Magna Global assumes growth in advertising revenue...!

India advertising revenue increases by INR 48420 Mn to touch INR 416019 Mn in 2014. Television revenue will grow by +12.1% to reach INR 166485 Mn while Print, though loses market share by a percentage point at 41% will grow by +10.4% to 170319 Mn. These two categories hugely benefited from the national elections in H1 2014 which contributed 25-30% of the incremental dollars.

Digital media continues to grow the maximum at +39% to touch 27686 Mn and increased its market share by a point to 9%. Within digital while desktop grew at +26.4% mobile doubled its revenue though on a smaller base. Search and Display with 72% share dominates the pie but Social is closing ranks with Display. Radio on the back of increased volume will grow +12% and OOH at +12.3% to touch 12385Mn and 25339 Mn respectively.

Sectors contributing to the increase is led by retail especially e-commerce followed by telecom, FMCG and Automobile in addition to non-recurring political advertising. Outlook for 2015 is set to strengthen with improved confidence and business-friendly reforms. Falling inflation will support real income and promote consumption. Corporate investment momentum will gain because of political stability at the Centre.

BFSI category will see action with Government push for increased access to banking services, RBI opening up to payment banks and increase in FDI for Insurance. E-commerce will continue their customer acquisition spree though at some point in time customer experience & sustainability will start creeping in. Cellular phone & services,

Auto and FMCG will support the momentum. Television will be exciting more than ever with Digitization though with decreasing pace, advertising time restriction pending decision, BARC’s viewership measurement and innovation in access tariffs by platform owners.

Print industry awaits release of new round of IRS. Radio has been crying wolf for some time now and with the Government finally ready for Phase III, this medium will take a leap in spends. Digital will continue to expand the maximum, Digital India initiative by Government will add to internet access population and payment banks will boost e-retail. Magna Global estimates total advertising revenue to touch INR 472948 Mn in 2015.