While Indian marketers are busy examining the digital story in the country, industry body FICCI and KPMG have released a research titled ‘India Media and Entertainment Report 2014’ which says that marketers in India are spending more on print than on television. This trend on print and television ad spends may be a little surprising as television is considered a more appealing medium than the print but the numbers speak otherwise.
The trend is not exclusive to just 2014 but was same in 2013 and is expected to continue until 2018, according to the study. In 2013, the total advertising spend across media was INR 36,250 crore — of which print had the largest share at INR 16,260 crore followed by television at INR 13,590 crore. While in 2014, the report projects that of the total INR 41,000 crore advertising spend, print would have garnered advertising worth INR 17,900 crore. In 2018, the overall ad spends are expected to climb to INR 69,380 crore, of this print’s share will be INR 27,500 crore while that of television will be INR 25,300 crore.
The year of 2014 was prosperous for the advertising industry with big budget ads coming from the Lok Sabha elections, the FIFA Football World Cup and the heavy discount sales by ecommerce companies, which have been print heavy in their advertising. Further, government departments and retail players will continue to increase spending in print, according to the report.
“What is significantly different is the revenue on classifieds. Print gets classified advertising that TV doesn’t which are not captured in this estimation,” Nandini Dias, Chief Executive Officer of Lodestar Media was quoted in the study.
Even in terms of growth rates, the Pitch Madison report projects that in 2014, print would grow at 17 per cent and television at 15 per cent. But the most impressive growth will be seen by the digital category, which was projected to grow at 29.5 per cent in 2014, largely because of its low base.
Going forward, a large portion of print advertisements is expected to shift to the digital medium, especially the classifieds. Consumer will be watching content not only on television but on their smartphones and laptops/PCs. Therefore, both TV and print will lose out to digital platforms, according to Ms Dias.
“One of the major reasons for growth of print ad spends over televisions is due to the consolidated structure of the print industry against television which is extremely fragmented on back of new channels mushrooming in the market everyday,” according to Giraj Sharma, Director of BehindTheMoon Consultants.
Furthermore, radio is also not far behind. In the coming years, radio is expected to guide the marketing and advertising story in India. “ We will see a new phase of radio as it will go to 90+ cities. All FM companies have registered profits. In smaller towns the growth of radio is actually fuelled by local retailers and local brands,” Mr Sharma added.