1. Digital to account for a quarter of advertising revenues by 2020 

Digital to account for a quarter of advertising revenues by 2020 

The Indian media and entertainment (M&E) industry is poised to grow at a CAGR of 14.3% to Rs 226,000 crore by 2020, led by advertising revenue which is expected to grow to Rs 99,400 crore at a CAGR of 15.9%.

By: | New Delhi | Published: March 30, 2016 8:52 PM
It states that by 2020 digital advertising at Rs 25,500 crore will account for 25.7% of total advertising revenues.  (Reuters)

It states that by 2020 digital advertising at Rs 25,500 crore will account for 25.7% of total advertising revenues. (Reuters)

The Indian media and entertainment (M&E) industry is poised to grow at a CAGR of 14.3% to Rs 226,000 crore by 2020, led by advertising revenue which is expected to grow to Rs 99,400 crore at a CAGR of 15.9%. advertising continued its strong run with 38.2% growth over 2014 as a mounting internet user base and data usage were supplemented by increased spend allocation by marketers. These are the findings from the FICCI-KPMG media & entertainment report.

It states that by 2020 digital advertising at Rs 25,500 crore will account for 25.7% of total advertising revenues. Increased share of mobile and video advertising as part of digital media is one of the things to look forward to as well. During the year, the M&E sector grew 12.9% from Rs 102,600 crore (2014) to Rs 115,800 crore (2015), while overall advertising grew 14.7% to Rs 47,500 crore.

The television sector witnessed strong advertising-led growth at 17% with increase in e-commerce spends. Growth in subscription revenue was slower at 12.8% due to the delay in Phase 3 digitisation and further delays in securing on-ground benefits of Phase 1 and 2.  Meanwhile, the film industry recorded a healthy growth of 9.3% during the year. real surprise was the strong growth in regional movies both in terms of quality and box office performance.

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The print industry witnessed a marginal slowdown in 2015 compared to 2014 – an election year. For English language publications, e-commerce stood out as a category in a year of muted growth. The regional market continues to have a bright future – especially with the government’s recent rural-friendly Budget and newer categories like e-commerce finally likely to help publications in tier II and tier III markets. Hindi and regional publications outperformed English ones in terms of growth rate in 2015 even though it was a slower year.

The roll-out of 4G services is likely to be a catalyst for the growth of Over The Top (OTT) services. The report says that while there are concerns around bandwidth constraints, high cost of customer acquisition, dependence on advertisement-led models and high cost of data access, the industry should be able to find a sustainable business model over the next 12 to 24 months.

Tags: Advertising
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