A deep dive into the nature of advertising spend within BFSI Industry, trends and analysis.

1. BANKING & FINANCIAL SERVICESAD.EX.
-ANALYSIS.
PERIOD 2010-2015

2. BFSI CATEGORYHISTORICALANALYSIS – PERIOD 2010-2015
869
723 682
790 733 797
548
631
493
497 538 391
59
72
63
72 77
90
86
78
112
119 134
160
62 92
138
183 238 307
6.8
5.8
5.2 5.2
4.6
4.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 2014 2015
DIGITAL
OOH
RADIO
TELEVISION
PRINT
BFSI as a % of
Industry Spends
All values are in INR Cr’s.
Source:- Pitch Madison Reports, TYNY Group M Report, FICCI KPMG Report, TAM ADEX.
Key Takeaways:
• BFSI Category Spends have been range bound between Rs 1600 Cr- Rs 1750 Cr from over last 5 years.
 This is owing to muted growth in banking and insurance business, regulatory challenges , not many new entrants in to the sector.
• Value migration from Print & Tv to OOH, Digital & Radio leading to secular growth in them.
• BFSI Adex as a percentage of Industry Adex has dropped consistently.
SpendsinRs.Cr’s
Percentage%values
53%34%
4%
5% 4%
2010 % Share
48%
30%
4%
7%
11%
2013 % Share
46%
22%
5%
9%
18%
2015 % Share

3. BFSI SUB-CATEGORYSHAREANALYSIS
All values are in INR Cr’s.
Source:- Pitch Madison Reports, TYNY Group M Report, FICCI KPMG Report, TAM ADEX.
SpendsinRs.Cr’s
536 591 562 662 604 597
415
432 384
370 406 418
470 405
421
491 524 514
121 82
48
66 107 12682 86
73
71 80 89
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 2014 2015
SECURITIES
MUTUAL FUNDS
STATUTORY
INSURANCE
BANKS/NBFC
37%
27%
25%
5% 6%
40%
22%
30%
4% 4%
34%
24%
30%
7% 5%

4. BFSI- BANKING SUB-CATEGORYANALYSIS
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015
Atm Services/debit Cards
Banking-anywhere
Banking
Banking-corporate
Banking-retail Banking
Credit Cards
TREND FROM CHART:
Credit Cards and Anywhere
banking show uptrend. All
product segments dip.
Cash intensity of economy to
decrease significantly till 2019.
Digital to emerge as a key
strategy for all the players,
especially banks.
----Banking products revenue trend
chart
0
10
20
30
40
50
60
70
80
90
100
PRINT
RADIO
TV
HOW TO READ THE CHART :
Bars determine the % weight of
media spends in the respective
media vehicle from a period
2010-2015.
Arrows determine the trend of
increase, decrease or stability of
the media spends in respective
media vehicle over a period of
2010-2015.
----Banking products avg. media weight and trend across print, radio & TV.
Weightin%

5. BANKING SECTOR SCAN
684
864
984 969 994
1089
0
200
400
600
800
1000
1200
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Growth in credit off-take over the past few years(USD
67.1
76.4
103.4 102.7 102.88
110.4
18.2 20.2
28.7 30.65 31.38 34.12
5.8 5.9 7.68 7.78 7.6 8.26
0
20
40
60
80
100
120
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Public Banks
Private Banks
Foreign Banks
Interest income growth in banking sector (USD Billion)
2.01
2.56
2.92
1.01 1.09
0.540.52 0.66
0.89
2013 2014 2015
Public Banks
Foreign Banks
Private Banks
Net NPA to Net Advances over
the years (in percent terms)
• A slowdown in credit off take and Interest
income from FY 12 onwards.
• PSU Banks reeling with high NPA issue.
Govt. has been taking affirmative actions in
this direction by launching Indradhaunish a
cash infusion initiative and by forming bank
boards.

6. UBER MOMENTIN INDIAN BANKING
 Traditional Entry Barriers Disrupted-
• RBI issues “ differentiated” licences changing competitive landscape for incumbent banks.
• Two classic entry barriers of capital and physical presence are disrupted.
• Just as Uber ( zero ownership of cabs ) emerged global leader in “cab sharing” , it is now
possible for challenger banks to compete without capital (P2P lending) and without
physical presence ( payment technologies).
Above has made incumbents to have a necessary Digital Strategy. SBI Bank has taken a
lead among PSU’s with the highest transaction share on mobile, HDFC Bank , Axis Bank
launched “ ping Pay” and “ Lime” to strengthen their digital play.
This has led to less focus on advertisement spends on FD’s , ATM services & other retail
products which used to be high previously.
 Cash intensity of the Indian Economy to reduce-
While the economy continues to remain dependent on cash(70% of consumer payments by
value)a combination of policy push factor and consumer need for convenience is going to
reduce the cash dependence of economy to 40% of consumer payments by value by 2019.

7. BFSI – INSURANCE SUB CATEGORYANALYSIS
0
50
100
150
200
2010 2011 2012 2013 2014 2015
Insurance-life
Insurance Gen-
health/accidents
TREND FROM CHART:
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
PRINT
RADIO
TV
----Insurance products avg. media weight and trend across print, radio &
tv.
Weightin%
HOW TO READ THE CHART :
Bars determine the % weight of
media spends in the respective
media vehicle from a period
2010-2015.
Arrows determine the trend of
increase, decrease or stability of
the media spends in respective
media vehicle over a period of
2010-2015.
Life Insurance business has de-grown
owing to IRDA regulations on mis-
selling of ULIPS. Non-life business
shows healthy growth on the back of
continued tailwind in health insurance
business.

8. INSURANCE SECTOR SCAN
4.6
5.8 6.7 6.8 7.2
2.9
3.8
4.7 5.1
5.7
0
2
4
6
8
10
12
14
FY 10 FY 11 FY 12 FY 13 FY 14
Private
Public
Life Insurance Segment Premiums.(USD Billion)
4.6
5.8 6.7 6.8 7.2 7.7
2.9
3.8
4.7 5.1
5.7
6.3
0
2
4
6
8
10
12
14
16
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Private
Public
Non-Life Insurance Segment Premiums.(USD Billion)
Life Insurance penetration at 3.1 %.
Life Insurance penetration at 0.7 % in FY 15.
April-Dec 2015 Statistics
Private insurers registered a growth of 13% y’o’y in
weighted new business premium at the same time LIC
grew by a modest 1%.
ICICI Prudential tops the private life insurers list with an
increase in market share from 8.7% to 9.3%.
Except Reliance life, Bajaj Allianz and Max life all of the
top 10 life insurers have registered a positive growth in
their weighted new business premium.
Following the insurance laws amendment act which
raised the FDI limit from 26% to 49% , Bharti Axa and
Aegon Life have completed the process of increasing
stake of their respective foreign partners.
April-Sep 2015 Statistics.
Public insurers grew by about 11.9 % compared to 11.4%
posted by private insurers.
New India Assurance dominates the market 18% market
share.

9. 0
20
40
60
80
100
120
140
160
180
2010 2011 2012 2013 2014 2015
Audited/unaudited
Financial Re
Balance Sheet
Bonds
Chairmans Speech
BFSI-STATUTORYSUB CATEGORYANALYSIS
BFSI MUTUAL FUNDS SUB CATEGORY ANALYSIS
82
72 75 74
61
52
2
5 5 9
7
6
16
23 20 17
33
42
0
20
40
60
80
100
120
2010 2011 2012 2013 2014 2015
TV
RADIO
PRINT
HOW TO READ THE CHART :
Bars determine the % weight of media
spends in the respective media vehicle from
a period 2010-2015.
Once a very heavy print category has
gradually increased its share in TV.
TREND FROM CHART:
AFR/UFR has more or less remained
constant with balance sheet piece
increased while bonds and chairman’s
speech has dipped.
Weightin%

10. MUTUALFUNDS SECTOR SCAN
129.5 129.8 125.3 129.2 136.9
179.6
0
50
100
150
200
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Mutual Funds AUMs (USD Billion)
The asset management industry among the
fastest in the world with AUM of $ 215.4 billion.
47%
29%
21%
2% 1%
Corporates
HNWI
Retail
Banks/FI
FII
Investor Break-up
 Mutual Funds industry turned net buyer post Mr Modi coming to power.
 Key macro indicators for the economy like fiscal deficit, inflation, IIP , etc. stable. Viewed as a better performing
markets among emerging market peers.
 Market friendly regulations and policies by present government.
Prepared by:
Rakshit Kaul.
The Times Group.