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    March 2010

    State of the Media Democracy -

    India

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    Contents

    3 Introduction

    4 Sources of Entertainment

    5 The Media in Advertising

    6 Media products: ownership and preference

    7 Gaming

    8 Internet activities

    9 Media Conversations

    10 Future Media Attitudes and Expectations

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    Introduction

    The State of the Media Democracy Survey - India

    provides a generational reality check on how

    consumers are interacting with technology, purchasing

    products, and responding to advertising, and what

    they want in the future. The results of the survey reveal

    insightful information which will be useful for virtually

    all sectors of the business world including to the

    enterprises in the advertising world.

    The survey focused on consumers between the ages of

    14 and 69 which were divided into the following age

    buckets:

    Millennials:

    Trailing Millennials - 14-19 years;

    Leading Millennials - 20-25 years;

    Generation X - 26-42 years;

    Boomers - 43-61 years;

    Matures - 62-69 years.

    The survey was commissioned by Deloitte and was

    fi elded in late 2009 by a renowned Research Firm

    and covered cities in Tier I and II categories. Apart

    from the Metro cities the other cities covered were

    Bangalore, Lucknow, Ludhiana, Patna, Surat and Indore.

    A combination of upper and middle class people were

    surveyed in the aforesaid cities by way of face-to-face

    interviews.

    The survey provides keen insights on dozens of

    evolving trends and detailed data on issues ranging

    from advertising effectiveness and mobile adoption to

    social media and internet usage. The results from the

    survey provide critical insights which can help business

    enterprises make smart, well-timed business decisions

    and investments.

    This publication contains a snapshot of some of the

    results of the survey and is presented in a synopsis form

    containing certain key and unique fi ndings.

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    Sources of Entertainment

    Just as changes in technology are affecting all sectors,

    so it is changing the way an individual uses various

    products for entertainment. There are abundant

    choices products and services, which are available to

    a consumer. This has made the entertainment industry a

    consumer centric industry.

    Sources of entertainment include television, newspaper,

    magazines, going to movies, radio, internet, live

    performances, gaming, eBooks etc. In India the most

    preferred medium of entertainment is the television.

    Around 92% of the population surveyed rated television

    as the preferred medium across all age groups. The

    scores in all age buckets are near or above the 90%

    mark. This may be due to the fact that television still has

    a wider reach than any other medium and the visuals

    of television have a greater impact to all irrespective of

    their educational background, status etc.

    In India, the growth of the DTH platform has ensured

    that the remotest corner of the country can now gethooked to the numerous soaps, sports, news and other

    powerful visuals that modern day television beams out.

    A point to note is that even the senior citizens of the

    country, which form part of the Matures age bucket

    rate television as the preferred entertainment medium

    their score being as high as 95%. Also, females watch

    more television (93%) than males (91%).

    Second place in the preferred medium is taken by

    newspapers. Indians, unlike as in the western countries,

    prefers to read their daily newspapers with their

    morning cup of tea. This reading habit is more visible

    in Generation X and above (above 26 years), with the

    maximum score of 68% returned by Boomers (43 to 61

    years). No wonder then that the newspapers still remain

    king in the world of media!

    Among the younger generations, going to the movies,

    listening to music, listening to radio are high on their

    next preferred medium of entertainment. The younger

    generation is also more tech savvy being more inclined

    towards internet, gaming, and cell phones as means of

    recreation. The cell phone has become an important

    entertainment device for the Millennials (14 to 25

    years) with an average score of as high as 64%. The

    personal computer too has become an importantentertainment device for the Millennials, 46% of whom

    rated the computer over the television. There is also an

    observed trend that the males are more technology pro

    as compared to the women.

    Preferred media of entertainment

    Generation Gender

    AllTrailing

    Millennials

    Leading

    Millennials

    Gen

    XersBoomers Matures Male Female

    % % % % % % % %

    Watching television 92 92 85 92 95 95 91 93

    Reading newspapers

    (either printed or online)58 50 46 63 68 62 56 62

    Going to the movies 48 53 55 51 39 32 50 48

    Listening to music (using any device) 32 37 34 34 27 23 35 31

    Listening to the radio (any format/device) 18 21 24 13 17 24 18 17

    Reading magazines (either printed or online) 17 6 10 19 27 21 15 20

    Attending live performances 15 18 14 14 14 11 16 13

    Reading books (either physical books or via an

    e-book reader/online)5 12 6 4 3 7 6 6

    Using the Internet for social or personal interests 5 5 15 2 0 1 7 3

    Playing videogames (handhelds, PC, console,

    mobile/cellular/Smartphone, online)4 5 6 3 3 1 5 1

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    The Media in Advertising

    Enterprises are spoilt for choices when it comes to

    selecting a media to use for advertising their products

    and services. Advertising fi rms have a never-ending

    job on hand to help their client decide the media or a

    combination of media to maximise the impact of the

    ad campaigns in this constantly changing world of

    consumer preferences.

    From a consumers point of view, the television

    media appears to have the maximum impact on

    them. Between the age buckets, Matures (98%)

    and Boomers (96%) are more infl uenced by viewing

    advertisements on television than the other media. Even

    the Millennials scored more than 90% when it came to

    concluding that television is the preferred media which

    creates the maximum impact.

    Advertisements in newspapers come a close second

    in creating impact on consumers. Here too the impact

    is maximum in Matures (95%) and Boomers (92%).

    The impact on the Millennials is lesser. Although close

    to 60% of the Millennial mentioned that they will

    read a printed magazine even though the information

    contained therein is available online.

    Leading Millennials are infl uenced more by

    advertisements on the internet their score is as high as

    35% and is the highest among all age buckets. They are

    most infl uenced by banner advertisements (>65%) and

    more by advertisements relating to gaming (51%). 34%

    of the Trailing Millennials were willing to pay for online

    content (news, sports, games etc.).

    The medium of radio too seems to be picking up as a

    medium which is being increasingly used by advertisers.

    Here too the Millennials are infl uenced more by

    advertisements on the radio (18%).

    Impact of Media in Advertising

    Generation Gender

    AllTrailing

    Millennials

    Leading

    Millennials

    Gen

    XersBoomers Matures Male Female

    % % % % % % % %

    Television (cable, satellite, broadcast or fi bre optic) 94 94 92 95 96 98 94 96

    Newspapers 89 86 80 92 92 95 89 89

    Magazines 34 32 24 34 40 38 32 36

    Mobile/Cellular/Smartphone 21 19 22 22 22 18 22 21

    Radio 17 15 18 18 17 13 14 21

    Billboards or outdoor advertising 17 16 18 18 15 23 17 17

    Online/Internet 15 20 35 10 3 1 20 7

    DVDs/Blu-ray Discs 4 6 5 5 4 3 5 5

    In-theater advertising (pre-movie) 3 4 6 2 3 2 4 3

    Videogames 2 5 2 1 1 2 2 2

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    With increase in the purchasing power, the consumer is

    in a better position to own products of his requirements

    as well as luxury products.

    Cell phones were considered as a status symbol a few

    years back but now are more of a necessity. At present,

    cell phones, television, DVD players and radio are the

    top four media equipments owned by majority of the

    masses. 84% of the population surveyed own cell

    phones.

    The younger generation seem to prefer desktop PCs,

    Macs, iPods, smart phones and laptops where as the

    digicam and webcams are owned more by the older

    Media products:

    ownership and preference

    generations. Usage of HD Radio, e-Book Reader and

    Blu-ray players is negligible.

    Flat panel televisions are gaining ground as opposed to

    the old fashioned box television. However, at present

    around 77% of the households surveyed owned the

    box television, which is rated as the product valued the

    most. The cell phone, DVD player, radio and desktop

    computer form the remaining in the list of top fi ve.

    The Leading Millennials are more engaged with the

    new and advanced technology like iPods, smart phones

    and laptops.

    Media products and preferences

    Generation Gender

    AllTrailing

    Millennials

    Leading

    Millennials

    Gen

    XersBoomers Matures Male Female

    % % % % % % % %Mobile/Cellular phone

    (basic phone for calling and texting)84 82 83 85 85 71 87 80

    Non-Flat Panel TV (CRT or Tube TV) 77 83 77 78 72 76 77 77

    Standalone DVD player (in the home) 65 60 62 68 65 56 65 64

    Radio (traditional AM/FM radio) 61 62 57 61 61 69 58 65

    Stereo system 39 38 34 42 40 45 39 40

    Desktop computer (PC or Mac) 31 44 42 25 26 22 37 24

    Digital camera or camcorder (separate from your

    mobile/cellular phone)25 18 23 27 28 36 25 25

    Flat Panel TV (LCD or Plasma) 23 19 24 21 29 25 23 23

    Portable DVD player 8 9 10 8 6 7 7 10

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    Gaming

    Video games are a favourite among the Millennials.

    The mobile phone is the preferred media used by the

    Millennials to play games followed by the computer.

    Around 40% of the Millennial polled for the mobile

    phone and computer. The seniors, GenXers and above,

    seems to stay away from video games.

    Media used to play videogames

    Generation Gender

    AllTrailing

    Millennials

    Leading

    Millennials

    Gen

    Xers

    Boomers Matures Male Female

    % % % % % % % %

    Mobile/cellular phone 32 45 40 32 22 5 36 27

    Computer (PC or Mac) 19 41 40 12 3 0 26 11

    Other Game Console 2 5 2 1 0 0 2 1

    Smartphone (iPhone, Blackberry, etc.) 1 1 0 1 0 0 1 0

    Playstation 2 1 2 1 0 0 0 1 0

    Handheld (Nintendo DS, Gameboy, Sony PSP, etc.) 1 5 0 1 0 0 2 1

    Have not played a videogame in the past 6 months 60 35 44 64 77 95 53 68

    Played newly released videogame (favorite method)

    Mobile/cellular phone 23 25 19 25 22 9 23 22

    Computer (PC or Mac) 16 32 35 9 1 0 22 8

    Handheld (Nintendo DS, Gameboy, Sony PSP, etc.) 1 5 1 0 0 0 1 1

    No response 59 35 43 64 76 91 52 68

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    Internet activities

    Usage of internet by people of different age groups,

    gender depends upon number of factors such as: -

    quality of internet speed, the activities for which internet

    is used, benefi ts of using internet, publicity of the

    internet content, online purchasing etc.

    The activities for which internet is used can be

    bifurcated into: - emailing, messaging, reading news,

    seeking information, online gaming, watching/listening

    to contents, using web cams, audio chatting etc.

    Few users also use internet to their advantage. They

    receive free products, money, discount vouchers etc.

    for posting or creation of internet content like blogs,

    photos, music or software while others use it to spend

    money and make online purchases.

    Millennials are way ahead in internet usage as

    compared to the others, with 45% of Leading

    Millennials using the internet for emailing friends and

    family. They are also highly active in using services likewebcams, audio chatting, online gaming, purchasing

    products etc. In gender comparison men are leading the

    women and Matures use the internet the least.

    As compared to other age groups close to 45% of the

    Millennials perceive connection speed as an important

    feature of internet and are even willing to pay a little

    more if it helps them downloading videos at a faster

    speed.

    Millennials again lead the rest when it comes to

    creation and maintaining of internet contents like

    maintaining own web site, uploading photos and

    videos on the internet, maintaining a profi le on social

    networking site, contributing to blogs etc.

    All age groups preferred to spend more time on

    professionally generated data rather than User

    generated. More than 20% of the Millennials have

    learned of a new product while going online and

    have 15% have made purchases made on online

    recommendations. They lead the pack in the onlinepurchase world.

    Internet activities

    Generation Gender

    AllTrailing

    Millennials

    Leading

    Millennials

    Gen

    XersBoomers Matures Male Female

    % % % % % % % %

    E-mailing with friends or family 19 28 45 13 7 3 29 10

    Instant messaging with friends or family 18 25 40 12 7 3 26 8

    Using search engines like Google,

    Yahoo or Ask.com 17 24 36 12 5 2 26 6

    Seeking personal interest information

    (entertainment, travel/leisure, sports)14 24 30 12 4 1 21 7

    Socializing (via social networking sites, chat

    rooms or message boards)13 18 26 10 4 2 19 5

    Researching for business or school 13 28 24 7 3 2 18 6

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    Media Conversations

    Quite often, articles/news from newspapers, TV shows,

    books, magazines, web sites, music, movies etc. fi nd a

    way in day-to-day conversations at home, workplace or

    between friends.

    Overall newspapers are the most discussed, with

    maximum discussions being done by Boomers

    (39%) followed by the GenXers (36%) and Leading

    Millennials (35%). Television shows are the next most

    important thing discussed by people in all age groups.

    Music, movies and advertisement form the balance four

    in the list of top fi ve of discussion topics. The Leading

    Millennials lead the pack when it comes to discussing

    music, movies and advertisement.

    Media conversations: Summary of discussions on media

    Generation Gender

    AllTrailing

    Millennials

    Leading

    Millennials

    Gen

    XersBoomers Matures Male Female

    % % % % % % % %

    Newspapers 35 29 35 36 39 27 37 32

    Television Shows 26 25 23 27 28 27 22 30

    Music 19 20 22 20 13 13 20 17

    Movies 11 11 13 13 8 10 11 12

    Advertisements 10 11 10 11 7 6 10 9

    Books 9 26 16 4 1 2 9 8

    Magazines 6 4 7 6 6 6 6 6

    Radio programming 5 3 4 6 6 11 6 5

    Web sites 4 6 7 3 2 0 6 2

    Videogames

    (handhelds, PC, console, mobile/cellular phone)4 7 7 3 2 2 6 2

    Social networking sites 3 2 5 2 2 0 4 1

    Virtual worlds 1 2 2 1 1 0 2 1

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    Future Media Attitudes and

    Expectations

    The advent of newer technologies on an ongoing basis

    is the result of demands from various age groups and

    gender. Users of these technologies wish that their

    devices should provide them with features like GPS to

    enable them to locate friends, shops, hotels etc. Other

    technologies that are widely demanded are music and

    video portability, getting product info by scanning

    barcode by mobile phone, online availability on books

    and newspapers etc.

    Quite a few users are also interested in technology that

    enables them to buy products on TV that are featured in

    commercials, 3D televisions.

    Millennials are more eager (>50%) compared to other

    age groups for demand in technology relating to GPS,

    locating friends, shops, hotels, music, movies portability,

    online availability of books and newspapers etc.

    Millennials surge ahead of other age groups when it

    comes to demanding technologies like buying products

    shown on TV, watching 3D movies at home, playing 3D

    games at home with game controllers that react to users

    body movements etc.

    Also the Millennials are far more interested in integration

    of TV and computer so as to view internet content on TV.

    Future Media: List of desirable products

    GenerationGeneration GenderGenderAllAll TrailingTrailingMillennialsMillennials

    LeadingLeadingMillennialsMillennials

    GenGenXersXers BoomersBoomers MaturesMatures MaleMale FemaleFemale

    % % % % % % % %A feature on my mobile phone that would allow meA feature on my mobile phone that would allow meto physically locate my friends and for them to locateto physically locate my friends and for them to locatememe

    4444 5757 5555 4040 3535 2222 4848 3939

    A feature on my m obile/cellular phone that wouldA feature on my mobile/cellular phone that wouldallow me to locate shops, restaurants, hotels, etc,allow me to locate shops, restaurants, hotels, etc,within a spec ifi ed radiu s of my loca tionwithin a specifi ed radius of my location

    3939 5353 5252 3434 3232 1919 4444 5353

    The ability to move my mu sic, television shows, podThe ability to move my music, television shows, podcasts, movies, etc. to any devices and platforms thatcasts, movies, etc. to any devices and platforms thatI own without any problemsI own without any problems

    3535 4545 4343 3131 3030 1515 3838 3131

    The ability to access product information for aThe ability to access product information for aproduct Im interested in buying by simply scanningproduct Im interested in buying by simply scanninga bar code w ith my mobile-phone/hand-held devicea bar code with my mobile-phone/hand-held device

    3333 4242 4343 3030 2626 2222 3535 3131

    Books, magazines and new spapers will all beBooks, magazines and newspapers will all beavailable online, to downloaded onto your PC,available online, to downloaded onto your PC,portable or handheld deviceportable or handheld device

    3131 4444 3737 2929 2323 1313 3333 2828

    The ability to click to buy products on m y televisionThe ability to click to buy products on my televisionthat are featured in a TV show or comm ercialthat are featured in a TV show or commercial 2929 3939 3939 2424 2323 1717 3333 2424Watching 3-D video in my homeWatching 3-D video in my home 2929 3636 3838 2828 2222 2020 3333 2525I would like to have a videogame controllers that areI would like to have a videogame controllers that aresimilar to real gearsimilar to real gear 2828 4040 3434 2525 2020 1717 3030 2525An online service that recomm ends a product basedAn online service that recommends a product basedon other consum ers preferenceson other consumers preferences 2727 3737 3535 2323 2323 1010 3232 2121I would like to have a videogame that does notI would like to have a videogame that does nothave a traditional controller, but reacts to my bo dyhave a traditional controller, but reacts to my bodymotionsmotions

    2626 4040 3838 2121 1818 2020 3030 2323

    Playing 3-D videogames in my homePlaying 3-D videogames in my home 2525 3434 3232 2121 2020 1515 2929 2020

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    In this material Deloitte refers to Deloitte Touche Tohmatsu India Private Limited (DTTIPL), a Company established under the Indian Companies Act 1956, as amended.

    DTTIPL is a member fi rm of Deloitte Touche Tohmatsu, a Swiss Verein whose member fi rms are legally separate and independent enti ty. Please see www.deloitte.com/

    about for a detailed description of the l egal structure of Deloitte Touche Tohmatsu and its member fi rms.

    This material and the information contained herein prepared by DTTIPL, is intended to provide general information on a particular subject or subjects and is not an

    exhaustive treatment of such subject(s) and accordingly is not intended to constitute professional advice or services. T he information is not intended to be relied uponas the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal fi nances or

    business, you should consult a qualifi ed professional adviser.

    None of DTTIPL, Deloitte Touche Tohmatsu, its member fi rms, or its and their respective affi liates shall be responsible for any loss whatsoever sustained by any person

    who relies on this material.

    2010 Deloitte Touche Tohmatsu India Private Limited