The retail boom is no news. An interesting spin-off development is that of the advertising industry, which is probably the second biggest beneficiary of the retail boom – falling just behind the realtors and, of course, the consumers.
AdEx India, a division of TAM Media Research, have generated their report on the advertising trends of retail sector on television. This indicates that advertising by retail industry registered a rise of 12 per cent on TV during January-May 2007, as compared to the same period last year.
Independent retailers had the lion’s share at 83%
Regional-based advertising by retail outlets – South zone channels garnered 56% of ad volumes
Nearly half of the advertising share contributed by GECs
Subhiksha and Saravana Stores were the top 2 retailers
Future Group’s Home Town topped among the new retail outlets launched
Overall, Jan-May’07 saw nearly 700 ads per day by retail outlets
(Note: The entire analysis is based on secondages)
Growth in advertising of retail sector on TV during Jan-May’07
In the overall advertising chart, retail industry contributes only one per cent of ad volumes on TV. In January-May around 250 new retailers started advertising on TV, adding up to almost 700 TV ads per day by retail outlets.
Seasonality trend of retail industry on TV in 2006
In a season-/month-wise segmentation, it was observed that retail giants advertised heavily during the festive month of October. Saravana Stores, Pantaloons Retail India and The Chennai Silks Group were the top three contributors in this month. Nearly 65 per cent of smaller retail shops advertised in the second half of 2006.
Segmentation of retail sector on TV during Jan-May’07
Independent retailers and display retail shops shared the retail ad pie in a ratio of 83:17, leaving a meagre 0.03 per cent for retail categories. Of the overall number of players, around 47 per cent of outlets were contributed by independent retailers. In comparison to Jan-May’06, independent retailers saw a rise of nine per cent; on the other hand, 35 per cent growth was registered by display retail shops in Jan-May’07.
Zone-wise contribution by retail industry 06
If zone-/area-wise contribution of ads is seen, big retailers focused their advertising (more than 60 per cent) in South-zone TV channels, whereas smaller retail outlets used maximum ad volumes in East zone channels. Nearly 62 per cent of retail outlets advertised on southern channels.
Channel genres preferred by retail outlets during Jan-May’07
The channel genres preferred by retailers are mainly the GEC channels (maximum contribution by regional GECs), as nearly half of the advertising volumes come from GECs. Apart from GEC and news channels, high advertising by independent retailers on music channels was also witnessed.
Top 5 retail outlets advertised on TV during Jan-May’07
So far as the most prolific advertisers are concerned, it was observed that the top five retailers accounted for 33 per cent of ad volumes – and all five are from value/lifestyle and clothing segments. Two of them are South-based.
New retail outlets launched on TV during Jan-May’07
Overall, 255 new retail outlets were launched on TV during Jan-May’07, out of which 43% of outlets were contributed by independent retailers. The top 3 slots were secured by Home Town (a home solutions store from Future Group), followed by Great Eastern Technocity (an electronics departmental store from Great Eastern Appliances) and The Mobile Store (mobile retail outlet from Essar Telecom Retail).
Advertising frequency of retail outlets on TV during Jan-May’07
A nearly eight per cent rise was seen in the frequency of advertising by independent retailers and display retail shops. The frequency of ads by independent retailers is four times more than the display retail shops
A snapshot of advertising by retail sector on print: An AdEx Report 
Highlights:
- Print advertising of retail sector grew by 5% during Jan-May’07 over Jan-May’06
- Festive season recorded a peak in ad volumes of retail sector in 2006
- Independent retailers garnered max. 48% share of volumes
- Retail sector focused their advertising in publications from South & West zone
- Pantaloons Retail India topped advertising in retail sector
- New retail shops advertised with multiple concepts like telecom, home solutions, garments and hypermarket
- Usage of nearly 40% of sales promotional ads by retailers
(Note: The entire analysis is based on column centimetres)
Growth in advertising of retail sector on print during
