 Hello and welcome to the third edition of our webinar News is Undervalued brought to you in partnership with ADP News. In these times of crisis our dependency on news has increased by many folds. Also in last eight weeks of lockdown news perhaps is the only medium that despite so many challenges is able to create fresh content. Also it is the only genre that is managing to pull off the business to some extent. To discuss this and more on news we have with us Mr. Vaishali Verma CEO initiative. Welcome to the webinar Vaishali. Thank you so much Nazia thanks a lot. This was long do you I mean I've been wanting to do an interview with you for a very very long time. Yeah I always a pleasure to talk to you. It wouldn't work out. So Vaishali you're in the business of agency you're handling so many clients and there is so much to drop in ads these days but this one genre like what I've been hearing from most of the people around me is that most of the inventory these days is going into news right because that's the viewership is almost like 200 percent more. So would you want to speak more about it. Yeah yeah absolutely right. I think what this lockdown has done to us the positive side of it for us in the media industry is that there is unprecedented increase in time spent on television overall time spent on television or digital and most of the genres have grown during this time during the COVID times but yes news has seen an unprecedented growth I think almost 200 to 300 percent and that is obvious at the back of you know the entire anxiety which the consumers or you know our viewers are going through there's so much to know and I think news channels are doing a great job in shouldering that responsibility and the way you know they are going about guiding our consumers or viewers in terms of the precaution and how to remain calm in the alarming situation and awareness is the only way which you know one can handle this outbreak or this outbreak can be beaten and one of the most effective ways to spread awareness is through television I mean which is which is a bigger medium than television to reach Indian households and news of course is at the realm of it given the entire newsiness of the environment which is around us so yes it has grown exponentially however we know that you know advertising has got impacted there are certain sectors like automobiles or consumer goods or handset etc at the back of supply chain hit and a retail shutdown lot of sectors have gotten impacted so I think what is happening is by news has grown exponentially maybe they have not got you know the return on in terms of the advertising revenue or let me tell you that the growth is there but it's not proportionate to the increase in their advertising revenue because sadly not all sectors are advertising and they are CPG's which is the FMCG sectors are on there are a lot of healthcare sectors which is on education yes and a lot of social welfare and the government you know led initiatives which is keeping the momentum on but sadly as the inventory or you know the demand is not as much which is kind of you know disproportionate to when you if you are on the other side of the table I can totally understand the frustration as well but that is true for all the genres so for the for the viewers who are joining is now because I think I started two minutes ahead I must repeat that we are debating we have a panel on is news undervalued and the topic speaking on today is that is the news generation the genre next because that's the only genre which has shown growth in the last few weeks of lockdown it has grown almost by 200 to 300 percent it is the only genre which is keeping the business on so with us we have a Shali Varma who's speaking today on what is the future of news which has come out as kind of a hero of the lockdown period in genres so Vishali you've already given us an insight on how important news is and how much growth it has shown but do you do you also believe that it's been undervalued all throughout see it is undervalued and and I'll tell you the reason why you know the two reasons one is news has to shift from its dependence on events and traditionally whenever there's election or it could be a full mama news coverage Babri Masjid verdict or a Trump visit we see unprecedented increase in viewership right and and those are the times when the news genre are able to attract that premium even in terms of advertising revenue you know but they cannot be dependent on what's bad or what's good you know it is news is a window to the world and they need to have a constant engagement with the consumer or the viewer which needs to be there because what happens is when you don't have these events happening then suddenly there is a drop and and you know and and when you don't see the eyeballs happening as much as you wanted from for it to attract that but I think a revenue obviously it's difficult to sustain so that's one reason and the other is also there's so much of focus on you know breaking news who broke first wherein the consumer is focusing on what is credible so there's always I feel and that's a very personal view that it's always there's always a mismatch between speed and credibility you know the news channel why a lot on breaking it first visa we then kind of sustaining it but having said that I still you know strongly feel that if they have a strong engagement content which is sustainable which keeps the momentum on even beyond these events they will definitely be you know valued more because see what are advertising paying for advertisers are paying for consumers eyeball and wherever the consumer eyeball moves the advertisers will be there and it's and of course they are fairly frugal and in nowadays it's everybody is very cautious of whatever they are spending and it's very ROI driven but in if they see those eyeballs being sustained and currently we are seeing the 200% jump and I hope to see this momentum even post the recovery phase you know so as we are seeing that there was an outbreak there's a recovery phase and then there will be a stabilization phase right because this will not stay maybe two months and three months and after that there will be a stabilization phase then that phase happens we cannot be dependent on these events so while news will play a big role of whatever we have gone through but it needs to keep up that momentum in engaging the consumer and as long as they are doing that and there is viewership coming advertisers will definitely be there I mean what are they seeking they're seeking consumers eyeball end of the day but visually I can interrupt so if you go by numbers viewership has never been a problem with news channels they've always got viewership but yet they've never got the kind of price they have wanted you know all throughout like we had Lok Sabha elections we had state elections there was Ayodhya verdict there was so much happening so I mean you can correct me if I'm wrong but I don't think viewership is engagement is a problem still they're not able to convert it into numbers see I don't I'm not agreeing to this because when there was Lok Sabha election for example you know we paid prices which is like 10 times higher than what we would have normally paid so on event which is you know a pre-decided event and you know that they are a budget for example right or you know IPL during IPL times or World Cup times you know that the viewership will be driven towards news channel there is a differential pricing and advertisers have you know gone ahead and paid that prices because you know you are getting that you know viewership or eyeballs or you know ROI but the second point is also that news is a genre is very fragmented you know so while the genre is so earlier if I'm not wrong news would contribute says seven to eight percent to the entire TV ad revenue but you know it I mean today it could be 20% but what happens is there 400 news channels and of course I'm counting all the regionals per se so what happens is even within Hindi if there are like 10 news channels there always be you know a buying for who gets the maximum share and and then what happens that it commoditizes the advertising volume you know so as media planners when you're sitting and making media plans you cannot have 10 channels in a plan so you kind of you know you play your bet on the top four or the next four kind of a thing and it's never possible to advertise in the entire genre so I think somewhere I mean I don't know whether I'm right in saying that but it needs a consolidation we have not seen so many channels in any other genre so somewhere I feel that it needs maybe a consolidation I mean some of the people might not like this but I'm just talking now wearing my hat as a media professional that it needs consolidation so that each of the news bucket or the channel gets their new share. So another expert that I was speaking to last week fragmentation of course everyone has said that that is the biggest problem with news genre also said that there's too much focus on competing with each other and pulling each other down instead of you know focusing on their own product do you agree with that? Yeah I agree and you know let me draw a parallel here with say a newspaper now we still go back and read the newspaper and we know the news but we still need read the newspaper there's a lot of focus on the editorial content you know and I've always failed to believe that why don't news channel behave the same way editorial is the ability to not only deliver the news but deliver the implication arising out of the news you know what's in for us what's in for you from multiple perspectives and people are seeking that but that doesn't happen but the news channels are vying for as I said in my you know earlier answer that who broke the news first so there's so much of focus on speed and there's so much of focus on getting that you know viewership or GRPs that will follow I have always believed that focus on your input focus on you know what are the right matrix to you know touch the output will happen automatically you know that will reflect in the viewership and while I can't name some of the news channels but I have seen some of the news channels how they're using technology how they're using various measures in terms of you know creating their content which is more magazine format which is more opinion led which is more views led and I can see a difference you know when whenever we are analyzing from a viewership perspective I've seen that goes work and you know and and I also want to add a lot of news aggregators for example also are coming up you know in the digital space for example like a daily hunt or in short and why do they exist you know they should not exist ideally because if news channel independently do that job well then we don't need those aggregators so somewhere I'm sure there is something which is missing they're doing a great job and I'm sure there are some nuggets to be fixed which is the only you know missing link as I would want to call in terms of you know for them to get back to what they truly can command and if they create value they will definitely get value another thing I would want to understand is that for GEC the biggest problem right now is they're not able to create fresh content because all production houses are shut so even if if when the lockdown is over or there are relaxations it will take them time to you know go back to normal there in news channel is already got that momentum so how long do you think this golden phase of news channels being on and considering that when the markets will start opening like some states have already started relaxing the norms minus Mumbai or other places the addicts will also see a significant rise I mean things will get start getting better and better for news channels in coming days I think definitely so we are in the middle of and I think everybody around us right we're trying to predict and work on multiple scenarios so for example if lot of government have decided on getting their workforce back with almost 33% that will lead to some viewership impact right so overall time spent on television has gone up but it will not be a sustainable I mean I'm sure it will stabilize but news in particular as you rightly said will be here to stay for long given that you know and whatever we all keep reading that this virus will become a part of a life it's not something that it will just one fine morning we get up and we become virus free we are not going to see that situation right and hence the need for news channel again to you know shoulder that to guide the consumers to get the right insight and with the use of technology again to navigate you know how should one go about it and give the first-hand views and as long as they continue to do so I see them definitely being part of you know at the overall scheme of things for this year they have a long and they should not think short-term you know they should focus on their long-term strategy and and it's similar to how we are telling this to our brands right we are telling most of the brands that you know you need to take a responsibility be reliable be accessible you know and that's what the consumers will bank on if you need if you are salient you are honest and that's what you know consumers are seeking the same analogy applies to the new genre as well so they are definitely have a window they had definitely have a long window even if GC's fresh content comes back I mean I still see two months down the line most of the shooting happens or the studio are in Bombay and Bombay is severely affected but even if they revive say sometime around July there will be some kind of you know erosion which new genre will see for sure but I think they have reached a certain peak they can definitely sustain it not to the pre-COVID times but somewhere in the middle which I which I'm calling it as a stabilization fees so yes there's I see a positive thing there so I would want to understand from you what measures can they take to sustain it but before you answer I want more people to start putting their questions we only have 15 more minutes officially time and so please whosoever is live right now must put questions and you can tag the e4m hashtag e4m webinar and hashtag a VP news please start putting your questions before we shall be time is up and she has too many things on our hand to do so you only have the last 10 15 minutes to ask her questions so coming back to the question I asked from you is that what do you think can be a long-term strategy for them see the long-term strategy again I think I mentioned it that they should not focus on only key events like p.m. speech of cause is a big event you know yesterday 8 p.m. lot of advertisers a lot of our ongoing advertisers reached out right that they wanted some kind of a presence but why only during that time you know so there is the news channels are offering a lot of content beyond that and and I think most of if I'm not wrong lot of the FMCG guys or a lot of the other sectors who are not taking new genre as seriously or not part of their plan have seen that shift right so of course lot has come at the back of GC but they have shifted now if they have shifted and they're advertising there as long as they see the momentum in viewership going on they will stick there how does news channel deliver that again I'm not an expert to come in but as I said earlier that if they develop a strong editorial content you know on views opinion which which could viewers or consumers value and their answers or their questions get answered they see value in that that definitely will work in keeping that you know momentum on so not so much don't focus so much on breaking news don't focus so much on you know 8 p.m. news and 9 p.m. news you know get the experts get expert opinions do some magazine format I know again easy to say but think of content content which key you have the consumer coming on to your channel think of content which keeps them engaged a lot of them are doing it know they've started giving out entertainment stories also they are trying to experiment for a very very long time because even they have too much competition and the real test happens you know when the general when the original content comes back you know when the original content comes back it should not erode the viewership and hence I'm strongly believing that given so much newsiness which is around us news has a strong you know lever to tap on because this whole year will be very newsy on how the situation unfolds and even at a state level etc or at even at a region level or a district level and hence news you know genre has a long has has a strong forplay there so as long as they are able to capitalize it they will have consumers hooked on but they have consumers hope on advertisers will follow you know they will definitely do you like to give us some estimate I don't know how much increase in price can use expect by end of the year that's also linked to demand and supply I mean media market is very much like a stock market you know so it's a demand supply so while I think I started by saying that while the viewership has grown it has not resulted in the proposal not talking about current times but you know another after a few months when since the addicts is better and but the other channels are still in the phase of recovery and this channel is already because this has not gone off right so this is already on so what kind of growth can we expect in that I think if I'm not wrong currently it's almost at a I'm not talking from a viewership growth or an I'm talking more from an advertising revenue growth currently I think it's almost at about 20 21% growth not contribution to growth I mean that's it's a blip so a best estimate even if you know post COVID situation if they continue with you know at a stabilized eyeballs if I may say it might not have a 200% growth but what if they kind of stabilize that even a 50% growth or a 40% growth it will not be 200 then definitely why not they will definitely see an increase in you know pricing and so I would not quote a number on the pricing increase because all my investment leads are going to come heavy on me but but again let me say that it's all ROI and it's all return on investment if the eyeballs are there advertisers will pay today there is a certain softness in the market at the back of demand being low and hence maybe they are not getting that due because you know a lot of sectors are not advertising so there is still inventory available but once all sectors bounce back and there is demand and there is a certain viewership increase that definitely will lead to a price increase as well I'm glad at least some some industry will show some growth positive we are hopeful we are absolutely hopeful that few sectors should start opening and we already have some questions coming up for you Sanket Rastogi wants to know how soon we'll see the sales picking up once the lockdown is lifted it's more of a generic question not only related to news that might take a bit long because as we know that sales has got hit at the back of supply chain you know the retail shutdown etc so that I would say take will take a long and it depends on the sectors to sectors so a lot of CPG or FMCG which is into essentials they have not seen that kind of you know hit but if you're talking about sectors like fashion or sectors like consumer good I mean they might come back I mean of course there'll be some pent up demand which typically happens whenever you know the lockdown will get over there'll be a pent up demand for luxury for beauty for fashion but as I see not before festive you know festive is one time when we are all banking on that that that will be a revival of you know our lost times but I don't see you know things stabilizing before that for a lot of these sectors which I just called out the other interesting question person has not given his name would you want to throw some light on FMCG strategy on news and spoke at the cost of GEC. FMCG as I was saying they're in the business of reaching consumer every day and hence they need to be on air almost you know 52 weeks in a year so they look for wherever the eyeballs are or wherever the GRPs are so you know their strategy will obviously change a bit when there's a revival of GC which starts to happen but we have seen strong shift towards news genre I would not say that everything will get eroded definitely there'll be some erosion which will happen back to you know what the viewers but it will mirror the viewership and as long as news genre are contributing substantially they have a strong chance to be part of their advertising. There's one another interesting question asked by Mr. Sandeep Shivaskar given such a spike in viewership in news genre I would expect some of some of the increase to stay in the post-COVID phase too do you think brands will benefit more from a longer-term relevant association with properties that tie in with brand message than making an opportunistic use as what we see currently. You know definitely and you know consumers will make more rational choices right going forward and they will start to be very conscious of their spends and brands will need to adapt to that and you know the focus will shift to brand you know today we talk about brand love and all that and I see that shifting towards brand value and hence there's a big opportunity to deliver that in an interesting contextual way with a lot of content which resides so to make it more contextual to make it more topical there is huge opportunity in fact we are working for Manapai education online education client on creating a lot of these interesting you know content formats with news genre so definitely yes. This is another gentleman who wants to know how about the numbers she's the ratio wants to know is if yes then how the needs to know sorry I'm sorry I'm mixing up two questions what do you feel about the women worship have the numbers gone up for the new all news channels. The numbers have gone up across you know demographics so the numbers have gone up across demographic and as you know more of the most of the Hindi heartland or most of the India has single TV homes so that and it has become part of the family viewership right the family sitting together and watching we've seen spikes on Ramayana Mahabharat we've seen spikes on you know news so definitely it's part of the increase for women and if it what it would not be then you would not have most of your FMCG brands advertising because they typically target women audiences right so the the PNG or RB or Unilever etc so we see a lot of shift in advertising happening from them so it definitely mirrors increase in women viewership. Shobhi Theroda has in fact asked something that we completely missed out on is business news genre also showing similar amount of growth what are the views about business. Yeah I mean I don't remember the number but I think business news channels have also seen at about 120% growth if I'm not wrong because people are keen there is a lot of anxiety you know around how the economy is going and you know which are the sectors which will bounce back so there is some growth there as well and if I'm not wrong the number is about 120 in the male audiences I remember seeing the number of almost 180% so which is which is substantial though it is a lower base and lot of when the sectors get revived you know when the consumer goods or automobile etc they get revived they will definitely be business news genre will be one of the key genre for them. Another anonymous attendee who wants to know would you see a media mix change on TV plan post COVID. Media mix so I'm just re-iterating if I've understood the question media mix means television digital print and the breakup of that but I mean all your question is only about television I think. Only on television could again you know it will mirror the viewership today we've seen the increase in a movie as a genre we've seen increase in news so more of the advertising has shifted towards you know the movie as a genre movie and news followed by GEC so it will mirror where the viewership goes if the viewership sustains the way it is definitely it will see a change. Media is dynamic right we all live in such a dynamic scenario we are currently you know operating on a weekly basis so we don't even know how June will be so things are fairly dynamic and I think we need to keep our years close to the ground and keep making changes and keep evolving as you see the landscape evolve. I'll take one last question before we close Rohit Mohan wants to know do you think that the shift of TV news from reporter based stories to studio based shows have led to a decline in credibility or TV news is of this newspaper I think you sort of spoke about it when you said they should be more editorial content. I was just trying to draw a parallel from newspaper I mean I don't have data to say that what has led and what kind of content has led I think it's a every news channel needs to be a mix of all kind of content there needs to be citizen journalism there needs to be studio shows there needs to be strong views my bigger point was if we have to create a parallel of an editorial of what typically newspaper do I see a big scope there and I see a big you know leap there where news channel could take that. We have one minute left if you allow me I can take one more question. Sure Nazia go ahead. So I think this is an interesting question would you think frequency will be more important than unique reach for small indigenous brands on TV. Thus will news help. Today news has grown so much that it's helping in reach as well right it's a second biggest genre so it's giving you reach as well traditionally we have always used news as a frequency builder barring the special events but I don't know which sector you mean but you know you are referring to but if you're talking about you know SMB sectors or small medium thing then sure if you're targeting a small set of consumer you know then frequency becomes important but when you're targeting you know a large scale or a bigger set then you need reach so as long as reach or frequency depends upon what your audience base is but I'm assuming that you're talking about the strong small audience base and if that's so then sure frequency makes sense. So I we are almost out of time now and it was kind of Vishali to take the last question despite we being already out of time so before I sum up I think what Vishali has tried to say is that of course news is going is going to a very positive golden phase and it should if it work on couple of things like bringing in more credibility and bringing in correct me if I'm wrong I'm just trying to sum up what I've understood and focus more on sustainable content instead of banking too much on you know that momentary things that keep coming in it can benefit more in terms of ROI and addicts you know wherein it make a more plan content instead of just focusing on breaking news which just comes in. Am I right Vishali? Absolutely. And if it does so this is definitely going to be a very good year for news which is already which has already seen an unprecedented hike of 200-300 percent and as the industry opens as the lockdown opens it can definitely see a 50 percent or 60 percent hike in its ad grades also if it continues to get the similar amount of leadership. So we'll be back next week with another edition of News is Undervalued which is brought to you in association with ADP News. We'll be back with another very senior industry person. For this week we want to thank Vishali for her time and thank you so much for all the insight that you have given to us. We couldn't take up some questions but we'll try to accommodate them next time. Thank you very much Vishali. Thank you so much. Thanks everybody.