Good times may indeed be in for the media industry in India going by the growth projections made by Pitch Madison Media Advertising Outlook 2014 report released in Mumbai on Wednesday.
After a lacklustre period between 2011and 2013 when the growth was in single digits only, last year was a turnaround time for media advertising industry when it reported a growth of 11.1%. This was much more then the benchmarked figure of 7.4% that was initially predicted by the report for the year 2013.
Presenting the numbers to the fraternity in Mumbai, Sam Balsara, chairman and managing director, of leading media services conglomerate Madison World, said the time to be cautious – which was the state that the industry was in for much of 2013 – was almost over and that the year ahead would be even more fulfilling, with growth projected in the range of 16.8%. The report was presented 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 Rs 28,694 crore, the year 2013 reported numbers equalling Rs 31,877 crore, growing by 11.1%. In fact 2014 would outperform the previous year and would register an estimated growth of 16.8%, with revenues totalling Rs 37,216 crore," said Balsara.
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 spendings by individual political candidates, who would spend money in reaching out to the masses.
Presenting a medium-wise break-up, Balsara said like last year, this year too belonged to print, which emerged as the numero uno medium. Advertisers took a liking to the medium as it reported a growth of 10% with revenues totalling Rs 13,167 crore. This was largely due to increased advertising by sectors such as FMCG, which contributed 12.3% to the overall ad pie and auto, which contributed around 11.7%.
Education saw a decline to 9.71% as against 10.6% share registered last year.
Following print closely was television, that recorded a growth of 8.2% with revenues totalling Rs 12,410 crore. This was in sharp contrast to 2012 where the medium registered a 0% growth. Where sectoral contribution was concerned, Media, retail, alcoholic beverages and corporates registered a negative growth with only FMCG registering a positive growth for the medium. The medium is further expected to grow by 15%in 2014.
The next was digital that has now become the third-most preferred medium for advertisers in a consistent manner. With revenues totalling Rs 3,050 crore the medium grew by a good 32.4% and is expected to grow 29.5%in 2014 as well. Of this, display advertising will continue to have an upper hand compared to search with revenue numbers totalling to Rs 2,150 crore.
Radio, outdoor and cinema combined accounted for the remainder 12-13% of the ad chart with radio accounting for revenues of Rs 1,097 crore (18% growth), outdoor clocking a growth of 6.2% at Rs 1,977 crore and cinema registering a growth of 10.4% at Rs 167 crore.
By Arrangement with MxMIndia.com