Indian market set to cool in 2009

20 April 2009

NEW DELHI: The growth of India's advertising market will slow to 5.4% in 2009 from the annual double-digit expansion it has enjoyed over the last few years, predicts Media Partners Asia, the research company.

Figures from WARC's latest Consensus Forecast, which aggregates predictions from a variety of different forecasters, suggests that revenue levels in the country will grow by 8.4% this year.

Overall, MPA valued Indian adspend at around 20,000 crore rupees ($4.0bn; €3.1bn; £2.7bn) last year, and the company estimates that revenue levels increased by 14.3% over the course of 2008.

Television currently takes a 45% share of overall marketing spend in the country, but the medium's ad sales will slow to 6.5% this year from 15.6% in 2008, before posting an uplift of 8.7% in 2010.

Cable and satellite operators also registered an extra 7.2 million subscribers in India last year, the majority of which were based in rural areas.

MPA argues the average revenue per user for pay-TV customers currently stands at 150 rupees, and is likely remain low for the foreseeable future.

As such, it predicts cable and satellite broadcasters will see their revenue growth fall from 20% last year to 16% this, and enjoy total sales of 13,500 crore rupees in 2008, two-thirds of which will be drawn from advertising, and the rest from subscriptions.

Data sourced from Business Standard; additional content by WARC staff