 Our next speaker has over 45 years of experience in marketing and advertising, of which the last 32 years has been entrepreneurial. He's somebody who served as a president or chairman of almost every industry body in the country. He's currently the head of the completely Indian owned Madison World, which offers services in 11 specialized functions in advertising, media, business analytics, out-of-home PR, retail, rural, activation, entertainment, and sports. Well, with this, let me invite Mr. Sam Balsara, chairman of Madison World, who's gonna be talking on TV for brands most trusted and most effective. Thank you so much, Mr. Balsara, for joining us with this. If I may request you to kindly unmute yourself and put your video on. Thank you. Thank you. Good evening, friends. Can you all hear me? Yes, yes, Mr. Balsara. We can, okay. So it's my pleasure to talk to all of you at this seminar and thank you, Naval, for inviting me once again to speak at this rather provocatively typing webinar called TV First. Now I say provocatively because there's always a little bit of intermediate rivalry for advertising money among different mediums and the pandemic has made media money even more precious. I would like to set at rest the anxiety of my media friends irrespective of what medium they belong to because I think a few pandemic years don't count for much in a medium's life in the long term because advertising money in India, I feel is going to sharply increase over the next decade. Now, why do I say so? Firstly, the Indian economy is one of the top six of the world and is expected to grow at a healthy rate of six to 8%. Whilst the global average of advertising spend as percent of GDP is close to 0.8%. In India, today we are just at around 0.3% giving us a second dimension to grow. So there's a double banny working for media and currently, and probably this is a lesser known fact that whilst Indian consumers have almost doubled the time spent on media in the last six years, we still spend only one-third the time on media as US citizens do. 4.6 hours in India versus 11.8 hours in US. Also whilst time spent in US has saturated and is stagnant, in India it has almost doubled from 2.7 to 4.6 hours in the last six years providing us or telling us that there's more headroom to grow media consumption. Fourthly and more importantly, India is witnessing growth in consumption across all media, whereas in US, digital is growing at the expense of all other media as this chart shows you. So in India, it's not one medium against the other. Coming back to the title of this seminar, let's see what the market we call ADEX has to say. Share of television in the last 10 years has remained steady, only marginally declined to 37.4% after 10 years despite emergence of digital which took away 31% of the market. In fact, in depressed 2020, TV grew its share by 4 percentage points to a dominant 41.6%. Secondly, during the same period, share of print declined by a third from 41.9 to 29.7 in 2019 before declining to 22% in 2020 which was an abnormal drop because of the pandemic. I'm sure print will recover most of this share that it lost in 2020. During the pandemic in 2020, television was the first to bounce back by July or August. And four, there is no doubt that television is the preferred medium of the big boys of advertising. Look at this fact, top 100 advertisers spend 54% of their total advertising budget on television. And this is despite there being so much talk about digital and digital accounting for 31% of addicts. In pandemic year 2020, in fact, they increased their reliance on TV spending by 67%. Now let's see why large advertisers prefer television. Is it on a whim or is it for strong validated reasons? At Madison Media, we have been using for strategic planning for some time a framework that focuses on outcomes. On the results that media input produces on parameters like sales, market share, penetration, number of users and whatnot. In addition to what I call interim measures like GRP, reach frequency, PPT, et cetera. This model most often grows up TV as the preferred or as the base medium to use. At Madison, we believe TV remains the largest medium, especially for big advertisers because of four main reasons. First, TV boosts brand profitability. Second, it accelerates brand penetration, which is very important to grow a brand. Three, TV offers a halo effect for other media to perform. And four, TV dials up trust. Let's take a closer look at each of these four. First, why does TV boost brand profitability or does it? Here is a study done by Ibequity and Gain Theory that is based on 1954 observations. It concludes that 70% of the attributable profits to media can be attributed to television followed by print at 18%. Other media, as you can see, are much lower. Our own medicine analytics show this is because whilst other media may be able to offer higher sales uplift in the immediate term, their ability to do this at scale is limited. You can see in this chart that whilst for many mediums, marginal return turns flat very quickly, TV goes on producing marginal return even at higher spends. We know that this is the reason many digital brands also use TV and on the back of TV have become mega brands with multi-billion dollar valuation. Another study by To Acknowledge UK experts, Leigh Bennett and Peter Field who analyzed UK IPA data of nearly 40 years shows as you can see in this chart's blue line that emotional priming builds long-term volume increase whereas rational messages like offers drive only short-term sales before they collapse again. As we all know by now, TV is great because of its storytelling ability using both video and audio. And this audio video format lends itself to communicating emotions or appeal to the consumer's heart. Our second point is that TV drives brand penetration as this study of Indian brand by Bain based on Kantar World Panel data shows that increased penetration indeed leads to increase in sales. As is well known, most brand leaders in India have higher penetration or the other way round that they become brand leaders after getting or because they have greater penetration. I'd like to make an observation here. Very often I feel brands in their desire to sharply define the core target audience, define them very narrowly and miss out on media's ability to drive what should be the number one objective which is improving penetration. A popular haircare brand was only targeting affluent Metro women defined as SCC AB Metro women. Based on this definition, TV was minimized as it would have led to spill over wastage. But a more detailed analysis showed that the defined PG accounts for less than a third of the brand's existing user base. TV then selected itself when the target audience was made broader to cover a higher percentage of user base and then share and penetration both improved. We all know that across categories today, rural and small towns contribute significantly to total sales. 45 to 51% of sales of detergents, mosquito repellents, hair oil and tea come from these areas. And 53% of online shoppers in 1920 came from these areas. In 21, when the number of online shoppers have increased dramatically because of the pandemic, I'm sure these geographies contribute even more online shoppers. TV as we know has the largest penetration amongst audiences, 840 million almost double that of print or digital and source of growth analysis often points to use of TV medium to reach these consumers. Reach of TV also has continued to grow across pop strata and age groups. TV enables you to increase your brand's penetration at lowest CPT, an important parameter that most brands seem to use today. A third reason is that TV offers a halo effect to other media. Last year at this event, I spent considerable time on this subject, but I would like to reinforce the point again today. Multiple studies have shown that use of TV greatly increases digital's performance. This accenture study shows that standalone digital could reduce ROI to an index of 82. Edition of TV increases ROI to an index of 110. Every time there is a TV ad, search volume for the brand goes up and Google will confirm that to you. At Madison, we have a pool called Matchpoint that attributes responses to TV spots. It also demonstrates that TV cover helps digital's performance. I'm also sharing with you some nuggets on TV itself. In this Matchpoint analysis that we did for a fintech direct marketing client, we concluded that primary GEC channels are neither the most effective or most efficient. Smaller channels have comparable response per spot, but at much lower cost per spot. Also, non-prime time seems to score over prime time. For gourmet meat delivery startup, we discovered that content integration and choosing shows delivered higher response. My final point is that TV dials up trust for a brand. The Edlement Trust Barometer tells us that 70% of consumers are saying they have to trust a brand before they can buy it, and trust is more important today than ever before. Research shows that TV gets higher numbers for a medium's ability for making a brand well-known, popular, and successful. All attributes that go to build trust in a brand. Some brands who have a consistent TV presence, according to me, are Godrej, that we call Vico, Dettol, Asian Paints, Gadi, Amul, and Colgate. Of course, there are hundreds more. So then is my position that those who can afford the minimum investments in making a high-quality, effective film invest just in TV. No, not really. And this is not true anymore. It may have worked in the 90s, but it's not adequate or enough today. The media environment has changed and become a lot more complex and fragmented. In a noisy, fragmented media world, whilst getting audience attention is difficult for a brand, it is critical. Some study has shown that people today now lose concentration in as little as eight seconds, one second lower than the ill-focused wolfish. So then how do you garner attention in today's media world? I want to share with you three learnings based on our experience. The first is use multimedia because it works better than single media. Secondly, invest in impact. And thirdly, innovate whilst using media. Using M Spectra, a Madison Pool, sorry, Madison Business Analytics concludes that generally speaking, all things being equal, if TV delivers an ROI of 100, TV plus digital can deliver an ROI of 150 and TV plus print or TV plus radio can deliver ROI of 120. Of course, budgets remaining the same. So multimedia we have seen over and over again delivers better on whatever you are measuring. Also Madison Business Analytics has built various mixed models with awareness as outcome which show that impact GRPs work three X harder, especially when the product's decision maker is male or the category is nascent. Why does what TV industry and we call impact programs work better despite the higher cost? Four reasons according to me. First, they offer you lower ad avoidance. At the extreme, for example, loss of audience during ad breaks and IPL is minimal. Secondly, they help create tribal moments when entire family and friends watch together. And this I believe helps in creating brand preference. Thirdly, they are generally accompanied by high frequency promos which are integrated with the sponsor's message. And television channels offer you integration of your brand if you are the sponsor or the co-sponsor into the editorial content of such an impact program. Here is an example from our book TVS Motors launched Jupiter scooters in 2013 with an integration on quick big boss. It led to quick awareness buildup, demonstrated seriousness of TVS in the scooters category and dealers reported that walk-ins improved with consumers asking for big boss wallet scooter, a big high for us. On the right, see the share price movement of TVS post-Jupiter launch. Whilst I'm not implying a direct correlation between the share price and the use of big boss for TVS motors, the big boss integration definitely helped build confidence and trust among all employees, dealers and consumers. So in conclusion, I'd like to summarize that TV is the largest in ad-ex, not because of a whim but for advertiser validated reasons of driving profit, providing halo to other media, driving penetration and dialing up trust. The winning formula today is to use multimedia with TV as base to invest in what is known as impact programs and to innovate whilst using media. One of the ways is to integrate in television shows. I must end by saying it's TV first today but in a few years' level, we will have to re-title this seminar AV first or audio video first because I think combining TV with the video part of digital is going to be an unassailable combo that is going to dominate ad-ex even more in the years to come. Thank you for listening to me everyone. Thank you so much Mr. Balsara for that. We'd really like to ask you a couple of questions if time allows, would that be okay Mr. Balsara? Yeah, sure, sure. So Mr. Balsara, we're just accumulating certain questions from the back end in terms of what the audience is asked but try to, we'd really like to ask how do you feel that the second wave has caught the TV viewership in terms of its evolution Mr. Balsara, what's your take on that? Whilst of course the second wave has caught most of us unaware and we were getting ready for a rather good 2021, I do feel that all the authorities concerned have realized that it's very important to somehow keep the economy going. So I'm reasonably confident that the impact on the economy or the negative impact on the economy is going to be much less than it was the first time round when we were all caught unprepared and the government took the unprecedented action of a complete lockdown for many months. This time I think the government is going to be a lot more careful because they understand that we need to have lives and livelihood. We need to have a livelihood also to keep the lives going especially in a country like India where there is so much of an informal economy. So I am hoping that this time the impact is going to be much less and hopefully also much shorter. Right, we also really hope that the impact is much less and hopefully much more shorter. Mr. Balsara also with such a rich experience you carry what's your advice to the advertisers out there? Something which you feel could really help them who are viewing us live, right, Mr. Balsara? Well, I just gave you my take on what is the formula required for creating a successful brand to use multimedia, to use the impact, to use innovation and use media creatively and in addition to just putting on vanilla spots to understand the medium, understand the editorial and programming on it and try and use it intelligently to further your brand message and embed it in your customer's mind. Right, thank you so much Mr. Balsara for that. Well, Mr. Balsara, just towards the end final few questions we'd just like to ask you. You'd already spoken about the evolution of viewership, you've spoken about your advice to the advertisers. Also just before we part ways, Mr. Balsara, what's that thing you'd like to, before we could say to all the ones who are watching us because a lot of people in the industry really look forward to interacting with you and understanding what your viewpoints are. How do you feel a person's strategy should be, let's say, three to six months down the line coming forth. Mr. Balsara, if any guidance you could give on that as well in terms of the two new plans, how to stay positive, Mr. Balsara, during this time, anything if you'd like to comment on the same, Mr. Balsara? Well, I think it's simple. I think I would say of course we must remain positive and whilst of course for public limited companies, public listed companies, I understand that to maintain profits or to protect profits is an overarching requirement. I do also feel that an overarching requirement is to maintain brand. And once you lose market share in today's India, it becomes very, very difficult and very, very expensive to gain it back. And therefore I would urge advertisers not to take a hasty action in cutting out their advertising support plans to do it judiciously only if you have to. I heard just, I think in the middle of last week, Mr. Sodhi of Amul who had a brilliant case study he said in early April of last year, he decided to actually step up advertising in the heat of the lockdown and he gave us some facts and figures to say that that has paid Amul very rich dividends. Right, Mr. Balsara, you know, definitely there's so much to learn from your session, from your experience and every word has been a parallel wisdom for all the viewers and everybody who seeks guidance from you, Mr. Balsara. Once again, heartily thank you for joining us today on behalf of EFREM. I'd like to express my gratitude once again. Thank you. Welcome. Pleasure Mr. Balsara. See you on the other side. Thank you.