Advertising on DTH + TV Outlook for 2012

The Indian Advertising Industry dominated by TV and Print has witnessed good growth and a whole new telecom has been the biggest contributor to the increase in advertisement spend over the past decade, increasing its share of the pie from 0% to 10%. Over the next decade we heard that rather than a sector, it will be sub sectors that could drive growth. Some of the sub sectors increasing the spends are alcoholic
beverages, foreign auto companies, beauty products etc.

Television is the most effective medium for the large established consumer, auto, telecom players. However for segmented launches or new products the corporates prefer print media, eg a telecom company launching in a new circle, or an auto company coming out with a new product. In these cases television would not be the
optimal use of advertisement spend.

Several of our industry contacts mentioned IPL as a key property to watch out for to get indications of the advertisement spends going forward. IPL is an important property in India as cricket provides the advertisers a pan India reach which none of the other genres can provide, eg the Hindi or regional general entertainment channels (GECs)

Here is the brief summary of the Data and Outlook,
Cautious optimism on the advertisement outlook for 2012. Expect advertisement industry revenue growth of 8-9%. This compares to 15% CAGR over 2003-11. Television continues to be the dominant platform with a share of 44.8% followed closely by print at 42.2%.