One of the fastest growing sectors in the country is the media and entertainment arena. It comprises of television, film, and print media advertising, digital and musical among others. Over the past few years, there has been tremendous growth in this segment. Print media advertising and television is reaching a saturation point, although it is far from exhaustion.
The digital media segment is actually one of the rapidly growing segments and it is slowly gaining more ground. The Indian entertainment and media industry has grown by a double digit figure of 11.8 percent overall in 2013. However, gaming and digital advertising has recorded astounding growth rates which are near about 40 percent. A research by KPMG in the past year has stated that digital advertising and media has grown to cover a wider base compared to the previous year. In 2013, digital media advertising notched up 8 percent of the advertising sector, compared to 5 percent in 2012. According to a KPMG-FICCI report, the media and entertainment industry of India enjoys an outreach of 161 million via television and 94,000+ via newspapers. There is however 214 million users of internet in India, of which 130 million people use their cell phones to access the internet. Given these figures, a creative advertising agency has a lot of scope to reach out to a wider audience by tweaking campaigns uniquely to suit the sensibilities of this growing audience.
India’s television advertising pie has been valued at Rs 41,720 crores almost in 2013 and is expect to growth at CAGR (compounded annual growth rate) of 16.2 percent between 2013 and 2018, to amount to Rs 88,500 crores by the end of the period. The estimated size of the Indian advertising market is around USD 5 million, which makes it the 14th largest one in the world, according to the latest issue of Gunn Report. The CAGR of digital advertising is also expected to be around 27.7 percent by the year 2018.
The media and entertainment industry of India shall continue its reliance on digital media. The expanding user base of the internet has the potential to generate vast revenues for the industry. A creative advertising agency must make use of these forecasts for the industry to plan its growth trajectory. From 2013 onwards, telecommunication companies began focusing on data as means of revenue generation. A print media advertising agency and others would have to compete against each other for acquiring digital and social media domains. This certainly spells a bright future for this industry.
