Broadcast and Pay TV to generate Rs 86 bn in ad revenue

A recent study done by Magna, part of Interpublic Group, reveals that developing countries like India and China have accounted for media suppliers' global advertising revenues exceeding $358 billion during the year 2009.

Some of the key predictions for Indian media scenario include:
•    Broadcast and Pay TV programming to generate 86 billion rupees in ad revenues during 2010, rising by 14% on average through 2015.
•    Newspapers expected to grow on an average of 14% through 2015 whereas magazines to grow by 11% each year over the next five years.
•    Radio is expected to grow 17% each year over the next five years, at which point it will account for 5% of all advertising in India.
•    For Internet, ongoing growth of approximately 21% each year over the next five years, as online ad rises to account for 18 billion rupees in revenues by 2015, 4% of total advertising.

Said Premjeet Sodhi, chief planning officer, Lintas Media Group, “The digital growth story is already being scripted. The recent downturn has given an impetus to the digital medium. However, there is high degree of evolution that is required for the medium to move away from its current compensation model based on clicks to one based on brand development parameters. FMCG companies are taking the lead in this direction. Print, in India, too has shown good growth despite challenges from TV and digital media.”

Lynn de Souza, chairman and CEO, LMG added, “The coming year will mark a return to growth for most parts of the world. With this growth, the ad supported media economy is expected to grow, too. Most areas will resume normal rates of growth, largely driven by advertising’s relationship with the broader economy.”

Globally, the study predicts rapid growth for digital media. According to the study, online industry has generated more than USD$58 billion in ad revenues during 2010 – and will generate $91 billion by 2015, up from $6 billion in the year 2000. Mobile services will rise from approximately 700 million subscriptions in 2000 to 6.4 billion in 2015. Magazines will have fallen slightly from $39 billion in ad revenues during 2000 to $35 billion in ad revenues expected in 2015 and newspapers will be down similarly from $97 billion in 2000 to $93 billion in 2015. Television grows from $98 billion in ad revenues during 2000, nearly doubling to $189 billion in 2015.