Pitch Madison Media Advertising Outlook report for 2015 has been unveiled today and the report predicts 9.6% growth in 2015. The market is expected to grow by over Rs 3,500 crore to reach Rs 40,658 crore.
In 2014, the Indian advertising industry did grow by 16.4%, almost at par with the forecast last year by Pitch Madison Media Advertising Outlook. In 2015, Print is expected to grow by 5.3% on the back of increased government spending and advertising by e-commerce players. Print should continue to be the largest contributor in the overall advertising pie with a share of 40%. As for Television, its share in the overall advertising pie is expected to remain static at 38%. Television is expected to grow by 9.5% in 2015 to reach a total size of over Rs 15,500 crore. Radio is seen to be growing by 6% in 2015, taking the total Radio advertising market to Rs 1,362 crore. There is confidence that the government will finally launch the much delayed Phase III expansion no later than September 2015. Subsequently, new stations will help Radio stations pull in additional advertising revenue of at least Rs 70 crore. The Pitch-Madison 2015 report projects Outdoor will grow by 6.2% on account of higher OOH spends from e-commerce, Retail, Telecom, Apparel, Jewellery, Mobile Handsets and infrastructure companies. Digital is expected to grow by approximately 30% with revenues jumping from Rs 3,970 crore in 2014 to reach Rs 5,135 crore in 2015. The need for higher efficiency will drive key advertisers to experiment with programmatic buying. Cinema is seen to be growing by 9.2% in 2015, thereby taking the total Cinema advertising revenue to Rs 201 crore on the back of cinema digitization, more multiplex screens and introduction of the cinema monitoring system, CAM.
PRINT GARNERS THE LARGEST CHUNK OF THE ADVERTISER’S MONEY FOR THE FOURTH CONSECUTIVE YEAR; INCREASED GOVERNMENT SPENDING AND NEW REGIONAL EDITIONS WILL DRIVE GROWTH IN 2015
Pitch Madison Media Advertising Outlook (PMMAO) 2015 expects that Print will continue to attract the largest chunk of the advertisers’ money with an estimated share of 40% of the overall advertising pie. The Print advertising market is projected to grow by 5.3% in 2015 taking the total Print market close to Rs 16,100 crore. While Print continues to be the largest contributor in spends, its share in the overall ad pie has steadily fallen from 47% in 2008 to 41% in 2014, and this is expected to fall to 39.6% in 2015.
FMCG CONTINUES TO BE THE BIGGEST SPENDER ON TELEVISION, ACCOUNTING FOR OVER 50% OF THE AD SPENDS. AS HIGHER AD RATES, DIGITIZATION & GEO-TARGETING WILL AID GROWTH IN 2015, TELEVISION’S SHARE IN THE AD PIE IS EXPECTED TO REMAIN AT 38%
In 2015, Television spends are projected to grow to over Rs 15,500 crore, up from Rs 14,158 crore in 2015, i.e, show a growth of 9.5%. One of the drivers of growth will be the ongoing ICC Cricket World Cup 2015, expected to earn revenue of around Rs 1,000 crore, of which approximately Rs 500 crore is likely to be additional revenue. The balance will be part of organic growth across sectors, mainly BFSI, Telecom, Consumer Durables, Automobile & others.
INTERNET CONTINUES TO REGISTER THE HIGHEST PERCENTAGE OF GROWTH AND IS EXPECTED TO CROSS THE RS 5,000 CRORE MARK IN 2015
Pitch Madison Media Advertising Outlook 2015 expects Digital to maintain the momentum and grow in high double-digits, approx 30% with revenues expected to reach Rs 5,135 crore. Digital’s share in the overall advertising pie has also increased from just 2% in 2008 to over 10% in 2014 and in 2015 it is expected to be 12.6%.
STRONG GROWTH BY TRANSIT MEDIA HELPED OUTDOOR GROW BY 13% BEATING EXPECTATIONS. E-COMMERCE, RETAIL, TELECOM & INFRASTRUCTURE WILL LEAD GROWTH IN 2015.
The Pitch Madison Media Advertising Outlook 2015 expects Outdoor to grow by 6.2%, taking the total Outdoor advertising market to Rs 2,371 crore. In 2015, with Outdoor expected to add Rs 138 crore, the medium’s share in the total advertising pie is expected to dip by 0.2% to 5.8%. On a positive note, higher OOH spends are expected from e-commerce companies, Retail, Telecom, Apparel, Jewellery, Handsets etc., and infrastructure companies.
THE LONG-AWAITED PHASE III AUCTIONS IN 2015 ARE EXPECTED TO GIVE THE RADIO INDUSTRY A MAJOR FILLIP. HOWEVER, THE RADIO INDUSTRY, WHICH HAS BEEN AIMING TO DOUBLE ITS SHARE IN THE AD PIE, MAY SEE ITS SHARE FALLING MARGINALLY BY 0.2% TO 3.3%
The report projects a slight dip in Radio’s share in the advertising pie by 0.2% to 3.3%. As the Radio industry waits for the long-delayed Phase III auctions to finally kick off in 2015, Radio is expected to grow by 6%, taking the total Radio advertising market to Rs 1,362 crore.
CINEMA ADVERTISING GREW BY 10% AND LOOKING AHEAD, CINEMA DIGITIZATION IS EXPECTED TO FUEL GROWTH IN 2015
Cinema is expected to grow by 9.2%, taking the total Cinema advertising revenue to over Rs 200 crore. With total revenue of Rs 184 crore in 2014, the medium currently contributes 0.5% to the advertising pie.