The global advertisement growth rate is around 4.5%, while the expansion rate in India this year was around 12%: Source
Deciphering the above figures gives us the opportunity to understand the potential of the Indian advertisement market. And, the traditional media market is making the most of this particular boom. For instance, the revenue generated in print media is about to surge at 3.25 billion USD by the end of this given year.
We can safely assume that the present market scenario of the conventional advertising industry is blooming and secured. Let us understand more and glance at the country’s actual market situation so that we can completely comprehend the industry for the benefit of future ad marketers.
Current scenario of the advertising market
As mentioned above, the marketing and advert industry in India is currently generating a lot of hype and sound. You might now begin to think that digital media has played a large chunk to produce that hurrah. However, till 2015, the new form of online advertisement market had only a projected small contribution of 15% in the whole industry.
On the other hand, a whopping 50,000 crore rupees were spent on advertisements alone during last year. Thus, you can safely assume that the traditional outdoor hoarding, print, and digital media outlets still made the most of the market and satisfied all the requirements and needs of the industry.
Experts also state that the advertising market is all set to expand even further in the coming years as the growth rate is all set to increase profoundly.
The current situation of the traditional advertising market
Categorically, there are four major conventional advertisement mediums in the global market. It is the same in India too. The options are as follows:
• Print Media—where newspaper and magazine adverts are given
• Radio and Television Media—or also known as the commercial spots or ads channel
• Outdoor Media—where the advertisements are placed in general populated areas on billboards, hoardings, pole kiosks, shopping malls, etc.
• Transit Media—another out of home advert medium where pictorial ads are fixed over taxis, buses, on bus seats, and on other vehicles
The demand in India for using these spaces for marketing purposes is enormous, as they hold power to serve 1.25 billion people in the country.
With traditional media spending valued at $ 5 Billion for this year alone in India, it is evident that the market is robust and has the potential to deliver. Keeping in mind the population of India, advertisers here, on average, still spend more than $ 5 per person for placing adverts. All these figures are set to increase in the coming years as well because of the expansion of the markets and the excess demand from advertisers.
What is helping the conventional advertisement market to grow?
Advertisers and companies prefer to use the traditional format of brand strategy holistically. The mainstream advert market attracts all types of businesses and entities and hence there is a future scope of growth in the industry. One of the main reasons why advertisement spending has increased so much in the last few years is because of this nation’s ‘developing’ tag and with the commercial emergence of the smaller cities.
Also, thanks to the rise in the e-commerce market, advertisement programs have surged ahead as well. With starting and doing business becoming faster, easier, quicker, and less hectic in the recent years, thanks to regulation changes, more and more small entities and start-ups have also cropped up. Everything has resulted in a boom in the advertisement industry, as promotion is necessary with any new inception.
If you run a company or a brand, even you know the benefits of putting up adverts in the conventional way to lure in more customers to serve. Hence, it does not come as a surprise the way the conventional media market is thriving and magnifying every single year.
How the medium is effective for companies to use
Now we know there is a truckload demand for placing an advertisement in the market, but we must dig deep and understand why businesses are always in awe of the conventional media option. Firstly, traditional adverts are capable of generating loyalty and goodwill in a very quick way. When a new company starts its venture or brings something new to the table, it uses the traditional medium to convey its message to the people. You can touch the masses with this form of advertising.
And, since you are touching the population at one single go, you can also estimate that traditional media is cost efficient than other forms of advertising. The recalling effect on mediums like billboards, radio jingles, and newspaper ads are also much higher than other formats of promotion.
Finally, traditional ad locations and spots can also be bought and purchased in a very quick way, by utilizing the features of an online media selling and buying platform. There are many reliable websites in the market, and this encourages advertisers to use the medium even more—as, getting a prime spot to place your advert is a huge bonus for any brand.
The conventional advertisement market in India is thriving on all fronts thanks to the demand the industry possesses. Also, because online technology is now playing a vital part in making the selection of the right advertising option, brands can now run their marketing campaign straight from their posh offices.
About the Author
This article was written by Sam Makad. Sam Makad is an experienced writer and marketing consultant. His expertise lies on marketing and advertising. He helps small & medium enterprises to grow their business and overall ROI.