Campaign India Team
Aug 16, 2016

Pitch Madison revises growth rate in ad spends to 13.2 per cent

The media agency revises its projection for growth in 2016 TV ad spends from 20 per cent to 11 per cent

Pitch Madison revises growth rate in ad spends to 13.2 per cent

The agency initially released the Pitch Madison Media Advertising Outlook report for 2016 in February. Aside from the reduction in TV spends, all other media spends remain as per the original projections. 

The drop in the growth rate of TV advertising is the main reason why the total ad market growth in H1 2016 is at 12.9 per cent. The 9 per cent drop in TV advertising leads to a drop in the 2016 annual growth forecast, from 16.8 per cent to 13.2 per cent.
 

Ad Spends (Rs. Crores)

Medium

2015 Actual

2016

Original Projection

2016

Revised Projection

2016 Original growth

%

2016 Revised Growth %

 

2016 H1

Growth

%

TV

17261

20713

19160

20

11

11

Press *

16935

18629

18629

10

10

9

Radio

1545

1823

1823

18

18

13

Cinema

465

535

535

15

15

13

Outdoor

2665

3010

3010

13

13

13

Digital

5120

6656

6656

30

30

37

TOTAL

43991

51365

49812

16.8

13.2

12.9

Excl tenders/appts/classifieds

Sam Balsara, chairman, Madison World, said, “The drop in growth rate of TV advertising does not augur well for the economy as generally a spurt in ad spends leads to higher GDP growth.”

Vikram Sakhuja, CEO, Madison Media and OOH, added, The drop in growth rates in TV is led by a lower contribution of E-commerce which is a category known to pick and choose high priced inventory/impact programmes and substituted by FMCG users who resort to everyday advertising and seek high value for money.”

Source:
Campaign India