The Indian media sector is performing well over the years, backed by rising consumer payments and advertising revenues across sectors. The industry is driven by increased digitization, high Internet usage and growth promoting policies taken by Govt. in the recent past.
The current Indian media and entertainment sector is estimated at 1050 billion INR and is expected to grow at 14% to 1965 billion INR. The industry growth in recent times is fuelled by significant growth in digital advertising, which has grown at approx. 45% and is expected to grow at 30% over next 5 years ( As per KPMG sector report).
The role of strategy and marketing has increased manifold in media management from a brand perspective over last few years. Brands are increasingly micromanaging media decisions both from a planning and buying perspective. Apart from greater accountability from spends there is also a great pressure to justify them with clear ROI goals.
Measurability continues to be one of the biggest challenges for the brands for all the segments including TV, Print, Radio, OOH, TV advertising etc. Brands are increasing their focus on analytics, developing marketing & research tools, consumer data to formulate best possible ROI equations. A lot of brands are strategizing on combining digital with other mediums in their media mix to enhance efficiency. Last year saw increase in experimental marketing spends which is combination of digital and BTL. Similar innovations are also sought in digital and print media mix too.
These days, there is an increased role of marketing, research and strategy in setting the right target group definition, market prioritization, setting efficient media weights, media mix decisions, budget setting and scheduling, optimizing the buying process and evaluating various types of media buys.
Innovative and advanced econometric modeling is being sought in determining media weights and benchmarking like brands in other categories. Advanced modeling techniques are also being sought in marginal analysis, efficiency planning for setting media budgets, scientific ROI planning in the brand context and breakeven planning.
For media mix decisions, marketers apart from understanding the competition activity to make a final decision also focus on creative considerations which results in media choices beyond the quantitative recommendation. Marketers focus on these innovations to break out of the clutter, and try to communicate the brand message in an interesting way so that noticed by the TG and provides the necessary differentiation to the brand.
Marketers in the recent time have also increasingly using strategic tools to bring efficiency in the buying process. Apart from a proper environmental analysis to formalize the buying brief, there is an increased focus on tracking media performance on parameters like reach, share, time-spent, benchmarking past deals and analyzing competition buying strategy to build cost efficiency. Marketers are increasingly using campaign based market intelligence data for efficient management of the deal and post buy analysis and management.
For near future, with Internet and digital advertising the new buzz words and with Internet access, new spectrum for mobile and ongoing digitization in cable as the growth drivers for the future, there is an increasing role for innovative marketing strategy in media management for brands to create a differentiating positioning in the market and to build up cost efficiency.
The author is Head - Marketing Intelligence & Consumer Insights, LG Electronics India.