Report says online promotion segment will see biggest surge

The Rs 23,840-crore advertising industry, which saw flat growth in calendar year 2009, is set to grow at a compounded annual growth rate (CAGR) of 14 per cent in 2010, according to a report by consultancy KPMG.

Click here for Cloud Computing

Also Read   Related Stories News Now - Copper consumption likely to rise by 5-6% - Markets to remain volatile with negative bias - Mkt may rally after consolidation in nxt few days: analysts - Sebi removes no-delivery period - Value picks - Declining ad spend to mute media growth story

Also Read   Related Stories News Now - Wall Street opens higher on Greek deal - Oil cos seek compensation for losses on petrol - Centre for 6% road tax on cars, two-wheelers - RBI raises bank rate to 9.5% - Axis Bank reappoints Shikha Sharma as Managing Director More

The growth in regional advertising is partly driven by new sectors such as education, hospitality, real estate and jewellery, which often have local brands and therefore prefer to advertise through local channels, according to KPMG.

Rajesh Jain, executive director and head (M&E practice), KPMG, told Business Standard: “Today, Tier-II and Tier-III towns are emerging as important growth centres and most major brands are increasing their focus to cater to them. Regional TV channels have recorded a growth rate of roughly 25 per cent. This should drive media planners to raise the ratio of ad volumes placed in the local media.” The print media, noted Jain, registered sluggish growth in 2009 on advertising revenues. This was because the economic slowdown and the consequent reduction in budgets of key advertisers such as retail and real estate companies.

The Rs 11,480-crore print advertising industry is expected to have flat growth this year, too, says Jain.

KPMG believes online advertising will grow about 30 per cent per annum, establishing itself as the fastest growing advertising medium.

“If advertisement revenues on TV, radio and print have seen de-growth (fall) in the last 12-14 months, advertisers have flocked to the internet,” said Jain. Though TV and print advertising comprise 85 per cent of all advertising revenue, KPMG said the Rs 840-crore internet advertising industry would attract the most aggressive marketing from both multinational companies and local brands.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Wall Street opens higher on Greek deal - Oil cos seek compensation for losses on petrol - Centre for 6% road tax on cars, two-wheelers - RBI raises bank rate to 9.5% - Axis Bank reappoints Shikha Sharma as Managing Director

Tags : compounded annual growth rate | Rajesh Jain | KPMG | internet advertising industry   Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  Save over Rs.3000 with IndianOil Citibank Card -  We live for our family. have you secured them? -  Are You Serious About Your Future? Click here to know more -  Financial Learning now made easier and more convenient. -  India's No. 1 Property Site. Click here to know more.. -  Get 5% cashback on telephone bills with Citi -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Be part of it The World's Largest Aircraft. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Office 365 for professionals and small businesses. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more -  Health is Wealth..... Insurance + Savings... Know More...