Creation Of A New Market To Play In

RAMMOHAN SUNDARAM Jan 04, 2022

Merry Christmas!

What a year it has been for media and advertising as a fraternity. Coming back from Covid to the second wave and then the resurgence of the economy to where it is today shows how India as a country is fundamentally strong in its foundations. Add some of the government initiatives around subsidies to boost the economy we are seeing massive adoption of media, or should I say integrated media when key messages must be distributed to ensure maximum reach.

While I would like to remain apolitical, I am quite impressed by the way communication is being dealt with by our own prime minister. The importance of understanding where the heart of India is beating quite resonates with the new age companies trying to maximise technology to its best capabilities leading to newer audiences.

A Mann Ki Baat is a classic example led by the PM on where audio can reach and how it can impact people’s life. Bring technology in this eco-system mix that enables voice-based devices to add value to people’s life and boom, suddenly you have a new set of audiences that have got created. Why would a radio station have a podcast in its digital offerings? The answer is right there in the question and the line before that – a newer set of audiences who were otherwise not available on the radio but are available digitally.

When newer audiences are brought in then automatically you have a new set of market potential that gets created, which is what brands look for when they need to penetrate deep into the roots of where the heart of India is.

Likewise, on TV we have 25000 crores worth of advertising that is being spent and when the digital revolution was underway, which began in 2016 with JIO, a lot of pros in the business thought that the money will move from Television to Digital. That is not the case at all, digital has grown exponentially but it hasn’t taken the share from TV because the TV has also grown. With a duopoly at play where Google and Facebook have about 22000 crores worth of advertising revenue, we know that digital is growing however the reach of TV continues to grow phenomenally and is driving desired results, so it is evident that the money moving is from print which was accelerated due to the Covid 19 pandemic.

What am I trying to get at? India’s potential is way much more than what we are seeing and with robust GDP growth, we will see a lot more brands investing in advertising especially to reach tier 2 and 3 audiences. Where will this money go? It will be across strong distribution capabilities and that is why both Digital and Television will go hand in hand for brands. Look at the convergence that is happening around us, A connected device or a connected TV is gaining market share as compared to traditional TVs being sold today and this is only going to grow further where we will see different consumption patterns but eventually, it is going to be content that resonates with the audience.

India’s TV market is not fully tapped into yet. We have 210M households as per BARC with C&S however the number of TV sets collectively in India is over 400M and the population is at 1.3B. Even if TV households grow at 10% and the rest of the population gets addressed through digital platforms, distribution, adoption and stickiness are required for ensuring there are loyal audiences for OTTs and others. This is where the real deal is because if you look at the largest advertisers in India today contributing to the 25000 crore TV advertising market then it is led by consumer tech companies and why is that happening? It is happening because they are looking at in increasing their bases where the new audiences are which is why they are on TV getting their reach maximised. They want their product offerings to be experienced whether in Fintech or eCommerce as categories with the audiences who are receptive.

Things are exciting and like never before, with so much happening around us, consumer journeys have dramatically changed, and it is no more linear in nature and that’s what makes it so much more exciting. Both Digital and TV are set for growth, and I couldn’t have been prouder bringing this white paper in association with BW.

With industry leaders contributing, we hope our series of white papers have added value to your professional learnings. As we close the year, I am very confident of what is in store for 2022 and here is wishing you all a great 2022.