Will Digital Be The Next Tv In India

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Information about Will Digital Be The Next Tv In India

Published on March 17, 2008

Author: bgmahesh

Source: slideshare.net

Description

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

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

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

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

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%

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

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

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.

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

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

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.

Make use of convergence for better monetization

Digital will eventually be bigger than TV but not in the near future.

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