S-Group Insights: Telecom sector sees 10% drop in ad volumes in Q3'2015
Airtel, Vodafone, Idea, Aircel, Tata Teleservices together hold 94% TV ad share. Tata Teleservices & Vodafone reduced the advertising volume by 49% & 37%, respectively

exchange4media.com and Strategy Group, the Analytical Arm of TAM Media Research, jointly bring you a weekly column 'S-Group Insights' on Advertising Trends of different Product Categories. This column will be published every Tuesday and aims to aid advertisers, and media agencies understand changes in Media Consumption patterns leading to Scientific Advertising Investments. In the current column, we take a look at Telecom industry as a category.
India is the world's 2nd largest telecommunication market, with over 1 Billion subscribers as of May 2015. The wireless segment (97%) dominates the market. During FY 07-15, wireless subscriptions witnessed a CAGR of 25% to 970 million. It is also the 2nd largest country in terms of internet subscribers. India's telecommunication market is expected to experience further growth, fueled by non-voice revenues and higher penetration in Rural market- IBEF.
Let's look at Ad Expenditure of Telecom/ Internet Service providers of India across 3 platforms of promotion-TV, Radio & Print
Television: Telecom/ Internet Service Providers category accounts for 3% of total Ad spends on TV featuring in the top 10 most promoted categories.
Top 5 Telecos viz. Airtel, Vodafone, Idea, Aircel & Tata Teleservices together hold a share of 94% in the category which involves total 22 players who advertised on TV in 2015.
The category however has seen a drop in Ad volume of 10% in Q3'2015 compared to Q3'2014. Tata Teleservices & Vodafone reduced the advertising volume by 49% & 37% respectively.
Airtel which started the year on a low scale bounced back with heavy TV spends in Q3 this year. Airtel in Q3'2015 had more than 50% advertisement share on Television. According to TAM viewership data in Q3'2015 Airtel commercial was viewed 39 times by an average viewer Vs 20 times of IDEA & Vodafone each. Airtel promos also reached out to a higher % of TV universe (94% Cume Reach) than IDEA & Vodafone (90% Cume Reach each).
If we look at year on year trend then it appears that the category has decreased the promo duration on TV in 2015 compared to FY 2014 but the numbers are actually higher than Yr 2012 & 13. Main reason behind relatively higher numbers for the category in 2014 was heavy promotion of Airtel Money in first 3 Quarters of 2014 also Airtel 3G was promoted heavily in Q3.
Focus of Airtel:
85% of the total Ad Volume on TV for Airtel went towards the promotion of 4G. It is 40% more than it used for the promotion of 3G in Q3 of 2014.
Strategies Used by Top Players: All 3 Top players have reduced their inventory from Hindi language channels in 2015. Amongst top 3, Airtel gave maximum focus to regional channels whereas Vodafone gave maximum focus to mass channels (Hindi & English). IDEA has increased share of regional channels in its plan of 2015 reducing the inventory from Hindi Channels; Malayalam channels continue to hold larger share in IDEA's TV plan whereas Tamil channels receive relatively lesser focus.
Radio: Radio is the 2nd most preferred medium for advertisement for Telecom players in terms of count of ads. It received 25% of total promotion in Q3'2015 for Telecom/Internet service category whereas the same figure for TV stood at 74%; Print receiving nearly 1% inventory for the category.
Airtel which was shying away from the medium until Q2'2015 currently holds the highest commercial duration on Radio. Its focus being on West Zone followed by South. Aircel & BSNL focus on South Zone whereas IDEA & Vodafone target West zone through advertisement on radio.
Print: In Print also Airtel holds the numero uno position for maximum Ad volume. Times of India & Economic Times are the top 2 preferred publications for Airtel whereas Idea preferred to promote maximum on Dainik Jagran (Hindi) & Matrubhumi (Malayalam) in Q3'2015.
Vodafone which was maintaining a competitive threshold of ad volume on print until Q1'2015 dropped it to a minimal level in next 2 quarters.
Despite of phenomenal growth in internet user base; India lags behind in penetration of internet in the country. As we wait for greater penetration of faster internet across the country, Airtel has already launched 4G ahead of its competition; its massive TV campaign had reached to 92% of the urban population of India by the end of September this year as measured by TAM with an average frequency of 30 impressions/viewer. It would be interesting to see if Airtel manages to get the 1st mover advantage in 4G space.
Source: TAM Media Research, analysis conducted by S Group-an analytical arm of TAM Media Research
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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