Polls to bring in Rs 600 crore business for media firms
New Delhi (PTI): Robbed off a lion's share of its advertising revenue due to the global economic downturn, the media industry is looking forward to the general elections as a major stimulus and expects business worth Rs 600 crore from promotional campaigns of various parties.
Print media and news channels are expected to be the major beneficiaries in the elections, while radio channels and new media platforms, such as mobile and Internet, are also being used by the political parties and candidates in their campaigns, according to a report by brokerage firm Centrum.
"Elections have historically attracted viewers to the Hindi news space. Political parties are expected to spend about Rs 600 crore on promotions, of which 55 per cent would be on print media and eight per cent on radio," Centrum said.
According to industry experts, election season has injected a fresh lease of life for the media companies, a number of whom have embarked upon significant cost-cutting measures due to dearth of advertisements as advertisers are cutting down on their spending due to the global economic downturn.
Some parties have already started airing their promotional campaigns on TV, while the momentum is expected to gather steam as the election dates approach and similar is the scenario for other media platforms, they noted.
As per the estimates of Centre for Media Studies, a total of about Rs 10,000 crore could be spent during the Lok Sabha elections, which includes about Rs 2,000 crore by the Election Commission and other government agencies and the remaining Rs 8,000 crore by the political parties and candidates.
While door-to-door campaigning and rallies continue to be the mainstay of their campaign, political parties are also looking at ad campaigns across media platforms to reach the elusive voter, especially in urban areas, Centrum said.
"We estimate political parties would spend at least Rs 600 crore on advertising and publicity during the general elections, which would come as a shot in the arm for the media space," Centrum said, adding that this spending could help the industry grow by about five per cent.
"We believe print media would benefit more, accounting for 55 per cent of spending. The out-of-home platform, which has been the favorite for regional and smaller parties, is expected to account for 15-20 per cent of this spending.
"The television segment is expected to receive only 15 per cent as it is regarded as expensive medium. Radio, which has been given permission only recently, could garner nearly Rs 50 crore where as new media such as Internet, mobile and others could be less than five per cent," it noted.
The main opposition party BJP is said to have bought prime-time slots on many FM radio channels, while the Congress party has purchased rights for Oscar-winning song 'Jai Ho' for a reported Rs one crore for using in its campaign.
"Political parties are now more focused in their marketing strategies, and communication campaigns are going beyond reinforcing the party symbol. The proportion of poll budgets allocated to advertising has gone up and professional advertising agencies are being used," it added.
Probably enthused by US President Barack Obama's successful online campaign, parties like BJP and Congress are also tapping digital media and have found its significance because of its ability to interact with urban voters.
Social networking sites such as Facebook, Orkut and MySpace have communities built around the two parties and individual politicians. In addition, the two parties have engaged voters through video-sharing sites such as YouTube and video ads on popular websites such as MSN and Rediff.
"... We will see a lot of innovative use of the new media, such as mobile phones and Internet, in campaigning.
BJP's prime ministerial candidate LK Advani’s website is a case in point. We know the young audience in the country is on the right side of the digital divide and hence it is a good medium to, not only reach them, but also interact with them," analysts at Centrum said.
Print media and news channels are expected to be the major beneficiaries in the elections, while radio channels and new media platforms, such as mobile and Internet, are also being used by the political parties and candidates in their campaigns, according to a report by brokerage firm Centrum.
"Elections have historically attracted viewers to the Hindi news space. Political parties are expected to spend about Rs 600 crore on promotions, of which 55 per cent would be on print media and eight per cent on radio," Centrum said.
According to industry experts, election season has injected a fresh lease of life for the media companies, a number of whom have embarked upon significant cost-cutting measures due to dearth of advertisements as advertisers are cutting down on their spending due to the global economic downturn.
Some parties have already started airing their promotional campaigns on TV, while the momentum is expected to gather steam as the election dates approach and similar is the scenario for other media platforms, they noted.
As per the estimates of Centre for Media Studies, a total of about Rs 10,000 crore could be spent during the Lok Sabha elections, which includes about Rs 2,000 crore by the Election Commission and other government agencies and the remaining Rs 8,000 crore by the political parties and candidates.
While door-to-door campaigning and rallies continue to be the mainstay of their campaign, political parties are also looking at ad campaigns across media platforms to reach the elusive voter, especially in urban areas, Centrum said.
"We estimate political parties would spend at least Rs 600 crore on advertising and publicity during the general elections, which would come as a shot in the arm for the media space," Centrum said, adding that this spending could help the industry grow by about five per cent.
"We believe print media would benefit more, accounting for 55 per cent of spending. The out-of-home platform, which has been the favorite for regional and smaller parties, is expected to account for 15-20 per cent of this spending.
"The television segment is expected to receive only 15 per cent as it is regarded as expensive medium. Radio, which has been given permission only recently, could garner nearly Rs 50 crore where as new media such as Internet, mobile and others could be less than five per cent," it noted.
The main opposition party BJP is said to have bought prime-time slots on many FM radio channels, while the Congress party has purchased rights for Oscar-winning song 'Jai Ho' for a reported Rs one crore for using in its campaign.
"Political parties are now more focused in their marketing strategies, and communication campaigns are going beyond reinforcing the party symbol. The proportion of poll budgets allocated to advertising has gone up and professional advertising agencies are being used," it added.
Probably enthused by US President Barack Obama's successful online campaign, parties like BJP and Congress are also tapping digital media and have found its significance because of its ability to interact with urban voters.
Social networking sites such as Facebook, Orkut and MySpace have communities built around the two parties and individual politicians. In addition, the two parties have engaged voters through video-sharing sites such as YouTube and video ads on popular websites such as MSN and Rediff.
"... We will see a lot of innovative use of the new media, such as mobile phones and Internet, in campaigning.
BJP's prime ministerial candidate LK Advani’s website is a case in point. We know the young audience in the country is on the right side of the digital divide and hence it is a good medium to, not only reach them, but also interact with them," analysts at Centrum said.
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