A fillip from the ICC cricket World Cup which has just commenced is likely to see the Indian advertising industry grow to Rs.40,658 crore in 2015, notching up a growth rate of 9.6 per cent.
This follows a strong 2014 which saw a phenomenal 16.4 per cent growth to Rs.37,014 crore with major impetus from the general elections, five State elections, and heavy advertising from e-commerce players, according to the Pitch Madison Advertising Outlook report for 2015.
The industry added Rs.5,200 crore in 2014 with elections and e-commerce players contributing Rs.2,300 crore and Rs.1,150 crore, respectively.
Sam Balsara, Chairman, Madison Communications, in a presentation, said that the 9.6 per cent growth forecast in 2015 would come from the ongoing ICC World Cup. It was expected to earn revenue of almost Rs.1,000 crore. “Rs.500 crore is likely to be additional, just because of World Cup, and the balance as part of organic growth across sectors.’’Print remains largest ad segment
The report said in 2014, print remained the largest contributor in the total ad pie with a 41 per cent share. Dailies grew 17 per cent and magazines 6 per cent.
In terms of volume of ad space consumed, Hindi dailies contributed 35 per cent and had a 38 per cent share in spends. FMCG continued to be the largest contributor at 13.6 per cent compared to TV where FMCG contribution was 53 per cent.
“In 2015, we expect TV to grow by 9.5 per cent on the back of ICC cricket World Cup, assembly elections in three States, HD Channels, Geo targeting on TV and new channel launches,’’ Mr. Balsara said.
While Hindi general entertainment channels (GEC) contributed 27 per cent of overall TV revenue, a change in pecking order saw Tamil Nadu C&S (cable & satellite) overtaking news to occupy second rank.
Digital continued to occupy the third position among media and grow its share at the expense of TV, Print and OOH (Out-Of-Home). According to the report, the government is set to launch phase-III expansion of radio by September 2015. E-commerce advertisers have also used the radio medium extensively for all their tactical offer-based campaigns. Cinema advertising grew 10 per cent and the rapid expansion of multiplexes in Tier-I and Tier-II cities is a big reason for the growth. Cinema digitisation is expected to fuel growth in 2015.India, fastest growing ad market
India maintained its 12th rank in the global ad market in 2014 despite having a mere 1.5 per cent of the global ad market of $ 411 billion. Mr. Balsara said that at 16.4 per cent India was the fastest growing ad market ``but may slip to the second position in 2015, just below China.’’