GroupM, the media buying arm WPP Group Plc has released a comprehensive report on Indian media market and the entire research can be summed as – The Indian Media will witness 20% YoY growth in 2008 and advertisers will continue to give priority to newspapers and television, they will also be inclined to check out the promise of new media, such as digital.
And what about Internet advertising? Unlike the west, print media readership is not declining in India and advertisers still prefer the traditional media which has been experimenting with formats and delivery. Essentially, growth is mostly happening in print media, OOH and Television – not so much in Internet!
The GroupM report divides the Indian media market into eight sectors — newspapers, magazines, television, radio, outdoor, Internet, cinema and retail media — and examines in detail the various factors at play — the market and its
main players, the audience, the product, the growth factors and the comparative trends in 2007 and 2008.
The Display advertising component of the Newspaper market in India for calendar year 2007 was valued at Rs.9,290 cr (growth of 18% over calendar yr 2006)
Print, in spite of being the biggest incumbent medium, continued to attract the largest share of advertising spends, mainly attributed to rise of the tabloid and regional focus.
Taking a cue from their foreign counterparts, Indian publishers are launching niche magazines – across News, Fashion, Travel and Health. The Economist, Vogue, FHM and music magazine Rolling Stone were some of the well known foreign titles to make it here.
Expect a spate of new launches in the coming months, with almost a dozen global players planning to launch India editions. This will also be in part due to Indian media laws, which restrict foreign equity to 26% in the news segment, but allow 100% foreign equity in non-news and non-current affairs specialty magazines.
The entry of regional channels, “anti incumbency” factor (i.e. newer entrants with newer formats), Twenty20 world cup, new formats (reality shows, talent hunt), distribution (mobile content), cable and satellite growth have ensured that Television media remains on top of the advertiser spend.
Radio’s share of the total media pie has grown to 4% in 2007. Growth of the medium can be attributed to the increase in number of stations and the corresponding listener base.
Over 240 private FM stations have become operational since phase 2 of the bidding for radio channel licenses. Radio channels with the highest number of operational stations are Radio Mirchi with 32 stations, Radio City with 16 stations, Big FM with 44 stations and My FM with 17 stations. Local nature, content integration, ground activation serve as a cost effective medium for advertisers.
The radio market is expected to grow by 50% touching Rs.900 cr. by the end of 2008. FDI limit which is currently at 20% in FM radio space is likely to increase to 26% in radio channels that want to broadcast news and 49% in non-news FM stations
The proposal to change the unit for Private FM Radio broadcast licensing from city to district will help advertisers in tapping hitherto unreachable semi urban / rural India
The Indian OOH market is expected to reach Rs.1,700 cr. in 2008. Top 5 metros constitute nearly 75% of the total spends in OOH advertising.
Thanks to the rise in local traveling time and the fact that people are spending time outdoors (malls, cafés etc), OOH will continue to see a good growth.
Digital media comprising Internet and Mobile is the fastest growing medium in the country albeit accounting for only 2% of total media spends.
IPTV entry might give the much needed boost to digital media. Internet, Search and Mobile services are expected to grow in 2008 by 60%, 80% and 60% respectively
Cinema advertising is finding easier acceptance in the media plan for being cost effective and delivers the right impact! many brand categories. Advertisers use cinema to effectively showcase their brands against an entertainment backdrop and access the star power that drives consumers to theatres.
Organized retail is booming in India and as a result, retail media is beginning to take a more definitive form and has grown by 50% from a Rs150 crore medium in 2006 to Rs225 crore in 2007. The prominent categories advertising in this medium are cellular service providers, handset manufacturers, lifestyle, media and entertainment, personal care and FMCG (fast moving consumer goods), banking/finance and insurance and automobiles.
In US, most significant reasons for the growth of Internet advertising has been the slowdown in print media growth – a phenomena still not happening in India. So, is Internet advertising really a dependable solution?
What do you think?
Download the report [via livemint]