insurance, a sector that accounts for 17% of ad spends among the top 500 marketers, accounts for 23% of all online ad spends. Big spending sectors such as FMCG, consumer durables, and consumer services and utilities, which together account for some 70% of total ad spends, however, account for only 30% of ad spends online.
3) ‘Increase awareness’ ranked as the biggest brand objective among marketers, with 60% of respondents identifying that as the top priority. Only 9% thought ‘consumer satisfaction/engagement’ to be a top priority. This alignment of priorities doesn’t augur well for the Internet as a medium—reaching just 4% of the population. While reach is Internet’s weakest point in India, consumer engagement might be its strongest. ‘Reaching the target audience’ or ‘building awareness’ is also the biggest driver of budget allocation.
4) Those who spend money on the Internet, thinks the medium is the most effective in Lead Generation/quick response/conversion. “It is evident that the medium is popularly perceived and is being used as ‘a direct marketing platform’ rather than a medium of marketing communication,” the report, which terms this perception as a ‘blinkered vision’, says.
5) An interesting perception map shows how marketers from nearly all verticals (except consumer durables) move away from thinking on Internet as the ‘most engaging medium’ or ‘most measurable medium’. (Click on image to watch a slideshow.)
6) Outlook for FY10: Overall ad spends will fall 10%, but thanks partly to a low base, online ad spends will grow 44%. Total ad spends by top 500 marketers projected to slow to Rs4,653 crore from Rs5,136 crore. Total online ad spends likely to grow to Rs625 crore.
The study shows the gulf between perception and reality when it comes to advertising on the Internet. “The study suggests marketers believe the Internet is not the most measurable medium, it comes as a surprise since as an industry we thought we had done enough parading around the fact that we are the most measurable medium. CPM, CPC, CPL, CPA, CPT and what not. Whats clear is that we are not on the same page as the average advertisers.
Dotcoms and early adopters fuelled the digital media spend growth till about last year, and those numbers have plateaued for an year now. For the story to start moving from here on, its obvious the traditional advertisers who constitute 2/3rd of the spends across media, need to understand digital media and its benefits better. And that in fact comes back to all of us in the digital industry ecosystem to evangelize—the agencies, the publishers, networks and the likes.
Here are some interesting numbers and findings from the study:
1) Only 82% of the top 500 marketers spend any money online. Together, the top 500 marketers in India spent Rs5,163.26 crore in 2008-09. Of this, only 5.4% (about Rs278 crore) was spent on the Internet. The study estimates that this amounts to 64% of total Internet ad spends—this means the total money spent advertising on the Internet is about Rs435 crore.
2) Banking, Financial Services and Insurance, a sector that accounts for 17% of ad spends among the top 500 marketers, accounts for 23% of all online ad spends. Big spending sectors such as FMCG, consumer durables, and consumer services and utilities, which together account for some 70% of total ad spends, however, account for only 30% of ad spends online.
3) ‘Increase awareness’ ranked as the biggest brand objective among marketers, with 60% of respondents identifying that as the top priority. Only 9% thought ‘consumer satisfaction/engagement’ to be a top priority. This alignment of priorities doesn’t augur well for the Internet as a medium—reaching just 4% of the population. While reach is Internet’s weakest point in India, consumer engagement might be its strongest. ‘Reaching the target audience’ or ‘building awareness’ is also the biggest driver of budget allocation.
4) Those who spend money on the Internet, thinks the medium is the most effective in Lead Generation/quick response/conversion. “It is evident that the medium is popularly perceived and is being used as ‘a direct marketing platform’ rather than a medium of marketing communication,” the report, which terms this perception as a ‘blinkered vision’, says.
5) An interesting perception map shows how marketers from nearly all verticals (except consumer durables) move away from thinking on Internet as the ‘most engaging medium’ or ‘most measurable medium’. (Click on image to watch a slideshow.)
6) Outlook for FY10: Overall ad spends will fall 10%, but thanks partly to a low base, online ad spends will grow 44%. Total ad spends by top 500 marketers projected to slow to Rs4,653 crore from Rs5,136 crore. Total online ad spends likely to grow to Rs625 crore.
The study shows the gulf between perception and reality when it comes to advertising on the Internet. “The study suggests marketers believe the Internet is not the most measurable medium, it comes as a surprise since as an industry we thought we had done enough parading around the fact that we are the most measurable medium. CPM, CPC, CPL, CPA, CPT and what not. Whats clear is that we are not on the same page as the average advertisers.
Dotcoms and early adopters fuelled the digital media spend growth till about last year, and those numbers have plateaued for an year now. For the story to start moving from here on, its obvious the traditional advertisers who constitute 2/3rd of the spends across media, need to understand digital media and its benefits better. And that in fact comes back to all of us in the digital industry ecosystem to evangelize—the agencies, the publishers, networks and the likes.
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