Indiantelevision.com > Media, Advertising & Marketing Watch > TV driven economy has room for expansion, Rs 500 billion realistic: Subhash Chandra

Indiantelevision.com's Media, Advertising, Marketing Watch

TV driven economy has room for expansion, Rs 500 billion realistic: Subhash Chandra

Indiantelevision.com Team

(18 April 2007 10:30 pm)

GOA: As a prelude to GoaFest, the AAAI organized an AD conclave that saw the participation of Zee Group Chairman Subhash Chandran, ABP Group MD Pramath Raj Sinha and a streaming video statement by WPP CEO Sir Martin Sorell.

Star CEO Paul Aiello was to address the gathering however was unable to make it. The other speakers on the dais were Prasoon Joshi, SK Swamy and Raj Nayak, the session also saw active participation from a host of senior advertising executives including Sam Balsara, Shashi Sinha and Mahesh Chauhan, among others.

Proposing to resolve the issue confronting the growth of the Indian advertising industry to achieve Rs 500 billion, individual speakers expressed their views on the same specific to their domain of expertise. Swamy stated, "The current ad growth in India is $ 3 billion, contributing to approximately 0.3% of the GDP." Adding that a recent Goldman and Sachs report which stated that India was expected to see an 8% growth in GDP till 2050 which will cause ad expenditure to surge further.

Chandra took the podium narrating the Zee story and specifically looking at television, questioned whether TV in India was an undervalued proposition. To grow to Rs 500 billion from its current standing of Rs 150 billion, the industry would have to register a 50 per cent year on year growth. However, he believes that the television driven economy has room for greater expansion and the mission of achieving a Rs 500 billion target is not a dream but a realistic proposition.

Providing a differing viewpoint, Sinha emphasized the need for the industry to first 'start behaving like an industry.' Rather than competition, collaboration is critical, he stressed. In a complex industry structure, investment in thought leadership is key.

Sir Martin Sorell, in his address, attempted to boost the potential of a market that according to him is an attractive environment for WPP. Sorrel said the company is very bullish on India. He questioned the ad fraternity on why they doubt the possibility of achieving the Rs 500 billion mark.

While admitting that India continues to confront disadvantages that limit its progress in the context of growth of free trade and new technology, Sorrel expressed confidence that India would respond accordingly. This is strategic to its development, he concluded.

This will set the stage for two days that follow, which will attempt to combine serious debate with fun and frolic. Additionally, a host of International speakers, including Donald Gunn (of the Gunn Report) and Trevor Beattie of BMB, London will throw light on global developments, primarily in the space of digital media.

The happenings of the day will culminate with award shows recognizing outstanding work in the media and creative space. AAAI president and RK Swamy BBDO chairman and MD Srinivasan K Swamy said that the focal point of Goafest will be to honour and celebrate excellent work and provide a platform for discussion that will help grow the industry beyond its current stature.

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