Top Story

Home >> Media-Others >> Article

Ad spends on TV in India to grow 12-14 pc: Deloitte study

14-March-2011
Font Size   16
Ad spends on TV in India to grow 12-14 pc: Deloitte study

The Technology, Media and Telecommunications (TMT) practice at Deloitte on released its TMT Predictions India 2011 report. Deloitte believes that 2011 will see a beginning of active participation between telecom service providers and various industries such as information technology, media, banking, healthcare and education in reaching rural areas in India and offering services, which would empower them.

With teledensity in India reaching over 128 per cent in urban markets, the telecom industry now has its eyes set on the rural market, which holds a great potential with a teledensity of less than 26 per cent. “With most of the population living in villages in India, there is huge opportunity for TMT sector bring services such as healthcare, education, entertainment, banking and finance to the rural doorsteps,” said Jolyon Barker, Global Leader, TMT, Deloitte.

Some of the most significant TMT trends that will impact India in 2011 are:

Media
Technology has played a key role in influencing the entertainment industry, by redefining its products, cost structure and distribution. The Indian animation industry is expected to grow at 20 per cent to reach $253 million by 2013 from the current $122 million. Advertisement spends on TV are expected to grow at around 12-14 per cent and the medium will be preferred to other media, what with satellite and cable television making deeper inroads in semi-urban and rural markets.

“Newer technologies like LCDs and High-Definition TVs are maturing, but 3D television will take time to take off in India, with content and quality issues yet to be addressed by service providers,” said a Deloitte spokesperson.

Traditional print media in India is still playing steady, and is determined to reserve the second spot after TV. The horizontal expansion of newspapers will continue to grow in 2011 by way of additional supplements to the dailies in the form of pull-outs on finance, health, real estate, entertainment, etc.

The estimated size of the India radio industry is expected to reach $360 million by the end of 2014. The story of social networks’ growth will continue to be written in 2011 and for a few more years to come, in the same tone that it has been over-written in the past few years. The advertisement business on social networking sites will forever involve the concept of innovation.

Telecom
Deloitte believes that consolidation is inevitable in the telecom sector in the near future. In 2011, consolidation and managing a sustainable business model will get greater impetus and focus. For telecom companies, the increase in churn rate post-mobile number portability (MNP) would be lukewarm to about 5 per cent from the current 4 per cent per month in the initial phase of its launch, but in the long term it will become more stable.

“The advantage for customers from MNP would be better quality of service, lesser call drops, better infrastructures and increase in loyalty programmes and customer retention marketing techniques,” said a Deloitte spokesperson. Operators offering 3G services would have an edge with the introduction of MNP as not all operators have won the auctioned 3G spectrum.

Technology/IT
India has been at the forefront in leveraging technology to deliver governance. “The variety of programmes around the National eGovernance Plan (Mission Mode Projects) and the funding from donor agencies in this region will be key in taking this forward,” said a Deloitte spokesperson.

In 2011, more than 50 per cent of computing devices sold globally will be smartphones, tablets and non-PC netbooks, breaking the PC’s decades-long market dominance. In India, 80 per cent of the smartphone market is still untapped. There will be two main factors that will decide how soon the smartphones proliferate: price of the handset and cost of data usage.

Total IT-BPO industry is expected to reach $71.7 billion, accounting for 5.8 per cent of India’s GDP. Software and Services export revenues are estimated to grow over 16-17 per cent to reach $47 billion.

For decades, rural India has been plagued with the problems of illiteracy, poverty, exploitation and lack of specialist care. As industry verticals like healthcare ($77 billion by 2012), education ($80 billion by 2012), entertainment ($24.04 billion by 2014), banking and finance go digital, interplay within these industries and eventually a convergence could lead to a market opportunity, which will be much bigger than the sum of all its parts.

Now in its 10th year, Deloitte’s TMT Predictions are an annual series of global insights that showcase the emerging TMT trends that will significantly impact businesses and consumers in the coming year and beyond. The 2011 Indian TMT Predictions are based on research, in-depth interviews and input from Deloitte clients and alumni, industry analysts, leading global TMT executives.
 

Tags e4m

Chief Content Officer, Eros Group, on Eros Now's first original comedy series, reception to its short form content and code to crack original content strategy

The new Head of Office for FCB Ulka Bengaluru on her vision for the agency, her role in shaping brands over 16 years, and why it is important to have fun in advertising

Strategy Head, Zirca Digital Solutions listed out key aspects of a good content marketing strategy and performance indicators for successful campaign

Richard Ingleton, Group CEO, Kantar Insights, says it is not right to associate market research with just survey

right
left
ADVERTISING INDUSTRY GATHERS TO HEAR RAJAN ANANDAN AT AAAI SUBHAS GHOSAL MEMORIAL LECTURE BW BUSINESSWORLD MARKETING WHITEBOOK SEES KEY MARKETING LEADERS AT LAUNCH IN BENGALURU MINDSHARE BAGS TOP HONOURS @INDIAN CONTENT MARKETING AWARDS 2018 REALTY+ ORGANISES ITS 10TH CONCLAVE & EXCELLENCE AWARDS WPP CELEBRATES WINNERS OF BRANDZ 75 MOST VALUABLE INDIAN BRANDS IN MUMBAI MATHRUBHUMI LAUNCHES NEW VENTURE WITH MATHRUBHUMI MEDIA SCHOOL MULLEN LOWE LINTAS GROUP, OGILVY DOMINATE IAA AWARDS FOR CREATIVE EXCELLENCE THE AD CLUB RECOGNIZES INDUSTRY-LEADING BRANDS AT MARQUEES 2018 IN MUMBAI VIACOM18 SHOWCASES ITS NEW MULTI-LINGUAL WEBSERIES, THE VOOT ORIGINALS @MUMBAI EXPERTS PICK THE BEST OF CONTENT MARKETING AT JURY MEET FOR ICMA 2018 RAJDEEP SARDESAI LAUNCHES NEW BOOK ‘TRACKING INDIA IN THE MODI ERA’ AT DELHI CHLOROPHYLL ENTERS ITS 20TH YEAR CELEBRATING WITH FRIENDS AND ASSOCIATES INDUSTRY VETERANS ADDRESS ATTENDEES AT THE INMA SOUTH ASIA MEDIA FESTIVAL @DELHI RADIO CITY RECOGNIZES BUSINESS ICONS AT DELHI ICON AWARDS 2018 KARAN THAPAR & SHEKHAR GUPTA DISCUSS JOURNALISTIC ETHICS AT THE PRINT’S ‘OFF THE CUFF’ WOMEN ECONOMIC FORUM AWARDS 2018 RECOGNIZE WOMEN LEADERS OF THE DECADE THE 6TH EDITION OF IAA AWARDS RECOGNIZES THE WORK OF INDUSTRY PROFESSIONALS 11 INDUSTRY EXPERTS PRESENT  THEIR FAVOURITE DIGITAL CASE STUDIES @AD CLUB’S ‘D-CODE BUSINESSWORLD LAUNCHES 14TH EDITION OF MARKETING WHITEBOOK IN MUMBAI INDUSTRY VETERANS CHEER AS ADMAN AMBI PARAMESWARAN LAUNCHES NEW BOOK SPONG

Joshi joined SPNI in June, 2015 as VP & Head - Marketing & Analytics, Digital Business.

Founded in 2000, Emark is recognised as a pre-eminent provider of Salesforce multi-cloud strategy and solutions in Europe

Gurmit Singh, Former VP & MD, Yahoo India shares his thoughts on content marketing campaigns