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Ad spends to grow by 7.4% in 2013

India Infoline News Service | Mumbai | February 11, 2013 14:59 IST

With a growth of 5.2%, as opposed to the projected 7.5% growth, the media advertising industry in 2012 witnessed the lowest growth of the decade.

The Pitch Madison Media Advertising Outlook 2013 was unveiled on a weekend when the whole industry was eagerly looking at what holds in future for media and advertising domain. The numbers did not augur well for 2012 on the back of a slow economic year. The year 2012 could not deliver as promised in any industry, and the media advertising industry was no exception, where in most verticals witnessed a slowdown in growth and fell short of the projected target. Digital media has become the third largest interactive medium in the world.

With a growth of 5.2%, as opposed to the projected 7.5% growth, the media advertising industry in 2012 witnessed the lowest growth of the decade. All the sectors except print and digital fell short of the projected growth. Television witnessed a flat year; out of home grew by 8.4%, radio by 3% and cinema by 8%. Print grew by 4%, as against the projection of de-growth, while digital grew by 50%.

Presenting the report, Sam Balsara, Chairman and MD, Madison World said, “In 2011, we had said that it was the lowest growth in the last few years. Little did we know that next year we will find these figures dip further.”

Balsara further said that‘Cautious’ was the word for 2012, however, it ended up being more of a disappointment due to various reasons.

Television, which had the largest share of the ad pie in 2011, remained flat and did not see any growth in 2012, as against the projected growth of 10%. The medium suffered mainly due to the absence of major sports leagues during the year.The absence of the ICC World Cup, which had roped in revenues close to Rs 750 crore in 2011, and the Indian Premier League (IPL) failing to garner as much revenue as in 2011, television could not pick up growth. The medium occupied 40% of the market share in 2012.

Balsara pointed out that the most disappointing trend witnessed in 2012 for television broadcasters was that the average time audience spent on television was not increasing. Major spenders on television were FMCG, automobile, BFSI, clothing, fashion jewellery, real estate and home improvement.

Television’s loss was print’s gain, with the medium taking the lead in 2012. Print emerged as the leading medium in 2012 with 4% growth, as opposed to the projected negative growth. The medium saw a strong growth on the back of Hindi and regional dailies and launch of new editions.


According to Mr.Annurag Batra,Chairman and Editor in Chief at exchange4media “TV is expected to grow well, because of digitisation that will lead to more spending on niche channel but Digital ad spending continues to be strong as consumers spend more time with digital media and advertisers look for new ways to reach them. The internet will continue to drive total ad growth”.
 
However, English dailies, which form 50% of the total newspaper advertising revenue, registered de-growth. Magazine advertising improved its overall contribution from 3.9% to 4.2% to the overall print advertising pie.
 
Print was ahead of the game with a 41.7% share of the total advertising pie. For the first time since 2008, print took over from television (in 2008, print’s share was 47%, while television’s share was 39%) for various reasons. Automobile increased its print spends to 11.4% from 9.8% in 2011, while in television its contribution declined to 6% from 7.6% in 2011. FMCG, automobile, BFSI, clothing, fashion jewellery, real estate and home improvement were the major investors in print as well.
 
Cinema witnessed the lowest growth in 2012. Despite big ticket films such as ‘Ek Tha Tiger’, ‘Student of the Year’ and ‘Talaash’, the medium could not reach the projected figure of 15%. Cinema as a medium grew by 8%, with a meager contribution of 0.5% to the advertising pie.
 
On the other hand, outdoor grew by 8.4%, more on the back of transit media than traditional outdoor. Radio saw a growth of 3%, as against the projected growth of 5%.
 
The knight with shining armour in an otherwise dark night was digital. Balsara highlighted that Internet saw a growth of 50% (in line with the projection) with a slight improvement from the 49% growth in 2011. Internet contributed 8% of the advertising pie and is expected to grow substantially in 2013 as well.
 
“Nonetheless, we are optimistic and are looking at a growth of 7.4% in 2013,” added Balsara. He further said that the word for next year too would be ‘Cautious’. With an optimistic approach, the media advertising industry looks forward to a stable year.









 

 
 
 
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