FICCI-KPMG-Report-13-FRAMES

30 The power of a billion: Realizing the Indian dream
“
Fiction, the main domain of GECs, has
always dominated viewership. GECs cater
to almost 60-65 percent of viewership
in regional markets, and 50 percent+ in
national. Ad revenues are proportional
to viewership, and a large chunk of
the advertisement pie continues to be
garnered by GECs. Audiences have not
moved out from GECs, but few niche
channels have gained due to availability
post digitisation.
“
- Subramanyam K
Vice President, National Head –
Ad sales and Marketing,
ETV Network
Regional markets have emerged as a key revenue driver for
national broadcasters. Regional channels are estimated to
account for approximately 30 32 percent of total revenues of
Star and Zee networks. MSM entered the Telugu market in
2012 with the acquisition of Maa TV and is reported 33 to be
looking at expansion in at least three regional markets. Last
year, Network 18 group had acquired Eenadu TV which has
its presence across 6 key regional markets.
Regional channels command an advertising market share
of 27.2 34 percent, which is proportionate to their viewership
share. Advertising interest in regional markets is strong and
broadcasters see immense potential for revenues from
local advertisers who may be willing to pay a premium
to reach their targeted audience. With the exception of
the Bengal ad market which de-grew and the Marathi ad
market which grew by 4-5 percent, most other regional ad
markets, led by the South, grew between 12 percent and
15 percent 35 .
Viewership share of regional channels
Source: TAM; All India 4+ Week 1 to 52, 2012; TAM; All India CS4+ market. Copyright reserved with
TAM MEDIA RESEARCH PVT. LTD. Any use of TAM data (or derivative thereof) mentioned herein
without express permission of TAM shall be treated as illegal
“
Regional markets continue to outpace the
national market in terms of growth. Despite
a slower growth in 2012, some regional
markets have shown an impressive upward
trend. This is on account of FMCG clients
which account for 60 percent of total
spending. On the other hand, consumer
durables, auto, telecom and real estate
continued to stay low on GECs even during
the festive season.
“
- Subramanyam K
Vice President, National Head –
Ad sales and Marketing,
ETV Network
Market size
© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Language
Households (million in
home state)
Television households
(million, percent of total
households)
C&S households
(million, percent of total
households)
Advertisement market
size (INR million)
Tamil 17.7 16.4 (93%) 15.9 (97%) 13,500
Telugu 20.9 15.1 (72%) 14.8 (98%) 9,000
Bangla 20.3 9.5 (47%) 8.6 (90%) 7,000
Kannada 13.5 10.0 (75%) 9.9 (98%) 6,200
Malayalam 8.1 7.6 (93%) 7.1 (94%) 6,600
Marathi 24.9 16.8 (67%) 14.9 (89%) 4,100
Bhojpuri* 56.4 16.6 (29%) 11.3 (68%) 1,000
Punjab 5.5 4.8 (87%) 4.3 (91%) 1,500
Oriya 10.0 4.2 (42%) 3.5 (84%) 800
Gujarati 12.7 8.1 (64%) 7.0 (87%) 450
Source: IRS Q3 2012; Industry discussions conducted by KPMG in India
Note: *Bhojpuri market consists of the states of Eastern UP, Bihar, and Jharkhand
32. Afaqs, 29 August, 2012
33. Financial Express, 4 July, 2012
34. Pitch Madison
35. Industry discussions conducted by KPMG in India