The fact that video watching is growing phenomenally in the country due to cheap smartphones and falling data rates has been luring more and more advertisers. According to GroupM’s annual ad forecast report “This Year Next Year’, video advertising growth is expected to be at 54%, followed by digital advertising, which is expected to grow at 30%.
As per the report, TV will report a stronger growth in 2018 due to volume growth with free-to-air (FTA) channels as well as value with HD channels. The TV AdEx may grow at 13% to Rs 31,596 crore. In 2017, the AdEx grew at 10% to Rs 27,961 crore.
According to WPP India country manager, and CEO, GroupM South Asia CEO CVL Srinivas, 2017 was one of the most difficult years where the AdEx growth was 10% compared to 12% in 2016 and 14% in 2015.
The report stressed that the Cable TV digitisation is also expected to aid rural viewership.
As per report, digital’s share of the total ad expenditure (AdEx) is expected to rise to 17.8% in 2018 compared to 15.5% in 2017. As ad spends on digital see an upswing, the issue of measurement and transparency will become of paramount importance.
Srinivas further said: “As consumer sentiment stabilises and spending increases, we estimate 2018 to be a relatively better year from an ad spend perspective. Growth in digital media will continue to outstrip other media but unlike most markets, India continues to see traditional media formats grow. After a couple of sluggish years, rural volumes are expected to pick up this year leading to increased marketing budgets. The structural changes witnessed in the last couple of years could pave the way for a more stable outlook in the coming years. We haven’t yet realised our full potential as an ad market but are headed in the right direction.”
According to WPP India country manager, and CEO, GroupM South Asia CEO CVL Srinivas, 2017 was one of the most difficult years where the AdEx growth was 10% compared to 12% in 2016 and 14% in 2015.
The report stressed that the Cable TV digitisation is also expected to aid rural viewership.
As per report, digital’s share of the total ad expenditure (AdEx) is expected to rise to 17.8% in 2018 compared to 15.5% in 2017. As ad spends on digital see an upswing, the issue of measurement and transparency will become of paramount importance.
Srinivas further said: “As consumer sentiment stabilises and spending increases, we estimate 2018 to be a relatively better year from an ad spend perspective. Growth in digital media will continue to outstrip other media but unlike most markets, India continues to see traditional media formats grow. After a couple of sluggish years, rural volumes are expected to pick up this year leading to increased marketing budgets. The structural changes witnessed in the last couple of years could pave the way for a more stable outlook in the coming years. We haven’t yet realised our full potential as an ad market but are headed in the right direction.”
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