Growth in entertainment industry will lead to more digital advertising

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

-Kanika Agarwal, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur.

On March 25, 2015 The Hindu quoted that “India’s Rs. 1,094 billion M&E industry is poised to grow at 13.9 per cent over the next five years to reach Rs. 1,964 billion by 2019, according to a report by KPMG in India for FICCI.” Growth in entertainment industry is due to the digitization of the cables.

It is hence forecasted that digital advertising will also show a surge. On March 25, 2015, The Hindu quoted that “advertising will continue to show robust growth over the next five years as economic growth returns and categories like e-commerce and telecom increase spending. “However, the real pot of gold at the end of the rainbow is subscription revenue — if new pricing structures take hold within the industry, then Average Revenue per User (ARPU) will rise, benefiting the entire TV value chain,” said Jehil Thakkar, head, M&E at KPMG in India.”

At the same point PWC report says that “print media sector  is projected to grow by 9.6% over the period 2011-15, reaching INR 282 billion in 2015 from the present INR 178.7 billion in 2010. “ . This shows that print media sector has always been a king in marketing medium and may continue to do so. Reason for print media being so prevalent in Indian market is that maximum population of India is not exposed to digital media and hence advertising companies reach to the people via print media.

However intervention of government and digitization of cables can make digital media affordable for public and companies will be able to reach more number of customers easily.

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