What does H2 2020 hold for India’s AdEx?

Presenting the Mid-Year Review of the Pitch Madison Advertising Report, 2020.

ADEX CONTRACTS IN Q1 AND COLLAPSES IN Q2

AdEx has collapsed by as much as 65% because of COVID-19 in Q2. Significantly, AdEx had also contracted by 8% in Q1. In absolute terms, it means an unprecedented drop of almost Rs 14,000 crore from Rs 35,110 crore in H1’19 to Rs 21,298 crore in H1 2020. Drops are much higher for traditional media.

TV:

LEAST DAMAGE. QUICK RECOVERY.

It is no consolation to our TV media barons that the medium suffered least damage among traditional mediums in H1 ‘20. However, what should bring cheer to them is that TV was the first to show signs of quick recovery – though TV dropped by more than 40% in H1’20 with a total AdEx of Rs 8,084 crore, it registered a share of 38% of the advertising pie.

DIGITAL:

UNSHAKEN.

Digital suffered a minor contraction of just 7%, even as all the other mediums suffered a drop of 40-55%. Digital is also the only medium to grow by 16% in Q1 2020, when all others registered a double-digit drop. In absolute terms, Digital AdEx in H1 20 stood at Rs 6,472 crore, commanding a 30% share of AdEx, firmly displacing Print.

PRINT:

DISMAY.

Print AdEx suffered not just because of lack of advertising money in the market, but also because of the lockdown, as newspapers could not be
delivered to households. While most readers could lay their hands on the e-version of their favourite titles, widely in circulation over WhatsApp, quick
monetisation of this phenomenon was difficult. In absolute terms, Print AdEx stood at Rs 5,237 crore in H1’20.

RADIO:

WEAK SIGNALS.

Like other traditional mediums, Radio too suffered a 19% drop in Q1 ‘20 and a dramatic 87% drop in Q2 because of no advertising money in the market. In absolute terms, Radio AdEx stood at Rs 569 crore for H1 ‘20.

OOH:

EMPTY ROADS.

The months of April and May were characterised by empty roads, which predictably led most advertisers to avoid Outdoor altogether in Q2. In Q1 too, Outdoor had registered a drop of 13%. Overall, OOH advertising stood at Rs 760 cr in H1 ‘20.

CINEMA:

BLANK SCREENS.

Since Cinemas have remained shut since the start of the lockdown, this medium registered nil ad spends in Q2. It also contracted by 19% in Q1 ’20, registering an estimated billing of just Rs 176 crore.

H1 ‘20, OUTLOOK H2 ‘20 AND FULL YEAR ‘20

BACK WITH A VENGEANCE.

We expect AdEx to recover in H2 ‘20 and grow at a dramatic rate of 60-72% of the collapsed H1 or grow 6-13% versus H2 ‘19. This will lead to overall AdEx in 2020 contracting by 14-18%, and its value to be pessimistically just over the 2017 level or optimistically a little below the 2018 level.

Report By Madison Media

Madison World is a 32 – year old diversified communication group with integrated & specialized services in different areas of communication like Advertising, media Digital, Business Analytics, Out of Home, Rural, Retail, Events, Activations, Entertainment & Sports; Employing about 1,000 communication professionals across India, Sri Lanka, Thailand & Bangladesh.