Advertising Spending Of Advertising in fashion is back in fashion. According to data by Digital Media Research (DMR), published January 24, investments by the main players in the fashion industry in fashion , cosmetics and furnishings print publications in 2010 hit 1.0 billion euros, up 17% on 2009 still below (even if just) 2008’s total of 1.04 billion euros. The fashion sector, which about Major Sectors Of Economy two-thirds of total ad spend, grew 17%, reaching about $700 million, an improvement on 2009 levels but still below 2008. According to the DMR research, the top spender in fashion (55.7 million euros in 2010, up 14% on 2009) remains Louis Vuitton. Other top-five spenders include: In Chanel (53.7 million euros, +40%), Ralph Lauren (37.5 million euros, +24%), Gucci (35.39 million euros, -5%) and Prada (35.38 million euros, +47%). INDIA In geographic terms, all the “traditional” advertising market improved in 2010, even though total investments in most markets beneath their 2008 level. Italy, with 200 million euros in investments, beat its 2009 performance (167 million euros) and nearly equaled its 2008 result, (201Case Study By :Mohammed Sadath Ali Mubasheer million euros). Performance in markets in the Middle East and the Far East was divergent: the former (-7%) continued the slide registered the previous year (-19%); the latter – boosted by a strong performance in China – ended 2010 with a 7% gain in overall investment spending. "The ad recovery is so strong right now," top-ranked sector analyst Alexia Quadrani of JPMorgan Chase (JPM, news, msgs) said in an interview last week. "Its been really robust. Everything in advertising is growing better than expected." HEALTH ANDPHARMACEUTICALS
Fashion And Glamour Industry Advertising in fashion is back in fashion. According to data by Digital Media Research (DMR), published January 24, investments by the main players in the fashion industry in fashion , cosmetics and furnishings print publications in 2010 hit 1.0 billion euros, up 17% on 2009 still below (even if just) 2008’s total of 1.04 billion euros. The fashion sector, which about two-thirds of total ad spend, grew 17%, reaching about $700 million, an improvement on 2009 levels but still below 2008. According to the DMR research, the top spender in fashion (55.7 million euros in 2010, up 14% on 2009) remains Louis Vuitton. Other top-five spenders include: Chanel (53.7 million euros, +40%), Ralph Lauren (37.5 million euros, +24%), Gucci (35.39 million euros, -5%) and Prada (35.38 million euros, +47%). In geographic terms, all the “traditional” advertising market improved in 2010, even though total investments in most markets beneath their 2008 level. Italy, with 200 million euros in investments, beat its 2009 performance (167 million euros) and nearly equaled its 2008 result, (201 million euros). Performance in markets in the Middle East and the Far East was divergent: the former (-7%) continued the slide registered the previous year (-19%); the latter – boosted by a strong performance in China – ended 2010 with a 7% gain in overall investment spending. "The ad recovery is so strong right now," top-rankedFASHION & sector analyst Alexia Quadrani of JPMorgan Chase (JPM, HEALTH news, msgs) said in an interview last week.GLAMOUR AND "Its been really robust. Everything in advertising is growing better than expected."PHARMACEUTICALS
ENTERTAINMENT Entertainment top vertical in mobile ad spend The entertainment industry, an early innovator in mobile, remained the top vertical in terms of mobile advertising spend. total numbers of mobile phone subscribers have reached 851.70 million as of June 2011., which offers an even greater opportunity for advertisers to reach and target mobile consumers as we enter 2012. Bollywood made a revenue of $3.4 Billion in 2010(estimated to rise) which is only half the revenue of what one Hollywood studio, Walt Disney made in 2006 – and that is saying a lot The size of E&M in India is currently estimated at INR 353 billion and is expected to grow at a compounded annual growth rate of 19 percent over the next five years. The television industry continues to dominate the E&M industry by garnering a share of over 42 percent, which is expected to increase by a further 9 percent to reach about 51 percent An estimated 28 million Indians are currently hooked on to the internet. And this rising number is leading to the growth of internet advertising advertising agencies will need to invest in advertising ROI technology and processes that will lead to the creation of new viewing experiences that provide advertising opportunities beyond the traditional 30-second spot. FICCI PWC Indian entertainment and media industry Bollywood Rising : New Media in New Films “The emerging revenue streams include in-film advertising, brand associations, digital platforms like mobile and internet, online gaming, in- flight entertainment, podcasts, and out-of-home entertainment.
MUSIC INDUSTRY Growth rates will increase in 2010 to 10.4% as economic conditions are expected to gradually improve. For the remaining years of the forecast period, the industry will continue to grow at increasing rates, resulting in the overall compound annual growth rate for the period 2009-13 of 10.5%. Emerging segments ,the key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 16% in 2008 to 60% in 2013. Within digital music, mobile music will continue to increase its share and maintain its dominance. Given the trends of increased internet usage, internet advertising is projected to grow by 32% over the next five years and reach an estimated Rs. 20 billion in 2013 from the present Rs. 5 billion in 2008. The share of the online advertising too is projected to grow from 2.3% in 2008 to 5.5% in 2013 of the overall advertising pie. “Against the backdrop of volatility in advertising spending, we are also experiencing increased fragmentation of media and its audiences. This will result in a structural change in the advertising world with advertising becoming more targeted, interactive and accountable.” Growth rates will increase in 2010 to 10.4% as economic conditions are HEALTH expected to gradually improve. For the remaining years of the forecast period, the industry will continue to grow at increasing rates, resulting in the overall compound annual growth rate for the period 2009-13 of 10.5%. ANDMUSIC INDUSTRYPHARMACEUTICALS
Automobile Industryautomobile industry Traditional media wont be raking in the money from automotive advertising for much longer as vehicle buyers spend less time with traditional media and more online - five hours worth on average - researching vehicles Online automotive advertising, though, has grown at a 13 percent CAGR in the last five years and is projected to reach $2.8 billion this year, accounting for 7.6 percent of all automotive advertising. By 2010, online will reach $4 billion, becoming "the second-largest medium for automotive advertisers, surpassing newspapers, cable, radio, direct mail - everything but broadcast TV,“ “For the auto industry, the internet represents an ongoing battle between third-party sites, OEM sites and dealers. There is unlikely to be a winner-takes-all outcome. But who gets the upper hand depends, in part, on utility to consumers, ability to create a brand and degree of local interaction.” “We have allocated around Rs 20 crore on our campaign strategy for December which is around 30% higher than other months this year. We are concentrating on the visual media to push sales in this last month of the year to clear the 2010 backlog,” Maruti’s chief general manager(marketing) The Internet will soon become the number one media channel for private used-auto sales. In 2006, $421 million was spent on used-auto sales by private individuals, of which $114 million - 27 percent - was spent online.
Gold And Jewellery Industry Indians have a huge fascination for gold. This is evident in the fact that India is the largest consumer as well as importer of gold in the world. Gold plays a very important role in the social, religious and cultural life of Indians. India Gold Market looks poised to achieve greater heights given the fascination for gold in the country. India consumes about 800 MT of gold which accounts to about 20% consumption of gold globally. More than 50% of this is used for making gold jewelry Indias share in the diamond sector is about 80% of the world market. Employing over 90% of the global diamond industry workforce, India also accounts for 90% of the volume of diamonds processed in the world. Gold consumption, meanwhile, grew by 70% to 528 tones during the first six months of 2007, compared to 307 tonnes in the same period last year. Indias total gold consumption in 2006 – including Gold Investment demand – was slightly over 700 tones. The Indian gems and jewellery sector is excepted to cross US$ 26 billion by 2012, driven by availability of a huge base of skilled labor and improving lifestyle, according to a new report called "Indian Gems and Jewellery Market - FutureGold Prospects to 2011", The domestic India gold market is estimated to be more than US$15 billion and is expected to rise significantly in the coming years. During April 2008 to February 2009, gems and jewelry worth US$ 17.79 billion was exported from the country. Indian jewelry demand rose by 70% during the first half of Jewellery 2007 compared with the same period in 2006. Jewelry demand increased to 387 tonnes from 227 tonnes during the period. Today advertising spends on jewellery is very much compared to any other luxury goods or brands like premium cars, watches, perfumes. Advertising spends by these players is anywhere between 5-12 % of their gross sales. the spends should not only be on advertisements but also in promotions, participation in exhibition, jewellery related fairs the size of the global fashion jewelry industry was approximately 146 billion US dollars by the end of the year 2006. Since 2000 this industry has been growing at an average compounded annual growth rate (CAGR) of 5.2%. These figures show that the jewelry industry is growing at a very rapid pace and is set to become one of the most important industries in the world
FOOD AND GROCERY Food and grocery segment constitutes about 62 per cent of the total INR 12000 billion (USD 270 billion) Indian retail market. There are about 12 million retailers in India and 80 per cent of those are actually mom and pop shops run by family members. The modern organized retailing is about 3 per cent of the total. In South, however, the modern retailing is said to be 10% of the total Employing over 1.6 million people, India’s food processing industry contributes 6.3% to the GDP and 16% to exports and 6 per cent of total industrial investment. Food retail accounts for 26 per cent of India’s GDP and is growing at a compounded annual growth rate of 7-8 per cent. At present, the food processing segment holds a 32% share of India’s booming food industry. The market size for processed foods is pegged at $102 billion, with the potential to grow by 10% to $330 billion by 2015. The food and grocery market in India is presently valued at US$ 236 billion and is the sixth largest in the world. Food and grocery retail contributes to 70 per cent of the total retail sales. According to industry estimates, the segment is growing at a rate of 104 per cent and is expected to grow to US$ 482 billion by 2020. Advertising spending Estimates are as high as $10 billion spent on advertising all types of food and beverages to, ," 44 major food and beverage marketers spent $1.6 billion to promote their products. FOOD Indias $182-billion food processing industry has been growing at over 13 percent despite the global slowdown. AND and now the government is aiming to double the turnover in the next five or six years by setting up mega food parks to attract global capital. "we expect this market to grow toGROCERY $300 billion by 2015, which is not very far. and by 2025, it is expected to be worth $344 billion,"
Beverage Industry The rise and rise of the Indian beverages market The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion of value added products. Of this, the health beverage industry is valued at $230 million; bread and biscuits at $1.7 billion; chocolates at $73 million and ice creams at $188 million. Indian hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-rural split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the total packaged coffee market is 19,600 tones or $87 million. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during offseason. The market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates ($50 million) industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak Season The fruit juices and fruit-based drinks market is close to Rs 5,000 crore ($1.13 billion), growing at 35-40 per cent annually. The carbonated drinks market is close to Rs 6,000 crore ($1.36 billion) with growth at 10-12 per cent. TheBeverage total turnover of the tea industry is over Rs 8,000 crore ($ 1.8 billion), growing at a rate of 1.2 per cent annually.Industry In soft drink industry the cost of advertising is nearly 35% of the total cost Most liked medium is internet followed by TV and newspaper
DUCATION Education Sector Projected Growth in India’s Private Education Private education is currently (2008) estimated at US$ 40 billion, and is projected to grow to US$ 115 billion in 10 years (from demand perspective, if supply can keep pace) India’s private education sector currently (2008) stands at US$ 40 billion. Education (largely engineering, medical, MBA, etc.) 17%, tutoring (for school children) 13%, vocational education 6% and test preparation 4%. The education sector is projected to grow at 11% (from demand perspective) over the next 10 years, to reach US$ 70 billion by 2013 and US$ 115 billion by 2018. the education sector spent a staggering Rs 574 crore on print advertisement. “In print, education is among the top three ad spenders , Naukri.com, Ad spending on education would only continue to rise and it could increase by as much as 50 per cent over the next five years. “At present, their share in ads is very small. The entire advertisement industry spends around Rs 15,000 crore annually, of this education share is about Rs 600 crore. About 185,000 Indians study overseas, spend US$ 4 billion annually and some are now returning to Indian jobs. Indian Education Sector(IES)Â is by far the largest capitalized space in India with $30bn of government spend (3.7% of GDP; at global average), Today education sector is the largest spender in print media. In 2008 it HEALTH held 17 percent share of the total print advertising, while in 2009 the same grew by two percent to stand at 19 percent. This year too, the sector holds maximum print. AND PHARMACEUTICALS
SPORTS REATIL INDUSTRY countries like India is increasing and technology has made it possible to deliver sports news/events etc. through various platforms (mobiles, television, internet, etc.). 10-12 per cent in the past five years. The focus of the industry has been on exports. However, of late the sports market in India is growing rapidly with the continued growth of GDP, a young and educated population, higher disposable income, urbanization, awareness and exposure to international markets, the presence of foreign brands, corporate entry into sports, technological developments, and good performance of the country in some international events At present, a large number of foreign brands have presence in India through exclusive outlets, department stores, multi-brand sports outlets, convenience stores, among others. Indian corporate such as Future Group and Reliance Retail Limited (RRL) has entered into sports retailing The BCCI18 is the most active Indian federation and the richest cricket board in the world. It has played a major role in popularizing the game not only in India but also globally, and in involving corporate, large business houses, the entertainment industry and multinationals in this game. It is one of the most successful federations in roping in manufacturers and retailers of sports goods into the game of cricket. Apart from the usual formats (test matches and one- day matches), it has come up with innovative formats such as the T-20 (twenty-over game), BCCI Corporate Trophy (September 2009),19 and, most importantly, the IPL (Indian Premier League) which was launched in 2008 and some are now returning to Indian jobs. Foreign institutions want to be in India, but are currently not permitted to do so. With the two new Indian Premier League (IPL) cricket teams bringing in Rs 3,235 crore as auction price, advertising agencies and IPL franchisees expect the tournament to give a good push to the Rs 23,000-crore advertising sector this year. Various advertising agencies and analysts like Madison Media and KPMG have pegged 13 per cent growth for the industry in 2010, which works out to addition of around Rs 3,000 crore forSPORTS RETAIL the advertising industry. And, IPL is expected to contribute at least Rs 1,000 crore in advertising revenues this year. INDUSTRY
HEALTH AND PHARMACEUTICALS INDUSTRY The Indian pharmaceutical industry today is in the forefront of nation’s science- based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian pharmaceutical industry is estimated to be worth $4.5 billion, growing at about 8-9% annually. The Indian pharmaceutical industry ranks very high in the third world in terms of technology, quality and range of medicines manufactured The Indian market poses a challenging task to the advertising industry. The advertising message has to reach a billion people, speaking more than 18 different languages and scattered all across the Indian subcontinent Advertising of drugs and pharmaceuticals is really a big challenge. The current Indian population has crossed the one billion mark. For public awareness, providing the basic information about safety and efficacy of drugs is a very difficult task. Currently, pharmaceutical companies, in their marketing strategy, target physicians first. As technology changes, the advertising medium is also taking new dimensions. With the advent of E-commerce and the Internet, today the Indian pharmaceutical advertising industry is talking about advertisement (advertising on the net) as the newest medium for the marketers. If satellite channel brought in 50-plus channels to Indian homes, direct to home (DTH) broadcast will probably bring in 500 channels. However, advertising on the net has an equivalent of 500,000 channels. In terms of value, billings by industrial sectors (soaps and detergents, household appliances, consumer electronics, food and beverage, cosmetics, pharmaceuticals, services and entertainment) are the largest market segment ranked in decreasing order of size. Among the various advertising media, newspapers represent 40%, television (including satellite TV) 35%, magazines 15%, radio 5%, and others 5% of the total expenditure in this industry. Recent changes in the industry have broadened the scope of pharmaceutical marketing to include managed-care administrators, pharmacists and the general public. Pharmaceutical manufacturers spend billions of rupees yearly to market prescription drugs, mostly to physicians. Direct-to consumers, advertising of prescription drugs, advertising of over-the-counter products are relatively new tools used by the pharmaceutical industry to tap the market share of Advertising is thus growing in scope, targeting not just physicians but managed-care administrators, pharmacists and the public itself. Thus HEALTH advertising has proved to be one of the important tools in the health-care system. In future, web advertising of the drugs and pharmaceuticals will be a big market and will serve as a major tool in the management of the AND health system. On-line pharmacy is a major area for the advertisements of pharmaceuticals to a large group of people. In the nearby future, advertisements on the Internet will be a common practice in thePHARMACEUTICALS pharmaceutical field
FINANCE SECTOR Online advertising will grow by more than 21 per cent per year to reach $62bn in 2011, making it bigger than newspaper advertising, which is expected to total $60bn in 2011. Broadcast television and cable and satellite television combined will continue to take the biggest share of advertising dollars, and are forecast to reach $86bn in 2011.“ The Online Advertising Market in India in 2006 was at Rs 210 crores and is expected to grow to Rs 2250 crores by the end of 2009. So while India Online Advertising market will be at $0.5 billion by the end of 2009 and at the same time the US Online Advertising market is expected to be at $42 billion. While the US figures are calculated based on a modest growth of 21 per cent per year, the Indian figures are calculated via a rather huge Print spending by the Banking and Financial products sector is up by 4% in spite of recessionary trends. Banking, financial services and insurance (BFSI) segment are steadily embracing Online advertising and how BFSI clients have managed to get up to 40 per cent of their total business leads from digital advertising. This segment accounts for almost 35 per cent of the total online ad spend in India the largest spender on online marketing Advertising spends in the banking services and product categories has increased by 184.15 per cent in the calendar year January to FINANCE December, 2008 to Rs 2,492.59 crore as compared to Rs 1,499.92 crore in 2007, HEALTH SECTOR As expected, most of the ad spend in the industry is on life insurance with LIC being the biggest spender. Amongst non-life insurance products, AND health insurance gets the giant share of ad spendPHARMACEUTICALS
Tourism Industry India emerged as the fastest-growing market in the Asia-Pacific in terms of international tourist spending. The data revealed that international tourists spent US$ 372 million in India in the fourth quarter (October-December) of 2005, 25% more than in the fourth quarter of 2004. China, which came second in the region, was successful in making international tourists fork out US$ 784 million in Q4 2005, a growth of 23% over its Q4 2004 figures. The tourist spending figures for India would have pleased the Indian tourism ministry, which had been targeting the high-end market through its long- running Incredible India communication campaign. Tourist arrivals are projected to increase by over 22% per year through till 2010, with a 33% increase in foreign exchange earnings recorded in 2004. The Incredible India campaign was an integrated marketing communication effort to support the Indian tourism industrys efforts to attract tourists to the country. The campaign projected India as an attractive tourist destination by showcasing different aspects of Indian culture and history like yoga, spirituality, etc. The campaign was conducted globally and received appreciation from tourism industry observers and travelers alike. However, the campaign also came in for criticism from some quarters. Some observers felt that it had failed to cover several aspects of India which would have been attractive to the average tourist.tourism industry
Infrastructure Industry The Web has put the real estate ad industry in constant flux in recent years, and a new report indicates there are no signs of things settling any time soon. Indeed, online real estate ad spending is expected to grow from $2 billion this year to $3 billion by 2010, rising from a 17.7 percent share of all real estate ad spending to 32.1 percent. Not only are new Web sites and search tools having an impact, advertisers are also shifting dollars within the print space. "Theres still a lot of room for online spending, While 77 percent of real estate buyers use the Internet for home searches, just 15 percent of the 535 agents surveyed place ad dollars there. Forty-seven percent of agents said theyd spend more online this year than last, and 45 percent said theyd spend the same amount. The real estates including construction and telecom firms increase their advertising budgets as a ratio of their sales by an annual 36 per cent and 21 per cent between FY2000 and FY 2006, Interestingly, these sectors, thanks to their aggressive selling, went on increasing their ad spend much more than the conventionally high spending FMCG IndustryInfrastructure The ad spend proportionate to sales, by fast rising real estate and telecom has grown the most Industry among a host of sectors, says ASSOCHAM Eco Pulse (AEP) Study.