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 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 automobile industry as a category.
Automobile is one of the largest industries in the Indian market. Globalization and increasing competition are changing the face of industry. Hence, only those companies that find new ways to create value will prosper in the future. Advertisers need to consider branding as an investment as this strategy helps to make advertisers more focused and able to differentiate their brands from the competition.
The automobile category has seen rise in ad volumes across all the mediums in Yr'15 from Yr'14. (i.e. ad volume on TV up by 27%, Radio by 20% & Print by 13%)
Among the major advertisers contributing the highest share of ads across all medium, Maruti Suzuki India Ltd is way ahead of its competitors.
As far as the TV medium is concerned, Renault Ltd overtook Maruti Suzuki India Ltd in Yr'15 with a staggering 574.6% increase in its ad volumes.
Renault Ltd launched new brands like Kwid, Logdy, Duster Explore Edition etc., contributing 91% of the total Renault Ltd ads on TV.
In a similar way, Maruti Suzuki witnessed 52% rise in its advertisement volume on TV by introducing new brands in Yr'15 from Yr'14 i.e. Baleno, S-Cross, Nexa, Swift Glory Sport Ltd Edition, Ciaz Diesel, Celerio Diesel, Alto K10 Urbano Ltd Edition and Dzire. New Brands of Maruti Suzuki India Ltd contributed 65% of total ad volumes in Yr'15 on TV.
If we look at Radio, the major advertisers in the automobile category included: Maruti Suzuki India Ltd, Hyundai Motor India Ltd & Honda Cars India Ltd in Yr'15.
Maruti Suzuki India Ltd increased its ad volumes by 28% in Yr'15 from Yr'14, whereas Hyundai Motor India Ltd raised it by 88% & Honda cars India Ltd by 108% in Yr'15.
Unlike Maruti Suzuki India Ltd’s ads on TV, its Radio ads focused on existing products in Yr'15. i.e. Alto K10/ Alto 800, Celerio, Swift, etc.
Hyundai aired ads highlighting its complete range of cars in Yr'15. Even Honda aired Honda Amaze ads followed by its other brands.
As far as the Print medium is concerned, it witnessed 13% rise in ad volumes in Yr'15 where the main advertiser was Maruti Suzuki India Ltd.
Maruti Suzuki India Ltd raised its ad volumes by 40% in Yr'15 from Yr'14 followed by Hyundai Motor India Ltd with 10% rise & Ford India Pvt. Ltd. by 52% in Yr'15.
Maruti Suzuki India Ltd. aired 42.3% of its ad volumes for launching its new brands in Yr'15. i.e. S-Cross, Baleno, Ciaz, Alto K10, Celerio etc. Hyundai applied the same technique which it followed on Radio by focusing of Hyundai’s entire range of cars. Ford India focused on its brand EcoSport followed by its other brands.
Earlier, Tata Motors Ltd. was the highest contributor in terms of ad volume across all the mediums in Yr'2011. However, it has witnessed a tremendous drop in ad volumes in all the mediums in Yr'15 from Yr'11. (i.e. drop of 75% on TV, 59% on Radio & 68% in Print in Yr'15 from Yr'11). Tata Motors Ltd witnessed a maximum drop in its ad volumes in Yr'14 followed by Yr'15.
All the brands of Tata Motors Ltd. witnessed a drop in their ad volumes. While the Tata Nano brand was considered to be the major ad volume contributor from the Tata Motors stable, the brand was popular till Yr-2013 when it was considered to be the biggest brand. Now it has witnessed a drop in inventory of Nano cars on account of low demand in Yr-2014, thus impacting its overall ad volumes.
Similarly, most brands of Tata Motors Ltd. like Vista Sedan, Indigo Manza, Aria, Indica V2, Land rover, Venture etc., have stopped airing their ads on all the mediums in recent period thus impacting the overall ad volumes on TV which have led other advertisers climb the ladder in recent years.
Source: TAM Media Research, analysis conducted by S group, an analytical arm of TAM Media Research
Data Sources: TAM AdEx, http://articles.economictimes.indiatimes.com/2014-06-14/news/50581706_1_sanand-plant-nano-twist-nano-plant
Period: Jan' 2014 to Dec'2015