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After witnessing an average growth rate of only 12-13 per cent over the last three years,

the Indian advertising industry is set to grow 61 per cent by 2010 with advertising spend
climbing to Rs 36,731 crore from Rs 22,721 crore this year.

“The Indian advertising expenditure is doubling every four years primarily dominated by
spends on television and print campaigns,” according to the advertising outlook report
released by London-based ZenithOptimedia, the media planning and buying arm of
advertising group Publicis.

For every hundred rupees spent by advertisers, Rs 91 is spent on television and the print
media while the outdoor media accounts for Rs 5. The rest is divided between cinema,
radio and the Internet, says the report.

“We expect advertising expenditure in India to increase from 0.50% of the gross
domestic product (GDP) to 0.53% over the next three years,” said Jonathan Barnard, head
of publications, ZenithOptimedia.

According to industry experts, 2008 will mark the beginning of this upswing. Advertising
spends are expected to increase 12-14 per cent across television, print, outdoor and the
Internet media in 2008 itself.

The Internet medium is set to witness 150 per cent growth in 2008 over the current year
as more advertisers are expected to choose it over magazines and outdoor advertising.

India’s total advertising expenditure will be Rs 26, 532 crore in 2008 in comparison with
Rs 22,721 crore this year, recording a 17 per cent growth.

Making a global forecast, ZenithOptimedia predicts that the global ad expenditure will
grow to 6.7 per cent in 2008, up from 5.3 per cent this year, thanks to the Olympic
Games, elections in the US and European football.

The total world advertising expenditure, according to ZenithOptimedia, will touch be


$485 billion in 2008 up from $455 billion this year.

“The ad market will be boosted by $6 billion in spending from quadrennial events in


2008: $3 billion from the Olympics, $2 billion from the US Presidential and
congressional elections, and $1 billion from the Euro 2008,” says the report.

© 2007 Business Standard

Ashish Sinha & Suvi Dogra | Business Standard | New Delhi, December 10, 2007

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