Road To Recovery
Well, there was a lot of bad news that 2009 offered, but the good news is that the last few months of 2009 have certainly given us hope. Pitch-Madison Media Advertising Outlook 2010 forecasts that in the new year, media and advertising industry will certainly fare better – we have started walking the road to recovery. The study forecasts a 13 per cent growth in 2010, which will put the Indian ad industry size at Rs 21,145.
What calls for this bullish forecast? Many factors actually. Overall the Indian economy is in a better shape, with top policy makers and economists recommending that Indian economy will grow at 7.5-8 per cent this year. That’s about 2 per cent higher than 2009. Speaking on the positive outlook for 2010, Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, forecasts “definitely 7 per cent or a little more” growth.
In this backdrop, both government & corporate sector are ready to open their purse strings and increase their media spends. Government has lined up a massive PSU Disinvestment programme, which will see an IPO every few week. News & Business media will certainly benefit from this programme.
Most marketer’s that Pitch spoke to were bullish on 2010. “Yes, we are increasing our marketing budget both for mass as well as direct marketing. Our marketing budget will be in excess of Rs 35 crore,” says Vinay Bhatia, VP – Marketing and Loyalty, Shoppers Stop. Ajay Kakar, CMO – Financial Services, Aditya Birla Group says, “In 2009 our marketing spends were in excess of Rs 75 crore. And we will continue to increase our investments.” Adds Alok Bharadwaj, Senior VP, Canon India, “Overall we are looking at spending around Rs 110 crore on marketing.” Categories like auto, telecom, FMCG, IPOs and education will power advertising in 2010.
As a result, our study anticipates that Television media will register 15% growth, while print media will rebound with a 9 per cent growth. Radio will grow at 20 per cent and internet will have the fastest growth at a whopping 50 per cent. Detailed analysis follows.
While a lot is said about what to expect from 2010 in pages ahead, and what should the industry do to keep growing, a short quote from John F Kennedy sums up well – “When written in Chinese, the word “crisis” is composed of two characters. One represents danger and the other represents opportunity. Hopefully Indian media has learnt its lessons from 2009, and will rebound with greater strength.
The first nine months of the last calendar year (January to September 2009), had the industry sweating. But buoyed by the festive spirits, the ad industry recovered only towards the end of the year