After a year of declining advertising expenditure and tightfisted clients, the Indian advertising market is on the path of recovery.
Media agency ZenithOptimedia (ZO) forecasts the growth in advertising expenditure — which slowed to just 1 per cent in 2009 — is set to increase to 9 per cent for the year 2010.
The collective ad expenditure for 2009 was pegged at Rs 21,602 crore, of which the newspaper industry claimed the lion’s share of Rs 9,520 crore. The television industry came second with Rs 8,991 crore, followed by outdoor, radio and magazines.
Advertising in newspapers continues to grow and ZO forecasts 7-8 per cent annual growth up to to 2012 from a 5 per cent dip in 2009.
Magazines suffered a sharp fall in ad expenditure in 2009, though a part of this fall may be ascribed to the fact that the indirect advertising and sponsorship options most consumer magazines now offer are not being picked up in the monitored ad expenditure figures.
Television, too, saw a dip and grew at just 6 per cent in 2009 and is projected to accelerate to 11-12 per cent growth in 2010.
Digital advertising is expected to maintain a growth rate of 25 per cent a year in the next three years.