Advertising Agencies and

Channels

Ad Agencies in India

AD AGENCIES

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•The Indian Entertainment and Media (E&M) industry is poised to grow at 19% compound annual growth rate (CAGR) to reach Rs 83,740 crore by 2010 from its present size of Rs 35,300 crore, according to 2005 annual edition of the FICCI - PricewaterhouseCoopers report Indian Entertainment and Media Industry -- Unravelling the potential. 

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Key Drivers

•Economic growth

•Rising income levels

•Consumerism

•Technological advancements

•Policy initiatives taken by the Indian government

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•The industry has been forecast to outperform the economic growth in each year, till 2010.

•Two factors that will contribute to the growth of the industry are low media penetration in lower socio-economic classes and low ad spends

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Advertising Spends:

Indian advertising spends as a percentage of GDP -- at 0.34 percent -- is abysmally low, as opposed to other developed and developing countries, where the average is around 0.98 percent.

•Low ad spends throws open immense potential for growth

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Advertising revenues would at least double from the current level of around INR 13200 crores

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Key Findings by Segment:

Television:

•Current size: Rs 14,800 crore

•Projected size by 2010: Rs 42,700 crore

•CAGR: 24%

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Filmed entertainment:Current size: Rs 6,800 crore

•Projected size by 2010: Rs 15,300 crore

•CAGR: 18%

•Print media:Current size: Rs 10,900 crore

•Projected size by 2010: Rs 19,500 crore

•CAGR: 12%

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Radio:Current size: Rs 300 crore

•Projected size by 2010: Rs 1,200 crore

•CAGR: 32%

•Music:Current size: Rs 700 crore

•Projected size by 2010: Rs 740 crore

•CAGR: 1%

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Live entertainment:Current size: Rs 800 crore

•Projected size by 2010: Rs 1800 crore

•CAGR: 18%

•Out-of-home advertising:Current size: 900 crore

•Projected size by 2010: 1750 crore

•CAGR: 14%

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Internet advertising:Current size: Rs 100 crore

•Projected size by 2010: Rs 750 crore

•CAGR: 50%

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•The Indian E&M industry is estimated to grow from Rs. 580.8 billion in 2009, at a CAGR of 12.4% for the next 5 years to reach Rs. 1040.8 billion in 2014.

•The overall television industry is projected to reach Rs. 488.0 billion by 2014.

•Of the advertising industry pie, television advertising industry is projected to command a share of 46.0% in 2014, from a present share of 41.0%

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

•Last year, television advertising commanded a 34% share in the total television market equating to Rs. 89 billion in 2009 as compared to Rs. 84 billion in 2008 registering a growth of 5.7%.

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels

Mangesh Karandikar, Head, Department of Communication and Journalism, University of Mumbai

Advertising Agencies and Channels