MAM

Indian ad industry to grow at 14% CAGR to Rs 426.9 billion by 2014

MUMBAI: The Indian advertising industry is set to grow at a CAGR of 14.1 per cent to touch Rs 426.9 billion in 2014, says a recently released Ficci-KPMG report.


The report notes that amidst an uncertain economic environment and low industry sentiment that prevailed in 2009, the Indian advertising industry managed to almost sustain its media spend levels of 2008, falling marginally by 0.4 per cent to stay at Rs 220.3 billion (Rs 221.2 billion in 2008) for the calendar year.
 
 
With the market picking up in the second half of 2009, the advertising industry is expected to grow by 12 per cent in 2010 to reach Rs 246.9 billion.


“While the worldwide advertising forecast for 2009 was estimated to fall by 5.5 per cent, Indian advertising revenues were not subjected to similar reductions. The marginal fall of 0.4 per cent was not pervasive across media platforms,” the report notes.
 
Television and Internet advertising managed a growth of 7 per cent and 25 per cent respectively, whereas other platforms registered a de-growth of over 5 per cent.


The year 2009 brought in focus on the bottom line margins and greater consciousness on discretionary spend amongst advertisers.


In segment wise distribution, television is expected to garner a greater percentage of the total advertising revenues and constitute the largest share of the overall media spend eventually.


While print continued to dominate advertising spend in 2009, it lost a fraction of its overall market share to other mediums. Despite a 4.6 per cent fall in advertising revenues, agencies continue to be bullish on print advertising in 2010 and 2011, the report states.


In 2009, with declining spot rates and an increased focus on market expansion, the total number of advertisers increased by 7 per cent on print and 11 per cent on television. Compared to 2008, both regional print and television gained a larger share of advertising volumes while national players marginally lost their hold.


Some interesting points in the report are that the advertising spends by Real Estate, InfoTech, Financial Services, Retail and Apparel sectors fell significantly in 2009 while that by FMCG, Telecom and Education are believed to have increased over 2008. However, the distribution of advertising spends across categories saw some shift. Several FMCG brands including Coke and Pepsi joined the online advertising platform.


Also, IT and Telecom players continued their digital spend while the share of BFSI sector in online advertising volumes declined. Education, which largely dominates advertising on print media, found coverage on national television and radio. The luxury segment which had until recently restricted advertisements to English newspapers and magazines, saw television and OOH campaigns for niche brands such as Mont Blanc.


For other Asian markets such as Singapore, Hong Kong, China, Japan and Philippines, advertising spend over the last few years has accounted for approximately 1.2 to 3.5 per cent of the GDP. However the share of advertising spends in India remained in the low range of 0.4 to 0.47 per cent. So, with India’s GDP expected to grow at nearly 7 to 8 per cent in 2010, the outlook for the year looks to be more promising with advertising growth returning to double-digit levels.
 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/Deloitte.jpg?itok=4oU7Xx11
Vernacular content consumers to be 2.5 times English by 2021: Deloitte

MUMBAI: Deloitte India has launched the eighth edition of its report on technology, media and telecommunications which predicts major advances in machine learning, voice over LTE (VoLTE) technology services and over-the-top (OTT) platforms, apart from other trends.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/break.jpg?itok=NI2aMi1o
IAA's new initiative seeks to end rigidity in office timings

A new social initiative titled #WorkToLiveToWork has been undertaken by the International Advertising Association’s (IAA) India chapter with Nandini Dias, managing committee member of IAA and CEO of Lodestar India, at the helm. Dias lost two colleagues in separate accidents related to railways...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/pvr.jpg?itok=x_vsjB5p
PVR promotes cleaner air

MUMBAI: Cinema exhibition company PVR Pictures has launched a new campaign called, #BeTheCommuter with an aim to promote clean air and curb pollution.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/18/Pursuite.jpg?itok=rXkZMDm4
Pursuite.com forays into furniture

MUMBAI: In a move to further expand its product categories, Pursuite.com, India’s first B2B e-commerce platform for hospitality procurements has announced its entry into furniture, fixture and equipment (FF&E) segment.  With over 50 brands and more than 5000 products from across the globe,...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/Digital.jpg?itok=LM0bBxXP
Digital will be core of ad budgets by 2020: DAN report

MUMBAI: The increasing penetration of digital media in India is creating huge opportunities for marketers to reach out to untapped audiences in newer ways than before. Marketers are getting innovative with the way they choose to advertise to their audience.

MAM Media and Advertising Digital Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/voda.jpg?itok=llTNSmks
Vodafone brings back the Pug in AR

MUMBAI: Television viewers and spectators at Sunday’s grand finale of the Vodafone Premiere Badminton League broke into impromptu smiles when they realised they had unexpected company.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/smart.jpg?itok=5qxiMtZr
Smartworks shows tech-friendly office in new ad

MUMBAI: Provider of shared work spaces, Smartworks has launched its second brand video featuring the benefits of hassle free technology to enhance collaboration and productivity for its members.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/17/rs.jpg?itok=cJF-fG9v
Ramesh & Suresh get 'lost' again in Cadbury 5Star 3D

MUMBAI: Ramesh and Suresh are back and this time they are lost at a whole new level. Over the last twelve years, Cadbury 5Star has entertained viewers bringing to them ‘lost’ antics of the iconic duo of Ramesh and Suresh.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/amazon.jpg?itok=SP1ttU6t
Amazon says out with the old in Great Indian Sale ads

MUMBAI: E-commerce giant Amazon has launched its new campaign ‘Ab Sehan Kyun Karna’ in tandem with its first Great Indian Sale for 2018. The message to the customers is to do away with the old and usher in the new for the new year. The campaign features a series of ads on various situations in...

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories