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FICCI-KPMG Report 2015: Indian M&E industry to touch Rs 1,964 billion by 2019

According to the report, advertising witnessed a healthy year on the back of heavy spending during elections, and a significant surge in spends by e-commerce companies.

On day one of the 15th FICCI Frames conference, being held in Mumbai, market research and audit company KPMG released its much awaited annual report.

FICCI-KPMG Report 2015: Indian M&E industry to touch Rs 1,964 billion by 2019
FICCI-KPMG Report 2015: Indian M&E industry to touch Rs 1,964 billion by 2019
Titled, 'Shooting for the Stars', the report predicts that the Media and Entertainment industry in India is poised to grow at a CAGR of 13.9 per cent. This means KPMG expects it to grow from Rs 1,026 billion in 2014, to reach Rs 1,964 billion by 2019.

Advertising witnessed a healthy year largely on the back of heavy spending during the national and state elections, and a significant surge in spends by e-commerce companies. The growth in popularity of digital media continued to surge in 2014, with a significant growth in digital advertising of 44.5 per cent over 2013. Critical tax and regulatory interventions were critical for enabling growth.

The television sector saw a healthy advertising growth on the back of the boost from general elections spends and the emergence of e-commerce as a significant spender across media in 2014.

While advertisement revenue held a significant part in the total revenue pie, and continues to be the growth driver for the print industry, circulation revenue growth was higher than that of advertising revenue for Hindi and English markets last year. In 2014, the Indian print industry experienced a growth of 8.3 per cent, from Rs 243 billion in 2013 to Rs 263 billion in 2014.

The radio industry showed one of the highest growth rates amongst other traditional media segments, and this, despite further delays in the Phase III auctions. Advertisers increasingly view the medium less as an add-on, but more as an integral part of their media plans.

Digital media continued to show stupendous growth in 2014. India became the second largest country in terms of number of internet users. The digital advertising industry grew from Rs 30.1 billion in 2013 to Rs 43.5 billion in 2014 - a growth of 44.5 per cent, driven by a steady growth in ad spends across most digital platforms.