Top Story


Home >> Advertising >> Article

PMMAO 2013: Ad spends grow by 5.2%, lowest growth of decade

Font Size   16
PMMAO 2013: Ad spends grow by 5.2%, lowest growth of decade

The Pitch Madison Media Advertising Outlook 2013, presented by ABP News, was unveiled on February 8. The numbers do not look good for 2012 on the back of a slow economic year. The year 2012 could not deliver as promised in any industry, and the media advertising industry was no exception, wherein most verticals witnessed a slowdown in growth and fell short of the projected target.

With a growth of 5.2 per cent, as opposed to the projected 7.5 per cent growth, the media advertising industry in 2012 witnessed the lowest growth of the decade. All the sectors except print and digital fell short of the projected growth. Television witnessed a flat year; out of home grew by 8.4 per cent, radio by 3 per cent and cinema by 8 per cent. Print grew by 4 per cent, as against the projection of de-growth, while digital grew by 50 per cent.

Presenting the report, Sam Balsara, Chairman and MD, Madison World said, “In 2011, we had said that it was the lowest growth in the last few years. Little did we know that next year we will find these figures dip further.”

Balsara further said that ‘Cautious’ was the word for 2012, however, it ended up being more of a disappointment due to various reasons.

Television, which had the largest share of the ad pie in 2011, remained flat and did not see any growth in 2012, as against the projected growth of 10 per cent. The medium suffered mainly due to the absence of major sports leagues during the year.The absence of the ICC World Cup, which had roped in revenues close to Rs 750 crore in 2011, and the Indian Premier League (IPL) failing to garner as much revenue as in 2011, television could not pick up growth. The medium occupied 40 per cent of the market share in 2012.

Balsara pointed out that the most disappointing trend witnessed in 2012 for television broadcasters was that the average time audience spent on television was not increasing. Major spenders on television were FMCG, automobile, BFSI, clothing, fashion jewellery, real estate and home improvement.

Television’s loss was print’s gain, with the medium taking the lead in 2012. Print emerged as the leading medium in 2012 with 4 per cent growth, as opposed to the projected negative growth. The medium saw a strong growth on the back of Hindi and regional dailies and launch of new editions.

However, English dailies, which form 50 per cent of the total newspaper advertising revenue, registered de-growth. Magazine advertising improved its overall contribution from 3.9 per cent to 4.2 per cent to the overall print advertising pie.

Print was ahead of the game with a 41.7 per cent share of the total advertising pie. For the first time since 2008, print took over from television (in 2008, print’s share was 47 per cent, while television’s share was 39 per cent) for various reasons. Automobile increased its print spends to 11.4 per cent from 9.8 per cent in 2011, while in television its contribution declined to 6 per cent from 7.6 per cent in 2011. FMCG, automobile, BFSI, clothing, fashion jewellery, real estate and home improvement were the major investors in print as well.

Cinema witnessed the lowest growth in 2012. Despite big ticket films such as ‘Ek Tha Tiger’, ‘Student of the Year’ and ‘Talaash’, the medium could not reach the projected figure of 15 per cent. Cinema as a medium grew by 8 per cent, with a meager contribution of 0.5 per cent to the advertising pie.

On the other hand, outdoor grew by 8.4 per cent, more on the back of transit media than traditional outdoor. Radio saw a growth of 3 per cent, as against the projected growth of 5 per cent.

The knight with shining armour in an otherwise dark night was digital. Balsara highlighted that Internet saw a growth of 50 per cent (in line with the projection) with a slight improvement from the 49 per cent growth in 2011. Internet contributed 8 per cent of the advertising pie and is expected to grow substantially in 2013 as well.

“Nonetheless, we are optimistic and are looking at a growth of 7.4 per cent in 2013,” added Balsara. He further said that the word for next year too would be ‘Cautious’. With an optimistic approach, the media advertising industry looks forward to a stable year.

The above numbers were shared by Sam Balsara, Chairman and MD, Madison World at PMMAO 2013 in Mumbai on February 9, 2013.

In this week's chillout, Gupta shares her weekend routine that not only helps her deal with the high stress of corporate life but also allows her to create some cherished memories. Read on…

NP Singh, CEO of Sony Pictures Networks India, talks of SPN’s growth drivers, pay wall for content, sharing IP and more…

The future of the industry will be 1:1 advertising as traditional channels, like television, become more addressable: Bryan Kennedy, Epsilon

The Founder of Pocket Aces shared his insights on how the consumption of content has evolved and how digital media is growing as the preferred medium of entertainment.

Nikhil Kumar will report to Paritosh Srivastava, COO, Publicis India

On the back of resounding success of its maiden work for Motilal Oswal, Mullen Lintas has introduced a sequel in different settings; again, reinforcing the image of Motilal Oswal as ‘Experts in Equity...

Sony Ten 1 took over Star Sports 1 Hindi to lead the sports genre with three of its properties making it to the Top 5 Programs for BARC Week 46