Ad-spend sees a negative growth in 2012: FICCI-KPMG report


Reaching and engaging with billions of strong and diverse Indian customers remains a farfetched dream and a challenge too. The ad-industry is undergoing a revolutionary change with increasing penetration of broad band, digital cinema and mobile devices. The dreams and hopes of the media houses, and advertisers are reaching new heights with the changes occurring in the sector. However, the year 2012 turned out to be a bit slow when it came to ad spending rates.

The advertising spend across the media grew at a rate of 9 per cent in the year 2012 which is low compared to the 13 per cent growth in 2011 and 17 per cent in 2010. Print media accounted for the largest share when it came to ad- spends last year. The share of print media in the revenue was 46 per cent in 2012.

The Media and Entertainment sector is projected to grow at a rate of 11.8 per cent, and is said to reach Rs. 91,700 crore by the end of the current year. The same sector had registered a growth of 12.6 per cent to Rs. 82,000 crore the previous year. The reports were published by FICCI-KPMG recently.

The year 2012 had been one of the toughest in the recent times, but turned out good for the Media and Entertainment sector. The sector had recorded remarkable progress in all aspects. The report states that digitization by all means is going to change the voice of broadcasting.

The FICCI-KPMG report states that the key beneficiaries would be the new media segments. The new media segments include advertising, gaming, and online classifieds. A higher growth of consumption will be seen by the advertisers and a strong growth is projected for print and television sectors. The circulation revenues of the print media have increased considerably, but the cover price still remain low when compared to global magazines. The new trends don’t seem to affect the traditional media in India and the market grew strong last year. India is still a country where print media can bring in so much of difference. Ad spends might increase or decrease but the ad-wars keep increasing and creates a clutter in the market.






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