Ad Age Insights is offering two comprehensive new industry reports examining opportunities for media, marketers and agencies in China and India. "Chinese Media Industry" and "Indian Media Industry" each include more than 1,000 pages of analysis, data and charts in reports that are designed to be both comprehensive and easily accessible. The reports were produced by G2Mi Research (a research service from Heernet Ventures, a U.K.-based provider of media research and analysis) and are available exclusively from Advertising Age.
Go to AdAge.com/whitepapers to download free executive summaries or to purchase the reports. Key facts:
1. Largest internet market in the world
China has become the world's largest internet market with nearly 480 million users (with 277 million mobile internet users). Web use has grown rapidly, with a typical user now spending about 20 hours a week online. Nearly 80% of internet users in China have access to broadband connections. That has helped spur growth of online video services from firms such as Youku and Tudou.
2. Local internet players have excellent growth prospects and global ambition
China's relatively strict regulatory environment and linguistic complexity have helped the country develop its own group of internet companies that in terms of scale and size match some international players. Companies such as Baidu in search, RenRen in social media and Taobao in e-commerce have well-established positions in China and have the ambition to expand into new geographic markets.
3. State TV broadcaster is must-buy for advertisers and sells inventory via auction
As the only truly national broadcaster, China's state-owned CCTV is arguably the sole way for display advertisers to reach a national audience. This scarcity value allows CCTV to auction its advertising inventory to the highest bidder. The annual auction, held in November, is primarily done in conjunction with media agencies and is a must-bid event for leading consumer packaged-goods companies.
4. High penetration of digital displays in the outdoor industry
China's outdoor advertising industry has relied heavily on digital sign displays due to a scarcity of traditional outdoor infrastructure and lax rules on placing digital signs in office buildings and public transport. The Chinese outdoor advertising industry is highly fragmented with a large number of foreign and domestic operators led by six main firms.
5. Print media faces commercial and regulatory challenges
China's traditional print media industry remains highly fragmented with strong state involvement and a complex regulatory environment that can require different ownership structures for commercial and editorial operations. In the short term, these challenges have been masked by a booming print advertising market. In the longer term, many publishers are likely to be under-capitalized as they try to develop more aggressive digital strategies.
1. World's largest filmed-entertainment industry
India has arguably the world's largest filmed-entertainment industry with 1,300 films produced in 16 languages and more than 3 billion admissions each year. The industry has evolved over the past 10 years from single-screen cinemas to multiplexes. Major international media firms such as Walt Disney Co., Sony Corp. and Viacom have made significant investments in India.
2. Enormous mobile potential with almost 800 million subscribers
India's mobile subscriber base over the past 10 years has experienced astronomical growth from 3.6 million to almost 800 million subscribers. The recent launch of 3G services and better penetration of smartphones have created major opportunities for mobile-based media services. Over the next five years, the mobile handset will be the primary means of internet access for most Indians.
3. Diverse media supporting at least 16 languages
In the past 10 years, India's advertising market has quadrupled in size. India's media and entertainment industry is characterized by great linguistic and cultural diversity with traditional and new media operating in 16 key languages.
4. Relatively untapped markets in small towns and rural areas
Major cities have media reach similar to developed markets. But India's small cities, villages and towns represent a relatively untapped market for most media. TV is widely available, but newspapers, commercial radio and online media still have relatively low penetration in semi-urban and rural areas.
5. Growing and profitable newspaper industry
Unlike most developed media markets, India's print-newspaper industry continues to grow both readership and advertising. India has a large and vibrant newspaper industry, with the market leaders published by a small number of family-controlled groups. Online ad spending in India still has a relatively small share of the market. Local-language newspapers with a strong reach in small towns and semi-urban areas have the best growth prospects.