Mumbai: Zenith’s Advertising Expenditure Forecasts has forecasts that ad spends for India in year 2018 will close at Rs.62, 699 crore and Total adex for India will see an increase of 15% and climb up to Rs. 72, 169 crore in 2019.
India remains one of the fastest growing economies, with strong GDP growth of over 7%, led by reforms in sectors such as retail, infrastructure, manufacturing and services.
Given that a significant part of the population is below 30 years of age, there is likely to be continued consumption-led growth with less reliance on export-led momentum. This should give a boost to businesses across the board, ad investments and government initiatives.
However, 2018 has also seen the depreciation of the rupee and oil price volatility. The overall expectation is that oil prices will stabilise, giving Indian consumers more disposable income. Indian consumer confidence continues to remain relatively high.
Tanmay Mohanty, Group CEO at Zenith said that many parts of India were experiencing digital transformation, led by mobile. This will accelerate categories such as banking, financial services, healthcare, entertainment and sports, travel and lifestyle.
“2019 is the year of the Indian General Elections. These and the State Elections will boost marketing spends. Additionally, the Cricket World Cup and the Indian Premier League will drive growth.” Mohanty said.
“Digital will continue to accelerate both in reach and consumption. Television – linear and catch-up will be on an upward curve. The expectation for radio is that it will digitise aggressively in response to streaming services while both cinema and out of home (OOH) will innovate and increase reach-led investments. Print will thrive on regionalisation.” Mohanty added.
Zenith forecasts global advertising expenditure to increase by US$75bn in total between 2018 and 2021 out of which US will contribute 29% of this extra ad expenditure and China will contribute 19%, followed by India (6%) and Indonesia (4%).
Six of the ten largest contributors will be Rising Markets* (China, India, Indonesia, Brazil, South Korea and Russia), and between them they will contribute 37% of new adspend over the next three years.
Overall, the report expects Rising Markets to contribute 54% of additional ad expenditure between 2018 and 2021, and to increase their share of the global market from 38% to 40%.