The findings are a part of the 12th edition of KPMG's M&E report titled ‘A year off script: Time for resilience’
Sep 30, 2020, 13:26 IST
media
Digital advertising spends set to overtake TV spends by FY21: KPMG Report
Sep 30, 2020, 13:26 IST
The findings are a part of the 12th edition of KPMG's M&E report titled ‘A year off script: Time for resilience’
- The 12th edition of
KPMG 's report on the Media & Entertainment sector examines the performance of the industry during a particularly challenging period. - The report reveals that digital advertising spends are now set to overtake those on TV by FY21, which is an important milestone and turning point in the evolution of M&E in India.
- It also states that the M&E sector should recover to its current levels and post a 33% growth in FY22 (following a contraction of 20% in FY21), which still implies a loss of around two years of growth.
KPMG in India has launched the 12th edition of its Media and Entertainment (M&E) report, titled ‘A year off script: Time for resilience’ that examines the performance of the M&E sector during a particularly challenging period.
India was already experiencing a slowdown in economic activity even prior to the outbreak of COVID-19 in March, and the onset of the global pandemic and ensuing lockdown dealt a severe blow to the Indian economy. The M&E sector has been affected but to varying degrees: outdoor entertainment formats (films and events) and traditional media (print and TV to some extent) have been badly impacted as people stayed indoors and advertising spends dried up. Digital advertising, OTT and gaming fared much better, with massive spikes in
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Organisations face a multitude of challenges and competing priorities but based on a survey of CXOs conducted by KPMG in India, customer focus and revenue growth are expected to drive digital-first initiatives over the near term within organisations, with cost reduction also emerging as important to traditional media segments.
Finally, the M&E sector should recover to its current levels and post a 33 per cent growth in FY22 (following a contraction of 20 per cent in FY21), which still implies a loss of around two years of growth. The two areas that offer encouragement are the continued economic growth of Bharat and the universal acceleration of digital adoption among users across geographies and SECs. As per our revised estimates, India could be home to a billion digital users by 2028 rather than the earlier projected 2030 timeline. There have been several structural changes to digital behaviour on account of the experience of the lockdown resulting in a new homogeneity among users, and it is our belief that many of these changes will translate into a more democratic and sophisticated digital citizenry within the country.
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