Advertisement market of news channels is expected to grow by 13 per cent this year and cross Rs 1,800 crore mark with the next level of growth likely to be witnessed in regional and local markets, a study has claimed.
Advertisement market of news channels is expected to grow by 13 per cent this year and cross Rs 1,800 crore mark with the next level of growth likely to be witnessed in regional and local markets, a study has claimed.
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According to the study conducted by the Media Lab of Centre for Media Studies (CMS), the size of TV news advertisement market has increased 16 times in the last 10 years from Rs 100 crore in 2000 to Rs 1,600 crore last year.
"India has witnessed an explosive and unparalleled growth of news channels in the last decade. The number of TV channels has increased 48 times in nine years. Phenomenal growth of news channels has resulted in the expansion of viewership and advertisement market size," it said.
The study estimated that the TV news advertisement market is expected to grow by 13 per cent this year and cross Rs 1,800 crore, Prabhakar, the head of CMS Media Lab, said.
"This estimate is arrived at by collecting the projections from top advertisement agencies and news channels. We took the average of conservative and liberal projections.
Inflation and the economy recovering from recession are also considered in arriving at this estimate," he told PTI.
The study said that the 2009 Lok Sabha elections came as a boon for news channels as political advertisements brought in a considerable amount of revenue for the channels.
The Information and Broadcasting Ministry has given licenses to 238 news channels so far but some of them are still not on air.
According to the study, the next level of growth in TV market will come from regional and local markets. Noting that the regional and local markets are still "untapped", the study said the growth in news space has shifted from national to regional as national news space is cluttered and it is very difficult to get a foothold in national news market.
"At present, regional channels command 45 per cent of revenue share in comparison with 55 per cent of national channels in total revenue generated by news.
"Technological breakthroughs in communication are so advanced that costs have crashed many times to give mass accessibility.
Hence new channels were launched easily even by small entrepreneurs from regional markets," it said. The study noted that the viewers also prefer news channels that have more focus at the regional level or news stories that have more proximity to them.
"Over the past three years, regional channels have gained huge number of eye-balls than national Hindi and English news channels," the study added.
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