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Television & radio will dominate; ad spends will see modest rise: Deloitte media predictions

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Television & radio will dominate; ad spends will see modest rise: Deloitte media predictions

The Technology, Media & Telecom practice at Deloitte has announced predictions for 2010 for the media sector. These predictions are an annual property and outline the key trends that would shape up the media sector globally and in India. The India perspective has been prepared for the first time this year.

Ashesh Jani, Media Leader, Deloitte India, pointed out, “According to the survey, the fastest growing medium will be television and radio. This medium is fast acquiring dominance. The business of radio broadcasting is booming using the present technology, particularly FM. The reach of FM in the past few years has been phenomenal in Tier I and II cities in India. As far as advertising spends are concerned, radio will cater to the mid-market segment, while television will be for the high spenders. Since growth in advertising spends are still lower than the global average of 8-10 per cent, these sectors (radio and television) have the sky to grow on.”

The predictions also take through the Indian advertising pie in India for this year. Jani noted, “The Indian advertising market had a bad time for a couple of quarters from the last quarter of 2008. Fears of the global recession catching up on the marketing spends on enterprises had the ad world worried. However, things changed as quickly for the better in 2009. The ad spends, though curtailed in 2009, picked up by the end of the year. As enterprises strive to retain market share in 2010 in the face of stiff competition, ad spends will see a modest increase and the expected incremental spends will be around 10 per cent.”

According to the predictions, the five key points that advertisers should watch out for, are: • Interest of the viewers for TV, for example, sports events, are gaining more eyeballs and advertisers need to move from the traditional sitcom and movie programmes

• Listening audience for radio tend to switch stations the moment their interest is lost. Advertisers need to broad base the campaign to have maximum coverage using several stations. FM will remain the preferred medium, with its expanding reach

• Need to target a campaign according to the needs of the user in the digital field (Internet). For this, advertisers need advance research data rather than monitoring clicks, profiles, etc.

• Publishing will always remain a dominant medium in India. With the advent of newspapers on the net, advertisers need to decipher advance research data before releasing campaigns

• Changes in technology for entertainment, for example, satellite TV, movies on demand, etc., also open a world of opportunity for advertisers and their clients. Additional content in, say movies, videos, music, etc., based on a fee can help advertisers target specify audience.

According to the survey, globally, India’s growth story is shared only by a few other countries like China and Brazil to an extent.

These predictions are based on internal and external inputs, including conversations with TMT companies, contributions from the many partners and senior practitioners specialising in TMT within the member firms of DTT, discussions with industry and financial analysts and conversations with industry and trade bodies.


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