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| Pitch Madison Media Advertising Outlook >> 2007 >> Introduction |
| Media Spends Soar |
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Overview 2006
Total Advertising Clocks Rs 14,505 cr |
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| By Kanishk Gupta |
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The advertising industry grew 21.7
percent in 2006 to touch a healthy figure of Rs 14,505 crore from
the 2005 figure of Rs 11,915 crore. The Print media continued to lead
the pack with ad earnings of Rs 7,000 crore, followed by Television
at Rs 6,000 crore. Outdoor at Rs 1,000 crore, Radio at Rs 285 crore,
Internet at Rs 165 crore and Cinema at Rs 55 crore. There was also
a growth in non-mass media. The survey pegs the Direct Marketing industry
at Rs 1,000 crore, followed by Events and Promotions at Rs 900 crore,
PR at Rs 400 crore, In-film/ branded entertainment at Rs 65 crore
and mobile advertising at Rs 4 crore. (Read methodology for details).
This is the fourth round of the exercise pioneered by Pitch with the earlier three rounds drawing extremely good industry response. The ad spend estimates which have been arrived in collaboration with Madison Media are credible and real estimates based on inputs by experts and requiring months of preparation. Media companies have even used this data in their IPO documents. Recognising the rising importance of the Non-mass Media spends in the communication mix, for the first time we have included this category too. The annual AdOutlook 2007 is put together by Pitch and Madison Media.
The AdOutlook 2007 shows a jubilant year for Press as the medium collected
the largest revenues. There was a lot of action in this segment with
inflow of foreign funds, proliferation in the number of publications
and editions and a rise in the readership levels. In the battle for
the readers' attention, ad money is flowing where the consumer is
and the print media is symptomatic of this trend. The Print media
cornered the largest ad revenues at Rs 7,000 crore, comprising 48.3
percent of total ad spends with a growth of 22.8 percent. Bennet Coleman
was at the top increasing its revenues by 13 percent and Jagran Prakashan,
a close second with ad revenues increasing by 11 percent. The top
two players registered a fall in ad revenue growth index compared
to 2005-04 while the English and Hindi language media dominated rankings
by ad space consumed.
The Survey reveals that it was a great year for Television too as the medium collected the second-largest revenues. Across channels, Star Plus and Zee came across as winners. Television ad revenue saw a 19.9 percent rise to touch Rs 6,000 crore cornering 41.4 percent of total ad spends and the year saw the biggest growth in FCT percentage by news channels. Amongst channels, Zee saw its revenues rise 62 percent while across genres, music, infotainment and kids channels did well.
Mass entertainament channels soared with the popularity of reality television. With Nach Baliye, Jhalak Dikhlaja and Big Boss, one could not dispute the audience interaction and the levels of attachment. As a whole, the Southern regional channels generated 27.1 percent of total viewership, mass entertainment (Hindi) at 16.7 percent of total viewership, as opposed to 17.5 percent last year.
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