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S-Group Insights: Cement category heavily reduced TV ad volumes in 2014, Paint category still growing

22-September-2015
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S-Group Insights: Cement category heavily reduced TV ad volumes in 2014, Paint category still growing

exchange4media.com and Strategy Group, the Analytical Arm of TAM Media Research, jointly bring  you a weekly column 'S-Group Insights' on Advertising Trends of different Product Categories. This column  will be published every Tuesday and aims to aid  Advertisers, and Media Agencies understand changes in Media Consumption patterns leading to Scientific Advertising Investments. In the current column, we take a look at the Building, Industrial & Land Materials/Equipments as a category.

Building, Industrial & Land Materials/Equipments as a category comes under the Infrastructure Sector. With various major development projects taken up by Government, funding for infrastructure industry has been increasing year on year. In the 12th Five Year Plan, the government has earmarked approximately $1 trillion for infrastructure investment. According to IBEF, with the ease in FDI norms for quite a few sectors of infrastructure development, the result could be a $16 billion to $21 billion industry by 2020. Indian Construction Industry value is estimated to be more than $126 billion. With 40% of the funding for infrastructure development coming from private players, it would be interesting to see their marketing initiatives and how they use various mediums to advertise themselves.

Building, Industrial & Land Materials/Equipments consists of Paints, Cement, Building Materials/systems, Corporate-Industrial/B2B, Sanitary Wares, Industrial Equipments/products/B2B, Tiles & Floorings, Steels, Earth Moving Equipments and all such businesses related to Construction and Infrastructure.
[Note: Builders & Developers do not come under this category].

 This category has a share of 2.6 % on TV ad volume in last 5 years out of which Paints & Cements contributes to 62% in TV & 53 % in Radio. Interestingly, Corporate-Industrial/B2B & Retailers advertise by a high margin in Print.

Television media showcases a year on year trend growth of 24 % till 2013 but it grew to a mere 2 % in 2014. Cement being the major contributor of this super category have heavily reduced their TV ad volumes in 2014 and impacted the overall growth whereas paints are still growing.

Shree Cements, the top player in Cements contributing to 19.6% heavily reduced its TV advertisements in Hindi News by 55% and increased its presence in Hindi Regional News channels by 42%.It held up its advertisements on NEWS 24 in 2014 and increased its advertisements on INDIA NEWS. Interestingly, INDIA NEWS is the only Hindi News which showed a growth of 160% from Shree Cements & other Hindi News channels witnessed a drop.

Talking about the Radio, it can be seen that the heavy drop in Cement complemented by growth in Paints & Building Materials/systems lead to a stable trend from 2013 to 2014. Binani Cement led to the major drop in Cement advertisements on Radio by a huge 92 % in 2014 across all markets. This could be directly correlated with its suspension of operations in 2 plants of Rajasthan due to loss of revenue & debt during that time.

On the other hand, Asian Paints hugely focused on radio in paint category & Tata Steel in Building Materials/systems category.

In case of Tata Steel, Tata Tiscon is the brand which has invested particularly in West Bengal market radio advertisements by a whopping 158 %.This is could be supported by the news article which said that 225 doors would hit some of the retail outlets in semi-urban West Bengal that showcase Tata Tiscon, the rebar brand from the Tata Steel stable, with proper advertising around it by the first week of July 2014.

It is interesting to find that Asian paints have become more brand specific in their advertisements over the years with lesser focus on the company branding.

Print media received a good jump of 52% from particularly Paint segment in Kerala Market last year. Indigo Paints Pvt. Ltd clearly took an enormous leap of 400% from 2013 surpassing Berger Paints which is the second player in national market. However, it can be noticed that Indigo never campaigned with such vigor on radio but it effectively started advertising on TV on multi lingual channel genres in 2014.

Post Indigo paint targeted approach, Asian Paints also aggressively started advertising in Kerala Print media in 2014 by a huge margin as compared to 2013 to maintain its leadership position.

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