A recent survey concuded by PricewaterHouse Coopers on 'global entertainment and media business, concluded that the ratio of advertising expenditure to GDP in India is about 0.4 per cent.

The ratio, says the study, is quite low compared to developed economies like the US (1.3 per cent), UK (1.1 per cent) and Germany (0.9 per cent) or developing economies like Brazil (1.6 per cent), Thailand ( 0.9 per cent) and Indonesia (0.7 per cent).

A country’s total advertising expenditure and its gross domestic product (GDP) have a strong positive correlation in the context of a global economy. The study however, optimistically notes that the advertising expenditure to GDP ratio is expected to go up to 0.5 per cent over the next five years as the Indian economy develops. It, however, says the Indian entertainment industry has immense potential for growth.

“The ingredients for success are present, but the growth drivers need to be enabled by the government and the industry through implementation of various regulatory and policy measures.” it adds. /y2k2/may/may4.htm