The media and entertainment (M&E) industry in India is set to grow at a CAGR of 14.3 per cent to ₹2,260 billion by 2020, led by advertising revenue which is expected to grow to ₹994 billion at a CAGR of 15.9 per cent. Digital advertising grew 38.2 per cent over 2014 as a rising Internet user base and data usage were supplemented by marketers spending more on it. These findings are part of the FICCI - KPMG Media and Entertainment industry report 2016.

By 2020 the digital advertising market is likely to scale up to ₹255 billion and contribute to 25.7 per cent of total advertising revenues. Mobile and video advertising will account for a higher share of digital media spending.

According to the report, the M&E sector grew by 12.8 per cent from ₹1,026 billion in 2014 to ₹1,157 billion in 2015. Overall advertising grew by 14.7 per cent from ₹414 billion in 2014 to ₹475 billion in 2015. The television sector witnessed strong advertising-led growth at 17 per cent with increase in e-commerce spends. At 7.6 per cent, the print industry witnessed a marginal slowdown in 2015 compared to 2014 – an election year.

The regional print market continues to have a bright future, especially with the government’s recent rural-friendly Budget and newer categories like e-commerce likely to help publications in tier II and tier III markets. “ The radio industry grew at 15.3 per cent in 2015, and is projected to grow at over 16 per cent for the next few years, driven by the implementation of Phase 3 of licensing. The 4G rollout, ‘Digital India’ initiative and private initiatives for broadband Wi-Fi availability at public places are likely to catalyse the growth of Over-the-Top (OTT) services – several of which were launched in 2015.

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