2014 Buoyant

2014 Fantastic

2014/13

16.4%+31,877 cr

2013

37,104 cr2014

At par with our earlier forecast

MAIN CONTRIBUTORS TO GROWTH IN 2014

Elections 2,300 cr 7.2%

E-commerce 1,150 cr 3.6%

Existing categories 1,777 cr 5.6%

TOTAL 5,227 cr 16.4%

What’sOur

Growth Forecast?

2013 Lucky 13

2014 Fantastic2015 Bullish

2015/14

9.6%+37,104 cr

2014

40,658 cr2015

27.5%+Over 2 years

2015/14

9.6%+37,104 cr

2014

40,658 cr2015

• Biggest cricketing event ICC World Cup is expected to earn a revenue of under Rs 1,000 cr– Rs. 500 crores is likely to be additional,

balance as part of organic growth across sectors

WHY 9.6%

• Other contributing factors to growth: – New advertisers – Separate sales of HD channels– Facility of Geo targeting ads will attract more, local and

retail advertisers on TV– New channel launches from existing networks– Further push by E-commerce companies and mobile and

social apps– Spends on Assembly elections in Delhi and two other

states– Increased government spending on print– Launch of phase 3 in Radio expansion

WHY 9.6%

Spends in INR crores

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

939410444

12036

14662

17976

2138219470

24898

2728228694

31877

37104

40658

11.2

15.2

21.8 22.6

18.9

-8.9

27.9

9.6

5.2

11.1

16.4

9.6

A 13 year Review Growth Rates

Source: Pitch Madison Media Advertising Outlook 2015

6 billion

411 billion

+16.4% + 5.3%

US$

US$

Source: Warc, International Ad Forecast 2013/14 (October 2013)

India maintained its 12th position in global advertising market

US; 41.30%

Japan; 12.80%China; 10.70%

UK; 6.50%

Germany; 6.10%

Brazil; 4.70%

France; 3.90%

Canada; 3.70%

Australia; 3.70%

Russia; 3.00%Italy; 2.20% India; 1.40%

Source: Warc, International Ad Forecast 2014/15(December 2014)

US; 42.50%

China; 13.70%Japan; 9.30%

UK; 7.20%

Germany; 6.30%

Brazil; 4.50%

France; 4.00%

Canada; 3.20%

Australia; 3.00%

Russia; 2.50%Italy; 2.30% India; 1.50%

Source: Warc Consensus Forecast January 2015India figures as per Pitch Madison Media Advertising Outlook 2015

India was the fastest growing ad market in 2014 but has slipped to the second fastest growing market in 2015, just below China

Current prices, y/y % change

Country 2014 Russia 3.1 India 16.4 China 11.4 Brazil 12.7 UK 7.1 US 4.4 Japan 2.3 Australia 0.8 Canada 2.5 Germany 1.5 France -1.3 Spain 3.6

Italy -1.8

Global 5.3

20151.49.6

10.37.15.73.51.92.73.41.5-0.14.51.1

5.1

Source: Pitch Madison Media Advertising Outlook 2015

Press41.2

TV38.2

Digital10.7

Outdoor6.0

Radio3.5

Cinema0.5

Rs. 37,104 crores

Print widens gap with TV and is the largest contributor at 41.2%

Digital – the only medium to gain share

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

0.0

10.0

20.0

30.0

40.0

50.0

60.0

TV Press Radio Cinema OUTDOOR Digital

Source: Pitch Madison Media Advertising Outlook 2015

Digital Share greater than combined share of OOH + Radio + Cinema

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

9.8 10.2

10.0

9.7

0.7

9.6

10.7

12.6Others – OOH + Radio + Cinema

Digital

Source: Pitch Madison Media Advertising Outlook 2015

% increase in 2014 and 2015Highest growth expected in Digital

TV Press Outdoor Radio Internet Cinema

1416

13

17

30

1010

5 6 6

29

9

14,15815,503

15,27416,086

2,2332,371

1,2851,362

3,9705,135

184201

20142015 P

20142015 P

Source: Pitch Madison Media Advertising Outlook 2015

TELEVISION

TV Trend over the yearsTV has grown at the rate of 14% and will grow by 9.5%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

4104 43505003

600071108318.699999999

988492

10530.0811477.787211477.7872

12418.9657504

1415815503.01

Source: Pitch Madison Media Advertising Outlook 2015

Contribution by TV Genres by spendsHindi GEC contributes nearly 27% of the overall TV revenue and

continue to remain the leader of the pack

Source: Pitch Madison Media Advertising Outlook 2015

TV Genres Contribution 2013 2014Hin GEC 28.2% 27.0%TN CS 7.2% 8.5%

Hin News 8.0% 7.6%Eng News 5.9% 5.8%

AP CS 4.6% 5.2%Hin Mov 5.6% 5.1%Mah CS 4.4% 4.6%Sports 3.9% 4.4%

Info 4.2% 4.1%Kids 4.3% 3.9%

Kan CS 4.1% 3.7%Music 3.7% 3.4%Ben CS 2.3% 3.3%

Eng Mov 3.4% 3.3%Ker CS 2.9% 3.0%

Eng Ent 2.5% 2.7%DD 2.6% 2.6%

Other Regionals 1.9% 1.4%Others 0.3% 0.6%

2012 2013 2014

FMCG 54.4 56.6 53.3Telecom/Digital/ Ecommerce 9.4 10.3 13.6Auto 6.0 7.5 7.2BFSI 4.3 3.8 3.8Clothing Fashion Jewellery 3.7 3.5 3.2

Real Estate & Home Improvement 3.7 3.6 3.1

Contribution of Top categories by spendsFMCG continues to dominate TV

Source: Pitch Madison Media Advertising Outlook 2015

Total FCT grows by over 18%

2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

1600

21.00

21.50

22.00

22.50

23.00

23.50

24.00

300401

512

671

822

9481038

1164

1379

22

23 23

2323

23 23

24 24FCT (Mil sec) Avg Dur (sec)

* FCT excludes channel promosSource : TAM, Adex

FCT on similar channels of 2013 grows by 6.4%Avg Dur has remained constant at 24 in 2014

Marginal increase in TV Viewership in 2014

Source : TAM, Adex TG : 4 years+ Market : All India

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20145

6

7

8

9

10

11

12

10.2 10.3

9.79.9

9.3 9.39.5

9.9 10

10.5 10.6 10.7

10.0610.4

11.1

Any TVR

PRINT

Print Trend over the yearsPrint grew 10% and expected to grow faster than TV

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj0

2000

4000

6000

8000

10000

12000

14000

16000

18000

43034961

57007000

8514

10050

8073

1048711509 11970

13167

1527416086

38774470

5119

6328

7837

9264

7448

958710359 10768

11905

1393614731

426 491 581 672 678 786 624 899 1150 1202 1262 1338 1355

Total Print Dailies Magazines

Source: Pitch Madison Media Advertising Outlook 2015

Total Space Consumed in Dailies decreased by 2%

* excludes in-house ads by DailiesSource : TAM, Adex

2006 2007 2008 2009 2010 2011 2012 2013 20140

50

100

150

200

250

300

350

30

32

34

36

38

40

42

44

46

168 158177

199231

272288 316

31044

45

32

4241

4242

4345

Space Consumed ( Million Cc ) Avg Size (cc)

Contribution by languages in Dailies in terms of Volume CC

Hindi Dailies continue to be ahead of English Dailies

Source: Pitch Madison Media Advertising Outlook 2015

Languages Contbn Contbn GrowthHindi 36% 35% -3%

English 24% 24% -4%

Marathi 8% 9% 9%

Tamil 8% 7% -13%

Telugu 7% 7% 0%

Gujarati 5% 5% 3%

Kannada 4% 4% 8%

Malayalam 4% 3% -9%

Oriya 2% 3% -1%

Bengali 1% 1% 3%

Assamese 1% 1% -4%

Punjabi 1% 1% -7%

Dailies 2013 2014 2014/13

Product Catg 2012 2013 2014

FMCG 10.4 12.3 13.6 Auto 11.4 11.7 11.9 Education 10.6 9.7 9.4 Real Estate/ Home Improvement 8.6 8.7 8.1 Clothing / Fashion / Jewellery 7.1 6.1 6.1 Retail 5.8 5.7 5.3

Contribution of Top CategoriesFMCG, Auto & Education - the 3 lead Categories

Source: Pitch Madison Media Advertising Outlook 2015

Hindi Dailies continue to overtake English Dailies in 2014

2009 2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

49 48 45 39 36 35

26 27 31 35 38 38

25 25 24 26 26 27

% Share of Print Spends

English Hindi Others

Source: TAM, Adex

RADIO

Radio rings in 17% growth on the back of Lok Sabha & Assembly elections

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

0

200

400

600

800

1000

1200

1400

1600

125 150 200285

480

662.4680.8928

885.16064902.863852799

998929.949768383

997

1097

12851362

Source: Pitch Madison Media Advertising Outlook 2015

Product Catg Contbn Contbn GrowthReal Estate & Home Improvement 12% 12% 10%FMCG 13% 12% -3%Telecom/Digital/ Ecommerce 8% 9% 34%BFSI 8% 8% 4%Media 6% 7% 31%Auto 5% 6% 34%Retail 6% 5% -3%Clothing Fashion Jewellery 5% 5% -1%Travel & Tourism 5% 5% -1%HH Durables 3% 3% 8%Education 4% 3% -1%Election - Political Ads 1% 3% 160%

Contribution of Top Categories by spendsReal Estate & Home Improvement sector continue to lead the pack

contributing to 12%

Source: Pitch Madison Media Advertising Outlook 2015

Radio 2013 2014 2014/13

CINEMA

Cinema has grown by 10.4%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

0

50

100

150

200

250

19 23 3255

105

129

103118

140151

167184

201

Source: Pitch Madison Media Advertising Outlook 2015

OUTDOOR

Both Transit Media & Traditional OOH Media has grown by more than 12% boosting Outdoor growth to 13%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

0

500

1000

1500

2000

2500

773860

9461087

1417

1752

1419

18481717

18621977

22332371

727800

8701000

12751419

1135

14411297 1323 1363

15451622

46 60 76 87 142

333 284407 420

539614

688 749

Total OOH Outdoor Transit Media

Source: Pitch Madison Media Advertising Outlook 2015

DIGITAL

Display grows by 48% & Search increases by 36%

Overall Digital continued its strong contribution and grew by over 30%

Source: Pitch Madison Media Advertising Outlook 2015

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Proj

0

1000

2000

3000

4000

5000

6000

70 100 155 235 350 470703

10301535

2303

3050

3970

5135

Digital Display Search

Source: Pitch Madison Media Advertising Outlook 2015

Our Advise

to

Advertisers

FOCUS ON EFFECTIVENESS

1

Not efficiency !

2

EXPERIMENTFail often, Fail fast! Should be our mantra

MEDIA CAN MOVE MOUNTAINS

3

But don’t under resource your campaigns

4PRIORITIZE MARKETS SHARPLYDon’t Underspend in Any Market

CORNER ROOM ATTENTION REQUIRED

5

Senior Management Must Spend More Time With Media Agency Leaders If They Want More Out Of Media

THANK YOU