 A
handful of companies hold the key to TV ad revenues! - A TAM
ADEX report
Oct 10, 03 |
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| Is the TV Broadcast industry
getting sufficiently broadbased? One would assume the answer
to be a resounding yes what with all the local, regional brands
that one sees on Television today. Now one would assume that
because of this new breed of advertisers coming onto Television,
this industry's dependence on the large advertisers would have
reduced. The team at TAM ADEX set out to find out just that.
We also wanted to see if Pareto's Principle was applicable on
the TV industry. Let's see then what the team found out -
1. Is TV getting broadbased?
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| As is seen in the chart above, the advertisers
on TV have grown from 2000-odd companies to almost 5000 within
a span of only 8 years!
2. Has the dependence on the top few advertisers
come down?
To answer this question the team at
ADEX set to find out how many advertisers did it take to generate
80% of Total TV Advertising Revenues. The chart below tells
a scary tale on that issue! What we can see from the chart
is that the number of companies that have a hold on the bulk
of TV ad revenues is a small club that's actually getting
smaller! It took only 173 companies of 4895 that advertised
on TV to account for 80% of
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3. Now for the final test - "Does the
TV industry follow Pareto's Principle? Do the 80% revenues
come from 20% advertisers?"
This analysis displays an absolutely breathtaking trend!
Not only does the TV industry breach Pareto's Principle,
it does this by a large margin as is seen in chart below.
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| Last year only 3.5% of TV Advertisers
i.e. around 173 of the 4895 companies accounted for 80% of the
3900 Crores of TV Spends! That should answer the question on
whether this industry is adequately broadbased!
TAM will be following these trends and getting you toplines
of these continuously in the coming weeks. Watch this space
for more!
(Sources used - TAM Peoplemeter data & TV ADEX)
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