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Magazine advertising grows faster than Newspapers. Cautions 2002 growth.<br>ORG MARG Ad-Spend data provides valuable insights- Part II

19-March-2002
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Magazine advertising grows faster than Newspapers. Cautions 2002 growth.<br>ORG MARG Ad-Spend data provides valuable insights- Part II

In a tough year -2001, Magazine advertising grew by a healthy 21% while Newspaper advertising grew by only 15%. However, the size of magazine advertising was a fraction of newspaper’s size.

Newspaper had a lion’s share -83%- of total print advertising. ‘ADEX’ data from ORG MARG puts the print advertising size at Rs. 4,532 crores in 2001. The corresponding figure for 2000 was Rs. 3,897 crores.

Print Advertising Size
  2001 2000  
  Rs.Cr Rs.Cr YOY % Change
NewsPaper 3775 3270 15
Magazine 756 627 21

ORG MARG, commenting on ad spends outlook for the first six months of 2002, expected a growth of only 9-10% due to ‘recessionary pressures.’ "With many new launches in the various FMCG categories especially skin care and toiletries, there will be aggressive advertising by both MNCs and Indian Companies. Moreover, the first six months of the year are also going to be a very active cricket season for India...." But, notes ORG MARG, this increase in advertising volume will not translate into corresponding increase in value, due to continuous discounting by television channels.

Media Fragmentation in Television space would help increase allocation on the medium, believes ORG MARG. Expressing the rationale, it says that number of television channels would increase on the back of growing regionalization of the medium and would, in turn, "fragment the markets further than what it is today. This will put pressure on the ad spends to spread over more channels and hence an increase." So, the fragmentation might actually work in favour of Television medium!

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