NEW DELHI: Advertising expenditure levels will continue to rise in India over the next five years, with online set to be among the main drivers of this trend, according to a new forecast.
The Associated Chambers of Commerce and Industry of India and PricewaterhouseCoopers predict the entertainment and media industry as a whole is set to expand rapidly in India going forward.
Overall, the two organisations estimate that this sector will record a compound annual growth rate of 11% during the half-decade to 2013, climbing in value to 932 billion crore rupees ($20.0bn; €13.6bn; £12.2bn) by this date.
Within this, adspend levels will leap from 216 billion crore rupees in 2008 to 366 billion crore rupees six years later, a CAGR of 11.1%, although this marks a slight moderation compared with the recent past.
Television will be the recipient of 41% of advertiser budgets by the end of the forecast period, up by 2%, and equating to 150 billion crore rupees.
Radio advertising will register an uptick of 18% per annum, to some 19 billion crore rupees, with its proportion of advertising revenue jumping from 3.8% to 5.2% in the process.
Online will also generate ad sales worth 20 billion crore rupees by 2014, with a five-year CAGR of 32%, as its market share more than doubles, from 2.3% to 5.5%.
Moreover, outdoor will see its figures rise from 20 billion crore rupees to 30 billion crore rupees, although its position relative to competing media channels will remain largely static.
Print will see its total returns – including advertising and circulation – improve by 5.6% in the timeframe under assessment, from 165 billion crore rupees to 213 billion crore rupees.
Newspapers will be responsible for 87% of this figure, although the growth rate for magazines will be 1% higher, at 6.5%.
Among other sectors, the Indian film industry, and the games, animation and special effects segments, will all generate double-digit gains.
Digital music will also take 60% of all sales in this area by 2014, with mobile likely to be the major medium for downloading this type of content, the ASSOCHAM–PWC report argued.
Data sourced from ASSOCHAM; additional content by Warc staff