Ads to grow at 2 per cent in 2009

The Pitch-Madison Media Advertising Outlook 2009 report has painted a bleak picture for media owners this year

It say while the overall advertising industry grew 17 per cent to touch Rs20,717 crore in 2008, it is projected to increase a mere two per cent in 2009.

The good news is that a consistent good performance by fast moving consumer goods (FMCG) sector may help advertising to some extent, while the approaching general elections should help press ads, which despite this is expected to remain flat. However, cinema and outdoor advertising are expected to decline in 2009.

Last year's study had forecast the advertising spend in 2008, to be Rs21,314 crore, a 20 per cent growth over 2007. But a slowdown in the second half of 2008 has led to an overall lower growth rate of 17 per cent. Last year's 17 per cent growth is substantially lower than the 22 per cent growth achieved in each of the previous two years.

Print and TV continue to dominate the advertising market with a combined share of around 88 per cent. The estimated Rs9,800 crore advertising market for the print medium grew 16 per cent in 2008 while the around Rs8,300 crore TV ad market grew 17 per cent during the same period.

The estimated Rs660-crore radio market witnessed the sharpest growth of 38 per cent in 2008.

Print continues to hold the largest share of pie at 47 per cent, although print did seem to lose steam in second half of 2008 and lost 1 per cent share compared to 2007.

TV is a close no. 2 with 41 per cent of the advertising pie and has gained a 1 per cent share in 2008 compared to 2007.

Outdoor, in 2008 grew by 11 per cent, substantially lower than previous year's growth rate of 28 per cent. internet, though on a very small base, grew at 45 per cent and has now reached a respectable size of Rs363 crore.

Radio registered a robust growth of 38 per cent in 2008, having grown by 68 per cent the previous year.