GroupM has announced a revision of its annual estimated advertising expenditure for 2014 in India to 12.5 per cent, from 11.6 per cent released earlier this year (February, see below). The total ad spend in India was Rs 38,598 crore in 2013, according to the WPP entity.
The revision comes as part of GroupM’s global media and marketing forecasting series ‘This Year, Next Year’.
Ad spend on TV will grow 14.8 pc in 2014 according to GroupM, up from the 12 pc growth predicted earlier this year. The earlier prediction had indicated a 1.8 pc decrease from 2013 (Rs 16,860 cr.).
Digital spends will continue to be the fastest growing, at 35 per cent, says the report. This remains unchanged from the earlier prediction. The medium is expected to attract over Rs 3,400 crore in ad revenue in 2014.
In print, regional publications and local advertisers are projected to lead the growth for dailies. Government and retail will continue to increase spending in print, according to GroupM.
On industry sectors contributing to the revised growth, CVL Srinivas, CEO, GroupM South Asia, said, “After a cautious start to the year, the overall sentiment in the country is positive following the general elections and a new stable government. One of the sectors that is adding to the growth story in India is retail. Specifically, e-commerce players that are investing heavily in above the line advertising along with digital media. Industries like FMCG, auto, telecom and BFSI are expected to increase spends given competitive pressures and clear policies.”
The report draws on data from holding company WPP's resources in advertising, public relations, market research and specialist communications.