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 Wednesday 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 Consumer Durables industry.
Global corporations view India as one of the key markets from where future growth is likely to emerge. India is expected to become the fifth largest consumer durables market in the world by 2025. The sector is expected to double at 14.7 % CAGR to USD 12.5 billion in FY 15 from USD 6.3 billion in FY10. India’s market is consumer driven, with spending anticipated to more than double by 2025.
This provokes Indian Advertisers to market and advertise their products, services and brands, hence increasing necessary exposure. Even with the robust growth, the advertising of durables on TV as well as in print has not followed a similar trend. After substantial growth in year 2010, the category has witnessed a drop in media presence (TV and Print) in the last couple of years.
TV has seen a 16% rise in durable ads in 2015 with respect to 2014. While Print gained by 7% in durable ads in 2015, whereas the duration on Radio suffered a 9% fall.
Durables is a vast category which consists of different products like Consumer Durables, Lighting Products, Water Purifiers, Televisions, Air conditioners, Power backup systems and Kitchen products etc.
Water Purifiers, Lighting Products, Wires and Cables, Refrigerators and ACs have seen a rise on TV in 2015, whereas Televisions, ACs, and Geysers have seen a tremendous rise in Print advertisements.
Among the top product groups, water purifiers ad volumes increase around the rainy season, while that of air-conditioners increase around the summer season. Television ads grow in the festive season. Geysers/solar geysers and water heater ads are heavy during the winter season. Lighting products, electrical switches, pressure cookers and other consumer durables/ home appliances have maximum ads during the last quarter.
The major contributor to the growth in TV in 2015 were Water purifiers, Fans, Refrigerators and UPS. Looking at the overall advertising, Water purifiers, Televisions, Fans, Refrigerators and Ups are the key product groups in this category, with combined advertising share of around 38%.
The major contributors to the fall in Print ad volumes in 2015 were--water purifiers, fans, refrigerators and Ups. Looking at the overall advertising, water purifiers, televisions, fans, refrigerators and Ups are the key product groups in this category, with combined advertising share of around 33% in Print.
Samsung and LG are the top players in the Durables category with cumulative 9% contribution on TV and 17% on Print. Philips and Exide have seen a Rise in Ads on TV wrt 2014, and on Print LG, Videocon, Sony and majorly TTK Prestige have seen a rise.
South happens to be the market with maximum Print exposure in the Durables category. There is considerable difference in the media plans of top players within the Print category. Samsung has reduced its expenditure in all zones, but continues to be one of the top investors, along with LG in Print for Durables category.
Times of India, Dainik Bhaskar and Dainik Jagran are the top publications preferred by top brands . Ad volumes have seen a fall in all zones and especially in the top publications. In the South Zone, Samsung has reduced Ad Volumes in all the top publications. Eenadu and TOI are the most preferred publications in the South Zone by Samsung and LG
Television product group has seen a fall on TV. The top advertisers for Television are - Sony, LG, Samsung and Panasonic. LG, Panasonic and Samsung have been investing the most on HD channels for the past 2 years. Sony has also increased Ad duration on HD Channels in 2015.
Kent RO has its major focus on water purifiers, and with the launch of their air purifiers, some focus has been given to this category too. Kent RO has chosen TV for the promotion of its air purifiers. The top Durable Advertisers - Samsung and LG have avoided air conditioner advertisements on TV.
The top companies like Samsung and Sony have presence in multiple categories. Their focus of advertising has also been changing over the years. On TV, the focus on refrigerators has been increasing over the last three years, while televisions and other consumer durables/home appliances category continues to dominate with major share across years. Major trend observed is that the top advertisers have preferred Television over Print over the years.
Source: TAM Media Research, analysis conducted by S group, an analytical arm of TAM Media Research
Data Source : TAM ADEX ; www.cci.in/pdfs/surveys-reports/consumer-durables-industry-in-india.pdf)