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

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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