TV advertising grows 26% in H1 2008: TAM

Television advertising in India is on a roll. Despite talks of a slowdown in the economy, the television advertising witnessed 26% growth during the 1st half of 2008 compared to same period in 2007, according to the Adex report released by TAM Media Research.
While Cellular Phone Services' topped the category on TV during January-June '08, aerated soft drinks and corporate/brand image segments featured second and third, respectively.
'HUL' and 'Reckitt Benckiser (India) Ltd' maintained their respective 1st and 2nd rank on TV during 1st half of 2008 and 2007. In fact eight of the top 10 advertisers on television in the aforementioned quarter were consumer product makers including Pepsico, Coca Cola, Reckitt Benckiser, ITC and Colgate Palmolive.
Compared to H1 '07, 'Vodafone Essar Ltd' and 'ITC Ltd' recorded maximum positive shift in their ranks to be among the top 10 list of advertisers during H1 '08. While the former moved from 22nd to the 5th place, ITC climbed up five notches from 11th place to hold the 6th place in H1' '07.
There are enough reasons for Indian advertisers to continue to reach their target audience through television. Seventeen million new viewers got added to the TV viewing universe as per latest IRS, showing a growth of 4%. Multi-TV homes in urban have also increased by 16% touching a figure of 3 million giving more scope to individuals to view their preferred content.
Total number of channels as reported by TAM is now 442, up from 368 a year back. DTH has picked up well with more number of entrants into the market; and the installed base is now estimated at about 6-8 million.
"Along with this increase in TV viewing audience, time spent on TV has also gone up. As per TAM it has gone up by 6%. This increase in time spent is partly due to the fresh content now available," said N P Sathyamurthy, joint president, Lintas Media Group.
This positive trend in viewing behaviour seemed to have encouraged the advertising fraternity.  Total number of advertisers on TV went by 4% in 2007-08. Existing advertisers have also increased investments on the medium. Television advertising revenue, as a result, is estimated to have touched around Rs 7,400 crore in FY 07-08 with an expected growth rate of 13% (source: FICCI).