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 ofÂ 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 toÂ 2005-04 while the English and Hindi language media dominatedÂ 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.
Radio continues to maintain its momentum. In the last few years, several private FM players have entered the fray with stations in metros and smaller towns giving listeners a totally new experience. The survey finds radio netting Rs 285 crore in revenues, constituting two percent of ad spends, registering a 42.5 percent growth rate.
As far as Cinema is concerned, this industry is increasingly getting more corporatised. India is the top film producer in the world churning out over 1,000 movies a year. In 2006, ad revenues in cinema shot up to Rs 55 crore, clipping the highest growth rate of 70.8 percent or 0.4 percent of total ad pie. Blockbusters like Dhoom 2, Lage Raho Munnabhai and Krrish sent box office collections soaring. The film industry is estimated to be at Rs 8,500 crore, growing at 15-20 per cent annually.
Itâ€™s a turning point for the Outdoor media too. While on the one hand, the sector attracted international specialists like JC Decaux and News Outdoor, on the other hand it also drew the attention of media players like Times group, Jagran group and Star group. This sector grew by 14.9 percent clocking Rs 1,000 crore in ad revenues or 6.9 percent of the total ad pie.
Due to the growing appeal coming in from beyond the metros and SEC A, the world of Internet users is fast becoming diverse and thus an essential part of media plans. From Rs 50 crore in 2003, Internet advertising is now a Rs 165-crore business, growing at 50 percent, and having a share of 1.1 percent of the total ad pie.
With the shift towards integrated marketing communications, Non- mass media like PR, DM, events and branded entertainment are gaining importance and increasing their share of the marketing budget. Having proved their effectiveness over the years, spends in non-mass media have shown a steady rise too. Marketers are fast realising the usefulness of PR with this industry becoming skill-based and specialised. The Survey puts the size of the PR industry at Rs 400 crore. The appeal of DM is rising due to its simplicity and personalised approach. The Survey pegs the DM industry to be at Rs 1,000 crore.Â The Events and promotions industry is also increasingly becoming more organised and this segment has finally found a spot in the client’s media plans. Brands across various industries and categories have invested in this industry. The Survey estimates that Events is at Rs 900 crore.
Keeping in mind the popularity of films and television programming, branded entertainment has today found an interesting space for itself. Today, branded entertainment is more than a product present on a table with the protagonist around it. Branded Entertainment is fast becoming an integral part of the entertainment marketing budget.
The Survey pegs this sector at Rs 65 crore. With the mobilephone market growing exponentially, marketers are fast realising the value of advertising in this medium.
While the survey estimates the mobile advertising market to be around Rs 4 crore, the potential in this segment is enormous, going byÂ the fast growth rate.
In sum, the Survey pictures a healthy growth in ad revenues across all media formats.