After forecasting a double-digit growth for over a decade, the ‘Pitch-Madison Media Advertising Outlook 2009 Report’ paints a bleak picture for the media owners this year.
While the overall advertising industry grew at 17 per cent to touch Rs 20,717 crore in 2008, it is projected to increase at a mere 2 per cent in 2009, according to the study which will be released early next week.
The silver lining is that a consistent good performance by fast moving consumer goods sector may help advertising industry to some extent. However, cinema and outdoor advertising are expected to decline in 2009.
Sam Balsara, chairman and managing director, Madison World, said: “Though disappointing, we are hoping that the sentiment will change over the next few months enabling us to revise our forecast. This year for the first time, we hope to do a mid-year update. Advertising is driven largely by sentiments. Optimism and confidence in the future are big drivers of advertising growth.”
The previous year’s study had forecast the advertising spend in 2008, to be Rs 21,314 crore, a 20 per cent growth over 2007. But a slowdown in the second half of 2008 has led to an overall lower growth rate of 17 per cent.
Last year’s 17 per cent growth is lower than the 22 per cent growth achieved in each of the previous two years.
Print and TV continue to dominate the advertising market with a combined share of around 88 per cent.
