According to the pattern of advertising expenditure, the advertising industry is at boom. Though in 95-96 the advertising expenditure was 30.4% more than the 1990 figure as compared to 49.5% increase in 94-95. The money spend on advertising is going on a high path.

Ignoring inflation and assuming an optimistic growth rate, the industry should bloat to Rs.7,500 crore in the year 2000. A pessimistic view places it at around Rs.6,500 crore. The figure for media share break ups indicate a clear shift in advertising spending from print to electronic media, which is expected to rise from its current share of 25% to over 45% a quarter century from now.

The entertainment orientation of electronic channels will act as a spur. Electronic media is going beyond socio economic and language barriers. Moreover, electronic media incurs few additional costs while expanding its reach, unlike publications, which have to pay quite a bit more for each copy printed.

It is observed that media such as TV have the ability to acquire sizeable audience much faster than publications can build readerships.

How the Pie will be Split

Share of Different Media

Electronic media will be highly fragmented, though. TV options it is expected, will proliferate. In 1993 commercials took up 2.5 per cent of Doordarshan’s total transmission time. In 2020, this would not be too much higher which means that the national broadcaster will grow by creating new channels.

Several advertisers—corporate, core sector companies and so on—will continue to advertise in the print media. The boom in financial advertising will refuse to abate. Service advertising, which is growing at about 25 per cent annually, will also fuel growth in the advertising industry.


Currently, media ad revenues can be broken up into the followings—consumer durables—20 per cent; consumer non-durables—30 per cent; engineering and core sector industry related—25 per cent; media advertising—8 per cent; telecom and other such services—5 per cent; and others (including government tenders and classifieds) 14 per cent.

The electronic juggernaut will fragment in terms of vehicles as well, so print will lose some share to media other than TV. Emerging media options such as multimedia and computer networks are expected to take a 1.5 percent slice of the spending in 2000, and 5.5 percent in 2020. Without taking inflation into account, this segment alone is expected to be worth Rs.1,000 crore.

A booming ad industries is a positive indication of the health of an economy. “Advertising has had a greater contribution in ironing out imbalances in knowledge and awareness levels, than all governmental efforts put together”.