Warc, 16 April 2014
MUMBAI: Digital advertising is growing fast in India but
print and television will continue to dominate adspend for some years to come a
new study has said.
A media sector report from IIFL's Institutional Equities,
reported on Indiantelvision.com, outlined how digital advertising expenditure
had been increasing more than three times as fast as the overall market over
the past decade, at a 43% compound annual growth rate compared to 13%.
Digital's share of the total had risen from 1% to 7% during
this period and was now valued at Rs 25bn.
The trend would continue, the report said, as the internet
user base carried on expanding and more advertisers accepted the new platform.
But even with this stellar growth rate, the dominant
position of traditional media such as print and television would not be
challenged in the short term. Digital still had limited reach, while a lack of
fresh and vernacular content were further limitations; for now its role would
be to complement older media.
In the medium-to long-term, however, print was most at risk,
especially that in English. The sector has already seen growth slow markedly in
recent years, from 16% CAGR between 2003 and 2007 to just 4.5% CAGR in the past
three years, as some big-spending sectors, including banking, financial
services and insurance, telecoms, and consumer durables, cut their adspend.
The report authors argued that TV was a more resilient
medium. It had large audiences and a diverse viewer profile and further
benefited from being more suited to certain types of advertising such as new
product launches or brand building, all of which would help it withstand the
twin challenges of a slowing economy and a growing digital sector.
Television was heavily reliant on just three categories,
however, with FMCG, consumer durables and automotive making up 65% of its
advertising expenditure and as their spending slowed, so television ad spend
growth was expected to soften to high single digits.
Data sourced from Idiantelevision.com; additional content by
Warc staff
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