The Indian advertising industry will grow by 17 per cent in calendar year 2011 and is expected to add about Rs 4,000 crore to the existing ad pie worth Rs 23,646 crore, according to Pitch Madison Media Advertising Outlook 2011. The annual report, however, suggests that the media advertising industry will lose its pace as compared to 2010, when it grew by a whopping 27 per cent, wiping out loses of 2008-09.
According to the Pitch Madison Media Advertising Outlook, the year 2010 can be described a recovery year for all the mediums. The Indian media and advertising industry clocked a total size of Rs 23,646 crore in 2010, as compared to 2009, when the industry size was pegged at Rs 18,670 crore.
Pitch, India’s leading marketing magazine from the exchange4media Group, brings out the annual Pitch Madison Media Advertising Outlook. The special report, in its eighth year now, tracks and analyses how and where advertising monies were spent the previous year, and projects future growth. The special report aims at understanding the challenges and opportunities that lie ahead for marketers and various media vehicles – print, TV, radio, OOH, the Internet, and cinema.
Giving his perspective on the latest Pitch Madison Media Advertising Outlook, Sam Balsara, Chairman and Managing Director, Madison World, noted that the media ad industry would capitalise on the confidence it gained during the recovery year 2010. “The year 2010 has indeed been a sunshine year for Indian media. We believe that after a super year, Print advertising will stabilise at a lower growth of 13 per cent in 2011. Many sectors that use print advertising heavily like Real Estate, Education, BFSI are in the midst of a consolidation phase. TV advertising, on the back of healthy growths in the FMCG sector, is expected to grow further and much faster than print,” Balsara said.
“Media barons, fresh from the wounds of 2009, will price their inventory such that advertisers will get positive ROI from their ad spends leading to consistent and sustainable growth of the advertising market in the coming decade,” he added.
Anurag Batra, Chairman & Editor-in-Chief, exchange4media Group, said that the growth of media-ad industry in year 2010 bodes well for the year to come. “Indian entrepreneurs and brand owners are increasingly quantifying the benefits of media exposure and advertising leading to sales and brand building. With increasing competition, media spends in each category is likely to go up,” he said.
“Pitch Madison Media Advertising Outlook over the last eight years has been able to rightly predict/ forecast, mostly very accurately, and we hope we can be a catalyst in the growth of Indian media advertising industry,” he added.
Commenting on the findings of the report, Amit Agnihotri, Co-founder & Director, exchange4media Group & Editor, Pitch, said, “Our study of media and advertising trends in 2010 says that both Press and TV, which together account for an overwhelming 87 per cent of the ad pie, grew at phenomenal rates and powered the Indian advertising growth.”
Despite some early signs of rising inflation, advertisers would continue to move ahead with their investment plans, Agnihotri felt. “There are some early signs that inflation may rear its ugly head, dampening the mood of large FMCG spenders. We believe large spenders will weather this by a combination of taking a dip into their profits and price increases, and not curtail their ambitious advertising investment plans with a view to protecting their turf and preparing the grounds to grow further,” he remarked.
The big debate
The special issue of Pitch carrying the comprehensive report will be unveiled at the Pitch Madison Media Advertising Outlook Conclave on February 25 in New Delhi. Leaders from the media, advertising industry and marketers will discuss the findings of the annual Pitch Madison Media Advertising Outlook 2011 report to set a new tone for growth of the Indian media industry at the forum.
Besides Balsara, other thought leaders of media industry who will share their vision at the Pitch Madison Media Advertisng Outlook forum include Sanjay Gupta, CEO, Jagran Group; Rajat Sharma, Chairman and Editor-in-Chief, India TV; Mohit Beotra, Head, Brand and Media, Bharti Airtel, India and South Asia; Shantanu Bhanja, VP – Marketing, HT Media; CVL Srinivas, MD, LiquidThrad APAC & Chairman, Starcom MediaVest Group, India; Maheshwar Peri, Publisher, Outlook; Jayant Mammen Mathew, Director, Malayala Manorama TV; Joy Chakraborty, Chief Revenue Officer, ZEEL & COO - Niche Channels, Zee Entertainment Enterprise; Rohit Ohri, Managing Partner, JWT; Neeraj Sanan, VP & Head, Marketing & Distribution, MCCS; and CR Mallikarjundas, COO, Madison Media Infinity.
Future of Media
A panel discussion of top media CEOs will deliberate on the ‘Future of Media’. The panel will explore what dimensions can be added to the traditional media like TV and press, and how opportunities on the new media platforms like digital and mobile can be used to provide more engaging platforms to the marketers.
The marketing biggies will highlight how they expect different mediums to help them execute their desired communication plans. As innovations and customised solution become order of the day, marketers will also suggest how different mediums should evolve their respective ad formats to become more effective in their communication.
Madison World is a 23-year old diversified communication group with over 20 units across 10 specialised functions in Advertising, Media, Outdoor, PR, Rural, Retail, Entertainment, BTL, Mobile, Events and Sports.
Pitch, a monthly magazine on advertising, marketing and media, was launched in the first week of October 2003 by the exchange4media Group. Over the years, Pitch has earned for itself a reputation for quality reporting and in-depth analysis.
The Pitch Madison Media Advertising Outlook forum is presented by STAR Majha, while i-Next is the co-sponsor.
Pitch-Madison Media Ad Outlook '11: Indian media ad pie grows by 27 pc