FICCI-KPMG-Report-13-FRAMES

44
The power of a billion: Realizing the Indian dream
Advertising mix
INR Billion 2009 2010 2011 2012 2013p 2014p 2015p 2016p 2017p
English 49 53 57 59 62 66 70 74 79
Hindi 31 37 41 45 49 56 64 73 83
Vernacular 30 36 42 46 51 57 66 75 85
Total 110 126 139 150 162 179 200 222 248
Source: KPMG in India analysis, Industry discussions conducted by KPMG in India
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with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Print sector growth during last five years
Source: KPMG in India analysis
Accordingly, 2012 witnessed some improvement in
circulation revenues which increased by 7.3 percent year
on year as compared to only 3.8 percent in 2011. This was
achieved through launch of new editions and increase
in cover prices of established editions. Going forward,
the industry may adopt a differentiated pricing strategy
by increasing the price of established editions in mature
markets while holding the prices low in case of tier II and
III markets or while entering newer markets. Such an
approach will enable mature editions to gradually decrease
their dependence on advertising revenues.
Growth in the previous year was mainly driven by an
increase in advertising volumes and circulation revenue.
Yield in most markets remained flat or marginally improved
and did not have any material impact on the overall growth
of the print sector. Overall advertising in the industry has
grown 7.3 percent - lower than previous estimate. The
english segment faced the roughest weather 7 .
While the market for English dailies continues to be tough,
the regional and vernacular markets continue to defy
gravity and grow on the back of rising literacy and low
print media penetration as well as the continued tide of
advertisers wanting to spend in these markets. The growth
of the overall print industry was, hence, largely driven by
Hindi and the vernacular print markets. The Hindi print
market grew by 9.8 percent from INR 62 billion in 2011 to
INR 68 billion in 2012 and vernacular from INR 63 billion
2011 to INR 69 billion in 2012 respectively 7 .
07. KPMG in India Analysis