The Credit Suisse Global Media Report on the Indian media industry compares advertising shares in India across various media and throws up some interesting findings
One of the major findings in the Credit Suisse Global Media Report written by its analysts, William Drewary, Jolanta Masojada and Ashish Gupta, highlights the share of Indian advertising in various media over the past decade. The report tracks the share of advertising in media in India from 1994 to 2008.
Prima facie, the core inference is that the share of advertising spends of print (newspapers and magazines) has declined over the years, as has that in outdoor. On the other hand, the share of advertising spends has increased in the case of television, cinema and the Internet. Surprisingly, radio’s share of the advertising revenue pie continues to be the same as it was a decade ago.
Newspapers, as per the report, witnessed an advertising market share of 61 per cent in 1994, which gradually declined to 49 per cent in 1998 and fell further to 39 per cent in 2002. This segment managed a share of 47 per cent in 2003, but later dropped to 42 per cent, which is its current share. This, the report suggests, will continue for at least two years now.
The share of advertising of magazines has also fallen considerably from 9 per cent in 2001 to 4 per cent now and is expected to decline to 3 per cent in 2007.
Television emerges as the advertisers’ favourite, despite competing closely with newspapers. From a 30 per cent advertising market share in 1994 to 44 per cent now, television rose in a major way in 1998, when it gained a 40 per cent share, before moving to 42 per cent in 2002.
The boom in radio seems to have had no positive effect in the mindset of the advertisers. The share of radio advertising remained a steady 3 per cent, barring a few instances, as in 1998 and 2004, when it slipped to 2 per cent, which is its current share. This percentage is expected to remain unchanged in the near future.
Advertising on cinema has come a long way from absolutely no advertising to a 2 per cent share. The medium has picked up since 2002, from a negligible 1 per cent share to 2 per cent now and in the future.
Another interesting finding is that outdoor advertising, too, has seen some decline. While it gained much more than radio in 1994 (7 per cent), it shot up to 9 per cent in 1998, only to slip back to 7 per cent in 2002. Currently, it holds a 6 per cent share of advertising and is predicted to decline to 5 per cent in a year.
Lastly, the Internet, which has got everybody talking, has finally managed to catch the fancy of the advertisers, according to the report. In the overall advertising pie, it has a 1 per cent share, which is expected to double in a year’s time.
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