Back Again In Print

THE Indian advertiser's love affair with the new lady in town, satellite TV, is cooling down. Consider this. In 1996, print is expected to account for 62 per cent of total advertising revenues; this, despite a 25 per cent annual inflation and three rate increases in the year in most leading as well as second-line publications.

Can this appease the mid-life insecurities of the Indian press? Yes and no. TV began to boom four years ago with liberalisation and satellite TV. Advertisers, especially for fast-moving consumer goods (FMCGs), who accounted for the bulk of print advertising revenues till then, moved to TV, en masse. Causing drastic cuts in print ad budgets.

The press found ways to make up for the loss. Financial advertising and its precursor, corporate advertising, rose as capital markets became stronger and broader-based. The press also cultivated segments like tenders, classifieds and local stores. As markets opened up, they not only brought in a host of new brands but also product categories. Consumer durables like pagers, cellphones, luxury cars, all needed the press to detail specific benefits. Says N. Gupta, director, sales and marketing, Videocon: "For products like room ACs where technology features need to be communicated, the press is a better choice. For things like TVs or washing machines, where the viewer is conversant with the technology, TV is the best medium as you can build a story around the product."

The proliferation of satellite channels too has left media planners baffled. While satellite TV, unlike Doordarshan, promises select, upper-end viewership, it's impossible to test the actual impact of a commercial. Predicts S. Ram Datta, resident general manager, Malayala Manorama: "As remote control sets increase, so will channel surfing and further splintering of the audience." Measuring an ad's reach accurately remains elusive even with the use of people meters to assess TRPs. Media planning remains a complex task.

And as the novelty of TV advertising begins to wear away, advertisers are exploring the inherent benefits of both print and TV and combining the two effectively. Says Rajesh Srivastava, general manager, marketing, Herbertsons: "Advertisers are aware of print's potency for immediate awareness." So if a merger or a joint venture has to be announced, the advertiser goes to the daily press. TNCs too have demonstrated the judicious use of both press and TV advertising in India, given their worldwide experience. "A newspaper or magazine's circulation or print run is at least known, so advertising reach can be fairly judged," says Datta. TV's reach is anyone's guess.

So what's the problem? By '95, print's ad share had fallen from 70 per cent to 62 per cent over three years. Some foresee a further downtrend, but most feel otherwise. They maintain the press enjoyed an unfair advantage owing to late developments in TV (satellite channels came 25 years after TV was introduced in India). Advertising that typically goes on TV worldwide came to print for lack of viable options.

But with options on TV soaring, a clear polarisation of product categories towards the two media has emerged. "Press has a larger retention level, while TV gives you very limited time," says Gupta. "But press advertising is limited to that part of the target audience which can read and write; TV reaches beyond. Obviously a balanced mix of the two, which best serves the product and the campaign, is required."

Again, print may have lost out to TV in percentage points, but its actual revenues haven't declined. The initial phase when advertisers slashed print budgets for advertising on TV is over. For the past year, ad budgets have expanded to reach fragmented audiences. Says Helen Anchan of Ammirati Puri's Lintas: "Clients have increased budgets by 100 per cent over the two years." TV will grow spectacularly. But the press worldwide has held its own. It will so in India too, predict the pundits.

The press' concerns may have been raised when the first-quarter results of this year showed a 10 to 15 per cent drop from last year. This, however, was due more to the political instability which caused advertisers to hold back ad spend, and probably just a hiccup rather than a trend. And despite the see-saw in the past three-four years, the press today is surfacing far more confident, albeit cautiously.