TV: The Unrivaled Rider in Advertising Arena
Analyses show that television continues to be a popular means for advertising among economic enterprises. In the spring of 1396 (2017), the top 10 best-selling advertising brands chose television as the first option, followed by the printed media. According to a survey conducted by EMRC, the top 10 brands in the first quarter of the Persian calendar year 1396 (started March 21, 2017) spent IRR 19,586 billion on TV, IRR 239 billion on daily newspapers and IRR 34 billion on journals for advertising.
According to these figures, the top 10 brands account for more than 30 percent of TV and newspaper advertising and about a quarter of journals advertising. The total value of the advertising for all the brands in local currency is IRR 64,370 billion. A study of the budget allocations to each media sheds light on the role they played in marketing and commercials: TV accounts for 98.7 percent, newspapers for 1.11 percent and journals for 0.2 percent. Thus television still remains to be the unrivaled competitor in advertising market.
It should be noted that all the figures cited in this report are the rial value of the advertising budget that has been allocated to various media and discounts or terms of contracts with the media are not included in these costs.
According to the research, in which journals, newspapers and TV advertising is considered without any time discounts, the rest of the brands have the following status: 69 percent of TV advertising (IRR 63,530 billion), 66 percent of newspaper advertising (IRR 707 billion) and 74 percent of journals advertising (IRR 132 billion). Moreover, six of the top ten brands belong to cell phone operators (Irancell and Hamrah Aval) and detergents (Amo, Vernel, Peril and Persil).
This shows the competitive nature of advertising in communications industry. In detergent industry, Henkel has been involved in a lot of advertising activities and accounts for 27 percent of the advertising cost of the top 10 brands.
Among the top ten brands in terms of advertising costs, only the two brands of Hamrah Aval and LG have launched advertising campaign in print media in addition to TV. According to this study, given the large amount of advertising budget spent on television, more than half of the cost of TV advertising for top 10 brands came from Hamrah Aval (22 percent), Persil (12 percent), LG (11 percent) and Padideh Shandiz (10 percent). According to the report, the home appliances group stands on the top of advertising budget so that Samsung accounts for 35 percent, LG 19 percent and O General 5 percent (a total of almost 60 percent) of the budget for the top ten brand advertising in the print media. The second category belongs to the advertising of wrist watches in the jewelry group. Omega (6 percent), Breitling (4 percent) and Rolex (4 percent) account for 14 percent of the advertising budget of the top 10 brands. As for the journals, ten advertising brands come from more diversified industries.
Household appliances (Samsung and LG), personal electrical appliances (Remington and Philips), cell phone operators (Hamrah Aval and Rightel) provide approximately 80 percent of the advertising budget of top ten brands in journals. Cars, educational services, pharmaceutical products and cosmetic and hygienic products are other industries featured in the top ten brand advertising in journals. Among the top brands, Samsung alone accounts for 45 percent of the advertising budget.