I know I am starting with a cliché! But that is what we all do when our appliances don’t seem to agree with us.
In the year of 2009 the world of economy was hit by recession due to some of the irrational decisions being taken in the past. So in 2010, with the slow recovery of the economy we will see a course correction happening at everywhere. We will challenge many old myths and clean the mess of 2009 to start a fresh beginning. A perfect time for ‘Resetting’!
But how much of our Indian businesses are going to be dependent on the global economy? While we’d like to believe that we have a huge domestic market to back us up in the recovery process but in an interconnected world any change in the global market will have its impact on our domestic market as well. At least in certain sectors! Since our advertising industry directly linked with the health of our economy, let us do some introspection.
The global economy is recovering with huge financial stimuli. The developing Asia is leading the rebound- China GDP @ 8.8 % and India @ 6.5 % (Source: UN/ DESA). The sudden pull out of the stimuli will push the economy back to recession again. So there will be a speculation in the market that will create a huge fluctuation in the consumer market also.
However certain positive indicators like 7.5% GDP growth and the stable stock market definitely cast a positive outlook for the Indian Economy in 2010.
So with this backdrop, there will be some key growth drivers for Media and Advertising in 2010:
- Recovery Of Real Estate: The growing demand for affordable housing and correction of property prices will see some genuine buyers returning to the market. So anybody directly or indirectly linked with this sector will reap the benefit and our advertising industry will be one of them
- Consolidation Of Financial Market: The recovery of stock market will bring back a host of financial advertisers to raise money from the market. Even the Mutual Fund will ride piggyback on this recovery.
- Reforms In Education Sectors: With reform we will see increasing private participation in this sector leading to brand building activity through the use of mass media advertising. Also plans to open this sector to FDI will invite a lot of international universities to India
- High Growth Sectors Will Continue To Grow: Telecom, Life Insurance, DTH etc. will fuel the growth with the entry of new players
- IPL3 Will Be Even Bigger Than IPL2 : With the homecoming of IPL, the hype and excitement will soar through the sky
- Going Green Means Business Opportunity Too : With the growing consumer demand for ecologically safe products, the advertisers will use mass media advertising to connect with their prospects about their adherence to emission norms
- Health Is Wealth : Fitness equipments and health related brands will flood the market with new launches to tap the growing need to ‘Stay Fit’
- Commonwealth Games 2010: Being the host country there will some excitement around this event. So certain entertainment hardware companies will use it tactically to push their high end TV. Also DTH operators will join the bandwagon
Only Nicholas Cage in the movie “Next” could see the future that too 2 minutes before it happened, but I can say that the 2010 will see the removal of toxic agents from the business environment and the rise of breakthrough innovations.