Will Digital Be The Next Tv In India

Will Digital be the next TV in India anytime soon? Perspective of a Digital Entrepreneur

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

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

Advertising (Contd)

Advertising (Contd) Internet as a % of total advertising

Advertising (Contd)

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

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

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

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.

Media / Online Companies convergence

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

Video usage online Youtube channels with most views in Nov 2007

Video usage online (Contd)

IPTV Subscribers

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

Conclusion
Make use of convergence for better monetization
Digital will eventually be bigger than TV but not in the near future.

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Will Digital Be The Next Tv In India

by BG Mahesh on Mar 16, 2008

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Will Digital Be The Next Tv In India — Presentation Transcript