The 2015 edition of Pitch Madison Media Advertising Outlook has pegged Indian advertising industry to grow at 9.6% in the year 2015. An in-depth look at each sector shows how the growth will be driven this year.
Looking back at AdEx growth in 2014:
In 2014, the industry increased by over Rs 5,200 crore to touch Rs 37,104 crore. This growth was primarily fuelled by two main categories – advertising spends by political parties on account of Lok Sabha and State assembly elections (which contributed as much as Rs 2,300 crore), and spends by e-commerce players to the tune of Rs 1,150 crore. It is significant to note that of the 16.4% growth that was witnessed in 2014, 7.2% was on account of elections and 3.6% through e-commerce players. Other categories contributed to only 5.6% of the overall growth.
Print retained the top spot and emerged as the largest contributor to the total advertising pie with a share of 41%. Television grew by 14% and maintained its share of the total advertising pie at 38%. Radio also maintained its share of the advertising pie, at 3.5% and grew by 17% as against the Pitch Madison Media Advertising Outlook 2014 growth projection of 15%.
This growth came despite Phase III not being implemented as expected at the start of 2014. On the other hand, OOH grew by 13% on the back of strong growth seen by both conventional outdoor and transit media, which grew by 13% and 12% respectively, as against the Pitch-Madison report 2014 projected growth of 7% and 10%. Digital media grew at 30%.
Print – Leading The Pack
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. In 2014, despite increased competition from other mediums, Print managed to retain the top spot for the fourth consecutive year.
In 2015, growth is likely to come from increased government spending. With a new dispensation in place, the government’s strong belief in communicating with the electorate about its concepts, thoughts and work, will see increased spends. Political parties are expected to continue using Print for the upcoming State elections. E-commerce players are expected to continue betting big on Print and have a strong presence with large format ads in premium positions. With national publications expanding geographies and launching regional editions, new retail advertisers are expected to use Print. However, 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.
With a share of 41%, Print grew by 16% to reach Rs 15,274 crore last year, on the back of ad spends for the Lok Sabha and Assembly elections and e-commerce. Of the total growth of around Rs 2,100 crore, nearly 85%, approximately Rs 1,800 crore of growth has been contributed by elections and e-commerce players. Increased festive advertising by smaller and retail advertisers has also helped growth.
Looking at categories, Automobile continued to be the largest contributor of total Print spends at 12%, followed by Education (9%) and FMCG Personnel Care (8%). E-commerce contribution rose from close to 1% to over 2%, a growth of 155%.
Newspapers benefited tremendously from advertising by political parties during elections, showing growth of a whopping 204%. English dailies contributed 35%. In terms of volume CC, Hindi dailies continued to be ahead of English dailies, contributing 35% of the total volume while English dailies contributed 24%.