Indian ad industry to grow 9pc in 2012: Pitch Madison Ad Outlook

The total pie of the Indian ad industry stood at Rs 25,594 crore, recording a growth of 8 per cent in 2011, as per the Pitch Madison Ad Outlook

e4m by exchange4media Staff
Updated: Feb 18, 2012 9:38 AM
Indian ad industry to grow 9pc in 2012: Pitch Madison Ad Outlook

The Pitch Madison Media Advertising Outlook 2012 was presented on February 17 in the presence of an august gathering of marketing, advertising and media industry leaders.

The outlook was that of “cautious optimism”, as Sam Balsara, Chairman and MD, Madison World, emphasised.

In the year 2011, the total pie of the Indian advertising industry stood at Rs 25,594 crore, recording a growth of 8 per cent. The figure was far below the earlier projection of 17 per cent as the Indian economy was faced with yet another churn, an inflation that touched 10 and weakening of the Rupee against the dollar.

As per the Pitch Madison Media Ad Outlook, the growth projections for the ad industry for 2012 remained a cautious 8-9 per cent, with a total ad pie of Rs 28,013 crore.

In his welcome address, Annurag Batra, Chairman & Editor-in-Chief, exchange4media Group, informed that magazine estimates in the Ad Outlook would be revised. The Association of Indian Magazines (AIM), Madison World and magazine publishers would work together on the magazine estimates. Speaking on the findings of the report, he said that the numbers were “cautious” and there was more of a “protectionist approach”.

Amit Agnihotri, Co-Founder, exchange4media Group and Editor, Pitch Magazine, took the audience through how the Pitch Madison Media Advertising Outlook (PMMAO) had developed over the years, since the first edition on 2003. He said that the partner for the first Ad Outlook was GroupM, and every year after that Madison World had been the partner for the Ad Outlook.

He further said that over the years people had come to believe in the PMMAO numbers. “True, the numbers were sometimes pessimistic, but they have always been realistic,” he stressed. He remarked that in 2003, when the first Ad Outlook was brought out, the total ad pie stood at Rs 9,300 crore, which had grown to Rs 25,594 crore in 2011, a CAGR growth of 15 per cent. However, a modest growth of 8-9 per cent was projected for the industry in 2012.

Delivering the keynote address, Sam Balsara, Chairman and MD, Madison World, remarked that when the report was filed in October 2011, there was more optimism in the economy. However, the last five months had not been so good. The Indian ad industry grew a mere 8 per cent in 2011 over 2010. This figure, according to him, was rather low in the Indian content.

“This is the lowest growth rate in a decade, except for 2009, when there was negative growth,” Balsara remarked. He further said that the numbers did not include classified, tender and appointment ads in print. Internet search numbers were also not included in the Ad Outlook.

Giving a breakdown of the ad share of different media in the Indian advertising pie, he said that television continued to dominate with a share of 44.8 per cent, followed closely by print with a share of 42.2 per cent. The growth of Internet’s share had been the most impressive, claiming the third largest share of the ad pie at 3.8 per cent. Radio saw a flat growth of 3.1 per cent share of the ad pie, on the other hand, outdoor die better with a 5.1 per cent share. Cinema slid a few notches with a share of 0.5 per cent. According to Balsara, the report projected that Internet would become a 5 per cent media.

Based on the projections, he urged the advertisers not to under-invest in advertising and stressed on the use of multi-media for advertising. He further asked the advertisers to dig deep and narrow cast, instead of casting wide. According to him, tent pole properties would become expensive.

Doing a more detailed analysis of the Pitch Madison Media Ad Outlook, Punitha Arumugam, CEO, Madison Media Group, called television the Mr Reliable media, while print was Mr Survivor. Noting that the role of radio in advertising today was tactical and not strategic, she called the medium Mr Dependent.

“Internet, with its phenomenal growth, has graduated from being Mr Happening to a medium that had arrived,” Arumugam added.


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