The Indian advertising industry is expected to grow 61% by 2010 (with advertising spend climbing to Rs. 36,731 crore) [source]
As per report by ZenithOptiMedia, “..expect advertising expenditure in India to increase from 0.50% of the gross domestic product (GDP) to 0.53% over the next three years,”
Worldwide, the ad industry is expected to grow 6.7% to reach $61 bn and Internet advertising is expected to surpass magazine advertising; and the upswing will be triggered by quadrennial events like Olympics,US elections and Euro 2008.
As far as Indian market is concerned:
- Internet advertising contributes only 1.8 % of the country’s total advertising spend.
- Internet medium is set to witness 150 per cent growth in 2008.
For every hundred rupees spent by advertisers, Rs 91 is spent on television and the print media while the outdoor media accounts for Rs 5. The rest is divided between cinema, radio and the Internet. (the Indian entertainment industry, too is expected to grow by CAGR of 18% to reach Rs. 1 trillion numbers by 2011).
Though these numbers may sound great (and most of the times theoretical), what is really important and worth noticing is the rise of ad networks by newspapers/magazines worldwide (after all they are the ones who have a strong relationship with local advertisers as well as readers) which are essentially competing with ad networks from Google/Yahoo/MSN and online companies.
Case in point – Forbes has launched Forbes Audience Network and is reaching out bloggers and related community. Others like CNet and Reuters are following the suite.
Will we witness the same in India? i.e., say Times of India’s Ad Network?
What’s your take?