S-Group Insights: LIC India increases print ad volume by 60% in 2015
An insight shared by S-Group states that LIC is a sole public sector company increasing its print ad volume by 60% & is a major contributor to Group Life-Insurance.
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 week 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 insurance category.
The insurance industry in India consists of 53 insurance companies, of which 24 are in life insurance business and 29 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. Among the non-life insurers, there are six public sector insurers. India's life insurance sector is the biggest in the world with about 360 million policies which are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over the next five years.
The insurance industry plans to hike penetration levels to five per cent by 2020. The Indian insurance market is a huge business opportunity waiting to be harnessed. India currently accounts for less than 1.5 per cent of the world’s total insurance premiums and about 2 per cent of the world’s life insurance premiums, despite being the second most populous nation. The country is the fifteenth largest insurance market in the world in terms of premium volume, and has the potential to grow exponentially in the coming years.
Let's look at the advertisement trends of the insurance domain on different platforms i.e. Print, Television & Radio:
Print promotions of Banking/Finance super category majorly consists of product groups, Audited/Unaudited Financial Reports and Balance Sheets. Promotions of these two product groups contribute above 50% to the super category followed by Insurance-Life Product Group, whose contribution is 6% & 7% in 2014 & 2015 respectively.
Advertisement volume of Insurance Product Group has increased from 7.57 Mn SQC (2014) to 10.07 Mn SQC (2015). Life Insurance Corporation of India has highest Advertisement volume in 2014 as well as 2015.
Life Insurance Corporation of India increased advertisement volume in 2015 by 60%, whereas Top Advertisers of 2014-- SBI Life Insurance Company Ltd, Bajaj Allianz Life Insurance Co Ltd, India Post and HDFC Standard Life Insurance Co Ltd witnessed decrease in advertisement volumes in 2015.
Overall promotions of Banking/Finance/Investment super category witnessed a drop of 24%. In 2014, the total number of advertisement hours were 6716, which dropped to 5115 in 2015.
Similar to the Print platform, this category is driven by Product Group- Insurance-Life. The overall advertisement duration of Insurance-Life Product Group dropped by 46% while promotions of other product groups like Banking-Services and Retail Banking also witnessed a drop in 2015.
Most of the Advertisers of Insurance-Life product category reduced their promo duration on Television platform in 2015 as compared to 2014.
LIC INDIA, which is a major advertiser in Life Insurance product category, reduced its TVC duration by 40% in 2015 as compared to 2014.
Also SBI Life Insurance Ltd, Birla Sun Life & HDFC Standard Life Insurance reduced advertisement duration on Television platform in 2015.
In 2015, Life Insurance Corp. of India, which is a major Advertiser on all the platforms, reduced its focus on Television & increased on Print.
In 2015, the number of products (Insurance Schemes) promoted by LIC India on Print platform have increased and considerably decreased on TV platform.
In 2015, LIC India preferred to promote LIC as a brand on Print platform along with policies which were not promoted in 2014. On publication level, LIC India Shifted its focus from Dainik Bhaskar( Publication Madhya Pradesh) to Dainik Jagran (Publication Madhya Pradesh ) in 2015.
LIC India increased its overall promotions in each zone, but on the national level there was a noticeable dip in the advertisement volumes. Markets like Tamilnadu, Andhra Pradesh and Karnataka witnessed increase in Print advertisement volumes in 2015. In the Karnataka market, overall print promotions of LIC India increased by 86%.
On the contrary, LIC India reduced its TVC time on Regional Channels, especially in the southern market drastically, implying the shift of promotional focus from Television to Print.
LIC India increased its promotions on Radio, whereas SBI Life Insurance Company Ltd and Birla Sun Life Insurance Co Ltd reduced their commercial duration. In 2015, 80% of commercials played on Radio platform were of LIC India under Life-Insurance Category. LIC India also increased its promotions by 45% in all the zones. Increase in promotions levels were witnessed in the west zone and in the states of Maharashtra & Gujarat.
Life Insurance Corporation (LIC) is the sole public sector company which dominates in terms of Advertisements on all the platforms i.e. Print, Radio & Television, and is also a major contributor to Product Group Life-Insurance. In 2015, LIC India increased its promotional focus on Print and Radio but reduced it on Television. Overall promotional focus was increased in the southern markets in India, and the promotional focus on Radio was primarily seen in the west zone and in the states of Maharashtra and Gujarat.
Source: TAM Media Research, analysis conducted by S group, an analytical arm of TAM Media Research
Data Sources: TAM AdEX
Period: Jan 2014 to Dec-2015For more updates, be socially connected with us on
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