FICCI-KPMG-Report-13-FRAMES

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46 The power of a billion: Realizing the Indian dream Over the years, there has been a gradual increase in the market share of vernacular newspapers. The combined share of Hindi and vernacular dailies has risen from 53 percent in 2008 to 61 percent (refer graph above) in 2012. The industry expects this trend to continue largely due to volume growth driven by the launch of new local editions and gradual improvement in advertisement rates of these markets. While the English print commands higher ‘cost-perthousand’ (CPT) compared to regional print, metro markets are challenging in terms of advertising and circulation, leading to lower growth for the English language dailies. The English segment grew by 3.6 percent versus industry growth of 7.3 percent and Hindi and vernacular grew at 9.8 percent 9 . The segment will also likely face a greater threat from digital platforms, especially considering the imminent shift in media consumption habits due to increased broadband penetration and availability of faster access once 4G is rolled out. The Socio Economic Classification (SEC) and income demographics that the English market addresses is also the market that is most likely to adapt high speed mobile devices and change reading behaviour. By 2017, the scale is further expected to tilt in favour of the Hindi and vernacular markets – together constituting 64 percent of the industry revenues growing at a CAGR of 10.8 percent and 10.9 percent respectively. The English market will be worth INR 114 billion growing at a CAGR of 4.8 percent 9 . Advertising continues to be the key contributor Advertising is the cornerstone of the print industry’s performance and has witnessed one of the most, if not the most, challenging years in a decade. The strong correlation between economic growth and advertisement spends was reflected in the weak advertiser sentiments. Some of the big spending sectors such as Education, Banking, Financial Services and Insurance, Telecom and Retail tightened budgets and the advertising spends remained flat or declined. The slowdown in advertising volumes was particularly more intense in the case of the English market. The share of English print advertisement volumes declined from 32 percent in 2011 to 27 percent in 2012. Vernacular dailies continued to enjoy volume growth with their share increasing from 37 percent in 2011 to 39 percent in 2012 10 . Comparison of percentage press and internet users Print advertising advertisement volume (% share) © 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. Source: IRS Q3 2012 Estimated share by language in 2017 Source: KPMG in India analysis 09. KPMG in India analysis 10. TAM MEDIA RESEARCH PVT. LTD 11. Industry discussions conducted by KPMG in India Source: TAM MEDIA RESEARCH PVT. LTD Disclaimer: 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. In 2012 the growth in advertising over the previous year was largely driven by volume. Industry discussions indicate that this trend will continue at least till the first half of 2013. Going forward, with advertising regaining ground on the back of improvement in economic activities, the advertising-circulation mix is expected to swing back in favour of advertising 11 .
The power of a billion: Realizing the Indian dream 47 Advertising and circulation revenue share Source: KPMG in India analysis, Industry discussions conducted by KPMG in India Print players are looking to scale up through geographic and product expansions as well as increasing the footprint and quality of digital delivery formats. Localisation of news through special editions has plenty of growth opportunities as well. Industry participants contend that localised and targeted advertising is difficult to achieve in nationwide broadcast media, giving print an edge with respect to local businesses such as restaurants, malls, retail shops and neighbourhood services. Supplements continue to be launched, the industry believes that launching supplements in existing markets helps them penetrate further by gaining access to new readers and expanding the advertiser base. A few examples of the supplements launched during 2012 include Habitat, Watches Luxury And Beyond and Weekend Life by Hindu, Ebela, Ananda Plus and Bishoy Ashay by Ananda Bazar Partika and Yuva by Hindustan Times. Further, Dainik Bhaskar (Bhopal) brought together ten real estate developers of Bhopal who are developing ‘New Bhopal Area’ near the International Airport and launched ‘Gatefold’ a special feature which was distributed in Bhopal. Top categories advertised on print (by volumes) Categories 2008 2009 2010 2011 2012 Change from 2011 Auto 6.8 7.8 7.1 9.8 11.4 Education 17.1 17.3 14.6 10.6 10.6 FMCG 5.8 7.2 7.4 8.9 10.3 Real estate & home improvement 6.4 6.5 8 8.4 8.6 Clothing/Fashion/Jewellery 5.1 5.5 5.3 6.5 7.1 Retail 5.5 5.8 5.8 5.6 5.8 BFSI 8.3 7.9 8.7 6.7 5.7 HH durables 6.5 5.3 5.3 5.7 4.9 Telecom/Internet/DTH 6.2 5.4 6.3 4.7 4.1 Travel & tourism 4.3 3.5 2.5 2.8 2.3 Corporate 3.6 3 3 2.8 2.2 Media 1.9 2.2 2.2 1.5 1.4 Alcoholic beverages 0.3 0.3 0.2 0.2 0.1 Others 22.2 22.5 23.6 25.7 25.3 Source: Pitch Madison Ad Outlook 2013 © 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.
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Music The success of the iTunes mod
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FICCI 2013 143 “ The Amendments t
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11 Technology The power of a billio
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Acknowledgement We acknowledge the
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FICCI-KPMG-Report-13-FRAMES

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