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

Must Read

Free Netflix in India: A Result of Slow Growth In Q3 2020?

Netflix is testing a new strategy that could lead to free Netflix in India. The online streaming...

Reliance Jio Set To Blitz The 5G Smartphone Market With Jaw-Dropping Price

Cometh the revolution, cometh Reliance. This time the price of 5G smartphones under the radar of Reliance.

Apple iPhone 12: Not For India And You Must Not Fall Prey To Apple’s Marketing Machine

The cat is out from the bag, finally! Apple iPhone 12 has launched in the most sophisticated...

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.

Advertisements

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).

Advertisements

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)

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Can Facebook Be Trusted For Newly Announced Hosting and Shopping Services?

Every coin has two sides. For Facebook Inc. (NASDAQ:FB), the positive side says that it has launched...

When the Going Gets Tough, the Tough Gather Online

Tech shows; we all know them, love them, and wish we could get to them. Unfortunately, that's not always possible. Or is...

Flipkart, Amazon Hurtle To Secure Their Slice in Aditya Birla Fashion

The battle conch for the festive season has already been blown. Now in a bid to take control of a new frontier,...

Jio Pages: The Indian Browser Reliance Is Betting On Now!

Looks like Reliance wants to establish Jio as a synonym of technology. After launching a fleet of Jio products in the last...

Less Than 5% Internet Users In India Have Netflix Subscription

The third-quarter earnings report of Netflix is out; The streaming giant beats the Wall Street expectations in terms of revenue but fell...

Free Netflix in India: A Result of Slow Growth In Q3 2020?

Netflix is testing a new strategy that could lead to free Netflix in India. The online streaming giant is exploring options to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This