GroupM has released 'This Year Next Year', its advertising expenditure (adex) forecasts for 2019.
The report forecasts India’s advertising investments to grow at 14 per cent to reach an estimated Rs. 80,678 crores this year. Globally, advertising expenditure is expected to grow at 3.6 per cent in 2019.
The Cricket World Cup (June-July) and the general elections are expected to boost ad spends.
Digital adex is expected to grow by 30 per cent this year to reach Rs. 16,038 crores.
Television's growth for the year is estimated to be 15 per cent to reach Rs 38,612 crores .
Print is estimated to grow by 2.2 per cent to reach Rs 18,368 crores. The hare of print to all media is expected to be at 23 per cent. Regional will see higher growth compared to English language print publications.
Radio will grow at 15 per cent to reach Rs 3,116 crores according to the report
GroupM estimates cinema advertising to grow at 25 per cent to reach 1,008 crores. .
Outdoor will contribute Rs 3,536 crores and will grow at 10 per cent.
Sam Singh, CEO, GroupM South Asia, said, “While we are estimating the global advertising expenditure to grow at 3.6 per cent, India would be witnessing the fastest growth at 14 per cent and reach an estimated Rs.80,578 crores. This would be approximately 2x of the estimated GDP growth in India. This also makes India the 3rd largest adex growth to the worldwide ad spends. We expect sustained and stable media investment growth across categories in India.”
Prasanth Kumar, COO, GroupM South Asia said, “Indian ad spends CAGR between 2014-2018 is at 13 per cent and 2019 expected to witness a higher growth. India is unique among key markets and will witness growth in all media segments and not just digital. Offline media is poised to continue to grow and will contribute to being around 80 per cent of ad spends in 2019.”
Tushar Vyas, president growth and transformation, GroupM South Asia, added, “With the surge of technology, better insights and relevant engagement across different platforms, we are expecting marketers to build superior consumer connections for brands. 2019 will witness a faster growth in digital and we are expecting digital to be at 20 per cent media mix. As we are witnessing one in every three Indians digitally connected, we can expect the convergence of data, digital and content to deliver seamless and powerful solutions to brands as well as constantly adding inventive practices into the market.”
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