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India, China among the fastest growing TV advertising market: PwC

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India, China among the fastest growing TV advertising market: PwC

According to the Global Entertainment and Media Outlook survey released by PricewaterhouseCoopers, India and China will be among the fastest growing television advertising markets in the Asia-Pacific region in the next four to five years. Although the underlying market will remain weak in 2002-2003, China and India will be an exception, the PwC report states.

Overall, the PwC study projects that TV advertising in Asia-Pacific would increase from $30 billion in 2001 to nearly $37 billion in 2006. Despite a weak market till 2003, an economic rebound is expected to fuel larger increases over the remaining period in the forecast period, it adds.

Japan, which is the Asia-Pacific’s dominant market, is expected to post low single-digit increases, while India and China may record average increases in double digits, according to the survey. TV advertising in India, which is pegged at $800 million now, would increase to $1,240 million by 2006, it states.

This study links innovative programming with higher viewership and increased advertising. In a development that promises to promote local production and help realise the revenue potential of successful shows, countries are opening up their markets to formats from other countries, the study says.

As a point in case, the PwC report cites opening up of the Chinese television market as a way to boost revenues. China is beginning to open up its television market to international programming, attracting more advertisers.

Multi-channel penetration of programmes is another focus point of this study. Although advertising generated by multi-channel programmes accounts for only 6 per cent of the total TV ads in 2001, PwC forecasts that the expanding marketplace will drive multi-channel advertising to a 17.6 per cent compound annual growth over the next five years.

Significantly, multi-channel broadcasting is expected to be a major source of growth in India too. Although local economic conditions and television marketplace developments will determine much of the future of TV advertising in the region, it’s likely to follow a pattern of weakness in 2002 and 2003, a pickup in 2004 and healthy increases in 2005 and 2006.


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