In ten years, the Indian economy has more than quadrupled in size from $422 billion in 2001 to $2 trillion in 2012. Moreover, India’s GDP per capita has more than trebled from under $500 in 2002 to now crossing $1,700.
According to LV Krishnan, CEO of TAM Media research, “Contribution of services has grown and manufacturing has dipped in relative terms. That’s the biggest change in the advertising world”.
TV has become the primary advertising media today at 42% of annual spend compared to 37% in 2005. Newspapers have a shrinking share of 39% (49% in 2005) and digital media is growing rapidly from 1% in 2005, to 6% of the total ad spend today. According to Tarun Abhichandani, group business director, e-Tech Group, IMRB International, it is important to remember that despite this shift, print is still growing in India at 11-12%.
