Pitch Madison Report analysis on Indian Media & Advertising industry 2020 is on the outlook of Indian Media & Advertising industry this year.
Pitch Madison Report Analysis 2020 of the Indian Media & Advertising industry is expected to see a subdued H1. A buoyant H2, and will grow by 10.4%, adding Rs 7,048 crore to Adex to reach a size of Rs 74,650 crore this year.
KEY FINDINGS of Pitch Madison Report
The Key findings is that digital has contributed 56% of the growth . This medium has expectedly grown by as much as 32%. On the other hand, Traditional media has grown by mere 6%.
TV lost 1% share point and its share in the total Adex stands at 37%. It is still leading, followed by print at 30%. 23% is the contribution of Digital medium in increase of 4% over 2019.
The significant take away from this report is that brands need to build on its equity and work on brand portfolio. Brands need to optimise the budget and spend adequately, need not under cut the budget. This will prove to be misadventure rather than a cautious approach. The media mix needs to be healthy; this healthy mix of media will be giving good returns on investment.
With the growth potential and the rate of growth in digital medium, many are attracted by this. They would like to invest only in digital mediums. Lets remember the old adage, which says don’t put all your eggs in one basket. Globally print media is declining and many times obituary of print has been written. Nevertheless, a growth of 3% in print media shows that it is still kicking and alive.
The regional markets are least affected by slowdown and are buoyant, so investing in regional markets is going to be growth driver. Even though the Hindi media houses like Dainik Jagran, Dainik Bhaskar, Rajasthan Patrika ad volumes has degrown along with Malayalam, Gujarati and Telugu. This is due to weak festive season and slowdown but are expected to ride the wave of regional language OTT programs and TV soaps. This combined by pole events will be adding significant value to brands advertising.
NEW TARIFF ORDER
The forecast is that with the New Tariff Order (NTO) 2.0, subscription revenues may come down, however viewership of long tail channels will go up, so will TV Ad spend. This optimism will impact the TV ad spends positively and with pole events like IPL, T 20 world cup this outlook seems pretty positive.
My view is that in slowdown brands with strong equity will sail through leaving the weak brands either to perish. Moreoever, this will bring a round of consolidation. It will develop into a stronger market with fewer players competing on solid foundations.