New Delhi: India’s media and advertising industry will swing back to double-digit growth this year after shrinking in 2009, a study has predicted.
The Pitch-Madison Media Advertising Outlook 2010, released on Monday, expects the industry to grow 13% over 2009 to Rs21,145 crore by the end of this year.
The projection comes as a relief to advertisers, after industry revenue slid 10% from Rs20,717 crore in 2008 to Rs18,670 crore in 2009.
The annual report is released by media agency Madison Communications Pvt. Ltd in association with trade publication Pitch. “Media rates had taken a dip in 2009...but these rates are beginning to firm up again,” said Sam Balsara, chairman, Madison World. He said increased ad spending on television and the Internet will lead the recovery.
The Internet was the only medium that posted double-digit growth last year, growing to Rs453 crore from Rs363 crore in 2008. This year, it is expected to touch Rs680 crore.
Television and radio were other media platforms that just about retained their share of the ad pie in 2009, registering growth rates of 2% and 3%, respectively. This year, they are projected to grow by 15% and 20%, respectively.
But the print media was the worst hit last year, suffering ad revenue losses of Rs2,000 crore and contracting by 21% from 2008.
This year, the industry is expected to reverse the trend and grow by 9%—from Rs7,806 crore to Rs8,470 crore.
Other media verticals that had taken a hit last year will also witness a turnaround, the Pitch-Madison report predicts.
Outdoor advertising revenue, which shrank from Rs1,419 crore in 2008 to Rs1,135 crore last year, will grow by 15% over 2009 this year, according to the report.
And cinema advertising revenue will increase by 5% over last year, when it dropped to Rs103 crore from Rs129 crore the year before.
Advertising experts are also optimistic about the sector, but advise caution.
“People think that because 2009 is over, recession is over and things are back to what they were. But it’s not so easy,” said Emmanuel Upputuru, national creative director, Publicis India. “The advertising industry is perception-driven and as long as the mood is up, the market will be on the upswing.”
Farokh Balsara, national sector leader, media and entertainment, at audit firm Ernst and Young India, said advertisers will spend more this year compared with 2009, but “budgets will be allocated wisely”.
He explained that rather than using a one-size-fits-all formula, advertisers will be selective in their media preferences “to make sure the message is delivered to the right audience”.