Published & Updated as on - 2010-04-19
India
will outperform most markets in 2010, key growth to come from the mobile domain
says Zenith Optimedia. Read about the several factors that are contributing to
growth in India.
A new study by media agency
Zenith Optimedia, part of the French advertising conglomerate Publicis Groupe
SA, has forecast 9% growth for India’s advertising industry for this year. The
agency has also upgraded its forecast for global advertising industry growth
from 0.9% to 2.2% for 2010.
The survey said the Indian
economy withstood the test of global slump and grew at 6-7% in 2009. However,
the advertising market reacted sharply to the downturn and grew only at 1%
during the year.
But recovery has been swift and India’s
advertising industry will outperform most other markets in 2010. According to
Zenith Optimedia, the total ad expenditure for India is projected to touch
Rs23,631.9 crore this year. In 2009, the ad expenditure was Rs21,602.5 crore.
Newspaper
advertising, which grew 5% in 2009, is likely to see 7-8% annual growth this
year. Rising literacy levels and better distribution in the regions are
steadily improving the reach of newspapers. The survey also predicts a healthy
11-12% growth for television in India riding on the digital wave and advertising
opportunities offered by the new “larger than life” entertainment formats.
Sports is growing in popularity, thanks to the success of the Indian Premier
League (IPL), and this trend is likely to continue as the country hosts the
Commonwealth Games this year.
The study stated that Internet
advertising in India will be driven by social media. The survey pegs Internet
advertising growth at an annual 25% in the coming three years.
Satyajit
Sen, chief executive officer, Zenith Optimedia, said most of the growth story
will come from digital properties, especially those in the mobile domain. Other
key contributors will be cricket and reality content apart from rising ad
rates.
“Print, especially English newspapers, which have
suffered in revenues because of the downturn, will emerge out of it. There will
be a correction,” Sen said.
At least two other advertising
surveys have predicted 12-13% growth for Indian advertising. A recent
Pitch-Madison report said the ad industry will see 13% growth in 2010 to touch a
turnover of Rs21,145 crore.
R. Gowthaman, leader, mindshare,
GroupM India Pvt. Ltd, said that his company projected 12% growth for India in
2010. “The global figures are almost in the same league as Zenith’s. Last year,
the global advertising industry was at minus 1%. This year, the total ad
expenditure is likely to grow by 1 or 2%.”
According to
Gowthaman, there are several factors that are contributing to growth in India.
Around “6-7% of India’s ad expenditure growth comes from rate inflation alone.
The rates for IPL, for instance, have gone up considerably. Also, it comes from
broadcasters investing in a lot of high-cost, tent-pole programming,” he said,
adding that categories that were silent in 2009 are bouncing back. This
includes banks and other financial services as well as tourism.
The
survey said that globally the worst-hit markets are stabilizing and will return
to growth in 2011. The Internet’s share of ad expenditure will rise from 12.6%
in 2009 to 17.1% in 2012 globally.
Ad expenditure fell 23.1%
in central and eastern Europe, with drops as steep as 42% in Russia, 44% in
Latvia and 48% in Ukraine in 2009. Zenith forecasts a 5.7% ad spending growth
in central and eastern Europe in 2010, and 8.5% in 2011.
Source:
info.shine.com 19/4/10
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