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TV adspend to grow at the expense of print media: JM Morgan Stanley

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TV adspend to grow at the expense of print media: JM Morgan Stanley

According to the latest JM Morgan Stanley report on the Indian media, Television adspend will dominate and grow ahead of the overall market at the expense of the print media as it provides a wider reach at lower cost.

The total adspend market in India is estimated to grow 25 per cent to approximately Rs 11,000 crore over the next two years, from the current Rs 8,800 crore. TV adspend, which grew from 33 per cent in 1999 to 39 per cent in 2001, is expected to increase to 42.3 per cent over the next five years.

According to the report, the higher penetration has enabled the medium to deliver the lowest cost of reach. More importantly, television offers combined visual and sound impact, which gives it a stronger advantage.

Meanwhile, the print media’s dominance of the adspend market in India has been gradually declining, with its share falling from 70 per cent to 52 per cent over the past decade.

TV adspend, on the other hand, has been the biggest gainer, with the highest compounded annual growth rate (CAGR) of 26 per cent between 1991-2001, as compared with the 18 per cent growth for the overall market and 15 per cent growth for print media. Satellite and cable channels have gained the most, at the expense of Doordarshan.

Significant fragmentation has been one of the key reasons for the growth of advertising in the TV segment. However, the report indicates that the print media continues to dominate advertising spend in most countries, except Asia, where television adspend is nearly equal to that of the print media.

Print media accounted for 52 per cent of the total global adspend for 1990. However, since then, it has been continuously losing its share to television. Globally, the print media’s share declined to nearly 46 per cent during 2001.


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