In the 1980s, IIMs used to supply the manpower to advertising industry. Later came MICA in 1991 in Ahmedabad, which was founded by the late A G Krishnamoorthy of Mudra. Lintas launched a few years later at Khandala, Northpoint Centre of Learning. Since then, there was a lull till recently when the current crop of new schools have appeared on the scene. Indian School of Design and Innovation ( ISGI ) has been set up by Radha Kapoor and Siddharth Shahani at Lower Parel, Mumbai. They also run ISDI WPP School of Communication. Miami Ad school has been set up in Mumbai by Ravi Deshpande for teaching graphic design. Pralhad Kakkar School of Branding and Enterpreneurship ( PKSBE ) in Mumbai teaches ad film making and branding. They run a one year course in ad film making and branding and a two-year fellowship in business and entreprneur at a cost of Rs.12 lac per annum.
Month: April 2016
Ad Blocking
Is it viable to provide from internet content without the supporting ads? Could publishers promise lighter ad content if the site is whitelisted? Instead consumers can buy subscription based content. All these methods are not sure shot fixers. Ad blockers are being widely used by 6 per cent of the internet using universe. and by 15 per cent in the US. ( Adobe report ). Ad blockers ( apps ) developed by third party are available on Google Play Store. The mobile is widely used for internet content consumption, and so ad blocking is going to spread. Apps are available free and revenue is generated only through ads.
Basically, ads are blocked not because consumers are interested in seeing them. They block to get better online experience, faster surfing of internet on mobile and less data charges. Informative, relevant and contextual ads are welcome. They are actionable inputs. Users love the ads that are of interest to them, of value to them. Consumers want to assert their right to say no to ads. It is a tug of war between the publisher whose app has ads and the consumer who would like ad free experience.
The online news platforms are highly affected. Most of their revenue is derived from ads. Mobile ads have lower rates and less space for banner ads. As compared to web, publishers make less money on the mobile. With ad blockers, the revenue from mobile ads goes down even further.
As the fields in online ads are low and advertisers demand more and more space publisher find it difficult to negotiate. Publishers carry obtrusive ads under pressure Banner ads are blocked, and so this hits the publishers.
Some publishers avoid ad blocking by blocking the content for the user of an ad blocker.
On gaming apps, there are two kinds of ads — interstitial ads or full screen ads and reward videos. Reward videos are a part of core app design and cannot be blocked by ad blockers. Interstitial ads get blocked.
Per se advertising is not blocked but its format. If the experience is not pleasant there is going to be blocking. Native advertising blends with the content and lends itself to many formats depending on the surrounding content. It could be text, video or image. As compared to display ads, native ads are more effective. Publishers thus are driven to content marketing. Native ads, however, are not scalable unless it is in-stream ad. The same branded content cannot be replicated across multiple publishers.
Apart from content marketing, we have adopted social media marketing and in-app advertising as it is non-intrusive. These are not subjected to blocking at present. Publishers are in search of other monetisation models.
M & E Business
The Media and Entertainment ( M & E ) industry would almost double to Rs.2.26 lac crore in the next five years, mainly led by the growth in advertising revenue which is expected to touch Rs.99,400 crore by 2020.
The total advertising revenue of M & E sector was around Rs. 47,5oo crore in 2015, as against Rs. 41,400 crore in 2014, a jump of 14.7 percent. ( FICCI — KPMG joint report ). The overall sector grew by 12.8 percent to Rs. 1.15 lac crore in 2015, as against Rs. 1.02 lac crore of 2014. The M & E industry in India is poised to grow by a CAGR of 14.3 per cent to Rs. 2,260 billion by 2020, led by advertising revenue which is expected to grow to Rs.994 billion at a CAGR of 15.9 percent. The digital advertising would scale up to Rs. 25,500 crore by 2020.
With close to 944 million connections in India, mobile advertising spends are the proverbial pot of gold that every media player is after. Mobile advertising stood at Rs. 900 crore in 2015, and is expected to grow at a CAGR of a staggering 62.5 per cent by 2020.
The over-the-top ( OTT ) platform is fast becoming a relevant advertising medium for brands, and will be a serious revenue stream for the platform owners. The size of the OTT industry currently is Rs.1200 to Rs. 1300 crore, and is set to grow at 40 to 50 per cent mainly on the back of advertising; subscription revenues will scale up eventually.
TV advertising continues to grow. It grew at 17 per cent to touch Rs. 18,130 crore.
Print showed a lower growth at 7.6 per cent in 2015. The subscription market grew at 8.2 per cent.
Film industry growth was healthy — 9.3 per cent amounting to Rs. 13,820 crore in 2015.
Video on Demand (VoD)
In India, VoD is available by three routes. First, through broadcasters such as Star or Zee. These have captive audience and therefore setting an online platform is easier, both contentwise and marketingwise. It is, however, moot whether audiences will come to them beyond catch-up TV or live events. Second,there are aggregators ( Spuul or Viu ). They are tech-savvy outfits who know how to package video and tag it best. As they lack the ready audiences, their marketing costs are higher. Third, there are players such as Eros, Netflix, Balaji or Amazon who focus on creating content. They have the confidence to replicate this capability for online content. Some start with an existing base, and some anew.
In VoD market, though content is important, packaging it correctly is more important. For instance, some iconic scenes in movies will do better online than the entire movies. There are chances of regional content doing well.
Voot, Viacom 18’s video app launches in March, 2016. It is described as a TV station for the future.
All metrics are growing — device penetration, bandwidth consumption and advertising. The growth is 35-40 per cent. So investors do rush in. India is still underpenetrated, single-TV-home market. The younger generation is moving away from TV. The net is about youth or an urban mass.