Ad industry registers enviable growth: Pitch goes behind the scenes

Ad industry registers enviable growth: Pitch goes behind the scenes

Author | Noor Fathima Warsia | Monday, Feb 13,2006 8:32 AM

Ad industry registers enviable growth: Pitch goes behind the scenes

The later half of 2005 and the year 2006 so far have seen various publications speaking on the growth in the Indian advertising industry and the year that was. Advertising, marketing and media magazine, Pitch, however, has gone a step ahead and takes a close look at the components that led to this growth – both medium wise and growth in the various sectors of the industry.

In the first part of the third edition of the annual industry survey, The Advertising Outlook 2006, Pitch scans developments across three media, measures ad spends on each media and analyses which industries have fuelled this growth. To give a snapshot at the points that the survey throws, it is seen that television and print have grown by 15 per cent each last year.

TV has seen spends on Rs 5,003 crore and Print has seen 5,700 crore – in effect claiming 90 per cent of the Rs 11,915 crore spent in the year. The survey shows that the television growth can be largely attributed to the recovery of the FMCG sector. It examines the spends increase on various genre, networks and programmes – in essence showing that anything on television has managed to extract a little extra from the advertiser in 2005.

Growth in print has been attributed to increase in ad spends by educational institutes, real estate, independent retailers, durables marketers and automobile companies amongst others. The survey show that English press continues to dominate the spends in the sector. Pitch has also given a break up of which publishing group has grown by how much and in this, the percentage growth has been the highest for Jagran Prakashan. In the language wise growth, English print has grown the highest at 34.7 per cent.

In regards to the other sectors, that the survey dissects, Outdoor has been termed seeing modest growth, triggered by retail boom and mall mania. Radio has seen a 33 per cent growth, Internet has grown by 57 per cent and there is good news for cinema as well, considering the sector has shown a positive number as compared to the negative streak it had seen for quite some time now.

Perhaps the more interesting aspect of the survey is the closer look at the highest placed in the value chain – advertisers. The growth in the industry has led to increase in advertising spends and Pitch looks at which sectors have spent the most. The best news of the year is the awakening of the FMCG sector. Over 20 per cent growth by a slew of categories has the dormant FMCG sector logging double digit growth. FMCG has in all contributed 40 per cent of the total ad spend. In the category wise spends, toilet soaps have registered the highest growth at 3.2 per cent.

In a similar manner, the survey has examined durables, which has contributed 7.2 per cent to the total ad spend, automobiles giving as much as 6 per cent, and telecom is at 3 per cent. In addition to this, independent retailers and realty has come under the scanner too.

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