 "More than one-third of ad spends misses target")
Consider this: Of the Rs 30,000-crore total annual advertising, nearly Rs 9,000-crore worth of ad money simply misses achieving its intended objective. In other words, upto 30 per cent of ad and media spends are lost or wasted during advertising, according to a new study, '7 Steps to Unlocking Marketing Effectiveness' by market research company, Nielsen.
The study compiled from data collected over two to three years of ad and marketing spends of brands across categories in India, says that the global average of media wastage is between 15 and 30 per cent. India's media wastage is clearly at the upper end of this spectrum. What is leading to spends missing the mark by such a large margin? Nielsen says that the emphasis on select media channels and the focus on a few core brands by marketers is what is leading to this situation. "In many cases, there is no new message conveyed and the emphasis, more often than not, is on the mother brand, rather than extensions or variants," says Nitya Bhalla, executive director, Nielsen India, who co-authored the report with Deepika Goel, associate director, Nielsen.
Fragmentation concerns
The proliferation of media, points out Nielsen, is not helping the cause of brand-building, with media planners today having to think out-of-the-box to stem wastage. If not tackled in time, media wastage could only grow, the study, points out.
In the last ten years, TV channels - one of the biggest media vehicles for advertising - exploded over six times to touch 788 from 130, according to a recent communique by the Ministry of Information & Broadcasting. Some media studies suggest that the total number of TV channels has crossed the 800-mark, making keeping a tab on one's ad placement difficult.
While the general churn in the publishing industry has hardly affected the print media, growth is being seen mainly in the regional language space. The spurt is making life difficult for advertisers targeting a growing consumer base in these belts, who have myriad options in publications, pullouts, supplements and magazines. The proliferation is set to grow in the next few years as brands increasingly become local in their advertising efforts, say media experts.
Digital and social media may have had a relatively recent entry but that has not prevented its growth. India is already Facebook's second-largest market after the US, with an average of over 100 million monthly users. Twitter and WhatsApp users in the country are rapidly growing, pegged at over 30 million and around 50 million users, respectively, according to social media experts.
Tackling media wastage
Nielsen proposes having greater synergy between above-the-line and below-the-line activities; understanding the life-stage of the brand to be advertised before deciding on the media mix; looking at avenues beyond traditional media such as sponsorships when advertising; and going beyond customary formats, and opt for longer duration ads instead of 30-second commercials to get a complex message communicated.
But are advertisers listening?
Some of them are. The country's largest advertiser, Hindustan Unilever (HUL), for instance, is focusing on more efficient media buying and deployment of non-TV-led media. The company is also encouraging its brand managers, as well as partner agencies, to come up with innovative solutions to brand problems and communication needs. Creative ideas are being rewarded and immediately taken forward once their feasibility is determined. HUL hinted about this in its 2013-14 annual report, released earlier this month: "The company has identified three key behaviours: Growth mindset, bias for action and consumer and customer centricity that will supplement the capabilities to achieve business goals."
The study compiled from data collected over two to three years of ad and marketing spends of brands across categories in India, says that the global average of media wastage is between 15 and 30 per cent. India's media wastage is clearly at the upper end of this spectrum. What is leading to spends missing the mark by such a large margin? Nielsen says that the emphasis on select media channels and the focus on a few core brands by marketers is what is leading to this situation. "In many cases, there is no new message conveyed and the emphasis, more often than not, is on the mother brand, rather than extensions or variants," says Nitya Bhalla, executive director, Nielsen India, who co-authored the report with Deepika Goel, associate director, Nielsen.
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Fragmentation concerns
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Media planners also admit that increased media fragmentation is leading to reduced media effectiveness. "The role of traditional media is being redefined thanks to digital media," says P M Balakrishna, chief operating officer, Allied Media, which is part of the Percept Group of communication companies. "Earlier brands would tap into media channels for building awareness, but now the emphasis is on the tangible benefit of advertising on a certain media channel?" he says.
The proliferation of media, points out Nielsen, is not helping the cause of brand-building, with media planners today having to think out-of-the-box to stem wastage. If not tackled in time, media wastage could only grow, the study, points out.
In the last ten years, TV channels - one of the biggest media vehicles for advertising - exploded over six times to touch 788 from 130, according to a recent communique by the Ministry of Information & Broadcasting. Some media studies suggest that the total number of TV channels has crossed the 800-mark, making keeping a tab on one's ad placement difficult.
While the general churn in the publishing industry has hardly affected the print media, growth is being seen mainly in the regional language space. The spurt is making life difficult for advertisers targeting a growing consumer base in these belts, who have myriad options in publications, pullouts, supplements and magazines. The proliferation is set to grow in the next few years as brands increasingly become local in their advertising efforts, say media experts.
Digital and social media may have had a relatively recent entry but that has not prevented its growth. India is already Facebook's second-largest market after the US, with an average of over 100 million monthly users. Twitter and WhatsApp users in the country are rapidly growing, pegged at over 30 million and around 50 million users, respectively, according to social media experts.
Tackling media wastage
Nielsen proposes having greater synergy between above-the-line and below-the-line activities; understanding the life-stage of the brand to be advertised before deciding on the media mix; looking at avenues beyond traditional media such as sponsorships when advertising; and going beyond customary formats, and opt for longer duration ads instead of 30-second commercials to get a complex message communicated.
But are advertisers listening?
Some of them are. The country's largest advertiser, Hindustan Unilever (HUL), for instance, is focusing on more efficient media buying and deployment of non-TV-led media. The company is also encouraging its brand managers, as well as partner agencies, to come up with innovative solutions to brand problems and communication needs. Creative ideas are being rewarded and immediately taken forward once their feasibility is determined. HUL hinted about this in its 2013-14 annual report, released earlier this month: "The company has identified three key behaviours: Growth mindset, bias for action and consumer and customer centricity that will supplement the capabilities to achieve business goals."