Ad spends to grow only by 7.4% in 2013: Pitch
OOH is expected to grow at a moderate rate of 4.3 per cent.
Pitch Madison Media Advertising Outlook 2013 (PMMAO), presented by ABP News, unveiled a bleak year for the media advertising industry, which is likely to grow only by 7.4 per cent. Out of this, OOH is expected to grow at a moderate rate of 4.3 per cent in 2013 to clock ad revenues worth Rs. 1,943 crore in 2013, of which Rs. 593 crore is expected to come from transit OOH. Transit outdoor is expected to grow at 10 per cent in 2013.
"You might wonder why not less than 7.4 per cent?" asked Sam Balasara, Chairman and MD, Madison World while he presented the top lines of the report. "Because we are not pessimist. We expect new advertisers, new marketers and new categories to enter the media advertising space. Rural consumption is going up and modern trade has increased." Balsara further said that advertisers have now understood that sacrificing on brand building in a tough year is not the right option. Balsara pointed out that since the word for 2013 too is 'Cautious'.
Balsara pointed out that India is the 12th largest advertising market in the world and the fourth fastest growing market on advertising grounds. However, the country still continues to be under advertised. Indian advertising contributes only 0.4 per cent to the annual GDP. Global economy has been slow and some categories individually witnessed a slow down too thus affecting their share in media advertising. "High advertising spends in last quarter failed to drive sales. Also, we expect advertisers to divert money in discount sales and promotions," added Balsara.