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India’s media communications industry grew 12 pc in 2005-06: Lodestar Universal APMES report

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India’s media communications industry grew 12 pc in 2005-06: Lodestar Universal APMES report

Lodestar Universal has released the annual APMES for 2006-07. The series published by the Universal McCann network aims at providing clients and the advertising, marketing, and media sectors with a road map to business development. The APMES report is prepared by in-market experts in the Universal McCann network offices, who take note of prevailing and future economic, consumer and socio-political trends in various markets.

This is part of Universal McCann’s focus on ‘The Next Thing Now’. This means developing unique, innovative business ideas that produce sustainable marketing communication advantages for their clients in the areas of traditional and non-traditional strategic media solutions.

The growth highlights for India in the year 2006-07 as detailed in APMES point out that India’s media communications industry was amongst the most positive in 2005 growing by 12 per cent. This was propelled by increased strength in economic fundamentals such as a positive outlook amongst domestic and global investors and continued growth in the economic power of Indian consumers.

These positives are expected to continue from 2006 into 2007. However, while interest rate hikes and the impact of global oil price increases still linger, consumer sentiment remains positive and their spending is expected to sustain growth. A positive business outlook will also see the market growing significantly during the next two years. Projections for the market are also buoyed by a significant increase in India playing cricket tournaments in 2006-07, including the ICC Champions Trophy and the ICC Cricket World Cup.

It also points out the average APAC media inflation (weighted by the size of each country’s media industry) is expected to be around 4 per cent in 2007, taking into account media card rate increases, negotiability, the programming environment and audience dynamics. The projected 2007 inflation rate is 0.5 per cent points higher than the expected year-end inflation of 3.4 per cent in 2006 and will largely be driven by expected demand for advertising in China and Hong Kong.

India will witness continued audience fragmentation and the onslaught of technology, coupled with the battle for eyeballs with new formats, enhanced local and internationally-sourced content will result in higher advertising costs. Price inflation is a reality both in mainstream and new media, capitalising on the increased demand for advertising space from advertisers hoping to tap into the potential spending power the market’s one billion plus population.

Lodestar Universal in India manages a portfolio of over 250 brands that consists of some of India’s biggest brands such as Tata Motors, Amul, Mahindra Group, Nerolac, Zodiac and global brands, including L’Oreal, Microsoft, and Intel, among others. Lodestar Universal has been at the forefront of developing consumer segmentation tools and enabling greater understanding of the complex Indian consumer.

Asia Pacific advertising and communications spends in 2007 are projected to increase 5.6 per cent on 2006 levels according to projections from Universal McCann, the global media communications network. Universal McCann says the increase next year is roughly in line with growth in 2006, which is expected to finish at 5.7 per cent higher than media spends in 2005.

Among the countries surveyed (Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines Singapore, Korea, Taiwan and Thailand) by Universal McCann in its 2006 half-year trend reports on media economics, China continued to be the fastest growing media marketplace in the region and is expected to close the year 15 per cent higher than in 2005.


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