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| 'TV ad grew close to 50 per cent in April-June' | | Q&A: LV Krishnan, CEO, TAM India |
| Sapna Agarwal / Mumbai Jul 13, 2009, 00:50 IST |
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 Television advertising accounts for close to 40 per cent of the overall advertising revenue of around Rs 22,000 crore. In calendar year 2008, the medium recorded a 20 per cent growth. Due to the overall economic slowdown, the outlook for 2009 was bleak with various media planning and buying agencies predicting a single-digit growth for the medium. LV Krishnan, chief executive officer, TAM India, tells Sapna Agarwal that the outlook has improved and the growth would be much more than what was predicted earlier.
A joint venture company between AC Nielsen & Kantar Media Research/ IMRB, TAM Media Research is a TV viewership analysis firm. TAM also monitors advertising expenditure through its division AdEx India. Edited excerpts:
Now that we are halfway into the year, do you think we are being conservative with our estimates for the advertisement industry?
Television accounts for nearly 40 per cent of the advertising industry. In 2008, television grew at close to 20 per cent to Rs 8,500 crore. While we don't expect to see the same growth as last year, we are revising our estimates from single-digit to anywhere between 10 and 15 per cent in this calendar year. However, an important factor for this growth would be timely monsoons.
What has caused this revision in forecast?
Contrary to our expectations, the medium has done really well this year. The growth in the April to June period is close to 50 per cent over the corresponding period last year. This was largely on account of political or social advertising and the Indian Premier League (IPL).
How has the slowdown impacted advertisers?
The slowdown has not affected the fast moving consumer goods (FMCG) sector (the largest advertiser) as the sector’s top line grew at an average of close to 20 per cent. This has translated into a proportional increase in the advertising spends of FMCG companies. However, sectors like consumer durables, aviation, education and retail have reduced their overall advertising spends, especially in print. If monsoons are normal, we hope to see the revival of these sectors and this will help the overall industry as well as the print ads to grow.
Is sports as a genre for advertising still limited to cricket?
Sports as a genre is going beyond cricket. With India hosting the Commonwealth Games in Delhi, there is bound to be a lot of advertising interest in the event. Then there is the Hockey World Championship also taking place here. Next year there is the Federation of International Footballers Association (FIFA) event. All these various sports are seeing the genre evolve.
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