Digital Opportunity for

Print Agencies

Vikram Arora (18125060)

Advertising
“The real fact of the matter is that
nobody reads ads. People read what
interests them, and sometimes it’s an
ad.” – Howard Luck Gossage

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Problem Statement
To understand how print agencies
are responding to shift of budgets
towards digital and how this shift
is impacting their business.
Further, to identify issues faced
and expansion opportunities for
print agencies.
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3
Evolution of Advertising

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 Objectives
￮ Current scenario of print ￮ Actual budget shifts
agencies happening from print to
￮ Change in market digital advertising and their
behavior after the extent.
introduction of digital ￮ How print agencies are
marketing tackling the competition
￮ Industry verticals have ￮ Willingness of print agencies
remained loyal to print to partner with digital
agencies

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Methodology
￮ Primary Research
- Face to face interviews
- 25-30 minutes
- Qualitative
- Consented Recorded
interviews
￮ Secondary Research
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Questionnaire and Mapping

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Agencies Planned vs Visited

Small Medium Large Total

Planned 10 10 10 30

Visited 4 3 4 11

Note: 1) This division is done on the basis of number of employees

2) Approximately 380-400 calls were done. 8
3) 78 agencies were contacted in total
Agencies Covered
• Prachar Communications
• Deadline Advertising
• Makani Advertising
• Multimedia Informatics
• Madison Media
• Ankit Advertising
• Adventure Advertising
• Mindshare
• Estek Ads
• NAC Advertising
• Crayons Advertising
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Key Findings
of Primary Research

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 Demographics of Sample

Duration in Industry Number of employees

7
6
5
Number
of
4
Agencies 3
2
1
0
16-20 21-25 26-30 31-35 36-40 40+

Years in
industry
11
 Industry Verticals
9
8
7
6
5
4
3
2
1
0

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Number of Clients Client Association
with Agencies
11
10
2
7
5
1

0 0-5 6-10 11-15 15+

Small Medium Large Years

Number of Clients
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Note: 9 out of 11 answered the question Note: Based on the top 3 clients of the agency
Print budget
allocation
￮ Actual spends for print have remained
constant for most of sectors.
￮ This might indicate a percentage
decrease year on year.
￮ Client requirement (industry specific)
Focus on New products(media,
jewelry, etc.) and launches(real estate,
E-Commerce)
￮ …”Print have reduced by 20-30%” in
some sectors like healthcare and BFSI

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Observations
￮ FMCG, Electronics, E-Commerce and
Retail are print heavy
￮ Automobile and real estate are print loyal
￮ 7 out of 11 claim that digital has grown
￮ 2 out of 11 claim … “Budgets for digital
have reached from 2-3% to 10-20% over
the last 5 years”
￮ Education, healthcare, Government and
BFSI are on a digital rise
￮ …”Stagnation in FMCG, F&B”

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 What makes print attractive
Print has reduced but it still continues to attract attention.
• Increase in Vernacular

• 9 out of 11 claim vernacular is

growing
• 6 out of 11 said that Scope of 7 out of 11 claim that younger generation
expansion in Tier 2&3 cities (15-25 years) is shifting towards digital
• 2 claim it is region specific even …”People are losing reading habits.”
within a city
• Constant consumption in tier1 cities
• 1 claims print is increasing

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According to Indian Readership Survey reports
IRS 2017 IRS 2019 Q1 Increase in readers

Any Hindi Dailies 17% 17%

Readers in Crores 17.6 18.6 +1 Cr

Any Regional Dailies 19% 20%

Readers in Crores 20.3 21.1 +0.8 Cr.

Any English Dailies 2.7% 2.9%

Readers in Crores 2.8 3.1 +0.3 Cr.

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Reasons for Print loyalty (cited by agencies)
- The conversion ratio of print is high due to
trust factor
- Rise in Vernacular
- Reliable source of information
- Habit Medium (25+ years)
- Top management - print habitual
- Reaching maximum eyeballs
- Digital is Costly due to lack of understanding
compared to print

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Observations
2 out of 11 Agencies Claim
￮ No measurable ROI in print
￮ Extra experimental money is diverted to
digital
￮ Geo targeting
￮ One to one interactive content
￮ Audio/ video platform for clients who
cannot afford TV advertising

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According to Dentsu
Aegis Network (DAN)
reports
￮ Currently, BFSI is the biggest spender on
digital media with a contribution of 38% of
all their marketing budgets.
￮ Consumer durables (36%), e-commerce
(34%) and telecom (31%).
￮ FMCG spends heavily on the television
(63%) and the retail sector spends largely
on print (54%) medium of advertising. (DAN
2019 report)

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 Issues in print
• 5 out of 11 claim there is a threshold cost barrier
• Not dynamic – has to be preplanned
• Less growth – “have reached to the point of saturation”
• Clients have become more cost conscious – want 3600 solutions
• Limited ad space

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Observations
￮ …“Brands have become spend conscious”
￮ …“Print campaigns are reducing”
￮ …“Print is not in the top 3 avenues
anymore”
￮ …“Slightly reduced competition for print
spaces”
￮ ...“More focused on call to action”
￮ Competition among advertising domains
4
3
2 2 2
1

Digital Cinema TV Radio Outdoor Print

Agencies have adapted

- 10 out of 11 have grown

digital arm
- …“we are also open for
partnership”
- Upgrading their client
services
- Investing in Human
Resource

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 Digital
Expansion

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 According to KPMG reports

Industry Size Industry Size Forecasted

2014 2018 Industry Size 2023
TV TV 9% TV
7% 11% 9% 11%
14% Print Print Print
1% 2% 2%
2% 46% Digital 2% 46% Digital 2% 44% Digital
4% OOH OOH 16% OOH
26% 22% 16%
Radio 8% Radio Radio
Films Films Films
Others Others Others

Total Overall Industry Size – Total Overall Industry Size – Total Overall Industry Size –
.
INR 374 Billion INR 608.3 Billion INR 2660.2 Billion
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Key factors for rise in
Digital Marketing

￮ Increasing internet penetration

￮ Reduction in data tariff rates
￮ Falling Smartphone prices
￮ Cost-effectiveness
￮ Measurability

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Increasing internet
penetration

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Reduction in tariff rates
Tariff Rate(Data)
2014 2018

269

The average data tariff has declined by 96% in

the last 5 years (report ministry of telecom)

12

Avg. data price per GB (Rs.)

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 Reasons for adoption of Digital
(cited by agencies)
- Mobile friendly
- Client requirements
- Become a necessity
- Measurability
- Cheaper

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Satisfied by your digital partner

Note: Total 10 agencies

answered out of which 9 are
satisfied

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Digital Partners
Of Agencies
￮ Crusible
￮ Ultraviolet
￮ Ephemeris Content Labs
￮ Beyond future Interactive
Pvt. Ltd.
￮ Psyber
￮ Anvis Digital
￮ Madison
￮ Mindshare
￮ Two tech brothers
￮ NAC 32
Conclusion & Recommendations
This study indicates the opportunity for Zirca to collaborate with various agencies for Client requirements
and provide expert 3600 digital advertising solutions.

This study also helps in competitive market analysis for Zirca providing an opportunity to ideate
strategies to lead in digital domain.

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My learnings
- Opportunity to understand how organization work in a corporate
structure
- Understanding of the adverting industry with the focus on print
and digital
- Learned the nuances of a Research
- Learned how to make official transcripts
- To convey a research through story telling
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Thank You
Open For Questions……..

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