Fresh study confirms end of depression time for media
20 Feb 2014
The depression time for the Indian media is being uplifted rapidly, as yet another study shows. Growth projections in Pitch Madison Media Advertising's Outlook 2014 report says that in contrast with the period between 2011and 2012 when the growth was in single digits, last year saw a turnaround for media advertising when it reported a growth of 11.1 per cent.
This was much more than the benchmarked figure of 7.4 per cent that was initially predicted by the report for the year 2013.
Presenting the numbers to media barons in Mumbai, Sam Balsara, chairman and managing director of the leading media services conglomerate Madison World, said the time to be cautious was almost over and that the year ahead would be even more fulfilling, with growth projected in the range of 16.8 per cent.
The report was compiled by Madison World in conjunction with exchange4media group's Pitch magazine.
"It is great to be clocking a growth rate in double digits, which has come as a boon to the industry that was stuck in clouds of uncertainty given the economic downturn that was witnessed for much of last year," said Balsara. "Compared with 2012 that registered revenues to the tune of Rs28,694 crore, the year 2013 reported numbers equalling Rs31,877 crore, growing by 11.1 per cent. In fact 2014 would outperform the previous year and would register an estimated growth of 16.8 per cent, with revenues totalling Rs37,216 crore," Balsara said.
He said the main levers for growth for the industry would be Lok Sabha and the state assembly elections this year. This would also include spending by individual political candidates to the voters.
The findings virtually echo the results of another study by GroupM which was released earlier this month. (See: Ad spends in India to grow 11.6 per cent this year on back of polls).
Presenting a media-wise break-up, Balsara said like last year, this year too belonged to print, which emerged the top medium, registering a growth of 10 per cent with revenues totalling Rs13,167 crore. This was largely due to increased advertising by sectors such as FMCG, which contributed 12.3 per cent to the overall ad pie and auto, which contributed around 11.7 per cent.
Following print closely was television, that recorded a growth of 8.2 per cent with revenues totalling Rs12,410 crore. This was in sharp contrast to 2012 where the medium registered a 0 per cent growth.
In terms of sectoral ad spend, retail, alcoholic beverages and corporates registered a negative growth, with only FMCG registering a positive growth for TV. The medium is expected to grow by 15 per cent in 2014.
The next was digital, which has now become the third-most preferred medium for advertisers in a consistent manner. With revenues totalling Rs3,050 crore, the medium grew by a good 32.4 per cent and is expected to grow 29.5 per cent in 2014 as well. Of this, display advertising will continue to have an upper hand compared to search with revenue numbers totalling to Rs2,150 crore.
Radio, outdoor and cinema combined accounted for the remaining 12-13 per cent of the ad chart, with radio accounting for revenues of Rs1,097 crore (18 per cent growth), outdoor clocking a growth of 6.2 per cent at Rs1,977 crore, and cinema registering a growth of 10.4 per cent at Rs167 crore.
