PMMAO 2007: Forecast 2007: Mixed Trends Seen

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According to the Pitch-Madison AdOutlook 2007, the total advertising industry size is set to grow in 2007 to Rs 17,659 crore from Rs 14,505 crore in 2006, thus maintaining the same growth percentage for 2007-06 at 21.7 percent.

The ad industry size of television is set to grow to Rs 7,200 crore in 2007 from Rs 6,000 crore in 2006, showing a  percentage growth at 20 per cent in 2007-06 over 19.9 percent in 2006-05. Percentage ad spends for television will marginally decline to 40.8 percent in 2007 from 41.4 per cent in 2006.

The Print industry ad size is set to grow to Rs 8,540 crore in 2007 from Rs 7,000 crore in 2006, showing a slight  growth decline at 22 percent compared to 22.8 percent in 2006-05. This is partly attributed to the growth of emerging media. In terms of the overall size of the ad industry, Print continues to rule the roost and will maintain its momentum and leadership position. In terms of percentage ad spends, The Print media will constitute 48.4 percent of the total ad pie showing a marginal increase of 0.1 percent over the previous year.

The ad market for radio is estimated to grow to Rs 428 crore in 2007 as radio builds on its 70 percent national penetration level. This is a healthy growth from the 2006 figures of Rs 285 crore . At this rate, the percentage growth will increase to 50 percent in 2007-06 compared to 42.5 percent in 2006-05. As a percentage of spends, the figure is expected to rise to 2.4 compared to two percent in 2006.
Growth in multiplexes and digital cinema will maintain the growth rate for Cinema. According to the survey, the 2007 ad earnings size of cinema industry will be Rs 94 crore, a 70 per cent growth over the previous year from Rs 55 crore. Cinema will account for 0.5 percent of the total ad pie increasing from 0.4 percent in 2006.

Seeing the growth and scope in the OOH medium, the survey forecasts that the sector is poised to grow to Rs 1,150 crore in 2007 with a projected growth of 15 percent. At the same time, the survey also sees a fall in the ad share pie to 6.5 percent in 2007 compared to 6.9 percent in 2006. This could partly be attributed to the growth in Internet and cellphone advertising that is fast capturing the marketers’ fancy.

Technological advancements and the growth of broadband are set to register a healthy growth figure for Internet at 50 per cent thus maintaining the momentum over the previous year. The survey forecasts that advertising on internet will touch Rs 248 crore up from Rs 165 crore in 2006 and this will account for 1.4 percent of the ad pie, up from 1.1 percent in 2006.

In sum, the Survey remains bullish in terms of the growth in the industry size but throws some question marks in percentage growth by categories.

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Neeta Nair

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