Indrani Sen: FICCI-KPMG Report 2017: Scripting the Digital Decade

27 Mar,2017

By Indrani Sen


I must confess that I am disappointed with the title of the FICCI-KPMG 2017 Report on Media & Entertainment Industry – “Media for the masses: The promise unfolds”! Has not the media always been for the masses? What is this promise which will unfold particularly in 2017? After last three years’ reports with exciting titles which spoke volumes: 2014 “The-stage- is-set”, 2015 “#shootingforthestars” and 2016 “The Future: now streaming”; this year’s title sounds drab though it is politically correct.


After going through the report, I felt that “Scripting the Digital Decade” could have been an alternative title from Advertising Industry’s view point as the predicted growth in advertising revenue shows Digital ad revenue equaling Print ad revenue in 2021. The total advertising revenue will grow at 15.3% CAGR over 2017-21 with digital advertising revenue growing at double the rate of 30.8% CAGR over 2017-21.



Everyone is talking about the evolution of Free to Air TV channels post expansion of rural audience measurement by BARC and the impact of the 4G rollout as the highlights of 2016. It should be noted that as per KPMG India Analysis, TV advertising revenue for the first time touched the Print advertising revenue (201 INR Billion) in 2016 as shown in the table below.Further analysis shows that from 2011 to 2016, Print advertising revenue has increased by 61.9 INR Billion and a similar amount of 61.5 INR Billion has been added to Digital advertising revenue.  During the same period, TV advertising revenue has grown by 85.2 INR Billion to catch up with the Print advertising revenue.



An analysis of the future projections show that in 2019 advertising revenue of radio industry will catch up with advertising revenue of the OOH industry and will have similar share of the Indian advertising pie by 2020.



As per the FICCI KPMG M&E Industry Report 2017, the shape of the Indian advertising revenue pie will change completely during this decade. The rate at which digital advertising revenue has been growing and the digital industry is predicted to grow during 2017-2021, it will not be surprising if we find that the size of digital advertising revenue equalises the print advertising revenue even before 2021.



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