TV & digital together will become 70% of media share: Vivek Sharma, Anchor Electricals
Sharma, MD, Anchor Electricals, spoke on the topic 'Television Advertising in the Digital World' at the recently held fifth edition of the Prime Time Awards and TV First conference in Mumbai
At the recently held fifth edition of the Prime Time Awards and TV First conference in Mumbai, Vivek Sharma, Managing Director, Anchor Electricals Private Limited spoke about ‘Television Advertising in the Digital World’ and shared how the two are slated to complement each other.
Speaking about the changing media landscape, Sharma said, “We have seen more disruption in the last ten years than what we have seen in the last 100 years. The average age of disruption is also coming down. And all of us in marketing are truly blessed. Our job as marketers is to get connected and to stay connected. There is a whole world that is changing around us. If you look at demographics as an example, if our population is growing at X then the number of households is growing at x+ 10 per cent and the urbanisation is growing at x+10+20 per cent. The media is changing, the way we consume media is changing.”
Rise of Digital
Sharma also spoke about the rise of digital and how it has become an exciting piece in the marketing mix.
“If you look at the revenue share media wise, TV is the big dog in the room, the dog wags the tail and not the tail that wags the dog. If you go by today’s numbers, digital advertising is the tail and the big dog is TV. TV is growing at 12 per cent and while digital is approximately half of that, it is growing at thrice the pace, which is why digital as the tail is as exciting as the dog,” said Sharma.
“If you look at all the media platforms, it is clear that media still has room to grow, there is no stagnation and there is no saturation. Digital is growing fast as I said, three times the rate of TV, but growing all the same. If you look at the percentage of penetration, again TV leads today, but in the next ten years’ time, digital will probably be a big challenge,” he added.
According to Sharma, small towns and rural areas will hold key to the growth of TV going forward, “If you look at where the growth is coming from, small towns and rural areas are what will drive the growth of TV going forward. “
Share of TV to Witness Consistent Growth
In his keynote, Sharma also highlighted that the share of TV is growing from 64 to 66 per cent and TV owning households are going up.
“TV advertising for many small brands is costly and there have been recent advances in technology which have helped regional brands to advertise without losing their profitability. If you look at the way TV as a universe is itself growing, if you see the cost per million, the ad rates and market shares of huge brands are not affected, but smaller brands have come in and a lot of new brands have emerged,” stated Sharma.
“If you see the number of channels, there has been a boom, two and half times increase in 8 years. And if you see the increases in the number of brands coming to TV advertising, that has gone up by 150 per cent in eight years. So the number of brands and the number of channels have shown significant growth,” remarked Sharma.
TV and Digital to Co-exist
According to Sharma, despite the growth of other media, the reach of TV has not been affected. “If you see the trend going forward, in the next five years the share of TV is going to be in the range of 40 per cent or so, print is getting hit and likely to decrease by 10per cent. This loss of 10 per cent is going to be gained by digital in turn. Digital will cannibalise print,” he said.
“TV and digital together will be 70 per cent of media share. On the whole if you look at just TV, it is growing at a CAGR of 16 per cent, which might come down to 12 per cent. And digital along with new age media like OTT will start emerging as a challenger to TV going forward. TV and digital measurement will span advertising, reduce wastage and increase ROI of each rupee spent,” said Sharma.
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