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TV spends show 20% increase to Rs 55 billion in 2005

Published

20 years ago

June 29, 2006

Media matters and how. Lintas Media Services has churned out a comprehensive media guide, which is an analysis of media spends and buys in the year gone by. Released by Intellect, a part of the Lintas Media Group, it studies all genres; television, print, radio, internet, cinema, outdoor and gives a break up of the media environment and general media industry trends of last year.

With data compiled from all over the Indian subcontinent, spanning more than 28 states and seven Union territories, the guide is an all-inclusive take on the Indian media industry and players.

Lintas Media Group director media services Lynn de Souza said, “Media closed 2005 on a happy note and 2006 promised to be an optimistic year. The total advertising media spends showed a growth of 15 per cent reaching a figure of Rs 159.41 billion. While print continued to hold more than 57 per cent of the total media spends, radio, as a means of advertising saw an increase in the ad spends. Cinema, outdoor, and internet on the other hand capitalised on innovations. In many ways, 2006 will be a year that we can all excitedly look forward to.”

The total media expenditure mix for 2005 was that of Rs 159.41 billion over 2004‘s Rs 120.71 billion, of which press saw a growth of 14 per cent over 2004 with an expenditure of Rs 90.64 billion in 2005. Internet saw a growth of 35 per cent with its media expenditure standing at Rs 1 billion in 2005 over Rs 740 million in 2004. Radio and Outdoor medium saw a growth of 25 per cent each, with outdoor at Rs 8.55 billion and radio standing at Rs 3.75 billion. All in all, an overall growth of 15 per cent was witnessed in 2005 across all media.

Of the total Rs 159.41 billion media expenditure in 2005, press share comprised 56.9 per cent, television was 34.7 per cent, outdoor was 5.4 per cent, radio was 2.3 per cent and internet was 0.6 per cent.

In the first of the series, we take a look at what the Television scenario in 2005 was like.

Television spends showed a 20 per cent increase to Rs 55.26 billion in 2005 as compared to 2004‘s Rs 46.08 billion. While cable and satellite channels contributed significantly to this growth, DD terrestrial channels too clocked a healthy growth figure. What has fuelled this growth is the sharing of cricket rights and the increasing need for the advertiser to reach smaller towns.

Television not only saw a continued increase in the number of channels but also in ad spends. TV spends increased by news channels, kids channels, niche entertainment channels, continued to add to the existing channel bouquets.

Not only TV software but immense progress was seen in the TV delivery systems. DTH, IPTV, digital cable, CAS – all have become a feasible reality now limited only by the government stipulations.

The Lintas Media Guide mentions that these developments promise to aid faster penetration of satellite channels to the hinterlands and at the same time will enable providing a richer and interactive viewing experience for the upper town populace.

DTH, on the other hand, too became a reality with DD Direct and Zee‘s Dishtv stepping on the pedal to make available their services to small town and rural areas. Now with the impending launch of the Tata Sky DTH platform, this space will gain further impetus.

On the programming front, as family dramas lost some charm, multiple offerings amongst news, kids and niche entertainment channels brightened the choice for the viewers. However, there was no respite in the rate at which new channels are being added to the current bouquets from the earlier years.

According to the Lintas Media Guide 2006, the emergence of niche genres and their success in capturing the interest of the evolving TV audiences has affected the share of the general entertainment genre.

Advertising avoidance is a globally recognized issue and broadcasters, advertisers and media agencies are all aware of it. However, with TV still being the most suitable media for various brands, there is a spurt in the efforts to go beyond the 30 second commercial. Content creation, in-program placements, integration with ground activities and creating interactivity are some of the different ways in which the advertisers are trying to get the TV viewer exposed to the brand messages.

The Guide also mentions that there have been feeble or no attempts by the broadcasters to reduce ad-clutter. Unless DTH, CAS and other addressable systems append to the subscription revenue of the advertisers, the ad clutter is set to increase. The ad-clutter (of an average ads seen by any TV viewer per week) stands at 313 ads per week and shows an increase of eight per cent over last year.

Apart from that, TV research also continued to be a matter of hot debate and AMap, the new entrant in the industry steadily but surely managed to set up a formidable TV measurement panel aiming to be far bigger in sample size than the existing TAM panel. The year 2006 will have TAM and AMap waging an even more pronounced battle of ratings, says the Guide.

The research users expect a larger sample size, more description variables and faster reporting among other improvements in the research system. This year will be the year to see how Tam responds to the competitive challenge and how the TV measurement system in India develops.

According to Lintas Media estimates based on indicative market costs, the top category of advertisers on TV in 2004 – 2005 are as shown below:

According to Lintas Media estimates based on indicative market costs, the top advertisers on TV in 2004 – 2005 are as shown below:

According to Ficci, television advertising pie is set to increase its share to 51 per cent by 2010 and a lot of this growth is expected through subscription and content syndication amongst other things.

“We look forward to 2006 as the year for TV to re-orient itself in the areas of multiple delivery platforms, maturing of the niche genres, innovation in advertising and improved TV research,” says the Guide.

Stay tuned for the next in the series…

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Innocean renews global media partnership with Havas

Published

2 weeks ago

February 6, 2026

indiantelevision.com Team

MUMBAI: Innocean has renewed its global media partnership with Havas Media Network following an internal review across Hyundai Motor Group brands.
The renewed mandate spans Hyundai, Kia and Genesis across Europe, the Middle East, Asia Pacific and Latin America. The work will be coordinated with Innocean’s international teams in Seoul, Frankfurt, Dubai, New Delhi and Jakarta.

The refreshed alliance is designed with a sharper focus on data and technology, aiming to connect the dots across customer acquisition, conversion and retention as the Group’s global audience continues to diversify.

Innocean head of global business Steve Jun, said the extension reflects a shared push for stronger, data-led media performance across key markets. He added that the partnership would focus on creating more connected and effective customer experiences for Hyundai Motor Group brands.

Havas Media Network global CEO Peter Mears, described the relationship as one built on innovation and global scale. He said the next phase would lean on the network’s Converged.AI platform to deliver seamless, data-driven media experiences and drive business outcomes for the automotive brands.

The renewed partnership officially commenced in January 2026.

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Dentsu ad report 2026 flags digital dominance as retail media soars

Published

2 weeks ago

February 4, 2026

indiantelevision.com Team

INDIA: India’s advertising industry is entering a new phase of structural transformation, with digital media now the central growth engine, according to the Dentsu digital advertising report 2026.

Total advertising spends closed 2025 at Rs 1.21 lakh crore, up 8.3 per cent year on year, and are projected to reach Rs 1.40 lakh crore by 2027, implying a compound annual growth rate of over 7 per cent.

Digital advertising accounted for Rs 71,621 crore in 2025, representing 59 per cent of total spends. By 2027, digital’s share is expected to rise to around 70 per cent, with spends nearing Rs 98,034 crore.

The report stresses that this is no longer a temporary shift but a permanent rebalancing of advertising priorities, driven by mobile-first consumption, short-form video, creator ecosystems, embedded commerce and AI-led optimisation.

Retail media has emerged as the fastest-growing segment, with ad spends on e-retail platforms reaching Rs 17,601 crore in 2025: a surge of nearly 56 per cent year on year. Retail platforms are evolving into full-funnel media ecosystems, linking storytelling directly with purchase outcomes through first-party data.

Within digital formats, social media leads with a 29 per cent share, closely followed by online video at 28 per cent, while paid search contributes 23 per cent. Online video is expected to overtake social as the largest digital format over the next two years.

Programmatic buying now accounts for 42 per cent of digital spends, exceeding Rs 30,000 crore, and is increasingly becoming the default media operating layer across video, connected TV and retail platforms.

FMCG remains the largest advertising category at 30 per cent of total spends, followed by e-commerce at 18 per cent, which also recorded the fastest growth.

Dentsu South Asia chief executive Harsha Razdan said the most meaningful industry shift has been in how consumers consciously allocate attention.

Dentsu South Asia president and chief strategy officer Narayan Devanathan, added that the next growth phase will belong to organisations that successfully integrate creativity, data, media and technology.

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Publicis Groupe posts strong revenue as AI drives demand

Published

2 weeks ago

February 3, 2026

indiantelevision.com Team

PARIS: Publicis Groupe is laughing all the way to the bank whilst its rivals scramble to catch up. The French advertising colossus reported full-year 2025 net revenue of €14.5bn, marking its sixth consecutive year of outperforming the industry. Organic growth hit 5.6 per cent, accelerating past its five-year compound annual growth rate of 5.0 per cent.

The secret sauce? Artificial intelligence-powered products and services, which contributed roughly 300 basis points to growth. Arthur Sadoun, chairman and chief executive, has staked Publicis’s future on becoming clients’ “most valuable partner” for what the firm calls “agentic business transformation”—essentially helping companies build enterprise-grade AI solutions that actually make money.

The fourth quarter proved particularly robust, with organic growth of 5.9 per cent despite tougher comparisons. Connected media, which accounts for 60 per cent of the business, surged with high-single-digit growth. Creative and production services delivered mid-single-digit expansion. Only the technology consulting arm stumbled, finishing nearly flat for the year as clients adopted a “wait-and-see” attitude—a malaise afflicting all IT consulting firms.

Geography tells a tale of American dominance. The United States, representing 57 per cent of group revenue, grew 5.2 per cent organically for the year, cementing Publicis’s position as the market leader. Europe managed 4.2 per cent growth, whilst Asia-Pacific posted 5.8 per cent, with China impressing at 6.0 per cent. The most dramatic expansions came from emerging markets: Latin America roared ahead at 18.7 per cent, whilst Middle East and Africa surged 10.8 per cent.

Operating margin improved to 18.2 per cent from 18.0 per cent, delivering 50 basis points of operating leverage. Crucially, Publicis reinvested 30 basis points—totalling 230 basis points overall—into AI capabilities, talent upgrades and new business development. The remaining 20 basis points flowed straight to the bottom line. Michel-Alain Proch, chief financial officer, called it “the highest operating margin in the industry”.

Free cash flow before working capital changes reached €2.03bn, up 10.6 per cent from an already-record 2024. The firm deployed roughly €1bn on bolt-on acquisitions targeting identity resolution, pharmaceuticals, influencer marketing and sports marketing. Client retention remained stellar at 98 per cent for top-100 clients, whilst new business wins exceeded $8bn.

Headline earnings per share climbed 6.6 per cent at constant currency to €7.48. In dollar terms—increasingly relevant given Publicis’s American dominance—EPS rose 7.0 per cent to $8.45. The board proposed a dividend of €3.75 per share, up 4.2 per cent, representing a payout ratio of 50.1 per cent, which Publicis claims is the highest in the industry.

The financial fortress looks impregnable. Net debt turned into net cash of €548m by year-end, down from net cash of €775m the previous year after funding acquisitions. The firm maintains €2bn in undrawn committed credit facilities and €4bn in cash and marketable securities. Average net debt to EBITDA stood at a negligible 1.0 times.

Industry sectors showed divergent fortunes. Consumer goods clients increased spending by 20 per cent, whilst automotive rose 14 per cent and financial services climbed 11 per cent. Technology clients, however, cut budgets by 7 per cent, and telecommunications spending dropped 2 per cent.

Publicis’s AI strategy extends beyond client services to internal transformation. The firm is “agentifying” processes using AI agents, equipping all 100,000-plus employees with AI tools through its Marcel learning platform. The goal: make everyone “AI-fluent” whilst boosting productivity and results. The company reckons AI-powered capabilities grew 20 per cent organically in 2025.

Looking ahead, Publicis guided for 2026 organic growth of 4.0 to 5.0 per cent—marking a potential seventh consecutive year of industry outperformance. Operating margin should tick “slightly” higher from the already-elevated 18.2 per cent whilst maintaining “high levels” of investment. Free cash flow is targeted at roughly €2.1bn, based on an exchange rate assumption of €1.20 to the dollar, earmarked for dividends, maintaining a stable share count and more bolt-on acquisitions.

The firm’s longer-term ambitions border on audaciousness. Management projects annual net revenue growth of 6.0 to 7.0 per cent and earnings-per-share expansion of 7.0 to 9.0 per cent, both at constant currency. The logic: AI is fragmenting the marketing landscape, with no top client spending more than 4.0 per cent of budget on any single platform. Publicis reckons its “unique connective tissue” positions it perfectly to orchestrate this complexity.

The advertising world has witnessed a decade-long reshaping. Since 2017, when Publicis began its data and technology pivot, the firm has invested €14bn integrating capabilities whilst rivals dithered. That first-mover advantage in AI has compounded. Publicis now claims the number-one position in global media billings, including in the crucial American and Chinese markets. Its market capitalisation exceeds the combined value of its next two competitors.

Yet competition is heating up as everyone piles into AI. Omnicom’s proposed merger with IPG would create a formidable rival. Technology giants are muscling into advertising with their own AI platforms. And clients are becoming more sophisticated, building in-house capabilities and squeezing agency margins.

Publicis is betting the farm that complexity favours the orchestrator. As marketing technology proliferates and AI agents multiply, companies will need partners who can connect the dots. Whether that vision proves prescient or hubris will determine if Sadoun’s transformation becomes a case study in strategic brilliance or just another expensive pivot that failed to justify its price tag. For now, though, the numbers suggest Publicis is winning the AI arms race in adland—and widening the gap with every quarter.