Media - Ad spend: Slowdown advertises presence in CY11 (Edelweiss pdf link)

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According to the latest findings of Pitch Madison Media Advertising Outlook 2012 (PMMAO 2012), Indian advertising grew by a modest ~8% in CY11 as against ~28% in CY10. The outlook for CY12 remains guarded (expecting ~9% growth), particularly in H1CY12. However, the possible improvement in consumer sentiment, moderation in inflation, a reversal in interest rates and introduction of FDI in retail might lead to a better scenario in H2.

Macro slowdown leads to docile ad spends in CY11

Due to a sustained slowdown from high inflation, weaker INR and soaring interest rates in H2CY11, the Indian advertising grew by just ~8% vis-à-vis expectations of 17%. Amongst the largest mediums for ad spends, TV and print advertising grew by 9% and 8% respectively in CY11. Radio advertising grew by just 2% in CY11 as against 30% in CY10. Internet continues to grow as a medium for ad spends with the category recording ~45% growth. The out-of-home (OOH) segment suffered the most in the slowdown, declining by 10% in CY11.  

Advertising outlook for CY12 remains cautious

TV will continue to outperform print for the second year in a row with an expected growth rate of 10% (vs 6% in print) in CY12. Amongst the key segments, only TV and Internet are likely to post a double digit growth in CY12.

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ZEE, Hathway Cable & Datacom, Dish TV

EdelFlash: Media - Ad spend: Slowdown advertises presence in CY11