Forecast of the development of the advertising market in India
The relevance of research
The advertising market, especially in recent years, is changing under the influence of qualitatively new ways, means and technologies for delivering information to the consumer.
Purpose of the study
Analyzing the state of the advertising market in India, assessing the size of the market, analyzing competitors, as well as determining the factors affecting the advertising market
Content
Chapter 1. Key Components of the Advertising Market
1.1. Market size
1.2. Advertising Market Growth Rates
1.3. Advertising market trends
1.4. The main problems of the industry
1.5. Stage of the life cycle of the advertising market
1.6. Estimation of the number of buyers and their financial capabilities
1.7. Estimated consumption per capita
1.8. Analysis of sectoral indicators of financial and economic activity
1.9. Price analysis
Chapter 2
2.1. Economic components
2.2. Social Components
2.3. Technological components
2.4. Political Components
2.5. STEP-analysis of the advertising market
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
3.2. Number of competitors and relative market shares of the largest competitors
3.3. Compact location of industry companies in certain regions
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
4.2. Analysis of the impact on the state aid industry at the current date
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers existing in the advertising market
4.4. Prospects and growth drivers of the advertising market
4.5. Forecast of the development of the advertising market in the context of the current economic crisis due to covid-19
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
5.2. Sources of information for forecasting
5.3. Timing of forecasting
Research excerpt
Chapter 1. Key Components of the Advertising Market
1.1. Market size
At the end of 2020, the volume of the advertising market as a whole amounted to ... billion rupees, of which the largest part fell on the segment of ... - ... billion rupees, in second place was the segment of ... - ... billion rupees, ... - ... billion rupees, ... In general, the market structure according to types of advertising placement can be represented as follows:
Diagram 1. Market structure by type of advertising placement
The structure of the Indian advertising market can be characterized in many ways, but the most interesting is…
The advertising market, especially in recent years, is changing under …
...
Assessing the state of the Indian advertising market, it is important to consider that it is closely integrated into …
1.2. Advertising Market Growth Rates
Market growth rates in 2016-2020 allow us to state that the market is in … and close to …, this is indicated every year ... The decline that occurred in 2020 is caused primarily by …
According to the … Indian data, the advertising market showed … dynamics in 2020 compared to 2019 by …%, in monetary terms, the market volume in 2020 amounted to … billion Rs. For the period 2016-2019 market volume …%, excluding … in 2020, which followed as a result of ... In previous periods of crisis, the Indian advertising market also … dynamics: in 2009 (… % compared to 2008) and in 2015 ( …% compared to 2014). In 2009, this was due to ...
The volume of the Indian advertising market during the study period has a stable ... and an average annual growth of ...%, ... The maximum value of the market volume was reached in ... and amounts to ... billion Rs., the minimum value for the study period - in ... year with an indicator of ... billion Rs. The main growth driver of the advertising market in India, according to estimates of …, over the past years remains … This segment is also insignificant, compared to previous periods, … in 2020. GidMarket analysts suggest that in the coming years the Indian advertising market will be …
1.3. Advertising market trends
One of the key trends that is changing the advertising market today is the change ... Generation ... into the solvent age, ... They become active consumers. It follows from this that large businesses need to ...
Market participants note that audience segmentation…
The second key point that directly affects the form and content of advertising is the total …
...
1.4. The main problems of the industry
...
1.5. Stage of the life cycle of the advertising market
The advertising market in India has reached the stage of ... The stage of ... is the stage of ...
Stage ... is characterized by a stable ..
...
The level of competition in the market is becoming...
At this stage, the formation...
The breadth of the range…
...
1.6. Estimation of the number of buyers and their financial capabilities
Population. During 2019-2020 India's population shows... Population decline has little effect on demand decline at the moment..., demand is affected to a greater extent by decline in..., which entails...
According to the results of the crisis year 2020, real disposable money incomes of Indians decreased by …% in annual terms, follows from ... From 2014 to 2017. real incomes of the population in India …, in 2018 showed …%, and by the end of 2019 …%. At the end of 2020, they lag behind by …% from the level of 2013 — …
… expects real disposable income to grow by … in 2021 and then …
1.7. Estimated consumption per capita
Chart 5. Consumption in the advertising market per capita, 2016–2020
The volume of advertising consumption per capita in India as a whole correlates with …, since the dynamics of the population over the study period ... The minimum value of advertising consumption per capita is … Rs./person. falls on … year, as well as … In 2017-2019. observed …, then in 2020 a decrease by …% - … Rs./person, which is primarily due to …
1.8. Analysis of sectoral indicators of financial and economic activity
Gross margin is an economic indicator that characterizes the ratio of gross profit to revenue and allows you to evaluate the efficiency of an industry or enterprise.
Gross margin of the advertising industry in 2016-2018 quite ..., the deviation from the analogous indicator for all sectors of the Indian economy in this period ..., the maximum value of the indicator is in ... yr - ...%, which is by ...% ... for all sectors of the Indian economy. In 2019-2020 indicator values ...
Diagram 6. Profitability before tax (profit of the reporting period) in the advertising industry in comparison with all sectors of the Indian economy, 2016–2020, %
Profitability before tax is an economic indicator that characterizes the ratio of gross profit to revenue, in other words, how much profit is in each ruble from services sold.
Profitability before tax in the advertising industry … in 2016-2018, during this period this indicator …
In 2019-2020, the profitability indicator before taxation is …, the minimum value of …% is observed in …. During this period, the profitability before taxation in the advertising industry became …
The current (total) liquidity ratio is a financial ratio equal to the ratio of current (current) assets to short-term liabilities (current liabilities). This is the most common and commonly used measure of liquidity. The coefficient reflects ...
The value of the coefficient is considered normal ...
Average current liquidity for the advertising industry in 2016-2020 - ..., the indicator changes ..., but rather ..., and indicates that the enterprises of the industry as a whole ...
The absolute liquidity ratio is a financial ratio equal to the ratio of cash and short-term financial investments to short-term liabilities (current liabilities). The data source is...
The financial position of the industry is recognized as good when the absolute liquidity ratio is obtained ... In other words, at least ...% of short-term liabilities must be secured ...
Since the absolute liquidity of the advertising industry ... in 2020, while its value becomes ..., the financial situation in the industry ... At the same time, in 2016-2019. this indicator in the advertising ...
1.9. Price analysis
Let's consider how prices changed in the advertising market in the study period.
Change in the consumer price index in the advertising market in 2016-2020 and the first two quarters of 2021 occurred from ... at the beginning of the period (2016-2018), in recent years, prices for advertising services ...:
the market is growing ...;
big advertisers…;
...
Table 4. Average prices in the advertising market by Union Territories
The cost of contact in various media varies from ...
The cost of placing an advertising video on the radio depends on ...
The average cost of one contact when placing an entire page (page) in glossy magazines and large print publications with a circulation of 1 million copies or more is about ... It is enough to determine the average cost of placement in the press ...
Online advertising is also characterized by various…
...
Chapter 2
2.1. Economic components
Gross domestic product (GDP) is one of the most important macroeconomic indicators.
It reflects the market value of all final goods and services intended for direct consumption, which were produced for a certain period (quarter, year) in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used.
GDP is expressed in national currency, or (if necessary) converted into foreign currency at the exchange rate, and can also be presented at purchasing power parity.
…
The decline in global demand for energy resources has affected the reduction in value added in …
...
In intra-annual dynamics, the deepest decline was observed in … quarter, mainly due to industries …, associated with measures to influence …
In the third quarter, the situation ...
The dynamics of GDP in 2020 relative to 2019 was affected by the decrease in domestic … (…%) and growth … (…%).
...
2.2. Social Components
...
2.3. Technological components
...
2.4. Political Components
...
2.5. STEP-analysis of the advertising market
Table 5. STEP analysis of factors affecting the advertising market
Based on the results of the analysis of factors influencing the Indian advertising market, there is a prevailing ... influence of the main number of factors on the market, and, accordingly, on demand.
Significant limiting factors include…
The following economic, political and technological factors have a stimulating effect on the analyzed market: ...
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
The advertising market in India is characterized by high …, the country has more than … companies operating in the advertising industry. Experts and major market players evaluate competition and related trends across different segments…
... are those key areas on the basis of which new ...
Among the key technologies that determine competition, experts and operators of the Indian advertising market name ...
In recent years, so-called “…” companies have been created on the market that work …
...
In India, there are large…
At the national level, tangible competition to other market players is ...
3.2. Number of competitors and relative market shares of the largest competitors
According to various estimates, about ... enterprises and entrepreneurs work in the advertising industry. The largest of them can be called ... All these enterprises have the main activity of ...
Diagram 10. Shares of the largest competitors in the advertising market in 2020, %
The leader of the Indian advertising market is LLC “…” with a share of …%, the second place with a share of …% is occupied by LLC “…”. In third place ... The total share of other companies is …%, the share of each of them is less than …%.
...
GidMarket analysts suggest that in the coming years, the list of market leaders is most likely to …
Net revenue for the TOP-5 companies according to Rosstat in 2020 totaled … million Rs., the increase compared to 2019 in revenue amounted to …%. At the same time, the revenue of the TOP-3 in 2020 …
The revenue of TOP-5 companies increased in 2019 by …% on average compared to 2018, compared to previous periods, this is …, since in 2017-2018. the revenue of companies from the TOP-5 on average …
3.3. Compact location of industry companies in certain regions
To determine the compactness of the placement of companies in the industry, consider the amount of revenue by the states of India.
The largest share of revenue from the activities of advertising agencies falls on ... (...%), since it is there that ... As a rule, large market operators have regional ... In second place in terms of the share of revenue is ..., despite the fact that its share is only …%, …
Based on the facts considered, it can be concluded that the companies of the advertising market in India are compactly located ...
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
In 2020, many markets have felt the impact of the pandemic and the onset of the economic crisis, and the advertising market is no exception.
Let us consider the impact of recent crises (the global crisis in 2008 and the currency crisis in India in 2014) on the advertising industry and the advertising market in India.
Table 7. Assessment of the impact of recent crises on the industry
During the crises of 2008-2010. and 2014-2016 advertising market in India...
4.2. Analysis of the impact on the state aid industry at the current date
Forecasting the development of the advertising market in India is impossible without understanding the economic situation in the country, as well as the impact of the spread of the covid-19 virus and the measures taken …
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers existing in the advertising market
...
4.4. Prospects and growth drivers of the advertising market
...
4.5. Forecast of the development of the advertising market in the context of the current economic crisis due to covid-19
...
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
Modern statistical forecasting methods are used, taking into account the actual dynamics of the industry and the impact of the current and projected general economic situation in connection with the spread of the covid-19 virus.
In addition, when compiling the forecast, changes in real incomes of the population, trends in consumer preferences in a crisis, development forecasts and the degree of impact of other factors affecting the industry are taken into account.
5.2. Sources of information for forecasting
Industry volume over the past 5 years
Industry dynamics in 2008-2009, in 2014-2015, in 2016-2020
Dynamics of macroeconomic indicators over the past 9-10 years
Current public assistance plans
Databases of the State Statistics Committee of India
Indian Revenue Service databases
Open sources (websites, portals)
Issuer reporting
Company websites
Media Archives
Regional and federal media
Insider sources
Specialized analytical portals
5.3. Timing of forecasting
The forecast belongs to the medium-term category - 5 years (2021-2025)
Diagrams
Diagram 1. Market structure by type of advertising placement
Diagram 2. Dynamics of the advertising market volume, 2016–2020
Figure 1. Life cycle stage of the advertising market in India
Diagram 3. Population dynamics in India, as of 01 Jan. 2012–2021
Chart 4. Dynamics of real income of the population of India, 2012-2020, available period 2021
Chart 5. Consumption in the advertising market per capita, 2016–2020
Diagram 6. Profitability before tax (profit of the reporting period) in the advertising industry in comparison with all sectors of the Indian economy, 2016–2020, %
Diagram 7. Current liquidity (total coverage) in the advertising industry for 2016–2020, times
Chart 8. India's GDP evolution, 2012-2020, available period 2021
Chart 9. Monthly dynamics of the US dollar against the rupee, 2016 - available period 2021, Rs. for 1 US dollar
Diagram 10. Shares of the largest competitors in the advertising market in 2020, %
Diagram 11. Dynamics of the total revenue of the largest advertising market operators (TOP-5) in India, 2016–2020
Diagram 12. Compactness of location of companies in the industry in certain regions
Diagram 13. Forecast of the advertising market size in 2021–2025
Tables
Table 1. Gross margin of the advertising industry in comparison with all sectors of the Indian economy, 2016-2020, %
Table 2. Absolute liquidity of the advertising industry in comparison with all sectors of the Indian economy, 2016-2020, times
Table 3. Consumer price indices in the advertising market for India in 2016–2021 (available period), %
Table 4. Average prices in the advertising market by Union Territories
Table 5. STEP analysis of factors affecting the advertising market
Table 6. Main companies participating in the advertising market in 2020
Table 7. Assessment of the impact of recent crises on the industry
Table 8. Analysis of the impact on the industry of the state aid proposed to date
Table 9. Forecast indicators of the development of the Indian economy
All reports