US-based Simulmedia seeks India entry

New York-based media marketing company Simulmedia wants to enter India, it is learnt.

The company’s objective is to help television companies improve ratings through data-driven programme promotion. Simulmedia has submitted its application to the Foreign Investment Promotion Board (FIPB) in the finance ministry, and its proposal may be taken up this Friday.

Simulmedia’s proposed entry into the country is an interesting development at a time when India’s television industry is growing at a fast pace and advertisers are trying hard to figure out where they must put their money for best results in a crowded market.
There are over 400 TV channels being beamed into India, and the number of cable & satellite TV homes in the country was over 66 million at the end of last year. The number of TV homes in the country (satellite and terrestrial) number is 100 million.
A questionnaire sent by DNA Money to Simulmedia on its India plans remained unanswered.

The company pioneered the development of predictive technology to help television firms deliver the right viewers at the right time, according to a statement issued by Simulmedia earlier this year.

“Our goal will be to use sophisticated data analysis and predictive technology to redirect where and when cable operators and broadcast and cable networks place these (ad) spots in order to make them more effective and efficient in delivering the most desirable audiences. We hope to bring more focus and attention to an important part of the industry which has long been underserved,” Dave Morgan, CEO, had said at the time of the company’s launch in the US earlier this year.

Morgan is a serial entrepreneur who had earlier launched Tacoda, an online advertising company. Tacoda was acquired by AOL in 2007. He had also founded Real Media, another online media venture.

According to a joint report published by business chamber Ficci and consultancy firm KPMG, the Indian media and entertainment industry was pegged at Rs 58,400 crore (around $12 billion) in 2008, showing a growth of 12.4% over the previous year.
The report estimated that the industry would reach Rs 1.05 lakh crore (around $21 billion) by the year 2013.  The TV industry is estimated to have reached a size of Rs 24,100 crore (approximately $4.8 billion) as of end of 2008, a growth of 14.2% over 2007. The television industry is projected to grow at the rate of 14.5% over 2009-2013 and reach a size of Rs 47,300 crore (around $ 9.4 billion).

Amit Mitra, secretary-general, Ficci, had pointed out at the time of releasing the report that “India is one of the few countries where economic growth will be led by domestic consumption. With a low ad spend to GDP ratio of 0.47%, a growing consumer class and middle class, young population, low media penetration and increasing discretionary spending, India continues to be an attractive market.”