Future Media - changing face of Indian advertising
Future Group is betting big on development of retail media spaces through Future Media. It has launched the first retailer-owned channel in India called Future TV currently being aired at Big Bazaar, Pantaloon, Central, Food Bazaar and Home Town stores in Mumbai, Delhi and Bangalore.
Globally Out of Home TV has been successful for point-of-purchase advertising as 99% of the buying decisions for some categories are made at the store itself. Some of successful ones are Focus Media in China having 300,000 screens and Tesco Media in UK.
But Wal-Mart is the instore advertising leader having screens shows news, weather and entertainment coupled with paid advertising. The advertising channels are related to health and beauty, style, electronics, fresh food, entertainment and grocery. In some cases, rates for ads are high in case of TVs at the ends of aisles and check-outs.
Future Media gains as it is a retailer owned media house and can target direct consumers though Television, Visual Spaces, Print and Radio. The advertising rate charged depends on location, content and number of visitors expected at a particular store. Brands already in the store are normally given discount deals.
The advertisers also comprise non-store brands in areas such as telecom and financial services. Future Media offers My World, a monthly magazine for Big Bazaar customers and may soon launch other print brands for different retail formats. It has already started instore radio in some of the stores.
Future Media has sold 10% of its equity to WPP, and is in talks with other PE investors to raise more money for its expansion plans. It plans to increase Future TV screens from initial 1000 screens to 10,000 screens within 2 years.
In terms of valuation, by global benchmarks Future Media could be valued at Rs.400 crore when it is has 10,000 screens running. Future Radio could contribute Rs.1.8 crore annually and other visual spaces like pillars, facades, kiosks, staircases, trolleys, elevators, trial rooms, drop downs, carry bags, counter branding, shelf branding together would have substantial revenue earning potential.
Going ahead, Future Media would source content from third party developers and bid for outdoor media space too. Since outdoor media is an ignored and unorganised sector, Future Media stands to gain substantially and have an early mover advantage.
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Amit Agarwal is a Google Developer Expert in Google Workspace and Google Apps Script. He holds an engineering degree in Computer Science (I.I.T.) and is the first professional blogger in India.