01 April 2016 07:39:34 IST

'Digital advertising set to scale new highs'

Increased share of mobile and video advertising also among things to look forward to

The media and entertainment industry in India is poised to grow at a CAGR of 14.3 per cent to ₹2,26,000 crore by 2020, led by advertising revenue which is expected to grow to ₹99,400 crore.

Digital advertising continued its strong run with 38.2 per cent growth over 2014 as a mounting Internet user base and data usage were supplemented by increased spend allocation by marketers, according to FICCI-KPMG Media and Entertainment industry report 2016.

The report suggests that by 2020, the digital advertising market is likely to scale up to ₹25,500 crore and contribute to 25.7 per cent 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.

The report indicated that the key highlights of the year include implementation of a viewership measurement system by Broadcast Audience Research Council (BARC) with the impact on budget allocations for advertising among channels only just starting to change. The e-commerce industry is expected to continue to advertise across mediums, moving from its earlier focus on digital platforms with an increased focus on regional markets.

“Print saw a slower growth in the past year but TV and digital advertising have exceeded expectations. With the wide rollout of 4G finally underway, coupled with the ‘Digital India’ initiative, the future of digital advertising is very bright. The film sector also returned to growth in 2015 but led by Hollywood and regional rather than Hindi,” said Jehil Thakkar, Partner and Head of Media and Entertainment, KPMG in India.

As per the report, the television sector witnessed strong advertising-led growth at 17 per cent with increase in e-commerce spends. Growth in subscription revenue was slower at 12.8 per cent due to the delay in Phase 3 digitisation and further delays in securing on-ground benefits of Phase 1 and 2.

Film sector Coming off a flat year in 2014, the film industry returned to a healthy growth of 9.3 per cent in 2015. On the print media, the report said that at 7.6 per cent, 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. While the growth rate for regional print dipped from the previous year as well due to subdued advertising, some publications were able to raise cover prices to keep circulation revenue healthy. 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.

Sports The report confirms that in 2015, cricket continued to be the primary brand puller with prime properties such as IPL and World Cup witnessing an increase in ad rates and sponsorship. However, various sporting leagues such as kabaddi, football, and tennis managed to create a buzz in the Indian market.