According to an IPG Mediabrands India report, Adex in 2016 will grow by 16.2 per cent in the country. The size of the industry is expected to touch Rs 564 billion (9 billion USD) approximately. This half yearly report is put together by Magna Global, a strategic global media unit of IPGMediabrands.
In December 2015, Magna had predicted the Adex to grow at 18.4 per cent in 2016.
The report also states that Indian Adex in 2017 will grow by 15.7 per cent at get into the top 10 at the expense of Italy. By 2020, India will be the sixth largest advertising market, states the report.
Magna stated that India retains its position as the fastest growing economy with real GDP (gross domestic product) growth of 7.5 per cent in 2016. According to International Monetary Fund (IMF), India is likely to maintain the same GDP growth in 2017 as well. Consumer inflation slightly outside of target will force the central bank to hold onto its policy rates. However the earlier reduction in rates gave the much needed impetus to automobile, housing, durables and education sectors. The farm sector, if favoured with a good monsoon, will set to rebound its output. The report estimates private consumption to mirror the growth rates and push for higher marketing spends.
The report stated that the events of this year, T20 World Cup, State elections and UEFA Euro 2016 helped in generate incremental spends in the country. Additionally, the 4G landscape ‘destined to explode’ means that service providers and handset manufacturers will be spending more on advertising. Government investment on infrastructure and social awareness projects will hit a new high too according to the report. E-commerce and automobile will continue to occupy significantly larger media space.
Shashi Sinha, CEO, IPG Mediabrands, said, “The outlook is extremely positive as globally India remains one of the fastest growing markets. In fact, India is now one of the top ten advertising markets in the world.”
On the revised forecast, S Venkatesh, EVP, director intelligence practice, Magna Global – India, said, “Basis our initial read of the emerging trends we had envisaged a stronger headwind across digital formats on the mobile platform while the real numbers for H1 2016 suggests a lesser significant acceleration”
According to the report, Television has a market share of 42 per cent and will grow by 17 per cent. The biggest contributor to revenue is T20 World Cup, Indian Premier League (IPL) and non-cricketing leagues thanks to contributions from e-commerce, telecom, auto and CPG advertising.
Print will continue to be the second biggest medium in India with 35 per cent market share and ad sales growth of eight per cent, says the prediction. Conventionally print heavy advertisers in CPG, BFSI, automobile and e-commerce will contribute to the segment growth.
Digital will have the highest growth at 40 per cent and increase its share of market by to 13 per cent from 11, says Magna. Videos will be the fastest growing format driven by consumption on mobile devices. Screen time will increase as smartphones get bigger with better displays and faster bandwidth.
The report states that radio will grow at 18 per cent this year. Foot print expansion along with increase in volume are the factors contributing to it. The medium will continue to have a four per cent market share.
On OOH, the prediction is that it will grow at 15 per cent in 2016 continuing with its six per cent market share.