Broadcast Media in Indian Context Essay Example

English) is evident from the transformation of STAR TV from being an entirely English channel to being abundant in Hindi programs. Advantages of advertising on television: Television has various benefits compared to other media, such as 1. Creativity and Impact: The most notable advantage of TV is the chance it offers for delivering the advertising message.

The combination of visual and auditory elements provides a great deal of artistic flexibility and enables realistic depictions of production services. Additionally, television is an effective platform for showcasing a product or service. 2. Wide coverage and cost effectiveness Television advertising allows for reaching a large number of viewers. Almost everyone, regardless of age, gender, income, or education, watches at least some television. Marketers who target broad audiences find that television is a cost-efficient way to reach the mass market.

Advertising during the weekly Mahabharat show for eight slots over four weeks allowed Cinthol Lime to capture 5.3% of the premium soap market. With a viewership of 60-70 TVR points, this show served as an effective advertising platform. Recent reports indicate that television is becoming popular again among advertisers due to its familiarity and brand-building capabilities. It is projected that in 2009, television will represent 38.3% of global ad expenditure, with this percentage increasing to 38.5% in both 2010 and 2011. Television is particularly favored by companies selling mass-consumption products because it can reach large audiences at a relatively low cost per person. However, there are drawbacks associated with advertising on television, such as high production and running costs for commercials which can be burdensome for small and medium-sized companies. A study conducted by Lintas Media Group (LMG) in

2008 revealed that rate revisions and viewership fragmentation have negatively impacted the cost effectiveness of television advertising, resulting in increased costs per thousand (CPT) and cost per rating point (CPRP). Production costs for television commercials include expenses like filming, hiring directors, and actors. An example of a costly television advertisement is the promotion of "3 Idiots" on Sony Television, which amounted to ?2 lakh for only ten seconds. Despite their effectiveness, television ads face clutter due to an abundance of commercials.

The Justice Department's decision to overturn the National Association of Blockbuster's restriction on commercial time has led to a rise in the number of commercials being aired, which previously had a limit of around six minutes per hour.

The more commercials there are, the less effective and convincing television advertising becomes. This is because television ads often reach an audience that is not interested or responsive, and may not match the target market of the advertiser. Local advertisers such as retailers may struggle with targeting specific geographic areas, as stations charge rates based on their overall market reach. Furthermore, television advertising can be intrusive and limited by viewer attention.

Television commercials are more bothersome compared to other advertising methods as they interrupt programs. This annoyance has caused viewers to mute or skip commercials, or utilize DVRs to completely avoid the advertising. In recent years, it has become even more challenging to capture consumer attention in commercials. The rise of VCRs and remote controls has resulted in the issue of zipping and zapping. Zipping refers to fast forwarding through commercials while watching a recorded program.

The emergence of Direct to home services allows viewers to skip

commercials. TV ads have become shorter, lasting 30 seconds or less, as advertisers aim to maximize their budget and make a stronger impact. To ensure effective TV advertising, there must be a sufficient media budget for exposure, an easily accessible target market, and a need for a medium with creative potential. Additionally, the budget must be sizable enough to produce high-quality commercials. In 2008, the introduction of televised cricket through the Indian Premier League and the success of General Entertainment Channel (GEC) Colors were the most significant events in television. The first season of the Indian Premier League showcased T20 cricket format which was commercially successful both on and off air.

The aggressive marketing support, viewer-friendly format, and the participation of movie stars as franchise owners resulted in the IPL becoming the biggest blockbuster show on Indian Television in 2008. Despite declining ratings for other top programs, cricket maintained its consistent performance. Even the lowest-rated IPL matches had higher ratings than many popular GEC programs. While cricket viewership has typically been male-oriented, the T20 format attracted a wider audience, including females, resulting in high ratings. This also made it attractive for new advertising categories such as FMCG.

Unprecedented high advertising rates set a benchmark in IPL 2008 and are expected to increase even more in the 2009 edition. Long-running soaps and new season of imported Reality/ Talent shows on mass channels struggled as advertisers were hesitant to pay the high premiums demanded to offset production budgets. The overall GEC share remained relatively stable as many new GEC players followed the programming styles of the leaders. However, the audience base fragmented, resulting in a softening of

advertising rates in GEC content. The rate cuts were not as drastic as the decrease in audience, causing the cost-per-rating point to rise. The economic conditions and their impact on marketing investments became evident in November and December 2008. During the festival quarter of October-December 2008, Free Commercial Time (FCT) on key channels either stayed the same or declined compared to the same period in 2007. However, FMCG categories, which rely heavily on TV advertisements, helped channels overcome the crisis to some extent. Television Time: Network Advertising is a common method for advertisers to convey their message by purchasing airtime from a television network.

Network advertising simplifies the purchase process by allowing advertisers to work with a single party or media representative for nationwide commercial airing. Networks also have control over prime time programming and feature popular programs. On the other hand, spot advertising refers to local television station commercials that are negotiated and purchased directly from each station. This type of advertising offers national advertisers flexibility to adapt to varying local market conditions in terms of area, language, culture, etc., particularly in India.

The advertiser can target specific areas with high market potential or where additional support is needed. The growth of cable television has been the most remarkable advancement in broadcast media. Cable TV has seen rapid expansion in urban areas due to better reception and a greater selection of channels for subscribers. It has experienced substantial growth over recent decades, originating in the late seventies. Indian TV viewers sought alternative entertainment options to those offered by the state-owned broadcaster DD.

The introduction of Star TV and ZeeTV led to an increase in

cable TV usage, with approximately 4,500 households adopting cable TV daily in the first half of 1992. This figure later rose to 9,450 homes per day during that year. The growth of cable TV in urban India can be observed through the following statistics: there were 412,000 cabled households in January 1992; this number increased to 1.2 million by November 1992, then reached 3.3 million in 1993. As of January 1994, it amounted to 7.4 million households, and by the end of that year, it stood at a total of11.8 million homes. In subsequent years, these numbers continued to rise: reaching15 million in1995; followed by18 million in1996; and eventually reaching22 million by1999.In2005,the television industry experienced a doubling of revenue due to technological advancements and a thriving economy.

In 2005, cable television became increasingly popular among Indians, with 53% of households owning TVs. Of these households, approximately 65 million homes (equivalent to 57%) were subscribed to cable TV. The advertising revenue generated by cable television in that year reached $1.02 billion. Despite the dominance of analog technology at the time and throughout the next decade, cable TV remained the primary platform for television advertising. However, newer technologies would eventually lead to higher revenues from both advertisements and subscriptions. Companies like Zee's Dish TV and Tata Sky are expected to drive the growth rate of Direct-To-Home (DTH) services in the coming years.

The MPA predicts that broadband penetration will increase due to lower prices of personal computers and broadband rates, as well as the consolidation of cable operators. They estimate that the number of subscribers will reach 9 million by 2012. Cable has several advantages: 1. Selectivity:

Cable subscribers generally belong to a younger, more affluent, and better educated demographic with higher purchasing power. Additionally, the specialized programming on cable networks allows for targeting specific market segments. 2. Cost and Flexibility: Advertising rates on cable programs are significantly lower compared to major network shows.

Spot advertising on most cable stations is considerably cheaper compared to other forms of television advertising. Additionally, local cable offers the most affordable option for television advertising. However, cable faces certain limitations. Firstly, it is overshadowed by major networks as households with basic cable service tend to watch more network and syndicated programming than cable shows. Secondly, cable experiences audience fragmentation due to the large number of channels available to subscribers. Despite these drawbacks, radio has evolved into primarily a local advertising medium due to the growth of television. It now features highly specialized programming that appeals to narrow segments of the population. However, radio is often used in conjunction with other integrated marketing communication (IMC) tools like sales promotions, event marketing, and cause-related marketing. A recent study indicates that using radio alongside TV and newspapers has a positive impact on brand awareness and brand selection.

The private FM industry in India has played a significant role in the development of radio as an advertising medium. The FICCI – KPMG report indicates that approximately 2% of local advertisers currently use radio and print, but this number is gradually increasing. Companies are leveraging radio advertisements to establish 360-degree communication with customers and expand their reach to a wider audience. The expenditure on radio advertising has been consistently rising each year due to its cost-effectiveness and efficiency.

Radio commercials are

an affordable advertising medium, with low production costs. This allows advertisers to increase their reach and frequency within a given budget. Unlike TV spots, radio commercials can be produced and aired quickly and frequently. Additionally, radio provides selectivity, making it easier for companies to target specific audiences. It has become a popular platform for reaching non-English ethnic markets. Furthermore, radio offers flexibility in terms of advertising options.

The radio is quite flexible as advertisers can change their message shortly before it goes on air. Additionally, listeners can create a mental image of what is happening in a radio message. However, there are limitations to advertising on radio. One limitation is the lack of visual imagery, preventing the display or demonstration of the product's features. Another limitation is the short lifespan of radio commercials, as well as the external pacing and lack of control over the processing rate for the receiver. Fragmentation is also a challenge, with a large number of stations and a small percentage of the market tuning in to any particular station. Advertisers wishing to reach a broad audience may need to purchase time on multiple stations. Moreover, there is limited research data available for radio audiences, as most stations lack the resources for detailed studies. Lastly, listener attention is limited.

The presence of radio programming, especially music, is frequently overlooked as it serves as a backdrop for various activities, resulting in listeners potentially missing some or all of the commercials. Additionally, the increasing prevalence of mobile phones has diverted people's attention away from radio listening. Furthermore, it is important for advertisers to develop commercials that can effectively cut through the clutter

of advertisements, as most radio stations air around 10 minutes of commercials per hour and this duration can increase to approximately 12 minutes during popular morning and evening time slots. This is crucial for ensuring that their messages reach their target customers.

RADIO TIME 1. Network Radio – Advertising time on radio can be bought on a network basis through one of the national networks. A significant trend in radio is the growing number of radio networks and syndicated programs that provide advertisers with a package of several hundred stations. This option reduces the need for extensive negotiations and administrative work to achieve national or regional coverage, resulting in lower costs compared to individual stations. 2. Spot Radio – Advertisers can utilize spot radio to acquire airtime on specific stations in different markets.