Advertising set to grow 15%

The Indian advertising sector is expected to register at least 15 per cent growth year-on-year, on the back of healthy economic growth, coupled with optimism and willingness on the part of advertisers to invest more.

According to industry estimates, sectors like consumer goods and automobiles were the growth drivers for the advertising market in 2006 and the trend is expected to continue for at least the next 3 years.

Retail sector advertising, backed by growth in consumer electronics, is also poised for at least 15-20 per cent growth for at least the next 3 years.

According to media research, the sectors that showed signs of real dynamism in 2006 would be the ones to show significant growth for at least the next 3 years.

"Economy is growing and so is the per capita income. Advertisers are therefore optimistic and are willing to invest more," reasoned Pranesh Misra of Lowe.

"By 2010, the growth drivers would be web, radio, television, outdoor, and print, and possibly in that order," claimed Ram Ray, chairman and managing director of Response India.

In value-leadership, television advertising is expected to to be at par or even surpass print for the first time.

Sponsorships and events are expected to account for 33 per cent or more of the aggregate national AdPromo budget.

"By 2010, the sectors that would drive growth would comprise education, finance, realty, telecom, mobiles, cars and bikes, appliances, computers, perishables and durables, and retail," Ray said. Education is expected to lead the league, while travel could emerge as a new important player. In 2006, the advertising market registered an overall growth of 16 per cent. It now stands at Rs 16,259.10 crore, an impressive rise from Rs 14072.90 crore in 2005.

According to estimates provided by Lintas Media Group, internet advertising in 2006 registered maximum growth among all media, at 35 per cent, growing from Rs 1,11.20 crore in 2005 to Rs 1,50 crore till December 2006. Advertising on radio registered second highest growth at 20 per cent, from Rs 3,446 in 2005 to Rs 4,134 this year.

Advertising in the television medium, too grew significantly, at 17 per cent, from Rs 5,374.10 crore in 2005 to Rs 6274.40 crore in 2006.

Cinema advertising witnessed a 15 per cent growth this year, increasingly significantly from Rs 1,450 million in 2005 to Rs 1,668 million this year.

Outdoor advertising, too, registered sizeable growth at 15 per cent, from Rs 7892 million in 2005 to Rs 9076 this year.

Advertising in daily newspapers and magazines too grew at a healthy 14 per cent growth, from Rs 73089 million last year to Rs 83469 million in 2006.