B-schools bring big bucks

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Watchdog Bites
• India has 348 universities and 17, 625 colleges, the highest in the world
• In 2005 & 2006, educational institutions spent Rs 3, 174 mn and Rs 3, 655 mn, on ads respectively.
• Parents spend Rs 18, 675 crore of the estimated Rs 37, 675 crore (0.4% of GDP) spent on education annually
• The entrance exam, training market is worth Rs 8,126 million according to industry estimates

Higher education in India is big business today. And this time of the year (April-July), there is frenzied activity in the marketplace with institutions – domestic and foreign – burning serious money in advertising to flaunt their course-ware and attract students from across the country.

The business potential is undoubtedly enormous. Almost 55% of India’s population is below 25 years–the ripe age to enroll for a post-graduate course. And do not underestimate the competition amongst institutions to get these students in. Government statistics show India has 348 universities and 17,625 colleges, the highest in the world.

And in the last couple of years, a large number of universities and colleges from not just the US and the UK, but also from Australia, Ireland, Canada, Russia, France, Germany and Singapore have been very active in India. No wonder, as many as 100,000 Indians go to study abroad every year. Over 300,000 Indian students are enrolled in courses abroad, with the US accounting for 76, 503, Australia 27, 661 and the UK 16, 227 in 2005-06, according to industry estimates.

To get a foothold in the higher education business, institutions spent as much as Rs 317.4 crore towards advertising in the print medium, says AdEx India, a division of TAM Media Research. The next year, they hiked their budgets over 15% to Rs 365.5 crore. This was next only to the booming realty business that shelled out Rs 370.5 crore.

In India, more than in most other countries providing education is very important for the middle class, the vast majority. Siddhartha Mukherjee, vice president, communications, TAM Media Research, says matter-of-factly, “Education is booming because parents feel their children need some kind of career specialisation.”

And complementing this desire of parents is the market opportunity for the private unaided colleges. Says Atul Chauhan, chancellor of the Rs 500-crore Amity University, Uttar Pradesh, “Education is among the biggest spenders in print in terms of advertising. They must be spending close to Rs 700 crore a year, mostly in print. And the prime time is April-July when students apply. Hardly any educational institution uses TV as it is used mainly for brand-building. Print advertisement is preferred since it can accommodate lot of information like courses are on offer and how to apply. Radio is very cluttered, though cheaper. Some institutions use it for event-related announcements though.”