Description
This presentation is to give overview of Indian media channels and different strategies involved in different media.
? E&M
one of the fastest growing sectors in
India
? Factors
that are contributing to this high growth rate are: ? Low media penetration in lower socioeconomic classes (SEC) ? Low ad spends ? Liberalizing foreign investment regime
?
Entry of new players
Reliance Group (filmed entertainment and radio segment), Tata group (subsidiary VSNL) and Thomson Group and Tata Sky Limited (set-top-boxes and DTH service)
?
Foreign investment The sector recently witnessed increasing foreign investment inflows especially in the print media. In the broadcasting space, most channels have beamed into India (such as Walt Disney, ESPN-Star Sports, Star, Discovery, BBC etc.)
?
Current status of the industry and its growth potential
E&M in India: INR 353 billion Growing at 19% over the next five years.
Television industry 42 %
share of E&M
• •
The long term goal of a media sales team is to get their fair share of advertising revenue The four main objectives of a media sales department is to:• • • •
To get results for customers To develop new business Retain and increase current business Increasing customer loyalty
•
The sales force has to execute strategies like:• • • •
Selling solutions to advertising problems. Support in creating value for the product. Becoming the preferred supplier. Innovating
•
Newspapers/Magazines:1) Innovating in the form of new sections. 2) Rate Card structure -encourage more advertisers more space. ? 3)Price negotiations over favorable positions and run of advertisement
? ?
•
Television:? ?
1) Demand Pricing- Limited supply of high rated spots. 2) High Competition leading to Prisoner’s Dilemma.
• •
Difference between TV and Newspaper selling strategies. Internet:1) Transformation of business model – customers armed with information. Example of car selling through E-Bay. ? 2)Online component introduced by companies to reduce cost and increase sales.
?
•
Different Sales Team Structure example geography based or product category based.
•
Advantages/ Disadvantage of team structure
•
Role of Compensation in determining of Sales Team Structures.
Two means of revenue generation 1. Subscription Fees and 2. Advertisement
Share of Revenue
30% 70%
Subscription fees Advertisement
Creative boutiques/agencies
• Create commercials based on the media briefs
Media planners
• Take decisions regarding the target group and the channels for advertisement • Decide on the rates, spots, viewership and they also negotiate with the channels • Use soft wares like EXPERT, MEDIA EXPRESS, ADEX Data
Media buyers
Research Put up the image of the company Fix up meetings Create deals
• Normal Quotes • Special Quotes
Negotiations
Tactics for bill generation
National Head Regional Head Vice President AVP Senior Sales Manager
Senior Sales Executive
Sales Executive Management Trainee
? Campus
drives in MBA colleges ? Directly recruiting people with prior experience ? On the basis of recommendations ? Poaching from competitors (of people with contacts)
•Common Sense •Presentable •Knowledge about industry •Proficient in sales techniques
Done on the basis of target achievement (year/monthly)
Set on the basis of past data, industry performance and future plans
Key account management practices are in place. There is a key account head who directly interacts with the client
•Additional spots •Make sponsors
Data warehousing and management
? Dinners ? Award
shows ? Functions ? Movie premiers
Apart from the various optimizing softwares a wide use of Microsoft Office for data base management is done.
Distribution is done in two ways:
? The
sales people dealing with either the media planners (agencies) or directly approaching the companies for selling spots media organization deals with the satellite distributors who are responsible for telecasting of the TV channels
? The
Types of Print Media: ? Newspapers ? Magazines ? Newsletters ? Brochures ? Posters ? Direct mail marketing, flyers, handbills/leaflets, banner advertising, billboard advertising, press releases etc
Print industry is expected to grow from Rs 128 bn in 2006 to Rs 232 bn by 2011, at 12.6% ? Newspaper industry is estimated at Rs 112 bn, the magazine segment is valued at Rs 16 bn ? Newspapers and periodicals published 41705, highest number of newspapers were published in Hindi, 16864
?
A job in print media sales essentially involves the selling of advertising space to media agencies or companies direct. Print Media space is either sold by: ? Linage: Ads worked out by charging a set amount per line. Used by small companies, linage ads are very cost effective ? Single Column Centimeters (SCC): this is a rate worked out by how many vertical centimetres an advert measures by how many column inches across ? Display or semi display: Ads found within the front half of a newspaper or regional supplement with logos, graphics, photos
?
?
Make a list of the clients based on the verticals
Service the existing clients who advertise in the paper or are related. This can be done by: ?Giving them information about new schemes ?Planning any campaign ?Publicizing any ongoing sale ?If they need any print media support, help them with it. ?Introducing various schemes such as providing additional advertisements or discounts. Getting business from new accounts by going to the market, meeting with the companies, giving them information about rates offered and advertisement placements.
?
Recruitment & selection practices: In print media industry, selection is done preferably of people from media background with a prior work experience of 1-2 years. Recruitment is mostly done from: ? B-Schools ? Advertising School
Training: Generally, training is not provided in this sector as attrition rate is very high. The general trend is that people leave in a year or so. So generally the supervisor assists for a time span of 7 days & after that the sales executive is on his own. Customer relationship management: There is a presence of a BPO cell in some companies but on a very small scale. Their role is also limited to handling complaints and giving information about schemes. Computer based systems: Companies like HT Media have an SAP system in place. It is used for client and billing data. But most of the things are done on paper or on mail or print outs.
? Radio
ad spends account for about 4 percent of the total advertising spends in India today ? Initially there was 1 major player AIR(All India Radio) so scope was limited but now with regulations about 205 active stations are on air ? The industry now boasts of players such as Radio Mirchi and Big FM with a pan-India presence.
? Radio
earns nothing from subscription as its free to air, it has only one source of revenue i.e. selling of ad time or space selling
SELLING SPACE IS THE REVENUE SOURCE
? The
marketing and programming teams are selling the station to the audience and the media ad sales team sells the station to corporate and retailers (advertisers).
? The
radio sales strategy is very different from any other because radio stations need to keep following up with clients and agencies for campaigns. ? Very few radio deals are made annually they are mostly on per campaign basis ? Fresh approach is required every time.
Radio sales are done usually on a per 10 second rate basis. Rates differ from 1) city to city, 2) station to station 3) time band to time band 4) It can differ from deal to deal.
Value added services given by sales people are 1) sponsorship tags 2) RJ mentions (not recommended). 3) Association with certain shows, barter deals to back the rates, extra seconds if extreme case
Sales Head
Manager
Manager
Executive
Executive
Executive
? In
recent past Internet has emerged as a very powerful media.
Websites, Blogs,Twitter,Facebook all have resulted in formation of Internet as Media.
? Content
In this presentation we will see how Internet can generate revenue as a Media tool. The sales for this ad space are done in two broad ways
?
1)
The media buyers for advertisers approach companies having popular sites with high traffic and offer to give ads on it or vice versa.
2) Through existing ad networks like Google Adsense(Adwords)where these act as middle men.
?
?
?
Industry Overview:
Reaches consumers when they shop and travel Used to reinforce the impact of an advertised brand OOH market stands at Rs. 6-7 billion today Accounts for approximately 6% of the total ad spends in India which compares favorably to the world wide avg. Largely unorganized with very few organized players like Times OOH, Vantage Point, Pioneer and Laqshya. As it requires a minimum critical mass of targeted audience, it finds widespread acceptance in metros and a few large towns. Acceptance would increase in smaller towns with increased advertising spend from local advertisers. No clear classification of territories as such.
? ? ? ? ? ? ? ? ? ? ? ?
The benefits that are sold are:
? ? ? ? ? ? ?
Demographic coverage Captive audience Eye level visibility Cost efficiency Quality of display boards Ambience around the site Unavoidability
Industry-specific Sales Characteristics:
?
Use of sales team in addition to printing the contact numbers at the site. Targets are difficult to set, especially in case of new markets/ sites. Introduction of innovative media like video LED walls Customer relationship management practices
?
? ?
?
Directly dependent on other industries like financial institutions, FMCG companies etc. as they are customers for media. Intense competition due to fragmentation of viewership. Differentiation of content has become increasingly important. Use of innovative practices to boost sales.
Highly negotiation based sales process – difficult to prove one’s product/service better than the competition.
?
?
?
? ? ? ? ? ? ?
http://www.equitymaster.com/detail.asp?date=9/14/2007&story =5 http://en.wikipedia.org/wiki/Print_media_in_India http://www.salesgravy.com/JobBoard/job/6489387 http://www.buzzle.com/articles/types-of-print-media.html FICCI and Price Waterhouse Coopers Report on Indian Entertainment and Media Industry FICCI-KPMG-Media Entertainment Industry Report Media Selling- By Charles Warner
Other sources of information: ? Mr. Indrajeet Sen, President, Laqshya Media ? Mr. Alok Kumar, Research Analyst, TAM ? Mrs. Vidya Kadian, Sales Team Leader, HT Media ? Mr. Nikhil Awasthy, Student NMIMS
Thank You!!!
doc_155647908.pptx
This presentation is to give overview of Indian media channels and different strategies involved in different media.
? E&M
one of the fastest growing sectors in
India
? Factors
that are contributing to this high growth rate are: ? Low media penetration in lower socioeconomic classes (SEC) ? Low ad spends ? Liberalizing foreign investment regime
?
Entry of new players
Reliance Group (filmed entertainment and radio segment), Tata group (subsidiary VSNL) and Thomson Group and Tata Sky Limited (set-top-boxes and DTH service)
?
Foreign investment The sector recently witnessed increasing foreign investment inflows especially in the print media. In the broadcasting space, most channels have beamed into India (such as Walt Disney, ESPN-Star Sports, Star, Discovery, BBC etc.)
?
Current status of the industry and its growth potential
E&M in India: INR 353 billion Growing at 19% over the next five years.
Television industry 42 %
share of E&M
• •
The long term goal of a media sales team is to get their fair share of advertising revenue The four main objectives of a media sales department is to:• • • •
To get results for customers To develop new business Retain and increase current business Increasing customer loyalty
•
The sales force has to execute strategies like:• • • •
Selling solutions to advertising problems. Support in creating value for the product. Becoming the preferred supplier. Innovating
•
Newspapers/Magazines:1) Innovating in the form of new sections. 2) Rate Card structure -encourage more advertisers more space. ? 3)Price negotiations over favorable positions and run of advertisement
? ?
•
Television:? ?
1) Demand Pricing- Limited supply of high rated spots. 2) High Competition leading to Prisoner’s Dilemma.
• •
Difference between TV and Newspaper selling strategies. Internet:1) Transformation of business model – customers armed with information. Example of car selling through E-Bay. ? 2)Online component introduced by companies to reduce cost and increase sales.
?
•
Different Sales Team Structure example geography based or product category based.
•
Advantages/ Disadvantage of team structure
•
Role of Compensation in determining of Sales Team Structures.
Two means of revenue generation 1. Subscription Fees and 2. Advertisement
Share of Revenue
30% 70%
Subscription fees Advertisement
Creative boutiques/agencies
• Create commercials based on the media briefs
Media planners
• Take decisions regarding the target group and the channels for advertisement • Decide on the rates, spots, viewership and they also negotiate with the channels • Use soft wares like EXPERT, MEDIA EXPRESS, ADEX Data
Media buyers
Research Put up the image of the company Fix up meetings Create deals
• Normal Quotes • Special Quotes
Negotiations
Tactics for bill generation
National Head Regional Head Vice President AVP Senior Sales Manager
Senior Sales Executive
Sales Executive Management Trainee
? Campus
drives in MBA colleges ? Directly recruiting people with prior experience ? On the basis of recommendations ? Poaching from competitors (of people with contacts)
•Common Sense •Presentable •Knowledge about industry •Proficient in sales techniques
Done on the basis of target achievement (year/monthly)
Set on the basis of past data, industry performance and future plans
Key account management practices are in place. There is a key account head who directly interacts with the client
•Additional spots •Make sponsors
Data warehousing and management
? Dinners ? Award
shows ? Functions ? Movie premiers
Apart from the various optimizing softwares a wide use of Microsoft Office for data base management is done.
Distribution is done in two ways:
? The
sales people dealing with either the media planners (agencies) or directly approaching the companies for selling spots media organization deals with the satellite distributors who are responsible for telecasting of the TV channels
? The
Types of Print Media: ? Newspapers ? Magazines ? Newsletters ? Brochures ? Posters ? Direct mail marketing, flyers, handbills/leaflets, banner advertising, billboard advertising, press releases etc
Print industry is expected to grow from Rs 128 bn in 2006 to Rs 232 bn by 2011, at 12.6% ? Newspaper industry is estimated at Rs 112 bn, the magazine segment is valued at Rs 16 bn ? Newspapers and periodicals published 41705, highest number of newspapers were published in Hindi, 16864
?
A job in print media sales essentially involves the selling of advertising space to media agencies or companies direct. Print Media space is either sold by: ? Linage: Ads worked out by charging a set amount per line. Used by small companies, linage ads are very cost effective ? Single Column Centimeters (SCC): this is a rate worked out by how many vertical centimetres an advert measures by how many column inches across ? Display or semi display: Ads found within the front half of a newspaper or regional supplement with logos, graphics, photos
?
?
Make a list of the clients based on the verticals
Service the existing clients who advertise in the paper or are related. This can be done by: ?Giving them information about new schemes ?Planning any campaign ?Publicizing any ongoing sale ?If they need any print media support, help them with it. ?Introducing various schemes such as providing additional advertisements or discounts. Getting business from new accounts by going to the market, meeting with the companies, giving them information about rates offered and advertisement placements.
?
Recruitment & selection practices: In print media industry, selection is done preferably of people from media background with a prior work experience of 1-2 years. Recruitment is mostly done from: ? B-Schools ? Advertising School
Training: Generally, training is not provided in this sector as attrition rate is very high. The general trend is that people leave in a year or so. So generally the supervisor assists for a time span of 7 days & after that the sales executive is on his own. Customer relationship management: There is a presence of a BPO cell in some companies but on a very small scale. Their role is also limited to handling complaints and giving information about schemes. Computer based systems: Companies like HT Media have an SAP system in place. It is used for client and billing data. But most of the things are done on paper or on mail or print outs.
? Radio
ad spends account for about 4 percent of the total advertising spends in India today ? Initially there was 1 major player AIR(All India Radio) so scope was limited but now with regulations about 205 active stations are on air ? The industry now boasts of players such as Radio Mirchi and Big FM with a pan-India presence.
? Radio
earns nothing from subscription as its free to air, it has only one source of revenue i.e. selling of ad time or space selling
SELLING SPACE IS THE REVENUE SOURCE
? The
marketing and programming teams are selling the station to the audience and the media ad sales team sells the station to corporate and retailers (advertisers).
? The
radio sales strategy is very different from any other because radio stations need to keep following up with clients and agencies for campaigns. ? Very few radio deals are made annually they are mostly on per campaign basis ? Fresh approach is required every time.
Radio sales are done usually on a per 10 second rate basis. Rates differ from 1) city to city, 2) station to station 3) time band to time band 4) It can differ from deal to deal.
Value added services given by sales people are 1) sponsorship tags 2) RJ mentions (not recommended). 3) Association with certain shows, barter deals to back the rates, extra seconds if extreme case
Sales Head
Manager
Manager
Executive
Executive
Executive
? In
recent past Internet has emerged as a very powerful media.
Websites, Blogs,Twitter,Facebook all have resulted in formation of Internet as Media.
? Content
In this presentation we will see how Internet can generate revenue as a Media tool. The sales for this ad space are done in two broad ways
?
1)
The media buyers for advertisers approach companies having popular sites with high traffic and offer to give ads on it or vice versa.
2) Through existing ad networks like Google Adsense(Adwords)where these act as middle men.
?
?
?
Industry Overview:
Reaches consumers when they shop and travel Used to reinforce the impact of an advertised brand OOH market stands at Rs. 6-7 billion today Accounts for approximately 6% of the total ad spends in India which compares favorably to the world wide avg. Largely unorganized with very few organized players like Times OOH, Vantage Point, Pioneer and Laqshya. As it requires a minimum critical mass of targeted audience, it finds widespread acceptance in metros and a few large towns. Acceptance would increase in smaller towns with increased advertising spend from local advertisers. No clear classification of territories as such.
? ? ? ? ? ? ? ? ? ? ? ?
The benefits that are sold are:
? ? ? ? ? ? ?
Demographic coverage Captive audience Eye level visibility Cost efficiency Quality of display boards Ambience around the site Unavoidability
Industry-specific Sales Characteristics:
?
Use of sales team in addition to printing the contact numbers at the site. Targets are difficult to set, especially in case of new markets/ sites. Introduction of innovative media like video LED walls Customer relationship management practices
?
? ?
?
Directly dependent on other industries like financial institutions, FMCG companies etc. as they are customers for media. Intense competition due to fragmentation of viewership. Differentiation of content has become increasingly important. Use of innovative practices to boost sales.
Highly negotiation based sales process – difficult to prove one’s product/service better than the competition.
?
?
?
? ? ? ? ? ? ?
http://www.equitymaster.com/detail.asp?date=9/14/2007&story =5 http://en.wikipedia.org/wiki/Print_media_in_India http://www.salesgravy.com/JobBoard/job/6489387 http://www.buzzle.com/articles/types-of-print-media.html FICCI and Price Waterhouse Coopers Report on Indian Entertainment and Media Industry FICCI-KPMG-Media Entertainment Industry Report Media Selling- By Charles Warner
Other sources of information: ? Mr. Indrajeet Sen, President, Laqshya Media ? Mr. Alok Kumar, Research Analyst, TAM ? Mrs. Vidya Kadian, Sales Team Leader, HT Media ? Mr. Nikhil Awasthy, Student NMIMS
Thank You!!!
doc_155647908.pptx