Digital gains growing share of an expanding media pie
Digital advertising investment in India is predicted to grow 35 percent in 2014, following a 30 percent increase a year earlier. This growth would give digital just under 8 percent of total media spending. Digital already is the third largest media sector investment, less than TV and print but higher than out-of-home, radio, and cinema.
As digital gains as a percentage of total spending, the share of some traditional media declines. Although print is expected to claim a strong 38 percent of total media spending in 2014, that’s down from 53 percent in 2005. In contrast, TV investment increased over the same period to 44 percent of total media spending from 37 percent.
Driven by India’s economic expansion and the brand building requirements of a market economy, the total media pie expanded between 2005 and 2013, even as the slices changed in relative size. And in actual spending, investment in all media increased during this period, even for magazines, which are experiencing the greatest pressure.
Total media spending is expected to reach 430.6 billion rupees (US$ 7.2 billion) in 2014, up from 386.0 billion rupees (US$ 6.4 billion) in 2013, and from only 156.3 billion rupees (US$ 3.6 billion) in 2005.
FMCG leads media spending...
Representing 29 percent of all media spending, FMCG led all sectors, with significant investment also in retail and auto.
...With more spending going to digital
Digital spending continued its steady growth, with print investment, especially magazines, predicted to again decline.