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Lintas takes a closer look at Indian media with Lintas Media Guide 2006

30-June-2006
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Lintas takes a closer look at Indian media with Lintas Media Guide 2006

Lintas Media Guide 2006 is an analysis of media spends and buys in the year gone by. Released by Intellect, a part of the Lintas Media Group, it studies all genres – television, print, radio, Internet, cinema, and outdoor – giving a thorough break-up of the media environment and general media industry trends of the previous year. With data compiled from all over India, the guide aims at being an all-inclusive take on the Indian media industry and players.

Lynn De Souza, Director, Media Services, Lintas Media Group, said, “Media closed 2005 on a happy note and 2006 promises to be an optimistic year. The total advertising media spends showed a growth of 15 per cent, reaching a figure of Rs 15,941 crore. While print continued to hold more than 57 per cent of the total media spends, radio as a means of advertising saw an increase in ad spends. Cinema, outdoor, and the Internet on the other hand capitalised on innovations. In many ways, 2006 will be a year that we can all excitedly look forward to.”

Some of the highlights of the report state that TV saw a continued increase not only in the number of channels but also of ad spends. TV spends increased by news channels, children channels, niche entertainment channels – all continued adding to the existing channel bouquets. Immense progress was also seen in the TV delivery systems. DTH, IPTV, Digital Cable, CAS – all have become a feasible reality now limited only by government stipulations.

These developments promise to aid faster penetration of satellite channels to the hinterlands and at the same time will enable providing a richer and interactive viewing experience for the upper town populace. TV research continued to be a matter of hot debate and Amap, the new entrant in the industry, steadily but surely managed to set up a formidable TV measurement panel aiming to be far bigger in sample size than the existing TAM panel. 2006 will have TAM and Amap waging an even more pronounced battle of ratings.

Press, on the other hand, saw one of the most dynamic years. Competitive activity was at the highest. In the quest for growth, dailies were found to drive the growth of press media as a whole.

Magazines continue to show a lukewarm response in readership surveys, but are building a customer base for each niche audience that they cater to. While dailies are extending their brands across geographies, new titles are being launched in magazines driven by the eased FDI norms. Print, with ad spends of Rs 9,064 crore, still holds 57 per cent of total media spends.

FM radio, meanwhile, has matured as a commercial advertising option with a steady increase in the amount of ad spends as well as the CPTs. The industry was further invigorated by the initiation of the second phase of FM licensing. While most existing players have applied for additional licenses to expand their networks, many new entrants have also pitched in to join the FM radio business.

All this augurs well for the radio medium and it is bound to move the current share of radio spends from 2.3 per cent to higher levels in the coming years. However, there is a focus on development of adequate listenership research that is required to harness the full potential of the medium.

Internet, cinema and outdoor are all becoming significant in the volume of spends that these media garner. These media are innovating daily and relating to the audience in newer ways, having managed to define a specific role in brand communication beyond just providing reach. 2005 was a high growth year for all of them and there is a lot of optimism regarding their growth in the coming years.

The changing Indian demographics have been realised by advertisers and the media industry. While advertisers are aligning brands to cater to the growing youth segment, the media industry is building properties and expertise in delivering content and brand messages to this segment. As these youth become the focus, the constitution of media and the focus of media is undergoing a change. While in the current media there is an increased focus to driving management and involvement rather than just reach, there are more and more media options that are evolving to involve more audiences with close and direct interaction.

While media continues to excite and engage audiences and advertisers, there are more and more issues emerging relating to effectiveness and accountability. These issues need to be addressed for a sustained growth of the industry.

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