Campaign India Team
Jan 15, 2018

Dentsu expects Adex in India to grow at 12.5 per cent

Global growth is at 3.6 per cent

Dentsu expects Adex in India to grow at 12.5 per cent
Dentsu Aegis Network’s Ad Spend Forecasts which contains data from 59 markets has estimated advertising spends to grow at 3.6 per cent in 2018, up from 3.1 per cent in 2017. The growth in Asia Pacific will be 4.2 per cent, up from 3.5 per cent from last year. 
 
According to the report Indian advertising spends will grow at 12.5 per cent, up from 9.6 per cent in 2017.   
 
The reason for the growth in the year are events like the Winter Olympics, Commonwealth Games, Asian Games, FIFA World Cup and state elections.
 
Kartik Iyer, president - media brands and Amplifi Dentsu Aegis Network India, said, “India is forecast to grow by 12.5 per cent in 2018, up from 9.6 per cent in 2017, reflecting its solid economic growth trajectory. Digital media spend is forecast to increase by 30 per cent in 2018 with 43.6 per cent growth in mobile spend, which will account for 47 per cent of total digital spend in 2018. The advertising market in India is forecast to grow by a further 12.5 per cent in 2019. 2018 is expected to be a growth year considering the stabilisation post GST."
 
He added, "Another driver of growth would be the fiscal policies of the government which are expected to be pro spending and supporting the middle income groups. In India, the significant improvement in availability of high-speed networks at a lower cost is making a huge impact in the efficiency metrics of digital media. This will continue and therefore will support the faster growth of digital advertising. As marketers, we need to be prepared to harness this change and maximise engagement with our customer and thereby deliver higher returns for our brands. As an agency group, DAN has over invested in this area and today has the largest, most experienced group of companies which are harnessing this rapidly changing area.”
 
Asia Pacific is forecast to be the leading contributor to global ad spend growth in 2018, contributing 39.7 per cent, USD 8.1 billion of the total USD 20.3 billion incremental global increase, led by markets China, Japan, India and the Philippines.
 
The report states that digital media channels will continue to power ad spend growth globally, growing by 12.6 per cent in 2018, versus 15 per cent in 2017, to reach USD 220.3 billion. Digital ad spend will account for 38.3 per cent share of total ad spend while TV is pegged at 35.5 per cent. Mobile will reach USD 121.1 billion having overtaken desktop as a share of total digital spend in 2017. 
 
Forecast ad spend growth rates by region and country 
 
 

 

YEAR ON YEAR % GROWTH AT CURRENT PRICES

 

2016a

2017f

2018f

GLOBAL

4.7 (4.8)

3.1 (3.8)

3.6 (4.3)

NORTH AMERICA

4.8 (5.0)

2.5 (3.6)

3.1 (4.0)

USA

5.0 (5.0)

2.6 (3.6)

3.2 (4.0)

CANADA

0.1 (3.1)

0.0 (3.1)

1.1 (2.7)

W. EUROPE

4.1 (4.0)

3.3 (3.5)

2.6 (3.6)

UK

6.1 (6.1)

3.2 (4.0)

2.9 (5.9)

GERMANY

2.8 (2.3)

2.2 (2.6)

2.6 (3.0)

FRANCE

0.9 (0.9)

1.7 (1.6)

2.0 (2.0)

ITALY

3.5 (3.5)

0.9 (0.8)

1.9 (1.5)

SPAIN

6.8 (6.8)

1.9 (5.0)

1.4 (3.6)

C&EE

7.6 (7.6)

8.3 (6.6)

7.4 (6.0)

RUSSIA

11.4 (11.4)

12.9 (9.8)

10.4 (7.8)

ASIA PACIFIC

4.6 (4.7)

3.5 (4.3)

4.2 (4.6)

AUSTRALIA

4.5 (4.8)

2.7 (4.1)

2.9 (4.8)

CHINA

7.4 (7.4)

6.0 (6.0)

5.4 (5.4)

INDIA

11.9 (11.9)

9.6 (13.0)

12.5 (12.2)

JAPAN

1.9 (1.9)

1.0 (1.7)

1.6 (1.7)

LATIN AMERICA

9.1 (11.9)

8.1 (7.0)

8.8 (8.9)

BRAZIL

5.4 (5.4)

2.1 (2.1)

5.0 (5.0)

 

Figures in brackets show our previous forecasts from June 2017

 

 

Source:
Campaign India

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