Sector Report: NEW FOCUS AREAS

Power of emerging mediums

With Internet penetration increasing across the country, the Internet advertising is projected to reach Rs 9.5 billion by 2010 at a CAGR of 43 per cent from the present Rs 1.6 billion.

The Media and Entertainment industry in India is set to reach Rs 1 trillion by 2011 from its present size of Rs 437 billion, growing at a modest 18 per cent compound annual growth rate (CAGR), according to the 2007 annual edition of the FICCI-PricewaterhouseCoopers Report. With such a stupendous growth in the offing, importance has to be given to other mediums than what is being given to traditional mediums like television, radio and print.

Internet too is another medium that is witnessing significant growth with most companies trying to make their presence felt. With internet penetration increasing across the country, the Internet advertising is projected to reach Rs 9.5 billion by 2010 at a CAGR of 43 per cent from the present Rs 1.6 billion.

With brands ear-marking reasonable budgets for internet advertising, this medium is set to grow further over the years. The growth of blogs and social networking sites will also aid in the growth of this medium, with players choosing to promote their products and services through them.

Mobile is another medium which is being tapped by the brands for the past few years. Gone are the days of tele-marketing where someone called your number and tried to sell a product or service. Brands are finding newer ways to reach the consumer’s mobile. Blue Casting is one such method. Other methods include advergaming and SMS advertising. While SMS advertising has been in the space for quite sometime now, advergaming is relatively new.

Speaking of advergaming, gaming has seen a stupendous in the country with loads of money being invested in this space. The international acquisitions and entry of corporates are testimonial to that. Though in its nascent stage, gaming is being used to tap the young adult TG with brands being woven into novel games. Internationally, many popular games have embedded advertising, which shows up during game play. Similarly, Indian flash-based games are also trying out these models, but predominantly, Indian players choose to have games built around the brands.

Another noticeable aspect this year was the collaborations between brands for advertisements. A PC manufacturer tied up with a gaming portal for ad space in the latter’s advertisements, which was deemed a worthy fit. Similar associations can be expected to rise in the coming days.

New ways of old mediums

In-film product placements and movie associations are becoming common these days, with movie producers and brands constantly engaging in discussions to find a perfect placement in movies. With cinemas, the most favoured form of entertainment in the country, brands are queuing for a placement or association. Some industry experts believe that brands are looking for movie associations rather than in-film placements as the latter is entirely dependant on the movie’s outcome. However, in a movie association, the brand can earn its mileage before the release itself along with the movie promotions.

The innovations in the Out of Home (OOH) industry are on the rise with advertisers realising the importance of attracting consumer’s attention at every possible location. The industry, pegged to reach Rs 21.5 billion by 2010, is estimated to be Rs 10 billion at present. With bigger players entering the segment, this space is going to expand further.

The Indian OOH industry is not as developed as it is in other countries across the world. But, with increasing importance being given to the medium by the advertisers, it is rapidly developing in India using eye-catching innovations and new technologies on a regular basis.

Some of the new technologies employed on a regular basis in the country include ‘Bluecasting’ and LED screens. Over the past few months, many players have been testing the Bluecasting method in their outdoor activities with varying successes. The only dampener in this method is the lack of high-end pieces among the masses.

LED screens have now taken over virtually all pillars in shopping malls, multiplexes and airports of big cities. With the coming of big players in the industry, competition too is expected to rise for buying out these spaces.