Indian Ad Industry To Grow By 9% In 2012: Expected To Reach Rs. 28,013 Crore

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Indian advertisement industry has missed the opportunity of incubated marketing trend as its growth percentage rate had shrink to 8 percent in 2011. Earlier, it was predicted that Indian advertisement industry will grow at the rate of 17% in 2011, but due to global meltdown, inflation and weakening rupee against dollar it has settled down only with 8 percent. Recent study reveals that Indian advertisement industry revenue has stood at Rs. 25,594 crore ($5.18 billion) in 2011 and is predicted to reach Rs. 28,013 ($5.60 billion) crore by the end of 2012 – an increase of 9 percent year-on-year.

The growth rate of Indian advertisement industry in 2012 is expected to be 1 percent higher than 2011. The low growth rate in Indian ad industry is mainly due to the weakening of the rupees  against dollar and higher inflation rate, which is expected to continue till the first half of 2012.

Interestingly, 2011 recorded the lowest growth in last one decade, except 2009 when it went into negative figure.

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Advertisement Industry is mainly classified in to two types:-

  1. Print advertisement.
  • Outdoor advertisement.
  1. Digital advertisement.
    1. Advertisement on television.
    2. Advertisement Through radio.
    3. Internet advertisement.
    4. Advertisement through Cinemas.

Report highlights that Print advertisement has achieved growth rate of 8 percent which is comparatively 5 percent lower than the predicted value. Eventually, it has lost a negligible market share from 42.3 percent to 42.2 percent. It’s mainly due to the rise in prices as well as attraction towards internet marketing which has registered appreciated growth of 45 percent compared to projected 35 percent in 2011. And, it is expected to grow further by another 50 percent in 2012.

One of the most surprising discovery in the report is of Outdoor advertisement industry that has registered negative growth of 10 percent loosing around Rs. 144 crore in 2011. However, it’s been expected that it will improve by 5 percent in 2012 taking the revenues to Rs. 1362 crore.

Advertisement on Television continued its legacy as one of the leading advertisement media in the ad pie and has grown further from 44.5 percent to 44.8 percent (Rs.11, 418 crore) in 2011. Still, it failed to reach the predicted value of 45.7 percent (Rs. 12,636 crore). However, it’s been predicted that it will further grow with 10 percent rate in 2012 compared to 8.25 percent in 2011.

Interestingly, advertisement on Radio – which had registered a significance growth of 30 percent in 2010 – was unable to maintain its flow as it had registered growth of mere 2 percent in 2011. Adding further, it’s been expected that advertisement on Radio will grow 5 percent in 2012 taking its revenue to Rs. 948 crore ($0.186 billion).

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While advertisement through Cinema has grown up unexpectedly by 18 percent compared to earlier predicted value of 10 percent, taking its revenue to Rs. 140 crore ($0.028 billion). It’s been predicted that it will continue the momentum in 2012 and is expected to grow by another 15 percent in 2012. The rise in Advertisement from cinemas is mainly due to the rise in the number of hit movies in 2011 that will help the industry to find more crowd on ticket window.

Indian advertisement industry will continue its growth rate in 2012 and is expected to grow further by 9 percent. However, we might see the downfall in Outdoor and print media as companies are showing their interest more on internet advertisement. In last few years internet has become a most preferred advertisement platform for marketers who are looking for improved ROI as internet advertisement is much cheaper, instant and – the most important is that – it’s a medium where people can engage themselves.

(Credit: exchange4media)

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