Last updated : January 15, 2008
Media Group has released the Lintas Media Guide 2008, a comprehensive analysis of media spends and buys in 2007. The report includes indepth analyses of the media environment and industry trends along with various genres, including television, print, radio, Internet, cinema and outdoor.
According to the study, ad spends reached Rs 17,356 crore in 2007, growing by a mere 3.5 per cent as compared to 2006. Print continued to hold a major share with 50 per cent of the total media spends (Rs 8,591 crore). Internet ad spends grew by 43 per cent as compared to 2006, touching Rs 215 crore.
Radio, cinema and outdoors saw an increase of 28, 16 and 17 per cent, reaching Rs 529 crore, Rs 194 crore and Rs 1,062 crore, respectively. TV revenues showed a decline of 1 per cent as a result of the competitive pricing offered by general entertainment channels to retain market shares. The ad revenues for TV were Rs 6,766 crore.
The report predicts that with increasing media reach amongst the rural masses, 2008 is set to offer enormous advertising opportunities as well as tremendous challenges.
The Internet medium grew by leaps and bounds because of factors such as the increasing number of households with computers and growing awareness of the Internet as a tool for empowerment. Several one time non-communication applications such as exam results and e-ticketing have encouraged the less affluent to get on to the Internet. Initiatives such as the National e-Governance Plan (NeGP) are likely to increase Internet use amongst the lower SECs in the next couple of years.
It is estimated that television will grow at a dynamic pace in the next two years and the total number of channels will touch the 500 mark. India, which is currently Asia's second largest pay TV market after Japan, is expected to become the No. 1 pay TV market by 2015. Although the direct impact of such a boom is going to be greater ad avoidance, the time spent on watching any channel will move up.
Currently, India has 551 million literate people. This increase in literacy is proving beneficial for the print medium as more people in rural and urban areas are able to read newspapers and magazines. The print media industry still has the potential to grow by 236 million literate people in India, a number which is still not tapped by any publication. The print media is among the acknowledged segments for global investors who like to put the maximum foreign investment here. The year 2007 also saw the launch of various foreign publications such as Vogue, FHM and The Economist.
Of the total amount spent on ads in 2007 in India, radio had a 3 per cent share. The report suggests that this share is expected to rise to 5 per cent during 2008-09. Several new radio channels, especially in Tier II and III towns, were launched in 2007. The new channels have given a boost to creative content and the demand, it has been estimated, may reach as much as 1.5 million hours of content annually for around 300 channels.
The OOH industry is expected to see a growth rate of 17 per cent annually and to rise from Rs 1,000 crore in the present year to Rs 2,150 crore in 2010. The panel set up by MRUC and Hansa Research to measure the efficiencies of outdoor advertising will play a crucial role in the growth factor for the advertisers.First Published : January 15, 2008