Group M Indian Advertising Forecasts 2009

Group M has come up with advertising forecasts for 2009 which predicts a grim 2009 . During 2009 there will be some increased spending in Q2 because of the elections and IPL but  for the remaining year the advertising levels will be down.Some of the key trends  from the report are 

• Indian media advertising market will see a dismal growth of 4.7 per cent this year, as against 14.7 per cent in the year ago period, to reach a total of Rs 237.55 billion.
  
• The advertising revenue of newspapers (print) will see a negative growth of 2 per cent (Rs 98.32 billion), as against a healthy growth of 12 per cent in the last year (Rs 100.33 billion).
  
• The television industry will grow at a much slower rate of 7 per cent (Rs 89.88 billion) after enjoying advertising revenue growth of 18 per cent in the last two years. In 2008, the actual ad revenue of the TV genre was Rs 84 billion.
  
• Radio, on the other hand, will still be able to see a growth of 15 per cent (as against 49 per cent) 
• Digital media will be growing at 25 per cent (unlike previous year’s 74 per cent) to reach an estimated 850 crores revenue.
  
• FMCG, Telecom, Education and Entertainment, four of the largest categories which together contributed to 50% of the total market in 2008, are less impacted by the recession in 2009 and will see a 12% growth in Ad spending.
  
• The worst  hit categories by recession are Financial Services, Retail, Real Estate , Auto and Infotech which account for 27% of the market and will see a 11% decrease in Ad spending.

Related Read:

Indian Advertising 2009-13 KPMG report

Trends in Print Advertising during slowdown