Will Digital Be The Next Tv In India

Slideshow Transcript

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