X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Media: Key trends in television advertising - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Sep 17, 2007

    Media: Key trends in television advertising

    In the previous article we had explained the robust outlook for the growth in television ad spends in the years to come. In this article we analyse the key trends witnessed in television advertising in the first half of 2007.

    • 31% rise in volumes: The buoyant growth of the Indian economy, desire for greater visibility among corporates and increased competition in the fast growing sectors of the economy led to an increase in television advertisements. The increase in the number of channels launched also contributed to this. About 82 channels across various languages, genres are slated to be launched by FY09. The existing channels benefited, as it led to increased utilization of their ad inventory.

    • Higher frequency: There was a 30% growth in average frequency of ads per day in 1HCY07 over the first half of previous year. The increase in the ad volumes explains the increase in the frequency of ads. The ad volumes increase due to the increase in frequency of ads by existing channels and due to the launch of new channels. The existing channels got more viewership due to an increase in the penetration of television and the quality of their content. Since the increase in ad volumes is more or less equal to the increase in the frequency of ads it clearly shows that the volumes have increased due to the increase in the frequency of ads on existing channels. Thus the existing channels have been able to utilise their ad inventory in a better manner by sustaining the quality of their content.

    • F&B leads the way: The food and beverages sector led the pack of advertisers with 15% share on television. The increase in disposable income has led to a corresponding increase in the aspirations of the people leading to higher offtake from the foods and beverages sector. Competition in the sector is very intense and MNC's such as Pepsi, Coke have very deep advertising pockets. The per capita consumption of many products is also very low compared to developing and developed countries.

      Top 10 sectors % Share
      Food and Beverages 15
      Personal Care/ Hygeine 10
      Services 7
      Banking/Finance/Investment 5
      Hair care 5
      Auto 5
      Personal Accessories 4
      Telecom/ ISP's 3
      Consumer Durables 3
      Household Products 2


    • HUL grabs the king's share: Hindustan Unilever (HUL) is the largest FMCG company in India having many popular brands. However it is facing increased competition from companies such as Dabur, P&G. Some of its key brands have been losing market share. Thus to increase the recall of its key brands HUL continues to be the largest advertiser (average advertisement expenses to sales ratio has been around 9% over the last 5 years).

        FY04 FY05 FY06 FY07
      HUL * 7.50% 8.4% 9.1% 10.5%
      Dabur 13.60% 13.60% 11.90% 11.60%
      Colgate 15.7% 14.2% 17.6% 16.0%
      Britannia 8.00% 6.70% 6.30% 6.30%
      Godrej Consumers 12.3% 12.4% 8.20% 8.1%

      * Calendar Year ending

    The major FMCG and personal care companies are spending a high percentage of their sales revenue on advertisement. The sales of the FMCG companies are expected to grow at a steady rate in the future and thus these companies would increase their television ad spends. This augurs well for the prospects of the major television broadcasters such as Zee Entertainment, NDTV, TV 18, SUN TV. However, only the broadcasters who will deliver quality content to their viewers and are also able to increase their subscription revenues along with advertisement revenues would stand to gain from the same.

     

     

    Equitymaster requests your view! Post a comment on "Media: Key trends in television advertising". Click here!

      
     

    More Views on News

    Zee Ent: GST Short term Negative but Long term Positive (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The management believes that GST will aid the advertising spends in the long-run.

    S Chand and Company Ltd. (IPO)

    Apr 26, 2017

    Should you subscribe to the IPO of S Chand and Company Limited?

    GTPL Hathway Ltd. (IPO)

    Jun 21, 2017

    Should one subscribe to the IPO of GTPL Hathway Ltd?

    Zee Ent: Advertising drives revenues (Quarterly Results Update - Detailed)

    Aug 1, 2016

    Zee Entertainment has announced its results for the first quarter of the financial year 2016-17 (1QFY17). The company has reported 18.5% YoY growth in sales and a 13.7% YoY growth in profit after tax.

    Zee Ent: Taxes, lower other income mar bottomline (Quarterly Results Update - Detailed)

    Feb 3, 2016

    Zee Entertainment has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline grew by 17% YoY, bottomline fell 11% YoY during the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE TECK


    Aug 18, 2017 (Close)

    S&P BSE TECK 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS