Decoding

Indian Media
Landscape

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India, a promising market as policy driven disruptions fade

World Bank forecasted 7.3%

India fared positively
growth for India, making it the
against the sluggish
fastest growing economy
global economy

2019 general elections already

Consumer Confidence index
creating a stir in the market.
by Nielsen remains highest for
Political parties bet big on social
India
media & hit the ad space with
hefty investments

2
A strong growing economy, Higher disposable incomes leading to
higher spending sentiment.

Gross domestic Inflation rate Consumer Unemployment

product
Increase due to Tax–GST,
Strong economic growth Population, Low–Agriculture
production
sentiment index rate
Saving money is not in fashion Rapid growth of Population,
Immobility of labor

2016 7.11% 2016 4.5 % 2016 105 2016 3.51 %

2017 6.74% 2017 3.6 % 2017 96.8 2017 3.52 %

2018 Forecast 7.36%* 2018 Forecast 4.96 %* 2018 Forecast 93 2018 Forecast 3.60 %*

Source: www.statista.com & tradingeconomics.com, Reserve Bank of India 3

Rise of the affluent as the income distribution evolves
Consumer behaviors and spending patterns are shifting as incomes rise and Indian society evolves.

Rising Affluence Continuing Urbanization Shifting family structures

INDIAN HOUSEHOLDS, BY INCOME(MILLIONS)

2005 2016
Annual gross household income
($thousands)
2025

Elite (>30.8) 3.1 6.5 15.8

(1.5%) (2%) (5%)
Affluent 7 17 33
(15.4–30.8) (3%) (6%) (11%)
Aspirers 17 40 61
(7.7–15.4) (8%) (15%) (20%)
Next billion 89 121 140
(2.3–7.7) (42%) (45%) (46%)
Strugglers 93 82 55
(< 2.3) (44%) (31%) (18%)

Sources: BCG CCI proprietary income database; BCG analysis.

Note: Income distribution is calculated in constant 2015 dollars; $1 = 65 rupees. Because of rounding, not all percentages add up to 100. 4
Digital’s influence on broader consumer spending is significant and
growing rapidly

A rising number of consumers in all

segments are using the internet as their
first port of call in framing and driving their
purchase decisions.

70% of those who have access to the

internet go online to make informed
purchase decisions.

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 Media Vehicles
HYPER FRAGMENTATION WITHIN MEDIUM - Many People, Many
Languages, Many Cultures

TV RADIO PUBLICATIONS OUT OF HOME

National private
channels 838 Reported stations 455 Registrar of publication 1,14,820 OOH SITES >1,75,000
(commercial)

Government Daily Newspaper 16,993 Private Sites (Panels,

32 Public stations(Govt) 40 162750
Channels Poster)

Magazine & other Public Sites ( Railways

Total Channels 870 Private stations 415 97,827 12250
periodicities) panels, Poster)

INTERNET CINEMA
Internet user 481Mn Single Screen 6000

Mobile internet user 320 Mn Multiplex screens 2500

Source: TV: mib.gov.in, PRINT - http://www.printweek.in RNI report & Indiamags portal, OOH –Hindu ,Cinema –KPMG, Internet -
http://www.iamai.in./ Statista, Radio - fmstations.bharatiyamobile.com 6
Advertising Spends
Television & Print still claim the lions share in advertiser media spends

Advertising in India will increase by 11% this

year to touch INR 55,960 crores with Television
retaining its leadership status in the industry

Offline media plays an

interesting role of facilitating
people offline, to buy online

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Advertising Spends
While Digital advertising spends growing exponentially, at 1.5 times
annually

60.00%

50.00% 51.5%
46.1%

40.00%
31.9%
30.00% 31.7%

21.3%
20.00% 20.1%
14.2%
10.5% 8.3% 10.5%
8.1%
10.00% 4.8% 7.5%
8.9% 1.8% 5.3%
2.0% 3.2% 7.1%
3.0%
0.00%
Total TV Radio Magazine Newspaper Cinema OOH Digital Desktop Mobile
Total
2017 v 2016 2018 fc v 2017

*Forecast: DAN as of June 2018. 8

Media Reach
Television continues to be the highest reach media throughout the
audience segments, with digital playing a stronger role in young TG

Urban Adults Urban Youth Young Adults - Urban Adult Male - Urban Adult Females - Urban
Monthly Media Reach

Television continues to Internet delivers Internet drops extremely

be a top reach media better in younger tg for adult women

Source: CCS Benchmark Study, Urban Audiences in top 23 towns 9

Broad media themes

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 India – in the middle of a media revolution

While the media converges Audience attention has

fragmented

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Content is now time & device independent, at the mercy of the
consumer
With digitization, screens differ
Multiscreen TV viewing while content remains same

Digitally synced OOH spaces Digital creates real life celebrities

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Spiking Digital consumption is compelling change in traditional
business models and evolving new mass content

INTERNET AND
Broadband roll out Digital no more a “niche” of
MOBILE SEEP Price wars
by MSO youth only media.
FURTHER
Viewership base of digital
Digital India
Public Wifi – govt & Roll out of 4G, 5G has now become more
initiatives by the ‘mass’
private planned soon
govt

1.01 Bn active wireless connections * Source: TRAI, Period: till April 2017

630 Mn Unique subscribers * Source: The Mobile Economy India 2016 by GSMA

500 Mn Internet users (approx.) * Source: IMAI Numbers, Jan 18

450 Mn Mobile internet users
(approx)
335 Mn Smartphone users (approx)
* Source: IMAI, June 18 (61% Urban/ 59%
penetration & 29% Rural/ 18% penetration)
* Source: eMarketer

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Upsurge of Video streaming, creating A new content ecosystem

Launch of all
major broadcast World leaders
network backed like Netflix and
platforms – VOOT Amazon Prime
(Viacom 18), enter the market
OZee (ZeeTV)

Mix of original, curated, live and

specially produced content – available
in free or paid versions

Hotstar, Sony Liv & Voot went Telecom players also joined the
further and launched premium game with syndicated content
services and dedicated kids offerings like Jio Apps, Airtel Wynk
channel etc

Like digital media, absence of credible third party information and

reporting, poses challenges for advertisers

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Upsurge of Video streaming, creating A new content ecosystem

Launch of all
major broadcast
network backed
platforms – VOOT
(Viacom 18),
OZee (ZeeTV)
MICRO SEGMENTATION OF
LOWERED APPOINTMENT VIEWING CONTENT WILL LEAD TO
AND HIGHER BINGE WATCHING INCREASED CHALLENGE IN
GRABBING AUDIENCE ATTENTION

Hotstar, Sony Liv & Voot went

further and launched premium
services and dedicated kids
channel

Like digital media, absence of credible third party information and

reporting, poses challenges for advertisers

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 Jio has changed the way Indians consume Internet
Increase in
Smartphone
penetration

High Speed Internet

& Increasing
The Jio Effect Bandwidth

Demand of
Snackable and original
content

Mobile Data Data Tariff Avg ARPU

Monthly Mobile Bill 87% of users are using
Consumption in India Costs Avg Internet on their Mobile
PRE JIO 20 CR GB / month 250 / GB INR 141 INR 349 Desktop Only 6%
Multi Platform 7%
Mobile Only 87%
POST JIO 200 CR GB / month 10 / GB INR 131 INR 200-240
0% 20% 40% 60% 80% 100%

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TELEVISION
Even with the recent digital
revolution, TV still holds the
highest reach & attracts the
maximum investment owing to
its long tail coverage.

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TV advertising still growing at a steady rate, though lower than
expected

TV ADVERTISING REVENUE SUBSCRIPTION GROWTH

grew at a plateau of 10% Was healthy at 12% on the
from last year back of need for escapism

VOLUME GROWTH FAST GROWTH of FREE DISH

On back of new channels, Drove heavy advertising revenues for
particularly at the back of FTA large private broadcasters (INR 20 Bn)

Source: FICCI EY Report 2018 18

 TV penetration increases i.e. reached 64% i.e. 183 mn HH

An increase of 3.5% in TV penetration

over last year
-
Distribution remains highly fragmented
-
DTH subscribers grew driven by
digitization in DAS 3-4 markets
-
Free TV registered healthy growth
-
HD subscribers crossed 10 Mn
-
Growth of OTT viewership poses a threat
to linear distribution platforms

Source: FICCI EY Report 2018 19

Hindi channels continue to lead in ad volumes

10
7

Volumes 5
53
4
4 Viewership
4
3
3
3

Hindi movies Hindi news- Telugu news Tamil news

regional
Hindi news Hindi music Bangla news Others

Hindi GEC Tamil GEC Bangla GEC

Source: BARC

Source: Dan Digital report & spends 20

 TV broadcasters move to selling content. Content first deals now a
reality. Challenges in robust single source measurement remain.

Challenge faced by buyers to unify

The traditional broadcasters are selling
traditional media channels with social
content
media valuation
–
–
now ranging over screens
absence of robust third party, single source
–
digital measurements
especially high ticket properties like sports
(desktop + mobile)

Inflation in high ticket properties observed in last few years

-
Owing due to international players, especially Chinese players in electronic market
-
Advertisers looking beyond the popular impact to leave a mark

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Print
Print Ad spends growth is mainly
registered by Dailies, Factors for this
growth are likely to be organic
growth from various Print loyalists like
Auto, Durables, Education and
Mobile handsets and Government
advertisements

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Print Media
How India Reads?

Reader base is 395 million,

or 38% of the population

Magazine, 20%

38%
98% ofreaders
read dailies;20%
62% Readers

read magazines Non-readers

Daily, 98%

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Increasing literacy and hyper localization of regionals drove growth

Only 10% of the Indian population is

English speaking, the rest is open to be
catered by regionals.

The market is highly fragmented: 16000

Newspapers + 94000 periodicals
registered with RNI 2016
No newspaper has national circulation

Hindi dailies continue to lead

circulation, followed by English dailies Increasing literacy levels, including
though their share is decreasing on women, has contributed to growth in
back of digital shift readership

Hyper-localization is the key for the

regional newspaper’s growth

Source: FICCI EY Report 2018

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Digital news gains momentum

While newspaper industry is still growing, the digital Digital

holds a deep importance, with the exponentially news by
expanding mobile & internet trends print
players
Content now has to tailored to the devices, the
new demographics and the shortening time spans

Videos hold a strong promise in the news segments

News
Social media will be key to distribution aggregato
r
D i gi tal Ne w s
Facebook has launched The Journalism Project by
Facebook – collaborative projects with news
organization
Live streaming of important events like speeches,
election results etc ONLY
Digital
Players

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Radio
Radio continues its growth
even after a cold response
from phase 3 auctions
Radio is the go to media during transit time with multiple choices in
hand with number of stations at play

Built-in FM receivers in most hand phones sold in

India (76% of audiences listen to FM radio via mobile
devices1)

Increased time spent out of the home in transit

Strong local connect

Radio as a free media

CHALLENGES

- Challenge of authentic and regular

measurement still remains

- Demonetization & GST also hit the Radio’s huge

base of local advertisers
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Radio Phase 3 FM lead to addition of new cities covered by FM and
hence volume of inventory

Phase III saw the launch of 162 new FM radio stations

Licenses were acquired in 17 cities that had no

operating FM licenses

New stations in existing cities and proliferation of private

radio to smaller cities are likely to increase the listener
base

launches created an increase in the volume of

inventory available, which was one the main reasons
for the growth of industry revenues

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Music an integral part of online consumer’s life- multiple players

94% of online consumers listen to music

throughout the year

Music from film—both Bollywood and other

Indian film music, leads consumption trends

A segmented market with dedicated national &

international music apps, radio, online radio and
video streaming

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Indian
Internet story
By 2020, # of internet users in
India will be more than G7
population
Significant shift in digital access & consumption

87% of users are using

Internet on their Mobile

Desktop Only 6%

Multi Platform 7%

Mobile Only 87%

0% 20% 40% 60% 80% 100%

Increase in Smartphone High Speed Internet Demand of

penetration & Increasing Bandwidth Snackable and
original content
Time spent on digital and TV similar in urban
connected users

Digital media has gained ground over the

last two years, displacing timeshare from
traditional channels such as TV. Urban
internet users are spending approximately 90
minutes on digital channels everyday, an
increase of 25% over the last couple of years.
As of 2016, digital and television stand at
almost the same timeshare, both at >2x that
of print.

Sources: BCG CCI Digital Influence Study – 2016; BCG analysis

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The demographics are changing fast as well

Share of urban female High growth expected in

internet users is internet users
expected to grow over 25 years of age as well
significantly

The digital user demographic in India is

expected to expand beyond the traditional
stereotype, with significant growth expected
in female and older (more than 25 years old)
internet users by 2020. This helps to reinforce
the notion that digital is not just a small,
targeted opportunity, but rather a way to
reach the masses.

Sources: BCG RAI report – “Decoding Digital @ Retail”, BCG analysis, Feb 2017
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Internet is the go to place for connections & information.

Look For Play

Product Games
Informatio 7% Visit a
Millennials, and Social
n
the generations that follow, 7% Network
are shaping technology and 35%

it’s a smartphone era.

Use a
Search
478
Mobile internet users in India seen at Engine
25%
million by June’18

Watch
Videos
26%

Source: Statista 2018

Social media: an integral part of online experience

76% of
Penetration of leading social network as of Q32017 business
are using
social
media for
business
objectives.

Avg. hour
spent on
SM each
day = 2.0

30%
SOCIAL USAGE BY AGE

30% 31%
21%
11% 8%
15-24 25-34 35-44 45-54 55
YEARS YEARS YEARS YEARS AND
ABOVE
Source: Dan Digital Report 2017
Increasing adoption of OTT/Digital Video

DIGITAL VIDEO PENETRATION

54%
40%
2016

2017

Brand health + View ability

Source: Dan Digital Report 2017

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Snackable content formats and live sports are most preferred in online
content space

Source: EY Report
Video increasingly being used beyond entertainment

Online videos are, as expected, a key source of entertainment. However, their importance has grown much beyond just
entertainment. They are now an integral part of product research. They are also becoming the go-to destination for learning
with 54% internet users using online videos to learn something new, and ‘How-to’ searches increasing by 3 times in the last
year alone.

Sources: Consumer Barometer Survey, 2015–16, Google Internal Search Data,

2015–16, BCG analysis 39
Consumption of online vernacular content increasing rapidly

Consumers are increasingly searching, viewing & demanding content in their local
languages

This is driven primarily by a rise in Indian language users who have already overtaken
English internet users, with around 57% Indian language internet users in 2016. In fact, in
certain cases, local language content is generating significantly more views than
English content on popular YouTube channels.

Sources: ‘Google Internal Search Data, 2015–16; As per Adsense inventory on Google Display Network; Google Internal YouTube

Data, 2016; Google–Nielsen data, 2016; ‘Be Beautiful’ YouTube page as of 14-Sept-2017; BCG analysis 40
Search on ecommerce platform is pivotal

• Movement of search from laptop to mobile

• Emergence of the new search ecosystems – amazon and

flipkart enabled audience to search at retail points,
comparing online while at last mile, looking for reviews.

• Snack search and information review on the go is the new

phenomenon

• Information gathering is happening right inside the retail

environments, review forming the backbone of this system

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The fight for dominating the digital ecosystem has sparked, with
content as the key piece which binds it all

Content business is pegged to be the biggest future growth driver in the global consumer
Internet economy.

Flipkart explores partnership Wants to enter the growing

Blurring lines between E-
with Hotstar, commerce & Content
streaming market, where
to remain relevant in the providers players like Amazon Prime
evolving Indian ecosystem Video & Netflix arena.

Cheap data is not enough to Jio provides 600 live channels

retain users, a steady stream
of content is required
Jio to set up its own
production house to create
original content
to its mobile subscribers.
India’s Telecom Operators Vodafone- 375 & Airtel-370
Hunt For Content To Feed
Data Addiction In talks with streaming
services for tie ups & offering
free memberships.

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 The fight for the payment ecosystem in India intensifies- Google to slug
it out with local leader Paytm with Whatsapp payments, while Amazon
Pay & PhonePay becoming bullish
Digital payments in India is now poised for a great leap forward as global tech giants slug it
out for a bigger slice of the pie.

PayTm
Ecosystem
Google Pay

More & more players are

ECommerce Paytm Post site Flipkart trying to give all digital
Money Facebook ad Phone Pay solutions to keep the
consumer in the same
Whatsapp ecosystem & ensuring
payments minimum leakage
Investment
Paytm
Bank
Amazon Pay
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Trends in digital media buying

While 85% of the digital media is currently purchased directly, programmatic is expected
to contribute quarter of all digital media buying by 2020

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Increasing advances in marketing technology

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Cinema
Bollywood is at the heart of
India, and Cinema is most
visited for weekend leisure or
for celebration.
Filmed entertainment grew on the back of new revenue streams, Good
content dodged demonization

Box office grew – both domestic &

international, latter playing a key role

Increased revenues from sale of satellite

and digital rights, biggest sale being TV
premiers of Bahubali & Dangal

Demonetization affected single screens

and regional markets, esp. in tier 2 -3 cities
o Lack of digital payment options
o Dependence on local advertisers

Content and quality of storylines

appreciated

Source: FICCI EY Report 2018

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Exhibition infrastructure changing, scope of growth is huge

Single screens are moving into multiplexes on back of increased urbanization

India has one of the lowest screen density in the world, hence a huge scope of growth

Source: FICCI EY Report 2018

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Multiple avenues to integrate with the viewing experience

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OOH
Over time, there has been
increase in time spent outdoor
with the rising culture of Malls,
cafes & Pubs. OOH no longer
restricts to hoarding but
forayed in multiple dimensions.
Technology along with newer formats will drive growth

Data & technology are bringing accountability into

the sector

Increased penetration of AR and VR technologies,

coupled with the ease of developing content for
these will drive innovations in DOOH

India now has more than 80+ airports, of which 18 are

connected to international destinations, catering to
265 million flyers

Railways have finally taken the lead in OOH

monetization, have successfully started providing
properties across stations, outside stations, train wraps
etc

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Rise of DOOH and programmatic in outdoor spaces- taking the
integration of technology and ooh spaces to next level

Time Weather
Audio
Specific Specific

Location Slot Age

Specific Scheduling Specific

Multiple Real Time Gender

Creatives Situations Specific

Time of the Countdown Expression

Day Ticker ’s Specific

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Thank You.

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