According to a report covering expansion of regional media and digitization, entertainment and media in India grew at 12 percent in 2013 against declining ad revenue a year earlier.
The study from the trade body of the Federation of India Chambers of Commerce and Industry (FICCI) and KPMG consultants suggest that the total sector in 2013 was worth ₹92,000 Cr. It also suggested that the entertainment and media firms have moved their focus to profits from revenue growth, which resulted in more attention being paid to efficiency and operations.
KPMG India’s head of entertainment and media, Jehil Thakkar cited how the industry has performed better than others even under difficult macroeconomic conditions. He also noted that there was a counterbalance increase in revenues from subscriptions when TV ad revenues witnessed a slowdown. Another factor contributing to the movement of advertisers from TV to print is the 12 minutes / hour restriction cap on time for TV advertising.
Print sector has seen a steady growth at 8.5 percent CAGR with regional titled publications witnessing an increase due to assembly elections across five states in December. While lower advertising expenditure is seen for English publications However, some were unsure of elections playing any role in advertising growth, crediting it largely to commercial enterprises driving growth in ads.
Another figure emanating from GroupM media agency estimates that digital advertising in 2013 increased at 30 percent and a further 5 percent increase is predicted for 2014. However, digital advertising still accounts for a small share of entertainment and media industry’s total revenue at ₹2,520 Cr.
Having said that, growth in digital advertising is the fastest among all other verticals in India, this can be attributed to the increase of 73 percent internet users (214 million) in 2013, of whom 61 percent users using their mobile devices to go online.
Source: Livemint and Warc
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