Advertising Growth Projections: Whom Do You Believe?
After close to 20% year-on-year growth of advertising for nearly four years, there is now a great deal of apprehension among media companies about what 2009 holds for ad spends. Four projections from media agencies and research companies give a wide range of figures. Madison Media has the bleakest Outlook. In its report with Pitch magazine, the agency said advertising will grow only by 2% in 2009. GroupM is the most optimistic, projecting a 9% growth in 2009. The FICCI-KPMG report projected a 7.58% growth and a just released report by Media Partners Asia, a research firm, says advertising will grow 7.2%.
Who do you believe?
We surveyed five CEOs across media platforms whose businesses are heavily dependent on advertising revenues. We asked them which figure they believed and why. We also asked them to base their answers on the performance of the first two months of the year. Here’s what they said.
Ravi Dhariwal, CEO, Bennett, Coleman & Co. Ltd. Publishes The Times of India and The Economic Times, among others.
“I don
Economic recession has affected all industries and media is no exception. Even though the early projections of media growth will not hold true now, a slow growth will be seen. The article above rightly points out how advertising projections are made and how will it affect the industry in general….good compilation….
Due to economic recession it can't be said exactly that wht would be the growth…bcoz projections are not alwys vry much accurate..but it will grow definitely :)
A very good article. I think by August the market will regain the momentum. Nobody can give actual growth predictions, right now everybody is just hoping for a bounce back.
Well, the effects of recession will be felt avross all the industries. advertising will not be able to remian untouched from the bleak outlook. however, i think things wont be that bad for this industry in comparison to others. Also, the revival of advertising industry in general will take place sooner than later.
I think advertising will gain sooner or later, just matter of time
As Mr. Peter Mukerjea, rightly said,
- brands are going to remain active – Looking at the current global economic crunch, which makes competition even more tougher in each segment, well, its need of the hour for brands to be real active and avoid complete fall.
- they will be forced to look at different ways of spending – Online media for example…
No doubt Recession has affected Advertising industry, but as I said, marketers can't afford to remain out of picture, their smart choices among media-types will ultimately add figures to Media growth.
No matter what will gona happen, advertising still needed