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The digital media advertising revenues for the year 2013 is estimated at Rs 2,520.1 crore (around $405 million) , up 30% from Rs 1,938.6 crore in 2012, according to the annual advertising expenditure report from GroupM. Digital contributed to 6.5% of the total media advertising expenditure in 2013, up from 5.5% share in 2012.

GroupM however notes that these net advertising revenues are not inclusive of agency commissions, hence they indicate what media owners have earned and not what advertisers have spent.

The agency estimates that the digital media advertising revenues to reach Rs 3,402.2 crore ($546 million) in 2014, registering a 35% growth year on year. This will represent around 7.9% of the total media advertising expenditure in 2014, which is estimated at Rs 43,065.4 crore. The company notes this will be driven by election spending by the government and political parties across all media.

GroupM Media Spends

Other highlights from the report

– Television: Television had an estimated advertising revenues of Rs 16,860.2 crore for the year 2013, up 13.8% from 14,811.8 crore in 2012. It represents around 43.7% of the total media advertising expenditure in 2013, up from 42.2% share in 2012. For the year 2014, GroupM estimates the advertising revenues to increase by 12% to Rs 18,883 crore.

Print: Print had an estimated advertising revenues of Rs 14,248.3 for the year 2013, up 4.6% from Rs 13,622.2 crore in 2012. It represents around 36.9% of the total media advertising expenditure in 2013, down from 38.8% share in 2012. For the year 2014, GroupM estimates the contribution to further decline to 35.9%, although it estimates a 8.5% increase in advertising revenues to Rs 15,459.4 crore, due to the growth of vernacular print publications in the country.

Total Out-of-home: Total out of home had an estimated media spends of Rs 2,285.3 crore for the year 2013, up 6.1% from Rs 2,152.1 crore in 2012. For the year 2014, this is estimated to grow by 8.8% to Rs 2,483.4 crore.

GroupM Digital Media Split

Sector Wise Break-up: FMCG sector accounted for 29% of the spends in 2013, followed by consumer durables which accounted for 22% of the spends in 2013 and retail which accounted for 12% of the spends in 2013.

Location Specific Advertising: GroupM says location specific advertising companies like Amagi and Rediff’s Vubites will help national advertisers do micro targeting and also drive local advertisers to come on mainstream television medium.

Smart TVs:  Television is changing from one way to a two way medium with the emergence of Internet enabled smart TVs which comes with search, e-commerce and applications getting integrated onto content consumption. This will enable micro-targeting through broadcast.

TV Measurement: Advertisers, agencies and broadcasters will start relying a lot more on alternate measurement metrics like social listening, online panels and others.

Online Radio: Most of the radio stations will look to extend its service online and on mobile apps due to the reach limitation faced by FM channels and increasing smartphone penetration.

Augmented reality will enable more innovative ad placements and execution, thereby allowing better interactivity and personalization of media.

Connected devices and Wearable devices will emerge in areas like personal fitness, health care, personal safety, tracking, reminder services, access control and energy saving, which will allow brands to create immersive experiences through touch, gesture and motion at retail and activation touch points.

– Brands and media owners will come together to create on-air and on-ground properties for niche music genres like Folk, Jazz, Rock and others. One will also see a surge in on-demand music platforms due to increasing marketing spends, social sharing and penetration of mobile apps.

– Marketing strategies will move from sample based data to audience based data. Consumer interactions on the Internet will allow brands to create audience segments based on consumer interests and enable them to deliver the right ads to the right person at the right time at scale.