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| Pitch Madison Media Advertising Outlook >> 2008 >> Introduction | ||
| Advertising spend Takes off! | ||
| Pitch Bureau | ||
| The Pitch-Madison Media Advertising Out look Survey, over the years, has become the advertising and media industry benchmark data and analysis. Into the fifth year of publication, the Advertising Outlook 2008 spots the industry facts, and trends which have shaped the broad contours of this buzzing industry, be it the trends in terms of the medium of choice or advertisers who have not shied away from going full throttle to promote their brands through the various media vehicles. The Pitch-Madison Media Survey also looks at how the various ad serving platforms fared in the race for garnering the advertising rupees. And the findings are the following: The Survey spells good news for the industry as the wallet is on a swell, as the industry has crossed the 17,000-crore-mark for the first time to touch Rs 17,690 crore. While the industry as whole has maintained robust growth rate, in tandem with the expectations and projections last year, clipping at a smart 22 percent growth in 2007 to clock Rs 17,690 crore in ad revenues, up from Rs 14,505 crore in the previous year. Significantly, this is a little over our Survey projection last year at Rs 17,660 crore, though the growth rate has been as projected.
As expected, the print media has continued its growth streak, recording a full 21 percentage points growth rate at Rs 8,470 crore, or yanking away 47.9 percent of the overall advertising monies in the reporting year. The electronic media is not far behind riding a 19 percentage point growth rate and clocking Rs 7,110 crore or 40.2 percent of the overall ad spends in the year. Significantly, the share of the print media as well as the television is a tad down from what was projected in the last Survey at 48.4 percent or Rs 8,540 crore, and 40.8 percent or Rs 7,200 crore, respectively. And the reasons are not far to look for as other media vehicles have grown much faster. As noted earlier, while the major share of this robust growth have gone to the usual suspects-print and television-the emerging media formats like radio that has seen a lot of expansion in the year and the Internet whose coming of age has been proclaimed for some time now, have also did their bit in terms of getting some decent share of the ad pie. While the leaders have kept their leadership positions intact, despite marginal slippages in their respective share, the new kids on the block have notched up a few paces to cement their position and declare their arrival. Radio has clipped at a 68 percentage point growth to corner Rs 480 crore, which is above our projection of Rs 428 crore, taking its share to 2.7 percent of the overall ad pie, while the share of the online media has touched an all-time high of Rs 250 crore, logging in a growth of 52 percent, and increasing its share to 1.4 percent, up from 1.1 percent in 2006. While cinema, though had more flops than hits, has made a smart come back on a 90 percent growth, chipping away Rs 104.5 crore or 0.6 percent of the overall ad pie, the third largest medium, outdoor has grown by 28 percent to clock Rs 1,275 crore or 7.4 percent of the overall ad money, up from 6.9 percent in 2006. Though 2007 failed to reel in success for the box offices, it has not shaken the advertisers' faith in this age-old medium. The notion of serving a captive audience seems to have helped the medium to sail through. Another trend that has emerged in the cinema space is that language flicks have also gained some ground when it comes to cinema advertising. The print media has once again taken the winner's trophy on a 21 percent growth, which can be attributed to the frenetic expansion this industry has seen seen during the year. Another reason for this impressive show is the introduction of new formats both in look and feel and content-wise, which has been received well. Localisation and specialisation also have formed a part of the success mantra for print players. In the print space the language press has notched up a few paces upwards, still the English media leads the pack. The growth of print medium also puts across an interesting scenario where this medium is strengthening, against all contrary projections from across the globe. This gains importance in the backdrop of the print loosing its share to new-age media. At the second place is television clocking a 19 percent growth to zip past the Rs 7,100-crore-market for the first time. The industry which has seen a drop in most of the leading genres has been able to record growth in absolute terms. Media fragmentation did show some signs of decline in some genres, but across the industry the outlook remains upbeat as the industry has grown on the whole. As in the print space, it has been the language channels that have been able to put up a good show. Significantly enough, the year has seen the end of Star Plus as the largest channels when it comes to total ad share or FCT (free commercial time) as cablewallahs are the toppers in the FCT sweepstake with 9.7 percent of the overall advertising seconds going into them, pushing Star Plus to the second slot with 7.7 percent of the overall ad share. Though this smart rally of the cablewallahs is not convertible to actual revenues, as by far ads on local cable channels are low-paid local specific adverts. In general this medium has continued to slip in the FCT mop-up as a whole, with almost all the genres showing declining trends. Be it the news genre, mainline general entertainment channels, music, kids, sports, and DD regional channels, there has been a drop in the FCT share of this medium in the overall ad revenue mop-up. The only exceptions are the Southern channels which have ramped up their share, followed by second line mass channels and regional satellite channels. Similar drops have been seen in the viewership shares too, with almost all the genres, barring a few showing declines in viewership. However, when it comes to genre-wise viewership trends, it is clear that the mass entertainment channels continue to dominate Hindi viewership at a high 15.4 per cent, followed by Hind movie channels at ten percent.
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