Advertising by retail outlets on TV and print: An AdEx report

The retail boom is no news. An interesting spin-off development is that of the advertising industry, which is probably the second biggest beneficiary of the retail boom - falling just behind the realtors and, of course, the consumers.

AdEx India, a division of TAM Media Research, have generated their report on the advertising trends of retail sector on television. This indicates that advertising by retail industry registered a rise of 12 per cent on TV during January-May 2007, as compared to the same period last year.

• Independent retailers had the lion's share at 83%
• Regional-based advertising by retail outlets – South zone channels garnered 56% of ad volumes
• Nearly half of the advertising share contributed by GECs
• Subhiksha and Saravana Stores were the top 2 retailers
• Future Group's Home Town topped among the new retail outlets launched
• Overall, Jan-May'07 saw nearly 700 ads per day by retail outlets

(Note: The entire analysis is based on secondages)

Growth in advertising of retail sector on TV during Jan-May'07

In the overall advertising chart, retail industry contributes only one per cent of ad volumes on TV. In January-May around 250 new retailers started advertising on TV, adding up to almost 700 TV ads per day by retail outlets.

Seasonality trend of retail industry on TV in 2006

In a season-/month-wise segmentation, it was observed that retail giants advertised heavily during the festive month of October. Saravana Stores, Pantaloons Retail India and The Chennai Silks Group were the top three contributors in this month. Nearly 65 per cent of smaller retail shops advertised in the second half of 2006.

Segmentation of retail sector on TV during Jan-May'07

Independent retailers and display retail shops shared the retail ad pie in a ratio of 83:17, leaving a meagre 0.03 per cent for retail categories. Of the overall number of players, around 47 per cent of outlets were contributed by independent retailers. In comparison to Jan-May'06, independent retailers saw a rise of nine per cent; on the other hand, 35 per cent growth was registered by display retail shops in Jan-May'07.

Zone-wise contribution by retail industry 06

If zone-/area-wise contribution of ads is seen, big retailers focused their advertising (more than 60 per cent) in South-zone TV channels, whereas smaller retail outlets used maximum ad volumes in East zone channels. Nearly 62 per cent of retail outlets advertised on southern channels.