ZenithOptimedia has released the findings of its study, titled Advertising Expenditure Forecasts- 2010, which reveals that the Indian economy braved the global recession and grew at 6-7 per cent in 2009. Despite the advertising market's sharp reaction to the slowdown, the ad industry slowed by a mere 1 per cent in its growth in 2009.
In 2009, of the total advertising pie, the maximum share was that of newspapers at 44.1 per cent, closely followed by television at 41.6 per cent. Outdoor, radio, magazines, Internet and cinema commanded 5.8 per cent, 3.2 per cent, 2.5 per cent, 2.1 per cent and 0.7 per cent shares respectively in the pie chart.
India is one of the few large markets where newspaper advertising continues to grow and having grown at 5 per cent in 2009, the study predicts an annual growth of 7-8 per cent till 2012.
"Rising literacy levels and improved distribution in the regions are steadily improving newspapers' reach," says the report. In 2009, Indian magazines suffered a steep fall in ad expenditure, "though part of this fall may be ascribed to the fact that the indirect advertising and sponsorship options offered by most consumer magazines now are not being picked up in the monitored ad expenditure figures," says the report.
Television in the country grew at 6 per cent in 2009 and according to the report, thanks to the spread of digital television and new advertising opportunities, including sponsorship of new 'larger than life' entertainment formats, it is expected to show 11-12 per cent growth in 2010.
Sport is another category that is gaining popularity due to the Indian Premier League (IPL) and the category is expected to continue gaining momentum as India hosts the Commonwealth Games this year.
The study pointed out that though Internet advertising in India remains low in reach, it is high in opportunity. "Growth is being driven by the spread of mobile Internet and the youth culture of social media. Large corporations now value the opportunities offered by the media, and are investing more time and money. We expect Internet advertising to grow at about 25 per cent a year in the coming three years," concludes the report.