In an era where digital transformation is not just a trend but a necessity, the Indian publishing industry continues to thrive with monumental change. The insights from the EY and FICCI report, “#Reinvent - India’s media & entertainment sector is innovating for the future, March 2024”, shed light on the trend shifts and the future outlook within India's media and entertainment sector. Here’s what Indian Publishers should keep a sharp eye on:?
Internet & Advertising Trends:?
- The reach of online news is projected to grow beyond 500 million by 2026, with current figures showing 456 million digital news consumers against 574 million smartphone users in India.
- Indians are spending more time on their phones, with an average of 4.8 hours per day in 2023, a 9% increase from 2020. This surge in mobile usage further amplifies the importance of mobile-optimized content and advertising strategies.
- Digital advertising has seen a significant increase, with a 15% increase, reaching INR 576 billion, which is 51% of total advertising revenues. This growth is underscored by contributions from SMEs and e-commerce platforms, reflecting a broader acceptance and reliance on digital platforms for advertising needs. Publishers, with their rich content ecosystems and deep audience insights, emerge as invaluable allies for brands.?
- With ad revenues for news at INR 19 billion and subscriptions around INR 2 billion, finding scalable monetization models remains a challenge. The report suggests focusing on direct deals, premium content, and exploring peripheral revenue streams like digital courses and events to enhance monetization.
- Despite the growing reach, monetization through ad revenues presents challenges, with programmatic rates remaining low and prompting a pivot towards direct deals and premium inventory formats.
Audience & Content Consumption Trends:?
- The majority of news consumption is mobile-driven, with 80% occurring on the web and a preference for short video and text formats.
- Consumers are diversifying their sources of news, indicating the value of a multi-platform presence for publishers to capture wider audiences.
- With 79% of news consumers engaging with news via social media, the importance of a robust social media strategy for publishers is evident. However, this also introduces challenges in content distribution and monetisation, given the high dependency on social media platforms' algorithms and policies.
- The platform of consumption is diversifying, with a shift towards social media, D2C apps, and aggregators, signalling a need for publishers to adapt to varied distribution channels.
- A significant interest in hyperlocal news, particularly among Indian language users, highlights the growing demand for localized content that resonates with the diverse linguistic and cultural nuances of India.
- The report points to the concerning trend of misinformation, with a significant portion of consumers encountering fake news. This underscores the crucial need for publishers to invest in credibility and fact-checking mechanisms to maintain trust and integrity in their content.
- The digital segment is anticipated to grow to INR 955 billion by 2026, with digital advertising playing a pivotal role.
- The exploration of new revenue models, such as news subscriptions bundled with OTT services and international expansion targeting the diaspora, offers potential pathways for growth.
- Strategies for news publishers include launching a unified "India news" app to consolidate content and monetize efficiently, implementing credibility scores to counter misinformation, and creating "news-influencers" to build communities around credible news sources.
- Now that you're equipped with the latest trends shaping the M&E landscape, it's time to buckle up and steer your strategies towards success, growth and innovation. Let's forge ahead, making every opportunity count.?
Here's a glimpse into our CEO
Bharat Gupta
vision for the future of Digital:
“India’s youth are embracing technological advancements, disrupting the publishing industry. Projected for a $5.2 trillion economy with a low ad-to-GDP ratio, digital advertising is expected to reach 80K crores. Collaborative efforts towards youth inclusion, audience science, and disruptive technologies will shape M&E’s future.” - @Bharat Gupta, CEO, Jagran New Media?