Digital advertising spends to overtake TV by FY21: KPMG Report 2020

KPMG Report 2020

KPMG in India launched its twelfth edition of 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 digital consumption during the lockdown across geographies and socio-economic classes. 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.

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As Satya Easwaran, Partner and Head, Technology, Media, and Telecom, KPMG in India, said, “The distinction among segments of M&E has become more pronounced with the experience of the lockdown. Marketing spend has moved perceptibly towards digital media and away from traditional segments like print, radio and to some extent TV. A greater reliance on subscription and other paid options as well as the development of a credible digital business model is going to be inevitable for these traditional media segments.”

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 organizations, with cost reduction also emerging as important to traditional media segments.

Girish Menon, Partner, and Head, Media and Entertainment, adds, “There will be deeper integration of digital technology across the M&E value chain – from content production to distribution. Technology adoption could however face some challenges in terms of skill development and the shift to a digital-first mindset but will result in operational cost savings and potentially lower lead times over the longer term.”

You can view the complete report here:



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