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| Pitch Madison Media Advertising Outlook >> 2006 >> Introduction |
| Review 2005 |
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| If the fat wallet is a sign of growth, for all the six leading media genres,05 was a windfall year. Here’s how it was made possible. |
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The first part of the third edition of the annual industry survey, The Advertising Outlook 2005, reviews how the advertising and media industry has fared in the year just gone by. The Survey scans developments across the three media sectors, measures ad spends on each media, and also analyses which industries have been powering this growth.
First, the good news is that the advertising industry has clocked a 15 percent growth rate in 2005. The Survey puts the size of the advertising industry at a meaty Rs 11,915 crore. This spells good times for the industry that had been facing a period of sluggish growth in the late 90s and the early years of the new millennium. The Survey indicates that the ad industry has completely recovered and has been gaining the growth momentum during the past year.
Which media forms are helping the industry register impressive showing? Both the leading media, Television and the Print, have grown by 15 percent each last year, shows the Survey. Together they account for 90 percent of the ad pie. While Television and Print media have cornered Rs 5,003 crore and Rs 5,700 crore worth of advertising, respectively, the third largest media category Outdoor, has grown moderately at 8.7 percent netting Rs 870 crore.
While the ad revenue growth of the Print media can be attributed to the significant jump in ad spends by educational institutions, real estate developers, independent retailers, durables marketers, and automobile companies among others, the revenue growth of Television has been largely powered by the FMCG sector, which has recovered sharply in 2005 clocking a double-digit growth, on back of some heavily advertising categories like toilet soaps, hair oil, etc that are predominantly television advertisers.
Two media genres that have seen scorching growth rates are Radio and the Internet, which have grown by 33 percent and 57 percent to touch Rs 200 crore and Rs 110 crore, respectively. While for the Radio this growth has been led by a number of factors, such as vigorous activities following the liberalised regulatory regime and the faster expansion of the circles, the humungous growth of the Internet has been driven by the faster growth in the Net user-base that has touched 50.6 million as the curtains have been drawn on the year, coupled with cheaper broadband and PCs, speedy growth in the services, e-commerce and airlines etc. Thanks to the mushrooming of multiplexes, advertisers have renewed their faith in the Cinema medium too which has seen this category clipping at 40 percent to touch Rs 32 crore, up from Rs 23 crore the previous year. In sum, the Survey records a healthy industry growth in 2005. |
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