The media and entertainment (M&E) industry in India is poised to grow at a CAGR of 14.3% to Rs 2.260 billion by 2020, led by advertising revenue which is expected to grow to Rs 994 billion at a CAGR of 15.9%, according to projections made by FICCI - KPMG Media and Entertainment industry report 2016.
Digital advertising continued its strong run with 38.2% growth over 2014 as a mounting Internet user base and data usage were supplemented by increased spend allocation by marketers.
The report suggests that by 2020 the digital advertising market is likely to scale up to Rs 25,500 crore and contribute to 25.7% of total advertising revenues. Increased share of mobile and video advertising as part of digital media is one of the things to look forward to as well.
Speaking at the inaugural session of FICCI Frames 2016, A Didar Singh, Secretary General, FICCI said, “We are going through a phase of rapid and sustained technological innovation which will permanently change the way consumers will access and consume content. The theme of this year’s FICCI conference is ‘Change or Perish: The Year of the Digital’ aptly captures the pitfalls that Media and Entertainment (M&E) organisations face. Changing user habits will disrupt existing business models as content providers and brands will need to match consumer expectations. While this will pose multiple challenges, we believe that there are significant opportunities for M&E companies to leverage the new digital ecosystem.”
Key highlights of the year 2015 include implementation of a viewership measurement system by Broadcast Audience Research Council (BARC) with the impact on budget allocations for advertising among channels only just starting to change.
“Print saw a slower growth in the past year but TV and digital advertising have exceeded expectations. With the wide rollout of 4G finally underway, coupled with the ‘Digital India’ initiative, the future of digital advertising is very bright. The film sector also returned to growth in 2015 but led by Hollywood and regional rather than Hindi” says Jehil Thakkar, Partner and Head of Media and Entertainment, KPMG in India.