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Ad industry smiles as revenues rise 14 pc

Nithya Subramanian

New Delhi , Dec. 18

IT has been a sparkling year for the advertising industry. Overall ad revenues during 2005 grew by 14.1 per cent to Rs 13,200 crore up from last year's Rs 11,600 crore.

According to the advertising tracking agency, AdEx India, for a second consecutive year, the print media grew at a higher rate of 16.1 per cent compared to television's growth rate of 11.4 per cent. In terms of shares, television share fell from 42 per cent to about 41 per cent, while print grew from 47.1 per cent to 47.9 per cent. Other media vehicles such as outdoor advertising garnered a share of 6.8 per cent, radio had 2.4 per cent, cinema 1.1 per cent and the Internet had a 0.8 per cent share of the advertising pie.

"These numbers indicate that the growth in the print media is not merely a flash in the pan. While last year's growth in this segment was attributed to election-related advertising, this year, the growth has come due to advertisers shifting from classifieds to space. Educational institutions, real estate and retail continued to be the major drivers," said AdEx India officials.

With respect to television, the official said that general entertainment channels have managed to retain their revenues due to the good performance of StarOne and SaharaOne, and their overall share has shrunk marginally. In fact, the Hindi film, regional language and news channels have witnessed growth. "There has been a general shift towards Hindi movie channels with advertising rates going up. There has also been an upward correction in the ad rates of regional channels," he added.

This year also saw Internet and radio advertising picking up, with the former crossing the Rs 100-crore mark. Not just the private radio channels, but even Prasar Bharati-owned All India Radio (AIR) have been witnessing an increase in advertising revenues. However, spends in outdoor advertising and cinema have declined marginally.

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