Will Digital Be The Next Tv In India


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Muruga was the Keynote speaker in e4m's Digital 2.0 conclave in Bangalore in March 2008

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  • http://www.ofcom.org.uk/research/cm/icmr07/overview/emerging/
  • Will Digital Be The Next Tv In India

    1. 1. Will Digital be the next TV in India anytime soon? Perspective of a Digital Entrepreneur
    2. 2. Reach <ul><li>TV </li></ul><ul><ul><li>Homes: 108 million (61 million C&S) </li></ul></ul><ul><ul><li>TV Viewers: 500 million </li></ul></ul><ul><ul><li>400+ Channels </li></ul></ul><ul><li>INTERNET </li></ul><ul><ul><li>11 million connections including 2.5 million broadband connection </li></ul></ul><ul><ul><li>40+ million users </li></ul></ul><ul><ul><li>1000’s of websites </li></ul></ul>
    3. 3. Advertising <ul><li>Globally TV advertising is bigger than online advertising </li></ul><ul><li>UK Media </li></ul><ul><ul><li>Advertisers in the UK spend more money per person on internet advertising than any other country, at £33. </li></ul></ul><ul><ul><li>Larger than TV in 2008 </li></ul></ul>
    4. 4. Advertising (Contd)
    5. 5. Advertising (Contd) Internet as a % of total advertising
    6. 6. Advertising (Contd)
    7. 7. Advertising in India <ul><li>Television: Rs 6,766 crore </li></ul><ul><li>Print: Rs 8,591 crore </li></ul><ul><li>Radio: Rs 529 crore </li></ul><ul><li>Out-of-home: Rs. 1,062 crore </li></ul><ul><li>Internet: Rs 400 crore, CAGR: 50% </li></ul>Source: Lintas Media Group
    8. 8. Advertising in India (Contd) <ul><li>TV Advertising </li></ul><ul><ul><li>High entry barrier </li></ul></ul><ul><ul><li>High cost of production of TVC </li></ul></ul><ul><ul><li>High cost of telecast </li></ul></ul><ul><ul><li>Small number of advertisers, high spends per advertiser </li></ul></ul><ul><li>Internet Advertising </li></ul><ul><ul><li>Long tail of advertisers are on the Internet </li></ul></ul><ul><ul><li>Anyone with a PC can advertise online </li></ul></ul><ul><ul><li>Number of advertisers contributing to ad revenues </li></ul></ul><ul><ul><li>Larger number of advertisers, smaller spends per advertiser </li></ul></ul><ul><li>100,000 advertisers spending Rs 1000 on online </li></ul><ul><li>1000 advertisers spending 10,000,000 on TV </li></ul>
    9. 9. Targetting <ul><li>TV advertising is intrusive </li></ul><ul><li>Internet advertising is non-intrusive </li></ul><ul><li>TV targetting is the science of aggregates </li></ul><ul><li>Internet targetting is the science of individual profiles </li></ul><ul><li>TV targetting cuts across demographics </li></ul><ul><li>Internet targetting cuts into individuals </li></ul><ul><li>TV reaches geographies </li></ul><ul><li>Internet reaches specific IP addresses </li></ul><ul><li>TV can’t provide personalization </li></ul><ul><li>Internet adv can be personalized </li></ul>
    10. 10. Business/Brand building <ul><li>Businesses like Ebay, Google and Amazon built brands almost exclusively online </li></ul><ul><li>Whereas in India mainstream brands cannot be built exclusively online </li></ul><ul><li>Youngsters are spending more time online compared to TV. So while majority is reachable through TV today, the skew is towards online. Some TGs will be reachable almost exclusively online. </li></ul>
    11. 11. Media / Online Companies convergence
    12. 12. Convergence <ul><li>TV is becoming the Internet with IPTV. </li></ul><ul><li>Internet is becoming a giant video channel </li></ul><ul><li>Bulk of video online is snackable video - bite-sized short pieces of five minutes or less: news clips, jokes, movie trailers, music videos, clips from TV shows and entertainment news </li></ul>
    13. 13. Video usage online Youtube channels with most views in Nov 2007
    14. 14. Video usage online (Contd)
    15. 15. IPTV Subscribers
    16. 16. Growth Trajectory <ul><li>TV </li></ul><ul><ul><li>Time spent would be less </li></ul></ul><ul><ul><li>Limited advertisers </li></ul></ul><ul><ul><li>Limited channels </li></ul></ul><ul><ul><li>Limited inventory </li></ul></ul><ul><li>Internet </li></ul><ul><ul><li>Time spent will be more </li></ul></ul><ul><ul><li>Long tail of publishers </li></ul></ul><ul><ul><li>Long tail of advertisers </li></ul></ul><ul><ul><li>Unlimited inventory </li></ul></ul>
    17. 17. Conclusion <ul><li>Make use of convergence for better monetization </li></ul><ul><li>Digital will eventually be bigger than TV but not in the near future. </li></ul>
    18. 18. Discussion / Questions