Indian TV adspend to grow

14 May 2009

NEW DELHI: Television adspend in India will grow by an annual average of 14% over the next three years, with revenues for the media and entertainment sector as a whole also set to double by 2012, the Associated Chambers of Commerce and Industry of India predicts.

ASSOCHAM estimates that TV will at least retain its 43% share of the Indian ad market in the period to 2012, and also argues that with "any increase in the overall advertisement spend, the share of television will also increase proportionately."

Overall, TV revenues will increase from 20,000 crore rupees ($4.0bn; €2.9bn; £2.7bn) to 52,000 crore rupees in this period, and while advertising currently contributes 80% of this total, subscriptions are predicted to be the "key growth driver".

The organisation also states that there are currently some 400 TV channels operating in the country, and this figure is likely to top 500 by the end of 2009.

As such, it predicts broadcasters will increasingly focus on "niche content delivered across varied platforms," particularly as audiences become "more fragmented and less loyal to a particular channel."

One result could be that there are an increasing number of "new advertisers who would want to advertise on these niche channels," with regional broadcasters likely to be among the major beneficiaries of this trend.

In all, the media and entertainment category is set to grow in value to 1 lakh crore in 2011–12, more than twice the revenues it is expected to register this year.

Data sourced from ASSOCHAM; additional content by WARC staff