Publicis Media Company Zenith has released its advertising expenditure forecasts for 2017. The forecast for 2017 sees digital overtake television to become the largest advertising medium worldwide. Television currently attracts 36 per cent of total global ad spends.
It also predicts global ad expenditure to grow at 4.4 per cent in both 2016 and 2017, to reach US$566 billion by the end of 2017. The 2017 forecast is down by 0.1 per cent from the forecasts published in September after small downgrades in Asia Pacific.
According to Zenith, 2017 also faces a tough comparison with the quadrennial year of 2016, when spend was increased because of the US elections, Summer Olympics, and the European football championships (Euro 2016).
After 2017, continued steady growth in global ad spend is expected, of another 4.4 per cent growth in 2018 and 4.1 per cent in 2019.
India and Fast-track Asia
According to the forecast, Fast-track Asia economies (China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam) are growing fast as they adopt Western technologies and practices. Fast-track Asia ended 2015 up an estimated 9.6 per cent.
Zenith predicts that ad expenditure growth for India in 2017 stands at Rs.54, 344 crore, up by 11.2 per cent over 2016. India is among the top ten contributors to ad spend growth, and is ranked at number five in the 'top ten contributors to ad spend growth 2016-2019' behind USA, China, Indonesia and UK.
Tanmay Mohanty, group CEO, Zenith India, said, “India remains one of the few bright spot economies in the world. Ad spending in India is on a steady growth curve and likely to stay that way in 2017, buoyed by the State Elections in Uttar Pradesh and Punjab, the upcoming Champions Trophy and continued expansion and growth of regional newspapers and television. In November, the central government introduced reform in the form of Demonetisation which is leading to some contraction in ad spends. We expect the demand for goods and services to pick up and this shortfall to be temporary. Demonetisation is expected to augur well for the economy long-term. In fact, we expect 2017 to see increased ad spending by categories such as Mobile Wallets, Telecom 4G, BFSI, Mobile Handsets, Fast Moving Consumer Goods and Consumer Durables.”
Digital will remain as one of the fastest growing mediums in India registering a 30 per cent growth rate. Television will register 11 per cent growth rate in 2017, print (newspapers) will grow at 7.6 per cent.